[Title 44 CFR ]
[Code of Federal Regulations (annual edition) - October 1, 2017 Edition]
[From the U.S. Government Publishing Office]



[[Page i]]

          

          Title 44

Emergency Management and Assistance

                         Revised as of October 1, 2017

          Containing a codification of documents of general 
          applicability and future effect

          As of October 1, 2017
                    Published by the Office of the Federal Register 
                    National Archives and Records Administration as a 
                    Special Edition of the Federal Register

[[Page ii]]

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[[Page iii]]




                            Table of Contents



                                                                    Page
  Explanation.................................................       v

  Title 44:
          Chapter I--Federal Emergency Management Agency, 
          Department of Homeland Security                            3
          Chapter IV--Department of Commerce and Department of 
          Transportation                                           555
  Finding Aids:
      Table of CFR Titles and Chapters........................     563
      Alphabetical List of Agencies Appearing in the CFR......     583
      List of CFR Sections Affected...........................     593

[[Page iv]]


      


                     ----------------------------

                     Cite this Code:  CFR
                     To cite the regulations in 
                       this volume use title, 
                       part and section number. 
                       Thus, 44 CFR 1.1 refers to 
                       title 44, part 1, section 
                       1.

                     ----------------------------

[[Page v]]



                               EXPLANATION

    The Code of Federal Regulations is a codification of the general and 
permanent rules published in the Federal Register by the Executive 
departments and agencies of the Federal Government. The Code is divided 
into 50 titles which represent broad areas subject to Federal 
regulation. Each title is divided into chapters which usually bear the 
name of the issuing agency. Each chapter is further subdivided into 
parts covering specific regulatory areas.
    Each volume of the Code is revised at least once each calendar year 
and issued on a quarterly basis approximately as follows:

Title 1 through Title 16.................................as of January 1
Title 17 through Title 27..................................as of April 1
Title 28 through Title 41...................................as of July 1
Title 42 through Title 50................................as of October 1

    The appropriate revision date is printed on the cover of each 
volume.

LEGAL STATUS

    The contents of the Federal Register are required to be judicially 
noticed (44 U.S.C. 1507). The Code of Federal Regulations is prima facie 
evidence of the text of the original documents (44 U.S.C. 1510).

HOW TO USE THE CODE OF FEDERAL REGULATIONS

    The Code of Federal Regulations is kept up to date by the individual 
issues of the Federal Register. These two publications must be used 
together to determine the latest version of any given rule.
    To determine whether a Code volume has been amended since its 
revision date (in this case, October 1, 2017), consult the ``List of CFR 
Sections Affected (LSA),'' which is issued monthly, and the ``Cumulative 
List of Parts Affected,'' which appears in the Reader Aids section of 
the daily Federal Register. These two lists will identify the Federal 
Register page number of the latest amendment of any given rule.

EFFECTIVE AND EXPIRATION DATES

    Each volume of the Code contains amendments published in the Federal 
Register since the last revision of that volume of the Code. Source 
citations for the regulations are referred to by volume number and page 
number of the Federal Register and date of publication. Publication 
dates and effective dates are usually not the same and care must be 
exercised by the user in determining the actual effective date. In 
instances where the effective date is beyond the cut-off date for the 
Code a note has been inserted to reflect the future effective date. In 
those instances where a regulation published in the Federal Register 
states a date certain for expiration, an appropriate note will be 
inserted following the text.

OMB CONTROL NUMBERS

    The Paperwork Reduction Act of 1980 (Pub. L. 96-511) requires 
Federal agencies to display an OMB control number with their information 
collection request.

[[Page vi]]

Many agencies have begun publishing numerous OMB control numbers as 
amendments to existing regulations in the CFR. These OMB numbers are 
placed as close as possible to the applicable recordkeeping or reporting 
requirements.

PAST PROVISIONS OF THE CODE

    Provisions of the Code that are no longer in force and effect as of 
the revision date stated on the cover of each volume are not carried. 
Code users may find the text of provisions in effect on any given date 
in the past by using the appropriate List of CFR Sections Affected 
(LSA). For the convenience of the reader, a ``List of CFR Sections 
Affected'' is published at the end of each CFR volume. For changes to 
the Code prior to the LSA listings at the end of the volume, consult 
previous annual editions of the LSA. For changes to the Code prior to 
2001, consult the List of CFR Sections Affected compilations, published 
for 1949-1963, 1964-1972, 1973-1985, and 1986-2000.

``[RESERVED]'' TERMINOLOGY

    The term ``[Reserved]'' is used as a place holder within the Code of 
Federal Regulations. An agency may add regulatory information at a 
``[Reserved]'' location at any time. Occasionally ``[Reserved]'' is used 
editorially to indicate that a portion of the CFR was left vacant and 
not accidentally dropped due to a printing or computer error.

INCORPORATION BY REFERENCE

    What is incorporation by reference? Incorporation by reference was 
established by statute and allows Federal agencies to meet the 
requirement to publish regulations in the Federal Register by referring 
to materials already published elsewhere. For an incorporation to be 
valid, the Director of the Federal Register must approve it. The legal 
effect of incorporation by reference is that the material is treated as 
if it were published in full in the Federal Register (5 U.S.C. 552(a)). 
This material, like any other properly issued regulation, has the force 
of law.
    What is a proper incorporation by reference? The Director of the 
Federal Register will approve an incorporation by reference only when 
the requirements of 1 CFR part 51 are met. Some of the elements on which 
approval is based are:
    (a) The incorporation will substantially reduce the volume of 
material published in the Federal Register.
    (b) The matter incorporated is in fact available to the extent 
necessary to afford fairness and uniformity in the administrative 
process.
    (c) The incorporating document is drafted and submitted for 
publication in accordance with 1 CFR part 51.
    What if the material incorporated by reference cannot be found? If 
you have any problem locating or obtaining a copy of material listed as 
an approved incorporation by reference, please contact the agency that 
issued the regulation containing that incorporation. If, after 
contacting the agency, you find the material is not available, please 
notify the Director of the Federal Register, National Archives and 
Records Administration, 8601 Adelphi Road, College Park, MD 20740-6001, 
or call 202-741-6010.

CFR INDEXES AND TABULAR GUIDES

    A subject index to the Code of Federal Regulations is contained in a 
separate volume, revised annually as of January 1, entitled CFR Index 
and Finding Aids. This volume contains the Parallel Table of Authorities 
and Rules. A list of CFR titles, chapters, subchapters, and parts and an 
alphabetical list of agencies publishing in the CFR are also included in 
this volume.

[[Page vii]]

    An index to the text of ``Title 3--The President'' is carried within 
that volume.
    The Federal Register Index is issued monthly in cumulative form. 
This index is based on a consolidation of the ``Contents'' entries in 
the daily Federal Register.
    A List of CFR Sections Affected (LSA) is published monthly, keyed to 
the revision dates of the 50 CFR titles.

REPUBLICATION OF MATERIAL

    There are no restrictions on the republication of material appearing 
in the Code of Federal Regulations.

INQUIRIES

    For a legal interpretation or explanation of any regulation in this 
volume, contact the issuing agency. The issuing agency's name appears at 
the top of odd-numbered pages.
    For inquiries concerning CFR reference assistance, call 202-741-6000 
or write to the Director, Office of the Federal Register, National 
Archives and Records Administration, 8601 Adelphi Road, College Park, MD 
20740-6001 or e-mail [email protected]

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ELECTRONIC SERVICES

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CFR Sections Affected), The United States Government Manual, the Federal 
Register, Public Laws, Public Papers of the Presidents of the United 
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Compilation are available in electronic format via www.ofr.gov. For more 
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mail, [email protected]
    The Office of the Federal Register also offers a free service on the 
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site for public law numbers, Federal Register finding aids, and related 
information. Connect to NARA's web site at www.archives.gov/federal-
register.
    The e-CFR is a regularly updated, unofficial editorial compilation 
of CFR material and Federal Register amendments, produced by the Office 
of the Federal Register and the Government Publishing Office. It is 
available at www.ecfr.gov.

    Oliver A. Potts,
    Director,
    Office of the Federal Register.
    October 1, 2017.

                                
                                      
                            

  

[[Page ix]]



                               THIS TITLE

    Title 44--Emergency Management and Assistance is composed of one 
volume. The contents of this volume represent all current regulations 
codified under this title of the CFR as of October 1, 2017.

    For this volume, Bonnie Fritts was Chief Editor. The Code of Federal 
Regulations publication program is under the direction of John Hyrum 
Martinez, assisted by Stephen J. Frattini.

[[Page 1]]



              TITLE 44--EMERGENCY MANAGEMENT AND ASSISTANCE




  --------------------------------------------------------------------
                                                                    Part

chapter i--Federal Emergency Management Agency, Department 
  of Homeland Security......................................           1

chapter iv--Department of Commerce and Department of 
  Transportation............................................         401

[[Page 3]]



 CHAPTER I--FEDERAL EMERGENCY MANAGEMENT AGENCY, DEPARTMENT OF HOMELAND 
                                SECURITY




  --------------------------------------------------------------------


  Editorial Note: Nomenclature changes to chapter I appear at 74 FR 
15331, Apr. 3, 2009.

                          SUBCHAPTER A--GENERAL
Part                                                                Page
0

General statements of policy [Reserved]

1               Rulemaking; policy and procedures...........           7
2               OMB control numbers.........................          13
3

[Reserved]

4               Intergovernmental review of Federal 
                    Emergency Management Agency (FEMA) 
                    programs and activities.................          14
5               Production or disclosure of information.....          17
6               Implementation of the Privacy Act of 1974...          20
7               Nondiscrimination in federally-assisted 
                    programs (FEMA Reg. 5)..................          38
8

[Reserved]

9               Floodplain management and protection of 
                    wetlands................................          53
10

[Reserved]

11              Claims......................................          73
12-14

[Reserved]

15              Conduct at the Mt. Weather Emergency 
                    Assistance Center and at the National 
                    Emergency Training Center...............          84
16              Enforcement of nondiscrimination on the 
                    basis of handicap in programs or 
                    activities conducted by the Federal 
                    Emergency Management Agency.............          88
17

[Reserved]

18              New restrictions on lobbying................          94
19              Nondiscrimination on the basis of sex in 
                    education programs or activities 
                    receiving Federal financial assistance..         106
20-24

[Reserved]

[[Page 4]]

25              Uniform relocation assistance and real 
                    property acquisition for Federal and 
                    federally assisted programs.............         122
26-49

[Reserved]

              SUBCHAPTER B--INSURANCE AND HAZARD MITIGATION
50-54

[Reserved]

                 NATIONAL INSURANCE DEVELOPMENT PROGRAM
55-58

[Reserved]

                    NATIONAL FLOOD INSURANCE PROGRAM
59              General provisions..........................         123
60              Criteria for land management and use........         139
61              Insurance coverage and rates................         155
62              Sale of insurance and adjustment of claims..         205
63              Implementation of section 1306(c) of the 
                    National Flood Insurance Act of 1968....         214
64              Communities eligible for the sale of 
                    insurance...............................         219
65              Identification and mapping of special hazard 
                    areas...................................         222
66              Consultation with local officials...........         238
67              Appeals from proposed flood elevation 
                    determinations..........................         240
68              Administrative hearing procedures...........         243
69

[Reserved]

70              Procedure for map correction................         245
71              Implementation of coastal barrier 
                    legislation.............................         248
72              Procedures and fees for processing map 
                    changes.................................         251
73              Implementation of section 1316 of the 
                    National Flood Insurance Act of 1968....         254
74

[Reserved]

75              Exemption of State-owned properties under 
                    self-insurance plan.....................         256
76-77

[Reserved]

78              Flood mitigation assistance.................         258
79              Flood mitigation grants.....................         262
80              Property acquisition and relocation for open 
                    space...................................         270
81-149

[Reserved]

                SUBCHAPTER C--FIRE PREVENTION AND CONTROL
150             Public safety awards to public safety 
                    officers................................         279
151             Reimbursement for costs of firefighting on 
                    Federal property........................         282
152             Assistance to firefighters grant program....         287

[[Page 5]]

153-199

[Reserved]

                    SUBCHAPTER D--DISASTER ASSISTANCE
200

[Reserved]

201             Mitigation planning.........................         296
202-203

[Reserved]

204             Fire Management Assistance Grant Program....         306
205

[Reserved]

206             Federal disaster assistance.................         316
207             Management costs............................         433
208             National Urban Search and Rescue Response 
                    System..................................         439
209             Supplemental property acquisition and 
                    elevation assistance....................         454
210-294

[Reserved]

               SUBCHAPTER E--CERRO GRANDE FIRE ASSISTANCE
295             Cerro Grande fire assistance................         463
296-299

[Reserved]

                       SUBCHAPTER F--PREPAREDNESS
300             Disaster preparedness assistance............         476
301

[Reserved]

302             Civil defense-State and local Emergency 
                    Management Assistance Program (EMA).....         477
303

[Reserved]

304             Consolidated grants to insular areas........         486
305-311

[Reserved]

312             Use of civil defense personnel, materials, 
                    and facilities for natural disaster 
                    purposes................................         487
313-320

[Reserved]

321             Maintenance of the mobilization base 
                    (Department of Defense, Department of 
                    Energy, Maritime Administration)........         490
322

[Reserved]

323             Guidance on priority use of resources in 
                    immediate post attack period (DMO-4)....         493
324-326

[Reserved]

327             Policy on use of Government-owned industrial 
                    plant equipment by private industry 
                    (DMO-10A)...............................         498
328

[Reserved]

329             Use of priorities and allocation authority 
                    for Federal supply classification (FSC) 
                    common use items (DMO-12)...............         500

[[Page 6]]

330             Policy guidance and delegation of 
                    authorities for use of priorities and 
                    allocations to maximize domestic energy 
                    supplies in accordance with subsection 
                    101(c) of the Defense Production Act of 
                    1950, as amended (DMO-13)...............         501
331             Preservation of the mobilization base 
                    through the placement of procurement and 
                    facilities in labor surplus areas.......         502
332             Voluntary agreements under section 708 of 
                    the Defense Production Act of 1950, as 
                    amended.................................         503
333

[Reserved]

334             Graduated mobilization response.............         507
335-349

[Reserved]

350             Review and approval of State and local 
                    radiological emergency plans and 
                    preparedness............................         510
351             Radiological emergency planning and 
                    preparedness............................         520
352             Commercial nuclear power plants: emergency 
                    preparedness planning...................         526
353             Fee for services in support, review and 
                    approval of State and local government 
                    or licensee radiological emergency plans 
                    and preparedness........................         532
354             Fee for services to support FEMA'S offsite 
                    Radiological Emergency Preparedness 
                    Program.................................         540
355-359

[Reserved]

360             State assistance programs for training and 
                    education in comprehensive emergency 
                    management..............................         544
361             National earthquake hazards reduction 
                    assistance to State and local 
                    governments.............................         547
362             Criteria for acceptance of gifts, bequests, 
                    or services.............................         552
363-399

[Reserved]

[[Page 7]]



                          SUBCHAPTER A_GENERAL



             PART 0_GENERAL STATEMENTS OF POLICY [RESERVED]



PART 1_RULEMAKING; POLICY AND PROCEDURES--Table of Contents



                            Subpart A_General

Sec.
1.1  Purpose.
1.2  Definitions.
1.3  Scope.
1.4  Policy and procedures.
1.5  Rules docket.
1.6  Ex parte communications.
1.7  Regulations agendas.
1.8  Regulations review.
1.9  Regulatory impact analyses.

                   Subpart B_Procedures for Rulemaking

1.10  Initiation of rulemaking.
1.11  Advance notice of proposed rulemaking.
1.12  Notice of proposed rulemaking.
1.13  Participation by interested persons.
1.14  Additional rulemaking proceedings.
1.15  Hearings.
1.16  Adoption of a final rule.
1.17  Petitions for reconsideration.
1.18  Petition for rulemaking.

    Authority: 5 U.S.C. 551, 552, 553; 5 U.S.C. 601, et seq.; E.O. 
12291. Reorganization Plan No. 3 of 1978; E.O. 12127; E.O. 12148.

    Source: 46 FR 32584, June 24, 1981, unless otherwise noted.



                            Subpart A_General



Sec. 1.1  Purpose.

    (a) This part contains the basic policies and procedures of the 
Federal Emergency Management Agency (FEMA) for adoption of rules. These 
policies and procedures incorporate those provisions of section 4 of the 
Administrative Procedure Act (APA) (5 U.S.C. 553) which FEMA will 
follow. This part and internal FEMA Manuals implement Executive Order 
12291.
    (b) Rules which must be published are described in section 3(a) of 
the APA, 5 U.S.C. 552(a). FEMA implementation of paragraph (a) is 
contained in 44 CFR part 5, subpart B.
    (c) This part contains policies and procedures for implementation of 
the Regulatory Flexibility Act which took effect January 1, 1981.
    (d) A FEMA Manual No. 1140.1, ``The Formulation, Drafting, 
Clearance, and Publication of Federal Register Documents'' has been 
issued describing the internal procedures including policy level 
oversight of FEMA for:
    (1) Publishing the semiannual agenda of significant regulations 
under development and review;
    (2) Making initial determinations with respect to significance of 
proposed rulemaking;
    (3) Determining the need for regulatory analyses; and
    (4) Reviewing existing regulations, including the reviews required 
by the Regulatory Flexibility Act.
    (e) As the FEMA Manual deals with internal management it is not 
subject to the requirements either of 5 U.S.C. 552 or 553. Its 
provisions are not part of this rule and reference to it is informative 
only.

[46 FR 32584, June 24, 1981, as amended at 49 FR 33878, Aug. 27, 1984]



Sec. 1.2  Definitions.

    (a) Rule or regulation means the whole or a part of any agency 
statement of general applicability and future effect designed to (1) 
implement, interpret, or prescribe law or policy, or (2) describe 
procedures or practice requirements. It includes any rule of general 
applicability governing Federal grants to State and local governments 
for which the agency provides an opportunity for notice and public 
comment, except that the term rule does not include a rule of particular 
applicability relating to rates, wages, prices, facilities, appliances, 
services, or allowances therefor or to valuations, costs or accounting, 
or practices relating to such rates, wages, structures, prices, 
appliances, services, or allowances. For purposes of this part the term 
rule does not include regulations issued with respect to a military or 
foreign affairs function of the United States.

[[Page 8]]

    (b) Rulemaking means the FEMA process for considering and 
formulating the issuance, amendment or repeal of a rule.
    (c) Administrator means the Administrator, FEMA, or an official to 
whom the Administrator has expressly delegated authority to issue rules.
    (d) FEMA means Federal Emergency Management Agency.
    (e) Major rule means any regulation that is likely to result in:
    (1) An annual effect on the economy of $100 million or more;
    (2) A major increase in costs or prices for consumers, individual 
industries, Federal, State, or local government agencies, or geographic 
regions; or
    (3) Significant adverse effects on competition, employment, 
investment, productivity, innovation, or on the ability of United 
States-based enterprises to compete with foreign-based enterprises in 
domestic or export markets.

[46 FR 32584, June 24, 1981, as amended at 49 FR 38118, Sept. 27, 1984]



Sec. 1.3  Scope.

    (a) This part prescribes general rulemaking procedures for the 
issuance, amendment, or repeal of rules in which participation by 
interested persons is required by 5 U.S.C. 553 or other statutes, by 
Executive Order 12291, by FEMA policy, or by Sec. 1.4 of this part.
    (b) Any delegation by the Administrator of authority to issue rules 
may not be further redelegated, unless expressly provided for in the 
delegation.
    (c) This part does not apply to rules issued in accordance with the 
formal rulemaking provisions of the Administrative Procedure Act (5 
U.S.C. 556, 557).



Sec. 1.4  Policy and procedures.

    (a) In promulgating new regulations, reviewing existing regulations, 
and developing legislative proposals concerning regulation, FEMA, to the 
extent permitted by law, shall adhere to the following requirements:
    (1) Administrative decisions shall be based on adequate information 
concerning the need for and consequences of proposed government action;
    (2) Regulatory action shall not be undertaken unless the potential 
benefits to society for the regulation outweigh the potential costs to 
society;
    (3) Regulatory objectives shall be chosen to maximize the net 
benefits to society;
    (4) Among alternative approaches to any given regulatory objective, 
the alternative involving the least net cost to society shall be chosen; 
and
    (5) FEMA shall set regulatory priorities with the aim of maximizing 
the aggregate net benefits to society, taking into account the condition 
of the particular entities affected by regulations, the condition of the 
national economy, and other regulatory actions contemplated for the 
future.
    (b) It is the policy of FEMA to provide for public participation in 
rulemaking regarding its programs and functions, including matters that 
relate to public property, loans, grants, or benefits, or contracts, 
even though these matters are not subject to a requirement for notice 
and public comment rulemaking by law.
    (c) FEMA will publish notices of proposed rulemaking in the Federal 
Register and will give interested persons an opportunity to participate 
in the rulemaking through submission of written data, views, and 
arguments with or without opportunity for oral presentation.
    (d) In order to give the public, including small entities and 
consumer groups, an early and meaningful opportunity to participate in 
the development of rules, for a number of regulations the Administrator 
will employ additional methods of inviting public participation. These 
methods include, but are not limited to, publishing advance Notices of 
Proposed Rulemaking (ANPR), which can include a statement with respect 
to the impact of the proposed rule on small entities; holding open 
conferences; convening public forums or panels, sending notices of 
proposed regulations to publications likely to be read by those affected 
and soliciting comment from interested parties by such means as direct 
mail. An ANPR should be used to solicit public comment early in the 
rulemaking process for significant rules.
    (e) It is the policy of FEMA that its notices of proposed rulemaking 
are to afford the public at least sixty days for

[[Page 9]]

submission of comments unless the Administrator makes an exception and 
sets forth the reasons for the exception in the preamble to the notice 
of proposed rulemaking. This period shall also include any period of 
review required by the Office of Management and Budget in accordance 
with the Paperwork Reduction Act of 1980.
    (f) Unless required by statute or Executive Order, notice and public 
procedure may be omitted if the Administrator, for good cause, 
determines in a particular case or class of cases that notice and public 
procedure is impractical, unnecessary or contrary to the public interest 
and sets forth the reason for the determination in the rulemaking 
document or, for a class of cases, in a published rule or statement of 
policy. In a particular case, the reasons for the determination will be 
stated in the rulemaking document. Notice and public procedure may also 
be omitted with respect to statements of policy, interpretative rules, 
rules governing FEMA's organization or its own internal practices or 
procedures, or if a statute expressly authorizes omission.
    (g) A final substantive rule will be published not less than 30 days 
before its effective date unless it grants or recognizes an exemption or 
relieves a restriction or unless the rulemaking document states good 
cause for its taking effect less than 30 days after publication. 
Statements of policy and interpretative rules will usually be made 
effective on the date of publication.
    (h) This part shall not apply to any regulation that responds to an 
emergency situation, provided that, any such regulation shall be 
reported to the Director, Office of Management and Budget, as soon as is 
practicable. FEMA shall publish in the Federal Register a statement of 
the reasons why it is impracticable for the agency to follow the 
procedures of Executive Order 12866 with respect to such a rule, and the 
agency shall prepare and transmit, if needed, as soon as is practicable 
a Regulatory Impact Analysis of any such major rule.

[46 FR 32584, June 24, 1981, as amended at 49 FR 38119, Sept. 27, 1984; 
50 FR 40004, Oct. 1, 1985]



Sec. 1.5  Rules docket.

    (a) Documents which are public records and which are a part of a 
specific rulemaking procedure, including but not limited to, advance 
notices of proposed rulemaking, notices of proposed rulemaking, written 
comments addressed to the merits of a proposed rule, and comments 
received in response to notices, or withdrawals or terminations of 
proposed rulemaking, petitions for rulemaking, requests for oral 
argument in public participation cases, requests for extension of time, 
grants or denials of petitions or requests, transcripts or minutes of 
informal hearings, final rules and general notices shall be maintained 
in the Office of Chief Counsel. All public rulemaking comments should 
refer to the docket number which appears in the heading of the rule and 
should be addressed to the Rule Docket Clerk, Federal Emergency 
Management Agency, Office of Chief Counsel.
    (b) Documents which are a part of a specific rulemaking proceeding 
are public records. After a docket is established, any person may 
examine docketed material at any time during established hours of 
business and may obtain a copy of any docketed material upon payment of 
the prescribed fee. (See part 5 of this chapter.)

[46 FR 32584, June 24, 1981, as amended at 48 FR 44542, Sept. 29, 1983]



Sec. 1.6  Ex parte communications.

    In rulemaking proceedings subject only to the procedural 
requirements of 5 U.S.C. 553:
    (a) All oral communications from outside FEMA of significant 
information and argument respecting the merits of a proposed rule, 
received after notice of proposed informal rulemaking and in its course 
by FEMA or its offices and divisions or their personnel participating in 
the decision, should be summarized in writing and placed promptly in the 
Rules Docket File available for public inspection.
    (b) FEMA may conclude that restrictions on ex parte communications 
in particular rulemaking proceedings are necessitated by consideration 
of fairness or for other reasons.

[[Page 10]]



Sec. 1.7  Regulations agendas.

    (a) The FEMA semi-annual agenda called for by Executive Order 12291 
will be part of the Unified Agenda of Federal Regulations published in 
April and October of each year.
    (b) In accordance with 5 U.S.C. 605, the regulatory flexibility 
agenda required by 5 U.S.C. 602 and the list of rules, if any, to be 
reviewed pursuant to 5 U.S.C. 610 shall be included in the FEMA 
semiannual agenda described in paragraph (a) of this section.
    (c) The semiannual agenda shall, among other items, include:
    (1) A summary of the nature of each major rule being considered, the 
objectives and legal basis for the issuance of the rule, and an 
approximate schedule for completing action on any major rule for which 
the agency has issued a notice of proposed rulemaking.
    (2) The name and telephone number of a knowledgeable agency official 
for each item on the agenda; and
    (3) A list of existing regulations to be reviewed under the terms of 
the Order and a brief discussion of each such regulation.

[46 FR 32584, June 24, 1981, as amended at 49 FR 33878, Aug. 27, 1984]



Sec. 1.8  Regulations review.

    (a) As part of the semiannual agenda described in Sec. 1.7 of this 
part, FEMA will publish in the Federal Register and keep updated a plan 
for periodic review of existing rules at least within 10 years from date 
of publication of a rule as final. This includes those that have 
significant impact on a substantial number of small entities.
    (b) The purpose of the review shall be to determine whether such 
rules should be continued without change, or should be amended or 
rescinded, consistent with the stated objectives of applicable statutes, 
including minimizing any significant economic impact of the rules upon a 
substantial number of small entities.
    (c) In reviewing rules FEMA shall consider the following factors:
    (1) The continued need for the rule;
    (2) The nature, type and number of complaints or comments received 
concerning the rule from the public;
    (3) The complexity of the rule, including need for review of 
language for clarity;
    (4) The extent to which the rule overlaps, duplicates or conflicts 
with other Federal rules, and, to the extent feasible, with State and 
local governmental rules; and
    (5) The length of time since the rule has been evaluated or the 
degree to which technology, economic conditions, or other factors have 
changed in the area affected by the rule.



Sec. 1.9  Regulatory impact analyses.

    (a) FEMA shall, in connection with any major rule, prepare and 
consider a Regulatory Impact Analysis. Such analysis may be combined 
with the Regulatory Flexibility Analysis described in Secs. 1.12(f) and 
1.16(c) of this part.
    (b) FEMA shall initially determine whether a rule it intends to 
propose or to issue is a major rule and, if a major rule, shall prepare 
Regulatory Impact Analyses and transmit them, along with all notices of 
proposed rulemaking and all final rules, to the Director, Office of 
Management and Budget, as follows:
    (1) If no notice of proposed rulemaking is to be published for a 
proposed major rule that is not an emergency rule, the agency shall 
prepare only a final Regulatory Impact Analysis, which shall be 
transmitted, along with the proposed rule, to the Director, Office of 
Management and Budget, at least 60 days prior to the publication of the 
major rule as a final rule;
    (2) With respect to all other major rules, FEMA shall prepare a 
preliminary Regulatory Impact Analysis, which shall be transmitted, 
along with a notice of proposed rulemaking, to the Director, Office of 
Management and Budget, at least 60 days prior to the publication of a 
notice of proposed rulemaking, and a final Regulatory Impact Analysis, 
which shall be transmitted along with the final rule at least 30 days 
prior to the publication of the major rule as a final rule;
    (3) For all rules other than major rules, FEMA shall, unless an 
exemption has been granted, submit to the Director, Office of Management 
and

[[Page 11]]

Budget, at least 10 days prior to publication, every notice of proposed 
rulemaking and final rule.
    (c) To permit each major rule to be analyzed in light of the 
requirements stated in section 2 of Executive Order 12291, each 
preliminary and final Regulatory Impact Analysis shall contain the 
following information:
    (1) A description of the potential benefits of the rule, including 
any beneficial effects that cannot be quantified in monetary terms, and 
the identification of those likely to receive the benefits;
    (2) A description of the potential costs of the rule, including any 
adverse effects that cannot be quantified in monetary terms, and the 
identification of those likely to bear the costs;
    (3) A determination of the potential net benefits of the rule, 
including an evaluation of effects that cannot be quantified in monetary 
terms;
    (4) A description of alternative approaches that could substantially 
achieve the same regulatory goal at lower cost, together with an 
analysis of this potential benefit and costs and a brief explanation of 
the legal reasons why such alternatives, if proposed, could not be 
adopted; and
    (5) Unless covered by the description required under paragraph 
(c)(4) of this section, an explanation of any legal reasons why the rule 
cannot be based on the requirements set forth in section 2 of Executive 
Order 12291.



                   Subpart B_Procedures for Rulemaking



Sec. 1.10  Initiation of rulemaking.

    Rulemaking may be initiated on the Administrator's motion or upon 
motion of an official to whom rulemaking authority has been delegated. 
Rulemaking may also be initiated on the petition of any interested 
person in accordance with the provisions of Sec. 1.18. Interested person 
includes a Federal, State, or local government or government agency.



Sec. 1.11  Advance notice of proposed rulemaking.

    An Advance Notice of Proposed Rulemaking will be published in the 
Federal Register and contains:
    (a) A description of the proposed new program or program changes, 
and why they are needed;
    (b) A presentation of the major policy issues involved;
    (c) A request for comments, both specific and general, on the need 
for the proposed rule and the provisions that the rule might include;
    (d) If appropriate, a list of questions about the proposal which 
seeks to bring out detailed comments;
    (e) If known, an estimate of the reporting or recordkeeping 
requirements, if any, that the rule would impose; and
    (f) The time within which comments may be submitted to the Rules 
Docket Clerk, Federal Emergency Management Agency, Washington, DC 20472.

[46 FR 32584, June 24, 1981, as amended at 48 FR 44542, Sept. 29, 1983; 
49 FR 33879, Aug. 27, 1984]



Sec. 1.12  Notice of proposed rulemaking.

    Each notice of proposed rulemaking required by statute, executive 
order, or by Sec. 1.4 will be published in the Federal Register and will 
include:
    (a) The substance or terms of the proposed rule or a description of 
the subject matter and issues involved.
    (b) A statement of how and to what extent interested persons may 
participate in the proceeding.
    (c) Where participation is limited to written comments, a statement 
of the time within which such comments must be submitted.
    (d) A reference to the legal authority under which the proposal is 
issued.
    (e) In a proceeding which has provided Advance Notice of Proposed 
Rulemaking, an analysis of the principal issues and recommendations 
raised by the comments, and the manner in which they have been addressed 
in the proposed rulemaking.
    (f)(1) A brief statement setting forth the agency's initial 
determination whether the proposed rule is a major rule, together with 
the reasons underlying that determination;
    (2) For each proposed major rule, a brief summary of the agency's 
preliminary Regulatory Impact Analysis; and
    (3) The initial regulatory flexibility analysis or a summary thereof 
as required by the Regulatory Flexibility

[[Page 12]]

Act (5 U.S.C. 601, et seq.), or a certification that the rule, if 
promulgated, will not have a significant economic impact on a 
significant number of small entities pursuant to 5 U.S.C. 605. Such 
certification may be made by any FEMA official with rulemaking 
authority.
    (g) It is desirable, but not required, that the notices contain a 
target deadline for issuance of the regulation, and that to the extent 
feasible, this deadline be met.
    (h) If the rule is one which contains a requirement for collection 
of information, a copy of the rule will be furnished OMB in accordance 
with 44 U.S.C. 3504(h).

[46 FR 32584, June 24, 1981, as amended at 49 FR 38119, Sept. 27, 1984]



Sec. 1.13  Participation by interested persons.

    (a) Unless the notice otherwise provides, any interested person may 
participate in rulemaking proceedings by submitting written data, views 
or arguments within the comment time stated in the notice. In addition, 
the Administrator may permit the filing of comments in response to 
original comments.
    (b) In appropriate cases, the Administrator may provide for oral 
presentation of views in additional proceedings described in Sec. 1.14.
    (c) Copies of regulatory flexibility analyses shall be furnished the 
Chief Counsel for Advocacy of the Small Business Administration.



Sec. 1.14  Additional rulemaking proceedings.

    The Administrator may invite interested persons to present oral 
arguments, appear at informal hearings, or participate in any other 
procedure affording opportunity for oral presentation of views. The 
transcript or minutes of such meetings, as appropriate, will be kept and 
filed in the Rules Docket.



Sec. 1.15  Hearings.

    (a) The provisions of 5 U.S.C. 556 and 557, which govern formal 
hearings in adjudicatory proceedings, do not apply to informal 
rulemaking proceedings described in this part. When opportunity is 
afforded for oral presentation, the informal ``hearing'' is a 
nonadversary, fact-finding proceeding. Any rule issued in a proceeding 
under this part in which a hearing is held need not be based exclusively 
on the record of such hearing.
    (b) When a hearing is provided, the Administrator will designate a 
representative to conduct the hearing.



Sec. 1.16  Adoption of a final rule.

    (a) All timely comments will be considered in taking final action on 
a proposed rule. Each preamble to a final rule will contain a short 
analysis and evaluation of the relevant significant issues set forth in 
the comments submitted, and a clear concise statement of the basis and 
purpose of the rule.
    (b) When determined necessary by the Administrator in accordance 
with the provisions of 1 CFR 18.12, the preamble shall contain the 
following information:
    (1) A discussion of the background and major issues involved;
    (2) In the case of a final rule, any significant differences between 
it and the proposed rule;
    (3) A response to substantive public comments received; and
    (4) Any other information the Administrator considers appropriate.
    (c) At the time of publication of the final rule, a statement shall 
be published describing how the public may obtain copies of the final 
regulatory flexibility analysis which must be prepared in accordance 
with 5 U.S.C. 604 unless the procedure for waiver or delay of completion 
under 5 U.S.C. 608 is followed.
    (d) Before approving any final major rule FEMA will:
    (1) Make a determination that the regulation is clearly within the 
authority delegated by law and consistent with congressional intent and 
include in the Federal Register at the time of promulgation a memorandum 
of law supporting that determination; and
    (2) Make a determination that the factual conclusions upon which the 
rule is based have substantial support in the agency record, viewed as a 
whole, with full attention to public

[[Page 13]]

comments in general and the comments of persons directly affected by the 
rule in particular.



Sec. 1.17  Petitions for reconsideration.

    Petitions for reconsideration of a final rule will not be 
considered. Such petitions, if filed, will be treated as petitions for 
rulemaking in accordance with Sec. 1.18.



Sec. 1.18  Petition for rulemaking.

    (a) Any interested person may petition the Administrator for the 
issuance, amendment, or repeal of a rule. For purposes of this section 
the term person includes a Federal, State or local government or 
government agency. Each petition shall:
    (1) Be submitted to the Rules Docket Clerk;
    (2) Set forth the substance of the rule or amendment proposed or 
specify the rule sought to be repealed or amended;
    (3) Explain the interest of the petitioner in support of the action 
sought; and
    (4) Set forth all data and arguments available to the petitioner in 
support of the action sought.
    (b) No public procedures will be held directly on the petition 
before its disposition. If the Administrator finds that the petition 
contains adequate justification, a rulemaking proceeding will be 
initiated or a final rule will be issued as appropriate. If the 
Administrator finds that the petition does not contain adequate 
justification, the petition will be denied by letter or other notice, 
with a brief statement of the ground for denial. The Administrator may 
consider new evidence at any time; however, repetitious petitions for 
rulemaking will not be considered.



PART 2_OMB CONTROL NUMBERS--Table of Contents



Sec.
2.1  Purpose.
2.2  OMB control numbers assigned to information collections.

    Authority: 5 U.S.C. 552; 42 U.S.C. 3507; Reorganization Plan No. 3 
of 1978, 5 U.S.C. App. 1; E.O. 12127, 3 CFR, 1979 Comp., p. 376; E.O. 
12148, as amended, 3 CFR, 1979 Comp., p. 412.

    Source: 74 FR 15332, Apr. 3, 2009, unless otherwise noted.



Sec. 2.1  Purpose.

    This part collects and displays the control numbers assigned to 
information collection requirements of FEMA by the Office of Management 
and Budget (OMB) pursuant to the Paperwork Reduction Act of 1980 (44 
U.S.C. 3501 et seq.). FEMA intends that this part comply with the 
requirements of section 3507(f) of the Paperwork Reduction Act, which 
requires that agencies display a current control number assigned by the 
Director of OMB for each agency information collection requirement.



Sec. 2.2  OMB control numbers assigned to information collections.

----------------------------------------------------------------------------------------------------------------
  44 CFR part or section where identified or
                   described                                         Current OMB Control No.
----------------------------------------------------------------------------------------------------------------
59............................................  1660-0023
59.22.........................................  1660-0003, 1660-0004
59 subpart C..................................  1660-0045
60.6, 60.3....................................  1660-0033
61.13.........................................  1660-0006
62 subpart B..................................  1660-0005,1660-0095
62.23(l)......................................  1660-0086
62.24.........................................  1660-0020, 1660-0038
65, 70 generally..............................  1660-0037
71.4..........................................  1660-0010
72............................................  1660-0015, 1660-0016
75.11.........................................  1660-0013
78............................................  1660-0062, 1660-0072,1660-0075
79.7(d).......................................  1660-0104
80............................................  1660-0103
151.11........................................  1660-0014
152.4, 152.7..................................  1660-0069
201...........................................  1660-0062, 1660-0072, 1660-0103
204...........................................  1660-0058
206 subpart B: 206.34, 206.35, 206.36, 206.46,  1660-0009
 206.47.
206 subpart D: 206.101(e), 202.110, 206.117,    1660-0002
 206.119.
206.112, 206.114, 206.115.....................  1660-0061
206.171.......................................  1660-0085
206.202(f)(2), 206.203(c), 206.203(d)(i),       1660-0017
 206.204(f).

[[Page 14]]

 
206 subpart K.................................  1660-0082, 1660-0083
206 subpart N.................................  1660-0076
206.437.......................................  1660-0026
206.440.......................................  1660-0076
208...........................................  1660-0073
352...........................................  1660-0024
----------------------------------------------------------------------------------------------------------------

                            PART 3 [RESERVED]



PART 4_INTERGOVERNMENTAL REVIEW OF FEDERAL EMERGENCY MANAGEMENT AGENCY
(FEMA) PROGRAMS AND ACTIVITIES--Table of Contents



Sec.
4.1  What is the purpose of these regulations?
4.2  What definitions apply to these regulations?
4.3  What programs and activities of FEMA are subject to these 
          regulations?
4.4  [Reserved]
4.5  What is the Administrator's obligation with respect to Federal 
          interagency coordination?
4.6  What procedures apply to the selection of programs and activities 
          under these regulations?
4.7  How does the Administrator communicate with State and local 
          officials concerning FEMA's programs and activities?
4.8  How does the Administrator provide an opportunity to comment on 
          proposed Federal financial assistance and direct Federal 
          development?
4.9  How does the Administrator receive and respond to comments?
4.10  How does the Administrator make efforts to accommodate 
          intergovernmental concerns?
4.11  What are the Administrator's obligations in interstate situations?
4.12  How may a State simplify, consolidate, or substitute federally 
          required State plans?
4.13  May the Administrator waive any provision of these regulations?

    Authority: E.O. 12372, July 14, 1982 (47 FR 30959), as amended April 
8, 1983 (48 FR 15887); sec. 401, Intergovernmental Cooperation Act of 
1968, as amended (31 U.S.C. 6506); sec. 204, Demonstration Cities and 
Metropolitan Development Act of 1966, as amended (42 U.S.C. 3334).

    Source: 48 FR 29316, June 24, 1983, unless otherwise noted.

    Editorial Note: For additional information, see related documents 
published at 47 FR 57369, Dec. 23, 1982; 48 FR 17101, Apr. 21, 1983; and 
48 FR 29096, June 24, 1983.



Sec. 4.1  What is the purpose of these regulations?

    (a) The regulations in this part implement Executive Order 12372, 
``Intergovernmental Review of Federal Programs,'' issued July 14, 1982 
and amended on April 8, 1983. These regulations also implement 
applicable provisions of section 401 of the Intergovernmental 
Cooperation Act of 1968 and section 204 of the Demonstration Cities and 
Metropolitan Development Act of 1966.
    (b) These regulations are intended to foster an intergovernmental 
partnership and a strengthened Federalism by relying on state processes 
and on State, areawide, regional and local coordination for review of 
proposed Federal financial assistance and direct Federal development.
    (c) These regulations are intended to aid the internal management of 
FEMA, and are not intended to create any right or benefit enforceable at 
law by a party against FEMA or its officers.



Sec. 4.2  What definitions apply to these regulations?

    Administrator means the Administrator of FEMA or an official or 
employee of FEMA acting for the Administrator of FEMA under a delegation 
of authority.
    FEMA means the Federal Emergency Management Agency.
    Order means Executive Order 12372, issued July 14, 1982, and amended 
April 8, 1983 and titled ``Intergovernmental Review of Federal 
Programs.''
    State means any of the 50 states, the District of Columbia, the 
Commonwealth of Puerto Rico, the Commonwealth of Northern Mariana 
Islands, Guam, American Samoa, the U.S. Virgin Islands, or the Trust 
Territory of the Pacific Islands.

[48 FR 29316, June 24, 1983, as amended at 74 FR 15332, Apr. 3, 2009]

[[Page 15]]



Sec. 4.3  What programs and activities of FEMA are subject to these
regulations?

    The Administrator publishes in the Federal Register a list of FEMA's 
programs and activities that are subject to these regulations and 
identifies which of these are subject to the requirements of section 204 
of the Demonstration Cities and Metropolitan Development Act.



Sec. 4.4  [Reserved]



Sec. 4.5  What is the Administrator's obligation with respect to
Federal interagency coordination?

    The Administrator, to the extent practicable, consults with and 
seeks advice from all other substantially affected Federal departments 
and agencies in an effort to assure full coordination between such 
agencies and FEMA regarding programs and activities covered under these 
regulations.



Sec. 4.6  What procedures apply to the selection of programs and
activities under these regulations?

    (a) A State may select any program or activity published in the 
Federal Register in accordance with Sec. 4.3 of this part for 
intergovernmental review under these regulations. Each State, before 
selecting programs and activities, shall consult with local elected 
officials.
    (b) Each State that adopts a process shall notify the Administrator 
of FEMA's programs and activities selected for that process.
    (c) A State may notify the Administrator of changes in its 
selections at any time. For each change, the State shall submit to the 
Administrator an assurance that the State has consulted with local 
elected officials regarding the change. FEMA may establish deadlines by 
which States are required to inform the Administrator of changes in 
their program selections.
    (d) The Administrator uses a State's process as soon as feasible, 
depending on individual programs and activities, after the Administrator 
is notified of its selections.



Sec. 4.7  How does the Administrator communicate with State and local
officials concerning FEMA's programs and activities?

    (a) For those programs and activities covered by a state process 
under Sec. 4.6, the Administrator, to the extent permitted by law:
    (1) Uses the state process to determine views of State and local 
elected officials; and,
    (2) Communicates with State and local elected officials, through the 
state process, as early in a program planning cycle as is reasonably 
feasible to explain specific plans and actions.
    (b) The Administrator provides notice to directly affected State, 
areawide, regional, and local entities in a State of proposed Federal 
financial assistance or direct Federal development if:
    (1) The State has not adopted a process under the Order; or
    (2) The assistance or development involves a program or activity not 
selected for the State process.

This notice may be made by publication in the Federal Register or other 
appropriate means, which FEMA in its discretion deems appropriate.



Sec. 4.8  How does the Administrator provide an opportunity to comment
on proposed Federal financial assistance and direct Federal development?

    (a) Except in unusual circumstances, the Administrator gives state 
processes or directly affected State, areawide, regional and local 
officials and entities at least 60 days from the date established by the 
Administrator to comment on proposed direct Federal development or 
Federal financial assistance.
    (b) This section also applies to comments in cases in which the 
review, coordination, and communication with FEMA have been delegated.
    (c) Applicants for programs and activities subject to section 204 of 
the Demonstration Cities and Metropolitan Act shall allow areawide 
agencies a 60-day opportunity for review and comment.

[[Page 16]]



Sec. 4.9  How does the Administrator receive and respond to comments?

    (a) The Administrator follows the procedures in Sec. 4.10 if:
    (1) A State office or official is designated to act as a single 
point of contact between a state process and all Federal agencies, and
    (2) That office or official transmits a state process recommendation 
for a program selected under Sec. 4.6.
    (b)(1) The single point of contact is not obligated to transmit 
comments from State, areawide, regional or local officials and entities 
where there is no state process recommendation.
    (2) If a state process recommendation is transmitted by a single 
point of contact, all comments from state, areawide, regional, and local 
officials and entities that differ from it must also be transmitted.
    (c) If a State has not established a process, or is unable to submit 
a state process recommendation, State, areawide, regional and local 
officials and entities may submit comments to FEMA.
    (d) If a program or activity is not selected for a state process, 
State, areawide, regional and local officials and entities may submit 
comments to FEMA. In addition, if a state process recommendation for a 
nonselected program or activity is transmitted to FEMA by the single 
point of contact, the Administrator follows the procedures of Sec. 4.10 
of this part.
    (e) The Administrator considers comments which do not constitute a 
state process recommendation submitted under these regulations and for 
which the Administrator is not required to apply the procedures of 
Sec. 4.10 of this part, when such comments are provided by a single 
point of contact, by the applicant or directly to FEMA by a commenting 
party.



Sec. 4.10  How does the Administrator make efforts to accommodate
intergovernmental concerns?

    (a) If a state process provides a state process recommendation to 
FEMA through its single point of contact, the Administrator either:
    (1) Accepts the recommendation;
    (2) Reaches a mutually agreeable solution with the state process; or
    (3) Provides the single point of contact with such written 
explanation of the decision, as the Administrator in his or her 
discretion deems appropriate. The Administrator may also supplement the 
written explanation by providing the explanation to the single point of 
contact by telephone, other telecommunication, or other means.
    (b) In any explanation under paragraph (a)(3) of this section, the 
Administrator informs the single point of contact that:
    (1) FEMA will not implement its decision for at least ten days after 
the single point of contact receives the explanation; or
    (2) The Administrator has reviewed the decision and determined that, 
because of unusual circumstances, the waiting period of at least ten 
days is not feasible.
    (c) For purposes of computing the waiting period under paragraph 
(b)(1) of this section, a single point of contact is presumed to have 
received written notification 5 days after the date of mailing of such 
notification.



Sec. 4.11  What are the Administrator's obligations in interstate
situations?

    (a) The Administrator is responsible for:
    (1) Identifying proposed Federal financial assistance and direct 
Federal development that have an impact on interstate areas;
    (2) Notifying appropriate officials and entities in states which 
have adopted a process and which select FEMA's program or activity;
    (3) Making efforts to identify and notify the affected State, 
areawide, regional, and local officials and entities in those States 
that have not adopted a process under the Order or do not select FEMA's 
program or activity;
    (4) Responding pursuant to Sec. 4.10 of this part if the 
Administrator receives a recommendation from a designated areawide 
agency transmitted by a single point of contact, in cases in which the 
review, coordination, and communication with FEMA have been delegated.
    (b) The Administrator uses the procedures in Sec. 4.10 if a state 
process provides a state process recommendation

[[Page 17]]

to FEMA through a single point of contact.



Sec. 4.12  How may a State simplify, consolidate, or substitute
federally required State plans?

    (a) As used in this section:
    (1) Simplify means that a State may develop its own format, choose 
its own submission date, and select the planning period for a State 
plan.
    (2) Consolidate means that a State may meet statutory and regulatory 
requirements by combining two or more plans into one document and that 
the State can select the format, submission date, and planning period 
for the consolidated plan.
    (3) Substitute means that a State may use a plan or other document 
that it has developed for its own purposes to meet Federal requirements.
    (b) If not inconsistent with law, a State may decide to try to 
simplify, consolidate, or substitute federally required state plans 
without prior approval by the Administrator.
    (c) The Administrator reviews each state plan that a State has 
simplified, consolidated, or substituted and accepts the plan only if 
its contents meet Federal requirements.



Sec. 4.13  May the Administrator waive any provision of these
regulations?

    In an emergency, the Administrator may waive any provision of these 
regulations.



PART 5_PRODUCTION OR DISCLOSURE OF INFORMATION--Table of Contents



Subparts A-E [Reserved]

    Subpart F_Subpoenas or Other Legal Demands for Testimony or the 
        Production or Disclosure of Records or Other Information

5.80  Scope and applicability.
5.81  Statement of policy.
5.82  Definitions.
5.83  Authority to accept service of subpoenas.
5.84  Production of documents in private litigation.
5.85  Authentication and attestation of copies.
5.86  Records involved in litigation or other judicial process.
5.87  Testimony of FEMA employees in private litigation.
5.88  Testimony in litigation in which the United States is a party.
5.89  Waiver.

    Authority: Pub. L. 107-296, 116 Stat. 2135; 5 U.S.C. 301.

    Source: 44 FR 50287, Aug. 27, 1979, unless otherwise noted.

Subparts A-E [Reserved]



    Subpart F_Subpoenas or Other Legal Demands for Testimony or the 
        Production or Disclosure of Records or Other Information

    Source: 54 FR 11715, Mar. 22, 1989, unless otherwise noted.



Sec. 5.80  Scope and applicability.

    (a) This subpart sets forth policies and procedures with respect to 
the disclosure or production by FEMA employees, in response to a 
subpoena, order or other demand of a court or other authority, of any 
material contained in the files of the Agency or any information 
relating to material contained in the files of the Agency or any 
information acquired by an employee as part of the performance of that 
person's official duties or because of that person's official status.
    (b) This subpart applies to State and local judicial, administrative 
and legislative proceedings, and Federal judicial and administrative 
proceedings.
    (c) This subpart does not apply to Congressional requests or 
subpoenas for testimony or documents, or to an employee making an 
appearance solely in his or her private capacity in judicial or 
administrative proceedings that do not relate to the Agency (such as 
cases arising out of traffic accidents, domestic relations, etc.).
    (d) The Department of Homeland Security's regulations, 6 CFR 5.41 
through 5.49, apply to any subject matter not already covered by this 
subpart, including but not limited to demands or requests directed to 
current or former FEMA contractors.

[54 FR 11715, Mar. 22, 1989, as amended at 72 FR 43546, Aug. 6, 2007]

[[Page 18]]



Sec. 5.81  Statement of policy.

    (a) It is the policy of FEMA to make its records available to 
private litigants to the same extent and in the same manner as such 
records are made available to members of the general public, except 
where protected from disclosure by litigation procedural authority 
(e.g., Federal Rules of Civil Procedure) or other applicable law.
    (b) It is FEMA's policy and responsibility to preserve its human 
resources for performance of the official functions of the Agency and to 
maintain strict impartiality with respect to private litigants. 
Participation by FEMA employees in private litigation in their official 
capacities is generally contrary to this policy.



Sec. 5.82  Definitions.

    For purposes of this subpart, the following terms have the meanings 
ascribed to them in this section:
    (a) Demand refers to a subpoena, order, or other demand of a court 
of competent jurisdiction, or other specific authority (e.g., an 
administrative or State legislative body), signed by the presiding 
officer, for the production, disclosure, or release of FEMA records or 
information or for the appearance and testimony of FEMA personnel as 
witnesses in their official capacities.
    (b) Employee of the Agency includes all officers and employees of 
the United States appointed by or subject to the supervision, 
jurisdiction or control of the Administrator of FEMA.
    (c) Private litigation refers to any legal proceeding which does not 
involve as a named party the United States Government, or the Federal 
Emergency Management Agency, or any official thereof in his or her 
official capacity.



Sec. 5.83  Authority to accept service of subpoenas.

    In all legal proceedings between private litigants, a subpoena duces 
tecum or subpoena ad testificandum or other demand by a court or other 
authority for the production of records held by FEMA Regional offices or 
for the oral or written testimony of FEMA Regional employees should be 
addressed to the appropriate Regional Administrator listed in Sec. 5.26. 
For all other records or testimony, the subpoena should be addressed to 
the Chief Counsel, FEMA, 500 C Street SW., Washington, DC 20472 
Washington, DC 20472. No other official or employee of FEMA is 
authorized to accept service of subpoenas on behalf of the Agency.



Sec. 5.84  Production of documents in private litigation.

    (a) The production of records held by FEMA in response to a subpoena 
duces tecum or other demand issued pursuant to private litigation, 
whether or not served in accordance with the provisions of Sec. 5.83 of 
this subpart, is prohibited absent authorization by the Chief Counsel.
    (b) Whenever an official or employee of FEMA, including any Regional 
Administrator, receives a subpoena or other demand for the production of 
Agency documents or material, he or she shall immediately notify and 
provide a copy of the demand to the Chief Counsel.
    (c) The Chief Counsel, after consultation with other appropriate 
officials as deemed necessary, shall promptly determine whether to 
disclose the material or documents identified in the subpoena or other 
demand. Generally, authorization to furnish the requested material or 
documents shall not be withheld unless their disclosure is prohibited by 
relevant law or for other compelling reasons.
    (d) Whenever a subpoena or demand commanding the production of any 
record is served upon any Agency employee other than as provided in 
Sec. 5.83 of this subpart, or the response to a demand is required 
before the receipt of instructions from the Chief Counsel, such employee 
shall appear in response thereto, respectfully decline to produce the 
record(s) on the ground that it is prohibited by this section and state 
that the demand has been referred for the prompt consideration of the 
Chief Counsel.
    (e) Where the release of documents in response to a subpoena duces 
tecum is authorized by the Chief Counsel, the official having custody of 
the requested records will furnish, upon the request of the party 
seeking disclosure, authenticated copies of the documents.

[[Page 19]]

No official or employee of FEMA shall respond in strict compliance with 
the terms of a subpoena duces tecum unless specifically authorized by 
the Chief Counsel.



Sec. 5.85  Authentication and attestation of copies.

    The Administrator, Deputy Administrators, Regional Administrators, 
Assistant Administrators, United States Fire Administrator, Federal 
Insurance Administrator, Chief Counsel, and their designees, and other 
heads of offices having possession of records are authorized in the name 
of the Administrator to authenticate and attest for copies or 
reproductions of records. Appropriate fees will be charged for such 
copies or reproductions based on the fee schedule set forth in section 
5.46 of this part.

[74 FR 15334, Apr. 3, 2009]



Sec. 5.86  Records involved in litigation or other judicial process.

    Subpoenas duces tecum issued pursuant to litigation or any other 
adjudicatory proceeding in which the United States is a party shall be 
referred to the Chief Counsel.

[81 FR 83643, Nov. 22, 2016]



Sec. 5.87  Testimony of FEMA employees in private litigation.

    (a) No FEMA employee shall testify in response to a subpoena or 
other demand in private litigation as to any information relating to 
material contained in the files of the Agency, or any information 
acquired as part of the performance of that person's official duties or 
because of that person's official status, including the meaning of 
Agency documents.
    (b) Whenever a demand is made upon a FEMA employee, for the 
disclosure of information described in paragraph (a) of this section, 
that employee shall immediately notify the Office of Chief Counsel. The 
Chief Counsel, upon receipt of such notice and absent waiver of the 
general prohibition against employee testimony at his or her discretion, 
shall arrange with the appropriate United States Attorney the taking of 
such steps as are necessary to quash the subpoena or seek a protective 
order.
    (c) In the event that an immediate demand for testimony or 
disclosure is made in circumstances which would preclude prior notice to 
and consultation with the Chief Counsel, the employee shall respectfully 
request from the demanding authority a stay in the proceedings to allow 
sufficient time to obtain advice of counsel.
    (d) If the court or other authority declines to stay the effect of 
the demand in response to a request made in accordance with paragraph 
(c) of this section pending consultation with counsel, or if the court 
or other authority rules that the demand must be complied with 
irrespective of instructions not to testify or disclose the information 
sought, the employee upon whom the demand has been made shall 
respectfully decline to comply with the demand, citing these regulations 
and United States ex rel. Touhy v. Ragen, 340 U.S. 462 (1951).



Sec. 5.88  Testimony in litigation in which the United States is a party.

    (a) Whenever, in any legal proceeding in which the United States is 
a party, the attorney in charge of presenting the case for the United 
States requests it, the Chief Counsel shall arrange for an employee of 
the Agency to testify as a witness for the United States.
    (b) The attendance and testimony of named employees of the Agency 
may not be required in any legal proceeding by the judge or other 
presiding officer, by subpoena or otherwise. However, the judge or other 
presiding officer may, upon a showing of exceptional circumstances (such 
as a case in which a particular named FEMA employee has direct personal 
knowledge of a material fact not known to the witness made available by 
the Agency) require the attendance and testimony of named FEMA 
personnel.



Sec. 5.89  Waiver.

    The Chief Counsel may grant, in writing, a waiver of any policy or 
procedure prescribed by this subpart, where waiver is considered 
necessary to promote a significant interest of the Agency or for other 
good cause. In

[[Page 20]]

granting such waiver, the Chief Counsel shall attach to the waiver such 
reasonable conditions and limitations as are deemed appropriate in order 
that a response in strict compliance with the terms of a subpoena duces 
tecum or the providing of testimony will not interfere with the duties 
of the employee and will otherwise conform to the policies of this part. 
The Administrator may, in his or her discretion, review any decision to 
authorize a waiver of any policy or procedure prescribed by this 
subpart.



PART 6_IMPLEMENTATION OF THE PRIVACY ACT OF 1974--Table of Contents



                            Subpart A_General

Sec.
6.1  Purpose and scope of part.
6.2  Definitions.
6.3  Collection and use of information (Privacy Act statements).
6.4  Standards of accuracy.
6.5  Rules of conduct.
6.6  Safeguarding systems of records.
6.7  Records of other agencies.
6.8  Subpoena and other legal demands.
6.9  Inconsistent issuances of FEMA and/or its predecessor agencies 
          superseded.
6.10  Assistance and referrals.

                     Subpart B_Disclosure of Records

6.20  Conditions of disclosure.
6.21  Procedures for disclosure.
6.22  Accounting of disclosures.

                 Subpart C_Individual Access to Records

6.30  Form of requests.
6.31  Special requirements for medical records.
6.32  Granting access.
6.33  Denials of access.
6.34  Appeal of denial of access within FEMA.

                   Subpart D_Requests To Amend Records

6.50  Submission of requests to amend records.
6.51  Review of requests to amend records.
6.52  Approval of requests to amend records.
6.53  Denial of requests to amend records.
6.54  Agreement to alternative amendments.
6.55  Appeal of denial of request to amend a record.
6.56  Statement of disagreement.
6.57  Judicial review.

   Subpart E_Report on New Systems and Alterations of Existing Systems

6.70  Reporting requirement.
6.71  Federal Register notice of establishment of new system or 
          alteration of existing system.
6.72  Effective date of new system of records or alteration of an 
          existing system of records.

                             Subpart F_Fees

6.80  Records available at fee.
6.81  Additional copies.
6.82  Waiver of fee.
6.83  Prepayment of fees.
6.84  Form of payment.
6.85  Reproduction fees.

                   Subpart G_Exempt Systems of Records

6.86  General exemptions.
6.87  Specific exemptions.

    Authority: 5 U.S.C. 552a; Reorganization Plan No. 3 of 1978; and 
E.O. 12127.

    Source: 44 FR 50293, Aug. 27, 1979, unless otherwise noted.



                            Subpart A_General



Sec. 6.1  Purpose and scope of part.

    This part sets forth policies and procedures concerning the 
collection, use and dissemination of records maintained by the Federal 
Emergency Management Agency (FEMA) which are subject to the provision of 
5 U.S.C. 552a, popularly known as the ``Privacy Act of 1974'' 
(hereinafter referred to as the Act). These policies and procedures 
govern only those records as defined in Sec. 6.2. Policies and 
procedures governing the disclosure and availability of records in 
general are in part 5 of this chapter. This part also covers: (a) 
Procedures for notification to individuals of a FEMA system of records 
pertaining to them; (b) guidance to individuals in obtaining 
information, including inspections of, and disagreement with, the 
content of records; (c) accounting of disclosure; (d) special 
requirements for medical records; and (e) fees.



Sec. 6.2  Definitions.

    For the purpose of this part:

[[Page 21]]

    (a) Agency includes any executive department, military department, 
Government corporation, Government controlled corporation, or other 
establishment in the executive branch of the Government (including the 
Executive Office of the President), or any independent regulatory agency 
(see 5 U.S.C. 552(e)).
    (b) Individual means a citizen of the United States or an alien 
lawfully admitted for permanent residence.
    (c) Maintain includes maintain, collect, use, and disseminate.
    (d) Record means any item, collection, or grouping of information 
about an individual that is maintained by an agency, including, but not 
limited to those concerning education, financial transactions, medical 
history, and criminal or employment history, and that contains the name 
or other identifying particular assigned to the individual, such as a 
fingerprint, voiceprint, or photograph.
    (e) System of records means a group of any records under the control 
of an agency from which information is retrieved by the name of the 
individual or by some identifying number, symbol, or other 
identification assigned to that individual.
    (f) Statistical record means a record in a system of records 
maintained for statistical research or reporting purposes only and not 
used in whole or in part in making any determination about an 
identifiable individual, except as provided by 13 U.S.C. 8.
    (g) Routine use means, with respect to the disclosure of a record, 
the use of that record for a purpose which is compatible with the 
purpose for which it was collected.
    (h) System manager means the employee of FEMA who is responsible for 
the maintenance of a system of records and for the collection, use, and 
dissemination of information therein.
    (i) Subject individual means the individual named or discussed in a 
record of the individual to whom a record otherwise pertains.
    (j) Disclosure means a transfer of a record, a copy of a record, or 
any or all of the information contained in a record to a recipient other 
than the subject individual, or the review of a record by someone other 
than the subject individual.
    (k) Access means a transfer of a record, a copy of a record, or the 
information in a record to the subject individual, or the review of a 
record by the subject individual.
    (l) Solicitation means a request by an officer or employee of FEMA 
that an individual provide information about himself or herself.
    (m) Administrator means the Administrator, FEMA.
    (n) Deputy Administrator means the Deputy Administrator, FEMA, or, 
in the case of the absence of the Deputy Administrator, or a vacancy in 
that office, a person designated by the Administrator to perform the 
functions under this regulation of the Deputy Administrator.
    (o) Privacy Appeals Officer means the FOIA/Privacy Act Specialist or 
his/her designee.

[44 FR 50293, Aug. 27, 1979, as amended at 45 FR 17152, Mar. 18, 1980; 
51 FR 34604, Sept. 30, 1986]



Sec. 6.3  Collection and use of information (Privacy Act statements).

    (a) General. Any information used in whole or in part in making a 
determination about an individual's rights, benefits, or privileges 
under FEMA programs will be collected directly from the subject 
individual to the extent practicable. The system manager also shall 
ensure that information collected is used only in conformance with the 
provisions of the Act and these regulations.
    (b) Solicitation of information. System managers shall ensure that 
at the time information is solicited the solicited individual is 
informed of the authority for collecting that information, whether 
providing the information is mandatory or voluntary, the purpose for 
which the information will be used, the routine uses to be made of the 
information, and the effects on the individual, if any, of not providing 
the information. The Director, Records Management Division, Office of 
Management and Regional Administrators shall ensure that forms used to 
solicit information are in compliance with the Act and these 
regulations.

[[Page 22]]

    (c) Solicitation of Social Security numbers. Before an employee of 
FEMA can deny to any individual a right, benefit, or privilege provided 
by law because such individual refuses to disclose his/her social 
security account number, the employee of FEMA shall ensure that either:
    (1) The disclosure is required by Federal statute; or
    (2) The disclosure of a social security number was required under a 
statute or regulation adopted before January 1, 1975, to verify the 
identity of an individual, and the social security number will become a 
part of a system of records in existence and operating before January 1, 
1975.

If solicitation of the social security number is authorized under 
paragraph (c) (1) or (2) of this section, the FEMA employee who requests 
an individual to disclose the social security account number shall first 
inform that individual whether that disclosure is mandatory or 
voluntary, by what statutory or other authority the number is solicited, 
and the use that will be made of it.
    (d) Soliciting information from third parties. An employee of FEMA 
shall inform third parties who are requested to provide information 
about another individual of the purposes for which the information will 
be used.

[44 FR 50293, Aug. 27, 1979, as amended at 47 FR 13149, Mar. 29, 1982; 
48 FR 12091, Mar. 23, 1983; 50 FR 40006, Oct. 1, 1985]



Sec. 6.4  Standards of accuracy.

    The system manager shall ensure that all records which are used by 
FEMA to make determinations about any individual are maintained with 
such accuracy, relevance, timeliness, and completeness as is reasonably 
necessary to ensure fairness to the individual.



Sec. 6.5  Rules of conduct.

    Employees of FEMA involved in the design, development, operation, or 
maintenance of any system of records or in maintaining any record, shall 
conduct themselves in accordance with the rules of conduct concerning 
the protection of personal information in Sec. 3.25 of this chapter.



Sec. 6.6  Safeguarding systems of records.

    (a) Systems managers shall ensure that appropriate administrative, 
technical, and physical safeguards are established to ensure the 
security and confidentiality of records and to protect against any 
anticipated threats or hazards to their security or integrity which 
could result in substantial harm, embarrassment, inconvenience, or 
unfairness to any individual on whom information is maintained.
    (b) Personnel information contained in both manual and automated 
systems of records shall be protected by implementing the following 
safeguards:
    (1) Official personnel folders, authorized personnel operating or 
work folders and other records of personnel actions effected during an 
employee's Federal service or affecting the employee's status and 
service, including information on experience, education, training, 
special qualification, and skills, performance appraisals, and conduct, 
shall be stored in a lockable metal filing cabinet when not in use by an 
authorized person. A system manager may employ an alternative storage 
system providing that it furnished an equivalent degree of physical 
security as storage in a lockable metal filing cabinet.
    (2) System managers, at their discretion, may designate additional 
records of unusual sensitivity which require safeguards similar to those 
described in paragraph (a) of this section.
    (3) A system manager shall permit access to and use of automated or 
manual personnel records only to persons whose official duties require 
such access, or to a subject individual or his or her representative as 
provided by this part.



Sec. 6.7  Records of other agencies.

    If FEMA receives a request for access to records which are the 
primary responsibility of another agency, but which are maintained by or 
in the temporary possession of FEMA on behalf of that agency, FEMA will 
advise the requestor that the request has been forwarded to the 
responsible agency. Records in the custody of FEMA which are the primary 
responsibility of the Office of Personnel Management are

[[Page 23]]

governed by the rules promulgated by it pursuant to the Privacy Act.



Sec. 6.8  Subpoena and other legal demands.

    Access to records in systems of records by subpoena or other legal 
process shall be in accordance with the provisions of part 5 of this 
chapter.



Sec. 6.9  Inconsistent issuances of FEMA and/or its predecessor 
agencies superseded.

    Any policies and procedures in any issuances of FEMA or any of its 
predecessor agencies which are inconsistent with the policies and 
procedures in this part are superseded to the extent of that 
inconsistency.



Sec. 6.10  Assistance and referrals.

    Requests for assistance and referral to the responsible system 
manager or other FEMA employee charged with implementing these 
regulations should be made to the Privacy Appeals Officer, Federal 
Emergency Management Agency, Washington, DC 20472.

[45 FR 17152, Mar. 18, 1980]



                     Subpart B_Disclosure of Records



Sec. 6.20  Conditions of disclosure.

    No employee of FEMA shall disclose any record to any person or to 
another agency without the express written consent of the subject 
individual unless the disclosure is:
    (a) To officers or employees of FEMA who have a need for the 
information in the official performance of their duties;
    (b) Required by the provisions of the Freedom of Information Act, 5 
U.S.C. 552.
    (c) For a routine use as published in the notices in the Federal 
Register;
    (d) To the Bureau of the Census for use pursuant to title 13, United 
States Code;
    (e) To a recipient who has provided FEMA with advance adequate 
written assurance that the record will be used solely as a statistical 
research or reporting record subject to the following: The record shall 
be transferred in a form that is not individually identifiable. The 
written statement should include as a minimum (1) a statement of the 
purpose for requesting the records; and (2) certification that the 
records will be used only for statistical purposes. These written 
statements should be maintained as accounting records. In addition to 
deleting personal identifying information from records released for 
statistical purposes, the system manager shall ensure that the identity 
of the individual cannot reasonably be deduced by combining various 
statistical records;
    (f) To the National Archives of the United States as a record which 
has sufficient historical or other value to warrant its continued 
preservation by the United States Government, or for evaluation by the 
Administrator of The National Archives and Records Administration or his 
designee to determine whether the record has such value;
    (g) To another agency or instrumentality of any governmental 
jurisdiction within or under the control of the United States for civil 
or criminal law enforcement activity, if the activity is authorized by 
law, and if the head of the agency or instrumentality or his designated 
representative has made a written request to the Administrator 
specifying the particular portion desired and the law enforcement 
activity for which the record is sought;
    (h) To a person showing compelling circumstances affecting the 
health and safety of an individual to whom the record pertains. (Upon 
such disclosure, a notification must be sent to the last known address 
of the subject individual.)
    (i) To either House of Congress or to a subcommittee or committee 
(joint or of either House, to the extent that the subject matter falls 
within their jurisdiction;
    (j) To the Comptroller General or any duly authorized 
representatives of the Comptroller General in the course of the 
performance of the duties of the Government Accountability Office; or
    (k) Pursuant to the order of a court of competent jurisdiction.
    (l) To consumer reporting agencies as defined in the Fair Credit 
Reporting Act (35 U.S.C. 1681a(f) or the Debt Collection Act of 1982 (31 
U.S.C. 3711(d)(4)).

[44 FR 50293, Aug. 27, 1979, as amended at 48 FR 44543, Sept. 29, 1983; 
50 FR 40006, Oct. 1, 1985]

[[Page 24]]



Sec. 6.21  Procedures for disclosure.

    (a) Upon receipt of a request for disclosure, the system manager 
shall verify the right of the requestor to obtain disclosure pursuant to 
Sec. 6.20. Upon that verification and subject to other requirements of 
this part, the system manager shall make the requested records 
available.
    (b) If the system manager determines that the disclosure is not 
permitted under the provisions of Sec. 6.20 or other provisions of this 
part, the system manager shall deny the request in writing and shall 
inform the requestor of the right to submit a request for review and 
final determination to the Administrator or designee.



Sec. 6.22  Accounting of disclosures.

    (a) Except for disclosures made pursuant to Sec. 6.20 (a) and (b), 
an accurate accounting of each disclosure shall be made and retained for 
5 years after the disclosure or for the life of the record, whichever is 
longer. The accounting shall include the date, nature, and purpose of 
each disclosure, and the name and address of the person or agency to 
whom the disclosure is made;
    (b) The system manager also shall maintain in conjunction with the 
accounting of disclosures;
    (1) A full statement of the justification for the disclosure.
    (2) All documentation surrounding disclosure of a record for 
statistical or law enforcement purposes; and
    (3) Evidence of written consent to a disclosure given by the subject 
individual.
    (c) Except for the accounting of disclosures made to agencies or 
instrumentalities in law enforcement activities in accordance with 
Sec. 6.20 (g) or of disclosures made from exempt systems the accounting 
of disclosures shall be made available to the individual upon request. 
Procedures for requesting access to the accounting are in subpart C of 
this part.



                 Subpart C_Individual Access to Records



Sec. 6.30  Form of requests.

    (a) An individual who seeks access to his or her record or to any 
information pertaining to the individual which is contained in a system 
of records should notify the system manager at the address indicated in 
the Federal Register notice describing the pertinent system. The notice 
should bear the legend ``Privacy Act Request'' both on the request 
letter and on the envelope. It will help in the processing of a request 
if the request letter contains the complete name and identifying number 
of the system as published in the Federal Register; the full name and 
address of the subject individual; a brief description of the nature, 
time, place, and circumstances of the individual's association with 
FEMA; and any other information which the individual believes would help 
the system manager to determine whether the information about the 
individual is included in the system of records. The system manager 
shall answer or acknowledge the request within 10 workdays of its 
receipt by FEMA.
    (b) The system manager, at his discretion, may accept oral requests 
for access subject to verification of identity.



Sec. 6.31  Special requirements for medical records.

    (a) A system manager who receives a request from an individual for 
access to those official medical records which belong to the U.S. Office 
of Personnel Management and are described in Chapter 339, Federal 
Personnel Manual (medical records about entrance qualifications or 
fitness for duty, or medical records which are otherwise filed in the 
Official Personnel Folder), shall refer the pertinent system of records 
to a Federal Medical Officer for review and determination in accordance 
with this section. If no Federal Medical Officer is available to make 
the determination required by this section, the system manager shall 
refer the request and the medical reports concerned to the Office of 
Personnel Management for determination.
    (b) If, in the opinion of a Federal Medical Officer, medical records 
requested by the subject individual indicate a condition about which a 
prudent physician would hesitate to inform a person suffering from such 
a condition

[[Page 25]]

of its exact nature and probable outcome, the system manager shall not 
release the medical information to the subject individual nor to any 
person other than a physician designated in writing by the subject 
individual, or the guardian or conservator of the individual.
    (c) If, in the opinion of a Federal Medical Officer, the medical 
information does not indicate the presence of any condition which would 
cause a prudent physician to hesitate to inform a person suffering from 
such a condition of its exact nature and probable outcome, the system 
manager shall release it to the subject individual or to any person, 
firm, or organization which the individual authorizes in writing to 
receive it.



Sec. 6.32  Granting access.

    (a) Upon receipt of a request for access to non-exempt records, the 
system manager shall make these records available to the subject 
individual or shall acknowledge the request within 10 workdays of its 
receipt by FEMA. The acknowledgment shall indicate when the system 
manager will make the records available.
    (b) If the system manager anticipates more than a 10 day delay in 
making a record available, he or she also shall include in the 
acknowledgment specific reasons for the delay.
    (c) If a subject individual's request for access does not contain 
sufficient information to permit the system manager to locate the 
records, the system manager shall request additional information from 
the individual and shall have 10 workdays following receipt of the 
additional information in which to make the records available or to 
acknowledge receipt of the request and indicate when the records will be 
available.
    (d) Records will be available for authorized access during normal 
business hours at the offices where the records are located. A requestor 
should be prepared to identify himself or herself by signature; i.e., to 
note by signature the date of access and/or produce other identification 
verifying the signature.
    (e) Upon request, a system manager shall permit an individual to 
examine the original of a non-exempt record, shall provide the 
individual with a copy of the record, or both. Fees shall be charged in 
accordance with subpart F.
    (f) An individual may request to pick up a record in person or to 
receive it by mail, directed to the name and address provided by the 
individual in the request. A system manager shall not make a record 
available to a third party for delivery to the subject individual except 
for medical records as outlined in Sec. 6.31.
    (g) An individual who selects another person to review, or to 
accompany the individual in reviewing or obtaining a copy of the record 
must, prior to the disclosure, sign a statement authorizing the 
disclosure of the record. The system manager shall maintain this 
statement with the record.
    (h) The procedure for access to an accounting of disclosure is 
identical to the procedure for access to a record as set forth in this 
section.



Sec. 6.33  Denials of access.

    (a) A system manager may deny an individual access to that 
individual's record only upon the grounds that FEMA has published the 
rules in the Federal Register exempting the pertinent system of records 
from the access requirement. These exempt systems of records are 
described in subpart G of this part.
    (b) Upon receipt of a request for access to a record which the 
system manager believes is contained within an exempt system of records 
he or she shall forward the request to the appropriate official listed 
below or to his or her delegate through normal supervisory channels.
    (1) Deputy Administrators.
    (2) [Reserved]
    (3) Federal Insurance Administrator.
    (4) Assistant Administrators.
    (5) United States Fire Administrator.
    (6) Chief of Staff.
    (7) Office Directors.
    (8) Chief Counsel.
    (9) [Reserved]
    (10) Chief Financial Officer.
    (11) Regional Administrators.
    (c) In the event that the system manager serves in one of the 
positions listed in paragraph (b) of this section, he

[[Page 26]]

or she shall retain the responsibility for denying or granting the 
request.
    (d) The appropriate official listed in paragraph (b) of this section 
shall, in consultation with the Office of Chief Counsel and such other 
officials as deemed appropriate, determine if the request record is 
contained within an exempt system of records and:
    (1) If the record is not contained within an exempt system of 
records, the above official shall notify the system manager to grant the 
request in accordance with Sec. 6.32, or
    (2) If the record is contained within an exempt system said official 
shall;
    (i) Notify the requestor that the request is denied, including a 
statement justifying the denial and advising the requestor of a right to 
judicial review of that decision as provided in Sec. 6.57, or
    (ii) Notify the system manager to make record available to the 
requestor in accordance with Sec. 6.31, notwithstanding the record's 
inclusion within an exempt system.
    (e) The appropriate official listed in paragraph (b) of this section 
shall provide the Privacy Appeals Office with a copy of any denial of a 
requested access.

[44 FR 50293, Aug. 27, 1979, as amended at 48 FR 44543, Sept. 29, 1983; 
50 FR 40006, Oct. 1, 1985; 51 FR 34604, Sept. 30, 1986; 74 FR 15334, 
Apr. 3, 2009]



Sec. 6.34  Appeal of denial of access within FEMA.

    A requestor denied access in whole or in part, to records pertaining 
to that individual, exclusive of those records for which the system 
manager is the Administrator, may file an administrative appeal of that 
denial. Appeals of denied access will be processed in the same manner as 
processing for appeals from a denial of a request to amend a record set 
out in Sec. 6.55, regardless whether the denial being appealed is made 
at headquarters or by a regional official.



                   Subpart D_Requests To Amend Records



Sec. 6.50  Submission of requests to amend records.

    An individual who desires to amend any record containing personal 
information about the individual should direct a written request to the 
system manager specified in the pertinent Federal Register notice 
concerning FEMA's systems of records. A current FEMA employee who 
desires to amend personnel records should submit a written request to 
the Director, Human Capital Division, Washington, DC 20472. Each request 
should include evidence of and justification for the need to amend the 
pertinent record. Each request should bear the legend ``Privacy Act--
Request to Amend Record'' prominently marked on both the face of the 
request letter and the envelope.



Sec. 6.51  Review of requests to amend records.

    (a) The system manager shall acknowledge the receipt of a request to 
amend a record within 10 workdays. If possible, the acknowledgment shall 
include the system manager's determination either to amend the record or 
to deny the request to amend as provided in Sec. 6.53.
    (b) When reviewing a record in response to a request to amend, the 
system manager shall assess the accuracy, relevance, timeliness, and 
completeness of the existing record in light of the proposed amendment 
and shall determine whether the request for the amendment is justified. 
With respect to a request to delete information, the system manager also 
shall review the request and the existing record to determine whether 
the information is relevant and necessary to accomplish an agency 
purpose required to be accomplished by statute or Executive Order.



Sec. 6.52  Approval of requests to amend records.

    If the system manager determines that amendment of a record is 
proper in accordance with the request to amend, he or she promptly shall 
make the necessary corrections to the record and shall send a copy of 
the corrected record to the individual. Where an accounting of 
disclosure has been maintained, the system manager shall advise all 
previous recipients of the record of the fact that a correction has been 
made and the substance of the correction. Where practicable, the system 
manager shall advise the Privacy

[[Page 27]]

Appeals Officer that a request to amend has been approved.



Sec. 6.53  Denial of requests to amend records.

    (a) If the system manager determines that an amendment of a record 
is improper or that the record should be amended in a manner other than 
that requested by an individual, he shall refer the request to amend and 
his determinations and recommendations to the appropriate official 
listed in Sec. 6.33(b) through normal supervisory channels.
    (b) If the official listed in Sec. 6.33, after reviewing the request 
to amend a record, determines to amend the record in accordance with the 
request, said official promptly shall return the request to the system 
manager with instructions to make the requested amendments in accordance 
with Sec. 6.52.
    (c) If the appropriate official listed in Sec. 6.33, after reviewing 
the request to amend a record, determines not to amend the record in 
accordance with the request, the requestor shall be promptly advised in 
writing of the determination. The refusal letter (1) shall state the 
reasons for the denial of the request to amend; (2) shall include 
proposed alternative amendments, if appropriate; (3) shall state the 
requestor's right to appeal the denial of the request to amend; and (4) 
shall state the procedures for appealing and the name and title of the 
official to whom the appeal is to be addressed.
    (d) The appropriate official listed in Sec. 6.33 shall furnish the 
Privacy Appeals Officer a copy of each initial denial of a request to 
amend a record.

[44 FR 50293, Aug. 27, 1979, as amended at 45 FR 17152, Mar. 18, 1980]



Sec. 6.54  Agreement to alternative amendments.

    If the denial of a request to amend a record includes proposed 
alternative amendments, and if the requestor agrees to accept them, he 
or she must notify the official who signed the denial. That official 
immediately shall instruct the system manager to make the necessary 
amendments in accordance with Sec. 6.52.



Sec. 6.55  Appeal of denial of request to amend a record.

    (a) A requestor who disagrees with a denial of a request to amend a 
record may file an administrative appeal of that denial. The requestor 
should address the appeal to the FEMA Privacy Appeals Officer, 
Washington, DC 20472. If the requestor is an employee of FEMA and the 
denial to amend involves a record maintained in the employee's Official 
Personnel Folder covered by an Office of Personnel Management 
Government-wide system notice, the appeal should be addressed to the 
Assistant Director, Information Systems, Agency Compliance and 
Evaluation Group, Office of Personnel Management, Washington, DC 20415.
    (b) Each appeal to the Privacy Act Appeals Officer shall be in 
writing and must be received by FEMA no later than 30 calendar days from 
the requestor's receipt of a denial of a request to amend a record. The 
appeal should bear the legend ``Privacy Act--Appeal,'' both on the face 
of the letter and the envelope.
    (c) Upon receipt of an appeal, the Privacy Act Appeals Officer shall 
consult with the system manager, the official who made the denial, the 
Chief Counsel or a member of that office, and such other officials as 
may be appropriate. If the Privacy Act Appeals Officer in consultation 
with these officials, determines that the record should be amended, as 
requested, the system manager shall be instructed immediately to amend 
the record in accordance with Sec. 6.52 and shall notify the requestor 
of that action.
    (d) If the Privacy Act Appeals Officer, in consultation with the 
officials specified in paragraph (c) of this section, determines that 
the appeal should be rejected, the Privacy Act Appeals Officer shall 
submit the file on the request and appeal, including findings and 
recommendations, to the Deputy Administrator for a final administrative 
determination.
    (e) If the Deputy Administrator determines that the record should be 
amended as requested, he or she immediately shall instruct the system 
manager in writing to amend the record in accordance with Sec. 6.52. The 
Deputy Administrator shall send a copy of those

[[Page 28]]

instructions to the Privacy Act Appeals Officer, who shall notify the 
requester of that action.
    (f) If the Deputy Administrator determines to reject the appeal, the 
requestor shall immediately be notified in writing of that 
determination. This action shall constitute the final administrative 
determination on the request to amend the record and shall include:
    (1) The reasons for the rejection of the appeal.
    (2) Proposed alternative amendments, if appropriate, which the 
requestor subsequently may accept in accordance with Sec. 6.54.
    (3) Notice of the requestor's right to file a Statement of 
Disagreement for distribution in accordance with Sec. 6.56.
    (4) Notice of the requestor's right to seek judicial review of the 
final administrative determination, as provided in Sec. 6.57.
    (g) The final agency determination must be made no later than 30 
workdays from the date on which the appeal is received by the Privacy 
Act Appeals Officer.
    (h) In extraordinary circumstances, the Administrator may extend 
this time limit by notifying the requestor in writing before the 
expiration of the 30 workdays. The Administrator's notification will 
include a justification for the extension.

[44 FR 50293, Aug. 27, 1979, as amended at 45 FR 17152, Mar. 18, 1980]



Sec. 6.56  Statement of disagreement.

    Upon receipt of a final administrative determination denying a 
request to amend a record, the requestor may file a Statement of 
Disagreement with the appropriate system manager. The Statement of 
Disagreement should include an explanation of why the requestor believes 
the record to be inaccurate, irrelevant, untimely, or incomplete. The 
system manager shall maintain the Statement of Disagreement in 
conjunction with the pertinent record, and shall include a copy of the 
Statement of Disagreement in any disclosure of the pertinent record. The 
system manager shall provide a copy of the Statement of Disagreement to 
any person or agency to whom the record has been disclosed only if the 
disclosure was subject to the accounting requirements of Sec. 6.22.



Sec. 6.57  Judicial review.

    Within 2 years of receipt of a final administrative determination as 
provided in Sec. 6.34 or Sec. 6.55, a requestor may seek judicial review 
of that determination. A civil action must be filed in the Federal 
District Court in which the requestor resides or has his or her 
principal place of business or in which the agency records are situated, 
or in the District of Columbia.



   Subpart E_Report on New Systems and Alterations of Existing Systems



Sec. 6.70  Reporting requirement.

    (a) No later than 90 calendar days prior to the establishment of a 
new system of records, the prospective system manager shall notify the 
Privacy Appeals Officer of the proposed new system. The prospective 
system manager shall include with the notification a completed FEMA Form 
11-2, System of Records Covered by the Privacy Act of 1974, and a 
justification for each system of records proposed to be established. If 
the Privacy Appeals Officer determines that the establishment of the 
proposed system is in the best interest of the Government, then no later 
than 60 calendar days prior to the establishment of that system of 
records, a report of the proposal shall be submitted by the 
Administrator or a designee thereof, to the President of the Senate, the 
Speaker of the House of Representatives, and the Administrator, Office 
of Information and Regulatory Affairs, Office of Management and Budget 
for their evaluation of the probable or potential effect of that 
proposal on the privacy and other personal or property rights of 
individuals.
    (b) No later than 90 calendar days prior to the alteration of a 
system of records, the system manager responsible for the maintenance of 
that system of records shall notify the Privacy Appeals Officer of the 
proposed alteration. The system manager shall include with the 
notification a completed FEMA Form 11-2. System of Records Covered by 
the Privacy Act of 1974, and a justification for each system of

[[Page 29]]

records he proposes to alter. If it is determined that the proposed 
alteration is in the best interest of the Government, then, the 
Administrator, or a designee thereof, shall submit, no later than 60 
calendar days prior to the establishment of that alteration, a report of 
the proposal to the President of the Senate, the Speaker of the House of 
Representatives, and the Administrator, Office of Information and 
Regulatory Affairs, Office of Management and Budget for their evaluation 
of the probable or potential effect of that proposal on the privacy and 
other personal or property rights of individuals.
    (c) The reports required by this regulation are exempt from reports 
control.
    (d) The Administrator, Office of Information and Regulatory Affairs, 
Office of Management and Budget may waive the time requirements set out 
in this section upon a finding that a delay in the establishing or 
amending the system would not be in the public interest and showing how 
the public interest would be adversely affected if the waiver were not 
granted and otherwise complying with OMB Circular A-130.

[44 FR 50293, Aug. 27, 1979, as amended at 45 FR 17152, Mar. 18, 1980; 
51 FR 34604, Sept. 30, 1986]



Sec. 6.71  Federal Register notice of establishment of new system or
alteration of existing system.

    Notice of the proposed establishment or alteration of a system of 
records shall be published in the Federal Register, in accordance with 
FEMA procedures when:
    (a) Notice is received that the Senate, the House of 
Representatives, and the Office of Management and Budget do not object 
to the establishment of a new system or records or to the alteration of 
an existing system of records, or
    (b) No fewer than 30 calendar days elapse from the date of 
submission of the proposal to the Senate, the House of Representatives, 
and the Office of Management and Budget without receipt of an objection 
to the proposal. The notice shall include all of the information 
required to be provided in FEMA Form 11-2, System of Records Covered by 
the Privacy Act of 1974, and such other information as the Administrator 
deems necessary.



Sec. 6.72  Effective date of new system of records or alteration of
an existing system of records.

    Systems of records proposed to be established or altered in 
accordance with the provisions of this subpart shall be effective no 
sooner than 30 calendar days from the publication of the notice required 
by Sec. 6.71.



                             Subpart F_Fees



Sec. 6.80  Records available at fee.

    The system manager shall provide a copy of a record to a requestor 
at a fee prescribed in Sec. 6.85 unless the fee is waived under 
Sec. 6.82.

[44 FR 50293, Aug. 27, 1979, as amended at 45 FR 17152, Mar. 18, 1980]



Sec. 6.81  Additional copies.

    A reasonable number of additional copies shall be provided for the 
applicable fee to a requestor who indicates that he has no access to 
commercial reproduction services.



Sec. 6.82  Waiver of fee.

    The system manager shall make one copy of a record, up to 300 pages, 
available without charge to a requestor who is an employee of FEMA. The 
system manager may waive the fee requirement for any other requestor if 
the cost of collecting the fee is an unduly large part of, or greater 
than, the fee, or when furnishing the record without charge conforms to 
generally established business custom or is in the public interest.

[44 FR 50287, Aug. 27, 1979, as amended at 52 FR 13679, Apr. 24, 1987]



Sec. 6.83  Prepayment of fees.

    (a) When FEMA estimates or determines that allowable charges that a 
requester may be required to pay are likely to exceed $250.00, FEMA may 
require a requester to make an advance payment of the entire fee before 
continuing to process the request.
    (b) When a requester has previously failed to pay a fee charged in a 
timely fashion (i.e., within 30 days of the date of the billing), FEMA 
may require the

[[Page 30]]

requester to pay the full amount owed plus any applicable interest as 
provided in Sec. 6.85(d), and to make an advance payment of the full 
amount of the estimated fee before the agency begins to process a new 
request or a pending request from that requester.
    (c) When FEMA acts under Sec. 5.44 (a) or (b), the administrative 
time limits prescribed in subsection (a)(6) of the FOIA (i.e., 10 
working days from the receipt of initial requests and 20 working days 
from receipt of appeals from initial denial, plus permissible extensions 
of these time limits) will begin only after FEMA has received fee 
payments described under Sec. 5.44 (a) or (b).

[52 FR 13679, Apr. 24, 1987]



Sec. 6.84  Form of payment.

    Payment shall be by check or money order payable to The Federal 
Emergency Management Agency and shall be addressed to the system 
manager.



Sec. 6.85  Reproduction fees.

    (a) Duplication costs. (1) For copies of documents reproduced on a 
standard office copying machine in sizes up to 8\1/2\  14 inches, the 
charge will be $.15 per page.
    (2) The fee for reproducing copies of records over 8\1/2\  14 
inches or whose physical characteristics do not permit reproduction by 
routine electrostatic copying shall be the direct cost of reproducing 
the records through Government or commercial sources. If FEMA estimates 
that the allowable duplication charges are likely to exceed $25, it 
shall notify the requester of the estimated amount of fees, unless the 
requester has indicated in advance his/her willingness to pay fees as 
high as those anticipated. Such a notice shall offer a requester the 
opportunity to confer with agency personnel with the objective of 
reformulating the request to meet his/her needs at a lower cost.
    (3) For other methods of reproduction or duplication, FEMA shall 
charge the actual direct costs of producing the document(s). If FEMA 
estimates that the allowable duplication charges are likely to exceed 
$25, it shall notify the requester of the estimated amount of fees, 
unless the requester has indicated in advance his/her willingness to pay 
fees as high as those anticipated. Such a notice shall offer a requester 
the opportunity to confer with agency personnel with the objective of 
reformulating the request to meet his/her needs at a lower cost.
    (b) Interest may be charge to those requesters who fail to pay fees 
charged. FEMA may begin assessing interest charges on the amount billed 
starting on the 31st day following the day on which the billing was 
sent. Interest will be at the rate prescribed in section 3717 of title 
31 U.S.C.

[52 FR 13679, Apr. 24, 1987]



                   Subpart G_Exempt Systems of Records



Sec. 6.86  General exemptions.

    (a) Whenever the Administrator, Federal Emergency Management Agency, 
determines it to be necessary and proper, with respect to any system of 
records maintained by the Federal Emergency Management Agency, to 
exercise the right to promulgate rules to exempt such systems in 
accordance with the provisions of 5 U.S.C. 552a (j) and (k), each 
specific exemption, including the parts of each system to be exempted, 
the provisions of the Act from which they are exempted, and the 
justification for each exemption shall be published in the Federal 
Register as part of FEMA's Notice of Systems of Records.
    (b) Exempt under 5 U.S.C. 552a(j)(2) from the requirements of 5 
U.S.C. 552a(c) (3) and (4), (d), (e) (1), (2), (3), (e)(4) (G), (H), and 
(I), (e) (5) and (8) (f) and (g) of the Privacy Act.
    (1) Exempt systems. The following systems of records, which contain 
information of the type described in 5 U.S.C. 552(j)(2), shall be exempt 
from the provisions of 5 U.S.C. 552a listed in paragraph (b) of this 
section.

General Investigative Files (FEMA/IG-2)--Limited Access

    (2) Reasons for exemptions. (i) 5 U.S.C. 552a (e)(4)(G) and (f)(1) 
enable individuals to be notified whether a system of records contains 
records pertaining to them. The Federal Emergency Management Agency 
believes that application of these provisions to the above-listed system 
of records would give individuals an opportunity to learn whether

[[Page 31]]

they are of record either as suspects or as subjects of a criminal 
investigation; this would compromise the ability of the Federal 
Emergency Management Agency to complete investigations and identify or 
detect violators of laws administered by the Federal Emergency 
Management Agency or other Federal agencies. Individuals would be able 
(A) to take steps to avoid detection, (B) to inform co-conspirators of 
the fact that an investigation is being conducted, (C) to learn the 
nature of the investigation to which they are being subjected, (D) to 
learn the type of surveillance being utilized, (E) to learn whether they 
are only suspects or identified law violators, (F) to continue to resume 
their illegal conduct without fear of detection upon learning that they 
are not in a particular system of records, and (G) to destroy evidence 
needed to prove the violation.
    (ii) 5 U.S.C. 552a (d)(1), (e)(4)(H) and (f)(2), (3) and (5) enable 
individuals to gain access to records pertaining to them. The Federal 
Emergency Management Agency believes that application of these 
provisions to the above-listed system of records would compromise its 
ability to complete or continue criminal investigations and to detect or 
identify violators of laws administered by the Federal Emergency 
Management Agency or other Federal agencies. Permitting access to 
records contained in the above-listed system of records would provide 
individuals with significant information concerning the nature of the 
investigation, and this could enable them to avoid detection or 
apprehension in the following ways:
    (A) By discovering the collection of facts which would form the 
basis for their arrest, (B) by enabling them to destroy evidence of 
criminal conduct which would form the basis for their arrest, and (C) by 
learning that the criminal investigators had reason to believe that a 
crime was about to be committed, they could delay the commission of the 
crime or change the scene of the crime to a location which might not be 
under surveillance. Granting access to ongoing or closed investigative 
files would also reveal investigative techniques and procedures, the 
knowledge of which could enable individuals planning criminal activity 
to structure their future operations in such a way as to avoid detection 
or apprehension, thereby neutralizing law enforcement officers' 
established investigative tools and procedures. Further, granting access 
to investigative files and records could disclose the identity of 
confidential sources and other informers and the nature of the 
information which they supplied, thereby endangering the life or 
physical safety of those sources of information by exposing them to 
possible reprisals for having provided information relating to the 
criminal activities of those individuals who are the subjects of the 
investigative files and records; confidential sources and other 
informers might refuse to provide criminal investigators with valuable 
information if they could not be secure in the knowledge that their 
identities would not be revealed through disclosure of either their 
names or the nature of the information they supplied, and this would 
seriously impair the ability of the Federal Emergency Management Agency 
to carry out its mandate to enforce criminal and related laws. 
Additionally, providing access to records contained in the above-listed 
system of records could reveal the identities of undercover law 
enforcement personnel who compiled information regarding individual's 
criminal activities, thereby endangering the life or physical safety of 
those undercover personnel or their families by exposing them to 
possible reprisals.
    (iii) 5 U.S.C. 552a(d) (2), (3) and (4), (e)(4)(H) and (f)(4), which 
are dependent upon access having been granted to records pursuant to the 
provisions cited in paragraph (b)(2)(ii) of this section, enable 
individuals to contest (seek amendment to) the content of records 
contained in a system of records and require an agency to note an 
amended record and to provide a copy of an individual's statement (of 
disagreement with the agency's refusal to amend a record) to persons or 
other agencies to whom the record has been disclosed. The Federal 
Emergency Management Agency believes that the reasons set forth in 
paragraph (b)(2)(ii) of this section are equally applicable to this 
paragraph and, accordingly, those

[[Page 32]]

reasons are hereby incorporated herein by reference.
    (iv) 5 U.S.C. 552a(c)(3) requires that an agency make accountings of 
disclosures of records available to individuals named in the records at 
their request; such accountings must state the date, nature and purpose 
of each disclosure of a record and the name and address of the 
recipient. The Federal Emergency Management Agency believes that 
application of this provision to the above-listed system of records 
would impair the ability of other law enforcement agencies to make 
effective use of information provided by the Federal Emergency 
Management Agency in connection with the investigation, detection and 
apprehension of violators of the criminal laws enforced by those other 
law enforcement agencies. Making accountings of disclosure available to 
violators or possible violators would alert those individuals to the 
fact that another agency is conducting an investigation into their 
criminal activities, and this could reveal the geographic location of 
the other agency's investigation, the nature and purpose of that 
investigation, and the dates on which that investigation was active. 
Violators possessing such knowledge would thereby be able to take 
appropriate measures to avoid detection or apprehension by altering 
their operations, by transferring their criminal activities to other 
geographic areas or by destroying or concealing evidence which would 
form the basis for their arrest. In addition, providing violators with 
accountings of disclosure would alert those individuals to the fact that 
the Federal Emergency Management Agency has information regarding their 
criminal activities and could inform those individuals of the general 
nature of that information; this, in turn, would afford those 
individuals a better opportunity to take appropriate steps to avoid 
detection or apprehension for violations of criminal and related laws.
    (v) 5 U.S.C. 552a(c)(4) requires that an agency inform any person or 
other agency about any correction or notation of dispute made by the 
agency in accordance with 5 U.S.C. 552a(d) of any record that has been 
disclosed to the person or agency if an accounting of the disclosure was 
made. Since this provision is dependent on an individual's having been 
provided an opportunity to contest (seek amendment to) records 
pertaining to him/her, and since the above-listed system of records is 
proposed to be exempt from those provisions of 5 U.S.C. 552a relating to 
amendments of records as indicated in paragraph (b)(2)(iii) of this 
section, the Federal Emergency Management Agency believes that this 
provision should not be applicable to the above system of records.
    (vi) 5 U.S.C. 552a(e)(4)(I) requires that an agency publish a public 
notice listing the categories of sources for information contained in a 
system of records. The categories of sources of this system of records 
have been published in the Federal Register in broad generic terms in 
the belief that this is all that subsection (e)(4)(I) of the Act 
requires. In the event, however, that this subsection should be 
interpreted to require more detail as to the identity of sources of the 
records in this system, exemption from this provision is necessary in 
order to protect the confidentiality of the sources of criminal and 
other law enforcement information. Such exemption is further necessary 
to protect the privacy and physical safety of witnesses and informants.
    (vii) 5 U.S.C. 552a(e)(1) requires that an agency maintain in its 
records only such information about an individual as is relevant and 
necessary to accomplish a purpose of the agency required to be 
accomplished by statute or executive order. The term maintain as defined 
in 5 U.S.C. 552a(a)(3) includes ``collect'' and ``disseminate.'' At the 
time that information is collected by the Federal Emergency Management 
Agency, there is often insufficient time to determine whether the 
information is relevant and necessary to accomplish a purpose of the 
Federal Emergency Management Agency; in many cases information collected 
may not be immediately susceptible to a determination of whether the 
information is relevant and necessary, particularly in the early stages 
of an investigation, and in many cases, information which

[[Page 33]]

initially appears to be irrelevant or unnecessary may, upon further 
evaluation or upon continuation of the investigation, prove to have 
particular relevance to an enforcement program of the Federal Emergency 
Management Agency. Further, not all violations of law discovered during 
a criminal investigation fall within the investigative jurisdiction of 
the Federal Emergency Management Agency; in order to promote effective 
law enforcement, it often becomes necessary and desirable to disseminate 
information pertaining to such violations to other law enforcement 
agencies which have jurisdiction over the offense to which the 
information relates. The Federal Emergency Management Agency should not 
be placed in a position of having to ignore information relating to 
violations of law not within its jurisdiction when that information 
comes to the attention of the Federal Emergency Management Agency 
through the conduct of a lawful FEMA investigation. The Federal 
Emergency Management Agency, therefore, believes that it is appropriate 
to exempt the above-listed system of records from the provisions of 5 
U.S.C. 552a(e)(1).
    (viii) 5 U.S.C. 552a(e)(2) requires that an agency collect 
information to the greatest extent practicable directly from the subject 
individual when the information may result in adverse determinations 
about an individual's rights, benefits, and privileges under Federal 
programs. The Federal Emergency Management Agency believes that 
application of this provision to the above-listed system of records 
would impair the ability of the Federal Emergency Management Agency to 
conduct investigations and to identify or detect violators of criminal 
or related laws for the following reasons:
    (A) Most information collected about an individual under criminal 
investigations is obtained from third parties such as witnesses and 
informers, and it is usually not feasible to rely upon the subject of 
the investigation as a source for information regarding his/her criminal 
activities, (B) an attempt to obtain information from the subject of a 
criminal investigation will often alert that individual to the existence 
of an investigation, thereby affording the individual an opportunity to 
attempt to conceal his/her criminal activities so as to avoid 
apprehension, (C) in certain instances, the subject of a criminal 
investigation is not required to supply information to criminal 
investigators as a matter of legal duty, and (D) during criminal 
investigations it is often a matter of sound investigative procedures to 
obtain information from a variety of sources in order to verify 
information already obtained.
    (ix) 5 U.S.C. 552a(e)(3) requires that an agency inform each 
individual whom it asks to supply information, either on the form which 
the agency uses to collect the information or on a separate form which 
can be retained by the individual, with the following information: The 
authority which authorizes the solicitation of the information and 
whether disclosure of such information is mandatory or voluntary; the 
principal purposes for which the information is intended to be used; the 
routine uses which may be made of the information; and the effects on 
the individual of not providing all or part of the requested 
information. The Federal Emergency Management Agency believes that the 
above-listed system of records should be exempted from this provision in 
order to avoid adverse effects on its ability to identify or detect 
violators of criminal or related laws. In many cases, information is 
obtained by confidential sources, other informers or undercover law 
enforcement officers under circumstances where it is necessary that the 
true purpose of their actions be kept secret so as to avoid alerting the 
subject of the investigation or his/her associates that a criminal 
investigation is in process. Further, if it became known that the 
undercover officer was assisting in a criminal investigation, that 
officer's life or physical safety could be endangered through reprisal, 
and, under such circumstances it may not be possible to continue to 
utilize that officer in the investigation. In many cases, individuals, 
for personal reasons, would feel inhibited in talking to a person 
representing a criminal law enforcement agency but would be willing to 
talk to a confidential source or undercover officer who they believe is 
not involved in law enforcement activities.

[[Page 34]]

In addition, providing a source of information with written evidence 
that he was a source, as required by this provision, could increase the 
likelihood that the source of information would be the subject of 
retaliatory action by the subject of the investigation. Further, 
application of this provision could result in an unwarranted invasion of 
the personal privacy of the subject of the criminal investigation, 
particularly where further investigation would result in a finding that 
the subject was not involved in any criminal activity.
    (x) 5 U.S.C. 552a(e)(5) requires that an agency maintain all records 
used by the agency in making any determination about any individual with 
such accuracy, relevance, timeliness and completeness as is reasonably 
necessary to assure fairness to the individual in the determination. 
Since 5 U.S.C. 552a(a)(3) defines ``maintain'' to include ``collect'' 
and ``disseminate,'' application of this provision to the above-listed 
system of records would hinder the initial collection of any information 
which could not, at the moment of collection, be determined to be 
accurate, relevant, timely and complete. Similarly, application of this 
provision would seriously restrict the necessary flow of information 
from the Federal Emergency Management Agency to other law enforcement 
agencies when a FEMA investigation revealed information pertaining to a 
violation of law which was under investigative jurisdiction of another 
agency. In collecting information during the course of a criminal 
investigation, it is not possible or feasible to determine accuracy, 
relevance, timeliness or completeness prior to collection of the 
information; in disseminating information to other law enforcement 
agencies it is often not possible to determine accuracy, relevance, 
timeliness or completeness prior to dissemination because the 
disseminating agency may not have the expertise with which to make such 
determinations. Further, information which may initially appear to be 
inaccurate, irrelevant, untimely or incomplete may, when gathered, 
grouped, and evaluated with other available information, become more 
pertinent as an investigation progresses. In addition, application of 
this provision could seriously impede criminal investigators and 
intelligence analysts in the exercise of their judgment in reporting on 
results obtained during criminal investigations. The Federal Emergency 
Management Agency believes that it is appropriate to exempt the above-
listed system of records from the provisions of 5 U.S.C. 552a(e)(5).
    (xi) 5 U.S.C. 552a(e)(8) requires that an agency make reasonable 
effort to serve notice on an individual when any record on the 
individual is made available to any person under compulsory legal 
process when such process becomes a matter of public record. The Federal 
Emergency Management Agency believes that the above-listed system of 
records should be exempt from this provision in order to avoid revealing 
investigative techniques and procedures outlined in those records and in 
order to prevent revelation of the existence on an on-going 
investigation where there is a need to keep the existence of the 
investigation secret.
    (xii) 5 U.S.C. 552a(g) provides civil remedies to an individual for 
an agency's refusal to amend a record or to make a review of a request 
for amendment; for an agency's refusal to grant access to a record; for 
an agency's failure to maintain accurate, relevant, timely and complete 
records which are used to make a determination which is adverse to the 
individual; and for an agency's failure to comply with any other 
provision of 5 U.S.C. 552a in such a way as to have an adverse effect on 
an individual. The Federal Emergency Management Agency believes that the 
above-listed system of records should be exempted from this provision to 
the extent that the civil remedies provided therein may relate to 
provisions of 5 U.S.C. 552a from which the above-listed system of 
records is proposed to be exempt. Since the provisions of 5 U.S.C. 552a 
enumerated in paragraphs (b)(2)(i) through (xi) of this section are 
proposed to be inapplicable to the above-listed systems of records for 
the reasons stated therein, there should be no corresponding civil 
remedies for failure to comply with the requirements of those provisions 
to which the exemption is proposed to apply. Further, the

[[Page 35]]

Federal Emergency Management Agency believes that application of this 
provision to the above-listed system of records would adversely affect 
its ability to conduct criminal investigations by exposing to civil 
court action every stage of the criminal investigative process in which 
information is compiled or used in order to identify, detect, or 
otherwise investigate persons suspected or known to be engaged in 
criminal conduct.
    (xiii) Individuals may not have access to another agency's records, 
which are contained in files maintained by the Federal Emergency 
Management Agency, when that other agency's regulations provide that 
such records are subject to general exemption under 5 U.S.C. 552a(j). If 
such exempt records are within a request for access, FEMA will advise 
the individual of their existence and of the name and address of the 
source agency. For any further information concerning the record and the 
exemption, the individual must contact that source agency.

[45 FR 64580, Sept. 30, 1980]



Sec. 6.87  Specific exemptions.

    (a) Exempt under 5 U.S.C. 552a(k)(1). The Administrator, Federal 
Emergency Management Agency has determined that certain systems of 
records may be exempt from the requirements of (c)(3) and (d) pursuant 
to 5 U.S.C. 552a(k)(1) to the extent that the system contains any 
information properly classified under Executive Order 12356 or any 
subsequent Executive order and which are required to be kept secret in 
the interest of national defense or foreign policy. To the extent that 
this occurs, such records in the following systems would be exempt:

Claims (litigation) (FEMA/GC-1)--Limited Access
FEMA Enforcement (Compliance) (FEMA/GC-2)--Limited Access
General Investigative Files (FEMA/IG-1)--Limited Access
Security Management Information System (FEMA/SEC-1)--Limited Access

    (b) Exempt under 5 U.S.C. 552a(k)(2) from the requirements of 5 
U.S.C. 552a (c)(3), (d), (e)(1), (e)(4) (G), (H), and (I), and (f). The 
Federal Emergency Management Agency will not deny individuals access to 
information which has been used to deny them a right, privilege, or 
benefit to which they would otherwise be entitled.
    (1) Exempt systems. The following systems of records, which contain 
information of the type described in 5 U.S.C. 552a(k)(2), shall be 
exempt from the provisions of 5 U.S.C. 552a(k)(2) listed in paragraph 
(b) of this section.

Claims (litigation) (FEMA/GC-1)--Limited Access
FEMA Enforcement (Compliance) (FEMA/GC-2)--Limited Access
General Investigative Files (FEMA/IG-1)--Limited Access
Equal Employment Opportunity Complaints of Discrimination Files (FEMA/
PER-2)--Limited Access

    (2) Reasons for exemptions. (i) 5 U.S.C. 552a (e)(4)(G) and (f)(1) 
enable individuals to be notified whether a system of records contains 
records pertaining to them. The Federal Emergency Management Agency 
believes that application of these provisions to the above-listed 
systems of records would impair the ability of FEMA to successfully 
complete investigations and inquiries of suspected violators of civil 
and criminal laws and regulations under its jurisdiction. In many cases 
investigations and inquiries into violations of civil and criminal laws 
and regulations involve complex and continuing patterns of behavior. 
Individuals, if informed, that they have been identified as suspected 
violators of civil or criminal laws and regulations, would have an 
opportunity to take measures to prevent detection of illegal action so 
as to avoid prosecution or the imposition of civil sanctions. They would 
also be able to learn the nature and location of the investigation or 
inquiry, the type of surveillance being utilized, and they would be able 
to transmit this knowledge to co-conspirators. Finally, violators might 
be given the opportunity to destroy evidence needed to prove the 
violation under investigation or inquiry.
    (ii) 5 U.S.C. 552a (d)(1), (e)(4)(H) and (f)(2), (3) and (5) enable 
individuals to gain access to records pertaining to them. The Federal 
Emergency Management Agency believes that application of these 
provisions to the above-listed systems of records would impair its 
ability to complete or continue civil or

[[Page 36]]

criminal investigations and inquiries and to detect violators of civil 
or criminal laws. Permitting access to records contained in the above-
listed systems of records would provide violators with significant 
information concerning the nature of the civil or criminal investigation 
or inquiry. Knowledge of the facts developed during an investigation or 
inquiry would enable violators of criminal and civil laws and 
regulations to learn the extent to which the investigation or inquiry 
has progressed, and this could provide them with an opportunity to 
destroy evidence that would form the basis for prosecution or the 
imposition of civil sanctions. In addition, knowledge gained through 
access to investigatory material could alert a violator to the need to 
temporarily postpone commission of the violation or to change the 
intended point where the violation is to be committed so as to avoid 
detection or apprehension. Further, access to investigatory material 
would disclose investigative techniques and procedures which, if known, 
could enable violators to structure their future operations in such a 
way as to avoid detection or apprehension, thereby neutralizing 
investigators' established and effective investigative tools and 
procedures. In addition, investigatory material may contain the identity 
of a confidential source of information or other informer who would not 
want his/her identity to be disclosed for reasons of personal privacy or 
for fear of reprisal at the hands of the individual about whom he/she 
supplied information. In some cases mere disclosure of the information 
provided by an informer would reveal the identity of the informer either 
through the process of elimination or by virtue of the nature of the 
information supplied. If informers cannot be assured that their 
identities (as sources for information) will remain confidential, they 
would be very reluctant in the future to provide information pertaining 
to violations of criminal and civil laws and regulations, and this would 
seriously compromise the ability of the Federal Emergency Management 
Agency to carry out its mission. Further, application of 5 U.S.C. 552a 
(d)(1), (e)(4)(H) and (f)(2), (3) and (5) to the above-listed systems of 
records would make available attorney's work product and other documents 
which contain evaluations, recommendations, and discussions of on-going 
civil and criminal legal proceedings; the availability of such documents 
could have a chilling effect on the free flow of information and ideas 
within the Federal Emergency Management Agency which is vital to the 
agency's predecisional deliberative process, could seriously prejudice 
the agency's or the Government's position in a civil or criminal 
litigation, and could result in the disclosure of investigatory material 
which should not be disclosed for the reasons stated above. It is the 
belief of the Federal Emergency Management Agency that, in both civil 
actions and criminal prosecutions, due process will assure that 
individuals have a reasonable opportunity to learn of the existence of, 
and to challenge, investigatory records and related materials which are 
to be used in legal proceedings.
    (iii) 5 U.S.C. 552a (d)(2), (3) and (4), (e)(4)(H) and (f)(4) which 
are dependent upon access having been granted to records pursuant to the 
provisions cited in paragraph (b)(2)(ii) of this section, enable 
individuals to contest (seek amendment to) the content of records 
contained in a system of records and require an agency to note an 
amended record and to provide a copy of an individual's statement (of 
disagreement with the agency's refusal to amend a record) to persons or 
other agencies to whom the record has been disclosed. The Federal 
Emergency Management Agency believes that the reasons set forth in 
paragraphs (b)(2)(i) of this section are equally applicable to this 
paragraph, and, accordingly, those reasons are hereby incorporated 
herein by reference.
    (iv) 5 U.S.C. 552a(c)(3) requires that an agency make accountings of 
disclosures of records available to individuals named in the records at 
their request; such accountings must state the date, nature, and purpose 
of each disclosure of a record and the name and address of the 
recipient. The Federal Emergency Management Agency believes that 
application of this provision to the above-listed systems of records 
would impair the ability of the Federal

[[Page 37]]

Emergency Management Agency and other law enforcement agencies to 
conduct investigations and inquiries into civil and criminal violations 
under their respective jurisdictions. Making accountings available to 
violators would alert those individuals to the fact that the Federal 
Emergency Management Agency or another law enforcement authority is 
conducting an investigation or inquiry into their activities, and such 
accountings could reveal the geographic location of the investigation or 
inquiry, the nature and purpose of the investigation or inquiry and the 
nature of the information disclosed, and the date on which that 
investigation or inquiry was active. Violators possessing such knowledge 
would thereby be able to take appropriate measures to avoid detection or 
apprehension by altering their operations, transferring their activities 
to other locations or destroying or concealing evidence which would form 
the basis for prosecution or the imposition of civil sanctions.
    (v) 5 U.S.C. 552a(e)(1) requires that an agency maintain in its 
records only such information about an individual as is relevant and 
necessary to accomplish a purpose of the agency required to be 
accomplished by statute or executive order. The term maintain as defined 
in 5 U.S.C. 552a(a)(3) includes ``collect'' and ``disseminate.'' At the 
time that information is collected by the Federal Emergency Management 
Agency there is often insufficient time to determine whether the 
information is relevant and necessary to accomplish a purpose of the 
Federal Emergency Management Agency; in many cases information collected 
may not be immediately susceptible to a determination of whether the 
information is relevant and necessary, particularly in the early stages 
of investigation or inquiry, and in many cases information which 
initially appears to be irrelevant or unnecessary may, upon further 
evaluation or upon continuation of the investigation or inquiry, prove 
to have particular relevance to an enforcement program of the Federal 
Emergency Management Agency. Further, not all violations of law 
uncovered during a Federal Emergency Management Agency inquiry fall 
within the civil or criminal jurisdiction of the Federal Emergency 
Management Agency; in order to promote effective law enforcement, it 
often becomes necessary and desirable to disseminate information 
pertaining to such violations to other law enforcement agencies which 
have jurisdiction over the offense to which the information relates. The 
Federal Emergency Management Agency should not be placed in a position 
of having to ignore information relating to violations of law not within 
its jurisdiction when that information comes to the attention of the 
Federal Emergency Management Agency through the conduct of a lawful 
FEMAs civil or criminal investigation or inquiry. The Federal Emergency 
Management Agency therefore believes that it is appropriate to exempt 
the above-listed systems of records from the provisions of 5 U.S.C. 
552a(e)(1).
    (c) Exempt under 5 U.S.C. 552a(k)(5). The Administrator, Federal 
Emergency Management Agency has determined that certain systems of 
records are exempt from the requirements of (c)(3) and (d) of 5 U.S.C. 
552a.
    (1) Exempt systems. The following systems of records, which contain 
information of the type described in 5 U.S.C. 552a(k)(5), shall be 
exempted from the provisions of 5 U.S.C. 552a listed in paragraph (c) of 
this section.

Claims (litigation) (FEMA/GC-1)--Limited Access
FEMA Enforcement (Compliance) (FEMA/GC-2)--Limited Access
General Investigative Files (FEMA/IG-2)--Limited Access
Security Management Information Systems (FEMA/SEC-1)--Limited Access

    (2) Reasons for exemptions. All information about individuals in 
these records that meet the criteria stated in 5 U.S.C. 552a(k)(5) is 
exempt from the requirements of 5 U.S.C. 552a (c)(3) and (d). These 
provisions of the Privacy Act relate to making accountings of disclosure 
available to the subject and access to and amendment of records. These 
exemptions are claimed because the system of records entitled, FEMA/SEC-
1, Security Management Information System, contains investigatory 
material compiled solely for the purpose of determining suitability, 
eligibility, or qualifications for access to classified

[[Page 38]]

information or classified Federal contracts, but only to the extent that 
the disclosure would reveal the identity of a source who furnished 
information to the Government under an express promise or, prior to 
September 27, 1975, under an implied promise that the identity of the 
source would be held in confidence. During the litigation process and 
investigations, it is possible that certain records from the system of 
records entitled, FEMA/SEC-1, Security Management System may be 
necessary and relevant to the litigation or investigation and included 
in these systems of records. To the extent that this occurs, the 
Administrator, FEMA, has determined that the records would also be 
exempted from subsections (c)(3) and (d) pursuant to 5 U.S.C. 552a(k)(5) 
to protect such records. A determination will be made at the time of the 
request for a record concerning whether specific information would 
reveal the identity of a source. This exemption is required in order to 
protect the confidentiality of the sources of information compiled for 
the purpose of determining access to classified information. This 
confidentiality helps maintain the Government's continued access to 
information from persons who would otherwise refuse to give it.

[45 FR 64580, Sept. 30, 1980, as amended at 47 FR 54816, Dec. 6, 1982; 
52 FR 5114, Feb. 19, 1987]



PART 7_NONDISCRIMINATION IN FEDERALLY-ASSISTED PROGRAMS (FEMA REG. 5)
--Table of Contents



      Subpart A_Nondiscrimination in FEMA-Assisted Programs_General

Sec.
7.1  Purpose.
7.2  Definitions.
7.3  Application of this regulation.
7.4  Further application of this regulation.
7.5  Specific discriminatory actions prohibited.
7.6  Life, health, and safety.
7.7  Assurances required.
7.8  Elementary and secondary schools.
7.9  Assurances from institutions.
7.10  Compliance information.
7.11  Conduct of investigations.
7.12  Procedure for effecting compliance.
7.13  Hearings.
7.14  Decisions and notices.
7.15  Judicial review.
7.16  Effect on other regulations; forms and instructions.

Subparts B-D [Reserved]

     Subpart E_Nondiscrimination on the Basis of Age in Programs or 
       Activities Receiving Federal Financial Assistance From FEMA

                                 General

7.910  What is the purpose of the Age Discrimination Act of 1975?
7.911  What is the purpose of FEMA's age discrimination regulation?
7.912  To what programs or activities does this regulation apply?
7.913  Definition of terms used in this regulation.

              Standards for Determining Age Discrimination

7.920  Rules against age discrimination.
7.921  Exceptions to the rules against age discrimination: Normal 
          operation or statutory objective of any program or activity.
7.922  Exceptions to the rules against age discrimination: Reasonable 
          factors other than age.
7.923  Burden of proof for exceptions.
7.924  Affirmative action by recipient.
7.925  Special benefits for children and the elderly.
7.926  Age distinctions contained in FEMA regulations.

                        Duties of FEMA Recipients

7.930  General responsibilities.
7.931  Notice to subrecipients and beneficiaries.
7.932  Assurance of compliance and recipient assessment of age 
          distinctions.
7.933  Information requirement.

         Investigation, Conciliation, and Enforcement Procedures

7.940  Compliance reviews.
7.941  Complaints.
7.942  Mediation.
7.943  Investigation.
7.944  Prohibition against intimidation or retaliation.
7.945  Compliance procedure.
7.946  Hearings, decisions, post-termination proceedings.
7.947  Remedial action by recipient.
7.948  Alternate funds disbursal procedure.
7.949  Exhaustion of administrative remedies.

    Source: 30 FR 321, Jan. 9, 1965, unless otherwise noted. 
Redesignated at 45 FR 44575, July 1, 1980.

[[Page 39]]



      Subpart A_Nondiscrimination in FEMA-Assisted Programs_General

    Authority: FEMA Reg. 5 issued under sec. 602, 78 Stat. 252; 42 
U.S.C. 2000 d-1; 42 U.S.C. 1855-1885g; 50 U.S.C. 404.

    Source: 30 FR 321, Jan. 9, 1965, unless otherwise noted. 
Redesignated at 45 FR 44575, July 1, 1980, and further redesignated at 
55 FR 23078, June 6, 1990.



Sec. 7.1  Purpose.

    The purpose of this regulation is to effectuate the provisions of 
title VI of the Civil Rights Act of 1964 (hereafter referred to as the 
``Act'') to the end that no person in the United States shall, on the 
ground of race, color, or national origin, be excluded from 
participation in, be denied the benefits of, or be otherwise subjected 
to discrimination under any program or activity receiving Federal 
financial assistance from the Federal Emergency Management Agency.



Sec. 7.2  Definitions.

    As used in this regulation:
    (a) The term responsible agency official with respect to any program 
receiving Federal financial assistance means the Administrator of the 
Federal Emergency Management Agency or other official of the agency who 
by law or by delegation has the principal responsibility within the 
agency for the administration of the law extending such assistance.
    (b) The term United States means the States of the United States, 
the District of Columbia, Puerto Rico, the Virgin Islands, American 
Samoa, Guam, Wake Island, the Canal Zone, and the territories and 
possessions of the United States, and the term State means any one of 
the foregoing.
    (c) The term Federal financial assistance includes (1) grants and 
loans of Federal funds, (2) the grant or donation of Federal property 
and interests in property, (3) the detail of Federal personnel, (4) the 
sale and lease of, and the permission to use (on other than a casual or 
transient basis), Federal property or any interest in such property 
without consideration or at a nominal consideration, or at a 
consideration which is reduced for the purpose of assisting the 
recipient, or in recognition of the public interest to be served by such 
sale or lease to the recipient, and (5) any Federal agreement, 
arrangement, or other contract which has as one of its purposes the 
provision of assistance.
    (d) The terms program or activity and program mean all of the 
operations of any entity described in paragraphs (d)(1) through (4) of 
this section, any part of which is extended Federal financial 
assistance:
    (1)(i) A department, agency, special purpose district, or other 
instrumentality of a State or of a local government; or
    (ii) The entity of such State or local government that distributes 
such assistance and each such department or agency (and each other State 
or local government entity) to which the assistance is extended, in the 
case of assistance to a State or local government;
    (2)(i) A college, university, or other postsecondary institution, or 
a public system of higher education; or
    (ii) A local educational agency (as defined in 20 U.S.C. 7801), 
system of vocational education, or other school system;
    (3)(i) An entire corporation, partnership, or other private 
organization, or an entire sole proprietorship--
    (A) If assistance is extended to such corporation, partnership, 
private organization, or sole proprietorship as a whole; or
    (B) Which is principally engaged in the business of providing 
education, health care, housing, social services, or parks and 
recreation; or
    (ii) The entire plant or other comparable, geographically separate 
facility to which Federal financial assistance is extended, in the case 
of any other corporation, partnership, private organization, or sole 
proprietorship; or
    (4) Any other entity which is established by two or more of the 
entities described in paragraph (d)(1), (2), or (3) of this section.
    (e) The term facility includes all or any portion of structure, 
equipment, or other real or personal property or interests therein, and 
the provision of facilities includes the construction, expansion, 
renovation, remodeling, alteration or acquisition of facilities.

[[Page 40]]

    (f) The term recipient means any State, political subdivision of any 
State, or instrumentality of any State or political subdivision, any 
public or private agency, institution, or organization, or other entity, 
or any individual, in any State, to whom Federal financial assistance is 
extended, directly or through another recipient, including any 
successor, assign, or transferee thereof, but such term does not include 
any ultimate beneficiary.
    (g) The term primary recipient means any recipient which is 
authorized or required to extend Federal financial assistance to another 
recipient.
    (h) The term applicant means one who submits an application, 
request, or plan required to be approved by a responsible agency 
official, or by a primary recipient, as a condition to eligibility for 
Federal financial assistance, and the term application means such an 
application, request, or plan.

[30 FR 321, Jan. 9, 1965. Redesignated at 45 FR 44575, July 1, 1980, and 
further redesignated at 55 FR 23078, June 6, 1990. 68 FR 51379, Aug. 26, 
2003]



Sec. 7.3  Application of this regulation.

    No person in the United States shall, on the ground of race, color, 
or national origin, be excluded from participation in, be denied the 
benefits of, or be otherwise subjected to discrimination under any 
program to which this regulation applies.

[68 FR 51379, Aug. 26, 2003]



Sec. 7.4  Further application of this regulation.

    This regulation applies to any program for which Federal financial 
assistance is authorized under a law administered by the Federal 
Emergency Management Agency. It applies to money paid, property 
transferred, or other Federal financial assistance extended after the 
effective date of the regulation pursuant to an application approved 
prior to such effective date. This regulation does not apply to (a) any 
Federal financial assistance by way of insurance or guaranty contracts, 
(b) money paid, property transferred, or other assistance extended 
before the effective date of this regulation, (c) any assistance to any 
individual who is the ultimate beneficiary, or (d) any employment 
practice, under such program, of any employer, employment agency, or 
labor organization.

(Reorganization Plan No. 3 of 1978, E.O. 12127 and E.O. 12148)

[30 FR 321, Jan. 9, 1965. Redesignated at 45 FR 44575, July 1, 1980, as 
amended at 48 FR 44543, Sept. 29, 1983; 68 FR 51379, Aug. 26, 2003]



Sec. 7.5  Specific discriminatory actions prohibited.

    (a) A recipient to which this regulation applies may not, directly 
or through contractual or other arrangements, on ground of race, color, 
or national origin:
    (1) Deny any individual any service, financial aid, or other benefit 
provided under the program;
    (2) Provide any service, financial aid, or other benefit to an 
individual which is different, or is provided in a different manner, 
from that provided to others under the program;
    (3) Subject an individual to segregation or separate treatment in 
any matter related to his receipt of any service, financial aid, or 
other benefit under the program;
    (4) Restrict an individual in any way in the enjoyment of any 
advantage or privilege enjoyed by others receiving any service, 
financial aid, or other benefit under the program;
    (5) Treat an individual differently from others in determining 
whether he satisfies any admission, enrollment, quota, eligibility, 
membership or other requirement or condition which individuals must meet 
in order to be provided any service, financial aid, or other benefit 
provided under the program;
    (6) Deny an individual an opportunity to participate in the program 
through the provision of services or otherwise or afford him an 
opportunity to do so which is different from that afforded others under 
the program.
    (b) A recipient, in determining the types of services, financial 
aid, or other benefits, or facilities which will be provided under any 
such program, or the class of individuals to whom, or the situations in 
which, such services, financial aid, other benefits, or facilities will 
be provided under any such program, or the class of individuals to be

[[Page 41]]

afforded an opportunity to participate in any such program, may not, 
directly or through contractual or other arrangements, utilize criteria 
or methods of administration which have the effect of subjecting 
individuals to discrimination because of their race, color, or national 
origin, or have the effect of defeating or substantially impairing 
accomplishment of the objectives of the program as respect individuals 
of a particular race, color, or national origin.
    (c) As used in this section the services, financial aid, or other 
benefits provided under a program receiving Federal financial assistance 
shall be deemed to include any service, financial aid, or other benefit 
provided in or through a facility provided with the aid of Federal 
financial assistance.
    (d) The enumeration of specific forms of prohibited discrimination 
in this section does not limit the generality of the prohibition in 
section 4.

[30 FR 321, Jan. 9, 1965. Redesignated at 45 FR 44575, July 1, 1980, and 
further redesignated at 55 FR 23078, June 6, 1990. 68 FR 51379, Aug. 26, 
2003]



Sec. 7.6  Life, health, and safety.

    Notwithstanding the provisions of section 5, a recipient of Federal 
financial assistance shall not be deemed to have failed to comply with 
section 3, if immediate provision of a service or other benefit to an 
individual is necessary to prevent his death or serious impairment of 
his health or safety.



Sec. 7.7  Assurances required.

    Every application for Federal financial assistance to which this 
regulation applies, and every application for Federal financial 
assistance to provide a facility shall, as a condition to its approval 
and the extension of any Federal financial assistance pursuant to the 
application, contain or be accompanied by an assurance that the program 
will be conducted or the facility operated in compliance with all 
requirements imposed by or pursuant to this regulation. In the case of 
an application for Federal financial assistance to provide real property 
or structures thereon, the assurance shall obligate the recipient, or, 
in the case of a subsequent transfer, the transferee, for the period 
during which the real property or structures are used for a purpose for 
which the Federal financial assistance is extended or for another 
purpose involving the provision of similar services or benefits. In the 
case of personal property the assurance shall obligate the recipient for 
the period during which he retains ownership or possession of the 
property. In all other cases the assurance shall obligate the recipient 
for the period during which Federal financial assistance is extended 
pursuant to the application. The responsible agency official shall 
specify the form of the foregoing assurances and the extent to which 
like assurances will be required of subgrantee, contractors and 
subcontractors, transferees, successors in interest, and other 
participants. Any such assurance shall include provisions which give the 
United States a right to seek its judicial enforcement.

[30 FR 321, Jan. 9, 1965. Redesignated at 45 FR 44575, July 1, 1980, and 
further redesignated at 55 FR 23078, June 6, 1990. 68 FR 51379, Aug. 26, 
2003]



Sec. 7.8  Elementary and secondary schools.

    The requirements of section 7 with respect to any elementary or 
secondary school or school system shall be deemed to be satisfied if 
such school or school system (a) is subject to a final order of a court 
of the United States for the desegregation of such school or school 
system, and provides an assurance that it will comply with such order, 
including any future modification of such order, or (b) submits a plan 
for the desegregation of such school or school system which the United 
States Commissioner of Education determines is adequate to accomplish 
the purpose of the Act and this regulation, and provides reasonable 
assurance that it will carry out such plans; in any case of continuing 
Federal financial assistance the responsible agency official may reserve 
the right to redetermine, after such period as may be specified by him, 
the adequacy of the plan to accomplish the purposes of the Act and this 
regulation. In any case to which a final order of a court of the United 
States for the desegregation of such school or school system is entered 
after submission of such a plan, such plan shall be revised

[[Page 42]]

to conform to such final order, including any future modification of 
such order.



Sec. 7.9  Assurances from institutions.

    (a) In the case of any application for Federal financial assistance 
to an institution of higher education, the assurance required by section 
7 shall extend to admission practices and to all other practices 
relating to the treatment of students.
    (b) The assurances required with respect to an institution of higher 
education, hospital, or any other institution, insofar as the assurance 
relates to the institution's practices with respect to admission or 
other treatment of individuals as students, patients, or clients of the 
institutions or to the opportunity to participate in the provision of 
services or other benefits to such individuals, shall be applicable to 
the entire institution.

[30 FR 321, Jan. 9, 1965. Redesignated at 45 FR 44575, July 1, 1980, and 
further redesignated at 55 FR 23078, June 6, 1990. 68 FR 51379, Aug. 26, 
2003]



Sec. 7.10  Compliance information.

    (a) Cooperation and assistance. The responsible official in the 
Federal Emergency Management Agency shall to the fullest extent 
practicable seek the cooperation of recipients in obtaining compliance 
with this regulation and shall provide assistance and guidance to 
recipients to help them comply voluntarily with this regulation.
    (b) Compliance reports. Each recipient shall keep such records and 
submit to the responsible agency official or his designee timely, 
complete, and accurate compliance reports at such times, and in such 
form and containing such information, as the responsible agency official 
or his designee may determine to be necessary to enable him to ascertain 
whether the recipient has complied or is complying with this regulation. 
In the case in which a primary recipient extends Federal financial 
assistance to any other recipient, such other recipient shall also 
submit such compliance reports to the primary recipient as may be 
necessary to enable the primary recipient to carry out its obligations 
under this regulation.
    (c) Access to sources of information. Each recipient shall permit 
access by the responsible agency official or his designee during normal 
business hours to such of its books, records, accounts, and other 
sources of information, and its facilities as may be pertinent to 
ascertain compliance with this regulation. Where any information 
required of a recipient is in the exclusive possession of any other 
agency, institution or person and this agency, institution or person 
shall fail or refuse to furnish this information, the recipient shall so 
certify in its report and shall set forth what efforts it has made to 
obtain the information.
    (d) Information to beneficiaries and participants. Each recipient 
shall make available to participants, beneficiaries, and other 
interested persons such information regarding the provisions of this 
regulation and its applicability to the program for which the recipient 
receives Federal financial assistance, and make such information 
available to them in such manner, as the responsible agency official 
finds necessary to apprise such persons of the protection against 
discrimination assured them by the Act and this regulation.

[30 FR 321, Jan. 9, 1965. Redesignated at 45 FR 44575, July 1, 1980, and 
further redesignated at 55 FR 23078, June 6, 1990. 68 FR 51379, Aug. 26, 
2003]



Sec. 7.11  Conduct of investigations.

    (a) Periodic compliance reviews. The responsible agency official or 
his designee shall from time to time review the practices of recipients 
to determine whether they are complying with this regulation.
    (b) Complaints. Any person who believes himself or any specific 
class of individuals to be subjected to discrimination prohibited by 
this regulation may by himself or by a representative file a written 
complaint with the National Headquarters or any Regional Office of the 
Federal Emergency Management Agency. A complaint must be filed not later 
than 180 days from the date of the alleged discrimination, unless the 
time for filing is extended by the responsible agency official or his 
designee.
    (c) Investigations. The responsible agency official or his designee 
will

[[Page 43]]

make a prompt investigation whenever a compliance review, report, 
complaint, or any other information indicates a possible failure to 
comply with this regulation. The investigation should include, where 
appropriate, a review of the pertinent practices and policies of the 
recipient, the circumstances under which the possible noncompliance with 
this regulation occurred, and other factors relevant to a determination 
as to whether the recipient has failed to comply with this regulation.
    (d) Resolution of matters. (1) If an investigation pursuant to 
paragraph (c) of this section indicates a failure to comply with this 
regulation, the responsible agency official or his designee will so 
inform the recipient and the matter will be resolved by informal means 
whenever possible. If it has been determined that the matter cannot be 
resolved by informal means, action will be taken as provided for in 
section 12.
    (2) If an investigation does not warrant action pursuant to 
paragraph (d)(1) of this section the responsible agency official or his 
designee will so inform the recipient and the complainant, if any, in 
writing.
    (e) Intimidatory or retaliatory acts prohibited. No recipient or 
other person shall intimidate, threaten, coerce, or discriminate against 
any individual for the purpose of interfering with any right or 
privilege secured by section 601 of the Act or this regulation, or 
because he has made a complaint, testified, assisted, or participated in 
any manner in an investigation, proceeding, or hearing under this 
regulation. The identity of complainants shall be kept confidential 
except to the extent necessary to carry out the purposes of this 
regulation, including the conduct of any investigation, hearing, or 
judicial proceeding arising thereunder.

[30 FR 321, Jan. 9, 1965. Redesignated at 45 FR 44575, July 1, 1980, and 
further redesignated at 55 FR 23078, June 6, 1990, as amended at 64 FR 
38309, July 16, 1999]



Sec. 7.12  Procedure for effecting compliance.

    (a) General. If there appears to be a failure or threatened failure 
to comply with this regulation, and if the noncompliance or threatened 
noncompliance cannot be corrected by informal means, compliance with 
this regulation may be effected by the suspension or termination of or 
refusal to grant or to continue Federal financial assistance or by any 
other means authorized by law. Such other means may include, but are not 
limited to, (1) a reference to the Department of Justice with a 
recommendation that appropriate proceedings be brought to enforce any 
rights of the United States under any law of the United States 
(including other titles of the Act), or any assurance or other 
contractual undertaking, and (2) any applicable proceeding under state 
or local law.
    (b) Noncompliance with section 7. If an applicant fails or refuses 
to furnish an assurance required under section 7 or otherwise fails or 
refuses to comply with a requirement imposed by or pursuant to that 
section Federal financial assistance may be refused in accordance with 
the procedures of paragraph (c) of this section. The agency shall not be 
required to provide assistance in such a case during the pendency of the 
administrative proceedings under such paragraph except that the agency 
shall continue assistance during the pendency of such proceedings where 
such assistance is due and payable pursuant to an application thereof 
approved prior to the effective date of this regulation.
    (c) Termination of or refusal to grant or to continue Federal 
financial assistance. No order suspending, terminating or refusing to 
grant or continue Federal financial assistance shall become effective 
until (1) the responsible agency official has advised the applicant or 
recipient of his failure to comply and has determined that compliance 
cannot be secured by voluntary means, (2) there has been an express 
finding on the record, after opportunity for hearing, of a failure by 
the applicant or recipient to comply with a requirement imposed by or 
pursuant to this regulation, (3) the action has been approved by the 
Administrator of the Federal Emergency Management Agency pursuant to 
section 14, and (4) the expiration of 30 days after the Administrator 
has filed with the committee of the House

[[Page 44]]

and the committee of the Senate having legislative jurisdiction over the 
program involved, a full written report of the circumstances and the 
grounds for such action. Any action to suspend or terminate or to refuse 
to grant or to continue Federal financial assistance shall be limited to 
the particular political entity, or part thereof, or other applicant or 
recipient as to whom such a finding has been made and shall be limited 
in its effect to the particular program, or part thereof, in which such 
noncompliance has been so found.
    (d) Other means authorized by law. No action to effect compliance by 
any other means authorized by law shall be taken until (1) the 
responsible agency official has determined that compliance cannot be 
secured by voluntary means, (2) the action has been approved by the 
Administrator of the Federal Emergency Management Agency, (3) the 
recipient or other person has been notified of its failure to comply and 
of the action to be taken to effect compliance, and (4) the expiration 
of at least 10 days from the mailing of such notice to the recipient or 
other person. During this period of at least 10 days additional efforts 
shall be made to persuade the recipient or other person to comply with 
the regulation and to take such corrective action as may be appropriate.



Sec. 7.13  Hearings.

    (a) Opportunity for hearing. Whenever an opportunity for a hearing 
is required by section 12(c), reasonable notice shall be given by 
registered or certified mail, return receipt requested, to the affected 
applicant or recipient. This notice shall advise the applicant or 
recipient of the action proposed to be taken, the specific provision 
under which the proposed action against it is to be taken, and the 
matters of fact or law asserted as the basis for this action, and either 
(1) fix a date not less than 20 days after the date of such notice 
within which the applicant or recipient may request of the responsible 
agency official that the matter be scheduled for hearing or (2) advise 
the applicant or recipient that the matter in question has been set down 
for hearing at a stated place and time. The time and place so fixed 
shall be reasonable and shall be subject to change for cause. The 
complainant, if any, shall be advised of the time and place of the 
hearing. An applicant or recipient may waive a hearing and submit 
written information and argument for the record. The failure of an 
applicant or recipient to request a hearing under this subsection or to 
appear at a hearing for which a date has been set shall be deemed to be 
a waiver of the right to a hearing under section 602 of the Act and 
section 12(c) of this regulation and consent to the making of a decision 
on the basis of such information as is available.
    (b) Time and place of hearing. Hearings shall be held at the 
National Headquarters of the Federal Emergency Management Agency in 
Washington, DC, at a time fixed by the responsible agency official 
unless he determines that the convenience of the applicant or recipient 
or of the agency requires that another place be selected. Hearings shall 
be held before the responsible agency official or, at his discretion, 
before a hearing examiner designated in accordance with section 11 of 
the Administrative Procedure Act.
    (c) Right to counsel. In all proceedings under this section, the 
applicant or recipient and the agency shall have the right to be 
represented by counsel.
    (d) Procedures, evidence, and record. (1) The hearing, decision, and 
any administrative review thereof shall be conducted in conformity with 
sections 5-8 of the Administrative Procedure Act, and in accordance with 
such rules of procedure as are proper (and not inconsistent with this 
section) relating to the conduct of the hearing, giving of notices 
subsequent to those provided for in paragraph (a) of this section, 
taking of testimony, exhibits, arguments and briefs, requests for 
findings, and other related matters. Both the agency and the applicant 
or recipient shall be entitled to introduce all relevant evidence on the 
issues as stated in the notice for hearing or as determined by the 
officer conducting the hearing at the outset of or during the hearing.
    (2) Technical rules of evidence shall not apply to hearings 
conducted pursuant to this regulation, but rules or

[[Page 45]]

principles designed to assure production of the most credible evidence 
available and to subject testimony to test by cross-examination shall be 
applied where reasonably necessary by the officer conducting the 
hearing. The hearing officer may exclude irrelevant, immaterial, or 
unduly repetitious evidence. All documents and other evidence offered or 
taken for the record shall be open to examination by the parties and 
opportunity shall be given to refute facts and arguments advanced on 
either side of the issues. A transcript shall be made of the oral 
evidence except to the extent the substance thereof is stipulated for 
the record. All decisions shall be based upon the hearing record and 
written findings shall be made.
    (e) Consolidated or joint hearings. In cases in which the same or 
related facts are asserted to constitute noncompliance with this 
regulation with respect to two or more Federal statutes, authorities, or 
other means by which Federal financial assistance is extended and to 
which this regulation applies, or noncompliance with this regulation and 
the regulations of one or more other Federal departments or agencies 
issued under title VI of the Act, the Administrator of the Federal 
Emergency Management Agency may, by agreement with such other 
departments or agencies where applicable, provide for the conduct of 
consolidated or joint hearings, and for the application to such hearings 
of rules of procedures not inconsistent with this regulation. Final 
decisions in such cases, insofar as this regulation is concerned, shall 
be made in accordance with section 14.

[30 FR 321, Jan. 9, 1965. Redesignated at 45 FR 44575, July 1, 1980, and 
further redesignated at 55 FR 23078, June 6, 1990. 68 FR 51379, Aug. 26, 
2003]



Sec. 7.14  Decisions and notices.

    (a) Decision by person other than the responsible agency official. 
If the hearing is held by a hearing examiner such hearing examiner shall 
either make an initial decision, if so authorized, or certify the entire 
record including his recommended findings and proposed decision to the 
responsible agency official for a final decision, and a copy of such 
initial decision or certification shall be mailed to the applicant or 
recipient. Where the initial decision is made by the hearing examiner 
the applicant or recipient may within 30 days of the mailing of such 
notice of initial decision file with the responsible agency official his 
exceptions to the initial decision, with his reasons therefor. In the 
absence of exceptions, the responsible agency official may on his own 
motion within 45 days after the initial decision serve on the applicant 
or recipient a notice that he will review the decision. Upon the filing 
of such exceptions or of such notice of review the responsible agency 
official shall review the initial decision and issue his own decision 
thereon including the reasons therefor. In the absence of either 
exceptions or a notice of review the initial decision shall constitute 
the final decision of the responsible agency official.
    (b) Decisions on record or review by the responsible agency 
official. Whenever a record is certified to the responsible agency 
official for decision or he reviews the decision of a hearing examiner 
pursuant to paragraph (a) of this section, or whenever he conducts the 
hearing, the applicant or recipient shall be given reasonable 
opportunity to file with him briefs or other written statements of its 
contentions, and a copy of his final decision shall be given in writing 
to the applicant or recipient and to the complainant, if any.
    (c) Decisions on record where a hearing is waived. Whenever a 
hearing is waived pursuant to section 13(a) a decision shall be made by 
the responsible agency official on the record and a copy of such 
decision shall be given in writing to the applicant or recipient, and to 
the complainant, if any.
    (d) Rulings required. Each decision of a hearing officer or 
responsible agency official shall set forth his ruling on each finding, 
conclusion, or exception presented, and shall identify the requirement 
or requirements imposed by or pursuant to this regulation with which it 
is found that the applicant or recipient has failed to comply.
    (e) Approval by Administrator. Any final decision of a responsible 
agency official (other than the Director of the

[[Page 46]]

agency) which provides for the suspension or termination of, or the 
refusal to grant or continue Federal financial assistance, or the 
imposition of any other sanction available under this regulation or the 
Act, shall promptly be transmitted to the Administrator of the Federal 
Emergency Management Agency who may approve such decision, may vacate 
it, or remit or mitigate any sanction imposed.
    (f) Content of orders. The final decision may provide for suspension 
or termination of, or refusal to grant or continue Federal financial 
assistance, in whole or in part, to which this regulation applies, and 
may contain such terms, conditions, and other provisions as are 
consistent with and will effectuate the purposes of the Act and this 
regulation, including provisions designed to assure that no Federal 
financial assistance to which this regulation applies will thereafter be 
extended to the applicant or recipient determined by such decision to be 
in default in its performance of an assurance given by it pursuant to 
this regulation, or to have otherwise failed to comply with this 
regulation, unless and until it corrects its noncompliance and satisfies 
the Administrator of the Federal Emergency Management Agency that it 
will fully comply with this regulation.

[30 FR 321, Jan. 9, 1965. Redesignated at 45 FR 44575, July 1, 1980, and 
further redesignated at 55 FR 23078, June 6, 1990. 68 FR 51379, Aug. 26, 
2003]



Sec. 7.15  Judicial review.

    Action taken pursuant to section 602 of the Act is subject to 
judicial review as provided in section 603 of the Act.



Sec. 7.16  Effect on other regulations; forms and instructions.

    (a) Effect on other regulations. All regulations, orders, or like 
directions heretofore issued by any officer of the Federal Emergency 
Management Agency which impose requirements designed to prohibit any 
discrimination against individuals on the ground of race, color, or 
national origin under any program to which this regulation applies, and 
which authorize the suspension or termination of or refusal to grant or 
to continue Federal financial assistance to any applicant for or 
recipient of such assistance for failure to comply with such 
requirements, are hereby superseded to the extent that such 
discrimination is prohibited by this regulation, except that nothing in 
this regulation shall be deemed to relieve any person of any obligation 
assumed or imposed under any such superseded regulation, order, 
instruction, or like direction prior to the effective date of this 
regulation. Nothing in this regulation, however, shall be deemed to 
supersede Executive Orders 10925 and 11114 (including future amendments 
thereof) and regulations issued thereunder, or any other regulations or 
instructions, insofar as such regulations or instructions prohibit 
discrimination on the ground of race, color, or national origin in any 
program or situation to which this regulation is inapplicable, or 
prohibit discrimination on any other ground.
    (b) Forms and instructions. Each responsible agency official shall 
issue and promptly make available to interested persons forms and 
detailed instructions and procedures for effectuating this regulation as 
applied to programs to which this regulation applies and for which he is 
responsible.
    (c) Supervision and coordination. The Administrator of the Federal 
Emergency Management Agency may from time to time assign to officials of 
other departments or agencies of the Government with the consent of such 
departments or agencies, responsibilities in connection with the 
effectuation of the purposes of title VI of the Act and this regulation 
(other than responsibility for final decision as provided in section 
14), including the achievement of effective coordination and maximum 
uniformity within the agency and within the Executive Branch of the 
Government in the application of title VI and this regulation to similar 
programs and in similar situations.

[30 FR 321, Jan. 9, 1965. Redesignated at 45 FR 44575, July 1, 1980, and 
further redesignated at 55 FR 23078, June 6, 1990. 68 FR 51379, Aug. 26, 
2003]

Subparts B-D [Reserved]

[[Page 47]]



     Subpart E_Nondiscrimination on the Basis of Age in Programs or 
       Activities Receiving Federal Financial Assistance From FEMA

    Authority: Age Discrimination Act of 1975, as amended (42 U.S.C. 
6101 et seq.); 45 CFR part 90.

    Source: 55 FR 23078, June 6, 1990, unless otherwise noted.

                                 General



Sec. 7.910  What is the purpose of the Age Discrimination Act of 1975?

    The Age Discrimination Act of 1975 (the ``Act''), as amended, is 
designed to prohibit discrimination on the basis of age in programs or 
activities receiving Federal financial assistance. The Act also permits 
federally-assisted programs or activities, and recipients of Federal 
funds, to continue to use certain age distinctions and factors other 
than age which meet the requirements of the Act and this regulation.

[55 FR 23078, June 6, 1990, as amended at 68 FR 51380, Aug. 26, 2003]



Sec. 7.911  What is the purpose of FEMA's age discrimination regulation?

    The purpose of this regulation is to set out FEMA's policies and 
procedures under the Age Discrimination Act of 1975 and the general 
governmentwide regulations, 45 CFR part 90. The Act and the general 
regulations prohibit discrimination on the basis of age in programs or 
activities receiving Federal financial assistance. The Act and the 
general regulations permit federally-assisted programs or activities, 
and recipients of Federal funds, to continue to use age distinctions and 
factors other than age which meet the requirements of the Act and its 
implementing regulations.

[55 FR 23078, June 6, 1990, as amended at 68 FR 51380, Aug. 26, 2003]



Sec. 7.912  To what programs or activities does this regulation apply?

    (a) The Act and this regulation apply to each FEMA recipient and to 
each program or activity operated by the recipient which receives 
Federal financial assistance provided by FEMA.
    (b) The Act and this regulation do not apply to:
    (1) An age distinction contained in that part of a Federal, State or 
local statute or ordinance adopted by an elected, general purpose 
legislative body which:
    (i) Provides any benefits or assistance to persons based on age; or
    (ii) Establishes criteria for participation in age-related terms; or
    (iii) Describes intended beneficiaries or target groups in age-
related terms.
    (2) Any employment practice of any employer, employment agency, 
labor organization, or any labor-management joint apprenticeship 
training program, except for any program or activity receiving Federal 
financial assistance for public service employment under the Job 
Training Partnership Act (29 U.S.C. 150, et seq.)

[55 FR 23078, June 6, 1990, as amended at 68 FR 51380, Aug. 26, 2003]



Sec. 7.913  Definition of terms used in this regulation.

    As used in this regulation, the term Act means the Age 
Discrimination Act of 1975 as amended (title III of Pub. L. 94-135).
    Action means any act, activity, policy, rule, standard, or method of 
administration; or the use of any policy, rule, standard or method of 
administration.
    Administrator means the Administrator of the Federal Emergency 
Management Agency.
    Age means how old a person is, or the number of years from the date 
of a person's birth.
    Age distinction means any action using age or an age-related term.
    Age-related term means a word or words which necessarily imply a 
particular age or range of ages (for example, children, older persons, 
but not student).
    Agency means the Federal Emergency Management Agency.
    Federal financial assistance means any grant, entitlement, loan, 
cooperative agreement, contract (other than a procurement contract or a 
contract of insurance or guaranty), or any other arrangement by which 
the agency provides or otherwise makes available assistance in the form 
of:

[[Page 48]]

    (a) Funds; or
    (b) Services or Federal personnel; or
    (c) Real and personal property or any interest in or use of 
property, including:
    (1) Transfers or leases of property for less than fair market value 
or for reduced consideration; and
    (2) Proceeds from a subsequent transfer or lease of property if the 
Federal share of its fair market value is not returned to the Federal 
Government.
    Normal operation means the operation of a program or activity 
without significant changes that would impair its ability to meet its 
objective.
    Program or activity means all of the operations of any entity 
described in paragraphs (1) through (4) of this definition, any part of 
which is extended Federal financial assistance:
    (1)(i) A department, agency, special purpose district, or other 
instrumentality of a State or of a local government; or
    (ii) The entity of such State or local government that distributes 
such assistance and each such department or agency (and each other State 
or local government entity) to which the assistance is extended, in the 
case of assistance to a State or local government;
    (2)(i) A college, university, or other postsecondary institution, or 
a public system of higher education; or
    (ii) A local educational agency (as defined in 20 U.S.C. 7801), 
system of vocational education, or other school system;
    (3)(i) An entire corporation, partnership, or other private 
organization, or an entire sole proprietorship--
    (A) If assistance is extended to such corporation, partnership, 
private organization, or sole proprietorship as a whole; or
    (B) Which is principally engaged in the business of providing 
education, health care, housing, social services, or parks and 
recreation; or
    (ii) The entire plant or other comparable, geographically separate 
facility to which Federal financial assistance is extended, in the case 
of any other corporation, partnership, private organization, or sole 
proprietorship; or
    (4) Any other entity which is established by two or more of the 
entities described in paragraph (1), (2), or (3) of this definition.
    Recipient means any State or its political subdivision, any 
instrumentality of a State or its political subdivision, institution, 
organization, or other entity, or any person to which Federal financial 
assistance is extended, directly or through another recipient. Recipient 
includes any successor, assignee, or transferee, but excludes the 
ultimate beneficiary of the assistance.
    Statutory objective means any purpose of a program or activity 
expressly stated in any Federal statute, State statute or local statute 
or ordinance adopted by an elected, general purpose legislative body.
    Subrecipient means any of the entities in the definition of 
``recipient'' to which a recipient extends or passes on Federal 
financial assistance. A subrecipient is generally regarded as a 
recipient of Federal financial assistance and has all the duties of a 
recipient in these regulations.
    United States includes the States of the United States, the District 
of Columbia, the Commonwealth of Puerto Rico, the Virgin Islands, 
American Samoa, Guam, the Commonwealth of the Northern Mariana Islands, 
Wake Island, the Canal Zone, the Trust Territory of the Pacific Islands 
and all other territories and possessions of the United States. The term 
``State'' also includes any one of the foregoing.

[55 FR 23078, June 6, 1990, as amended at 68 FR 51380, Aug. 26, 2003; 74 
FR 15335, Apr. 3, 2009]

              Standards for Determining Age Discrimination



Sec. 7.920  Rules against discrimination.

    The rules stated in this section are limited by the exceptions 
contained in Secs. 7.921 and 7.922 of these regulations.
    (a) General rule: No person in the United States shall, on the basis 
of age, be excluded from participation in, be denied the benefits of, or 
be subjected to discrimination under, any program or activity receiving 
Federal financial assistance.
    (b) Specific rules: A recipient may not, in any program or activity 
receiving Federal financial assistance, directly

[[Page 49]]

or through contractual licensing, or other arrangements, use age 
distinctions or take any other actions which have the effect, on the 
basis of age, of:
    (1) Excluding individuals from, denying them the benefits of, 
subjecting them to discrimination under, a program or activity receiving 
Federal financial assistance; or
    (2) Denying or limiting individuals in their opportunity to 
participate in any program or activity receiving Federal financial 
assistance. The specific forms of age discrimination listed in paragraph 
(b) of this section do not necessarily constitute a complete list.



Sec. 7.921  Exceptions to the rules against age discrimination:
Normal operation or statutory objective of any program or activity.

    A recipient is permitted to take an action, otherwise prohibited by 
Sec. 7.920, if the action reasonably takes into account age as a factor 
necessary to the normal operation of the achievement of any statutory 
objective of a program or activity. An action reasonably takes into 
account age as a factor necessary to the normal operation or the 
achievement of any statutory objective of a program or activity, if:
    (a) Age is used as a measure or approximation of one or more other 
characteristics; and
    (b) The other characteristic(s) must be measured or approximated in 
order for the normal operation of the program or activity to continue, 
or to achieve any statutory objective of the program or activity; and
    (c) The other characteristic(s) can be reasonably measured or 
approximated by the use of age; and
    (d) The other characteristic(s) are impractical to measure directly 
on an individual basis.



Sec. 7.922  Exceptions to the rules against age discrimination: 
Reasonable factors other than age.

    A recipient is permitted to take an action otherwise prohibited by 
Sec. 7.920 which is based on a factor other than age, even though that 
action may have a disproportionate effect on persons of different ages 
only if the factor bears a direct and substantial relationship to the 
normal operation of the program or activity or to the achievement of a 
statutory objective.



Sec. 7.923  Burden of proof for exceptions.

    The burden of proving that an age distinction or other action falls 
within the exceptions outlined in Secs. 7.921 and 7.922 is on the 
recipient of Federal financial assistance.



Sec. 7.924  Affirmative action by recipient.

    Even in the absence of a finding of discrimination, a recipient may 
take affirmative action to overcome the effects of conditions that 
resulted in the limited participation in the recipient's program or 
activity on the basis of age.



Sec. 7.925  Special benefits for children and the elderly.

    If a recipient operating a program or activity provides special 
benefits to the elderly or to children, such use of age distinctions 
shall be presumed to be necessary to the normal operation of the program 
or activity, notwithstanding the provisions of Sec. 7.921.

[55 FR 23078, June 6, 1990, as amended at 68 FR 51380, Aug. 26, 2003]



Sec. 7.926  Age distinctions contained in FEMA regulations.

    Any age distinctions contained in a rule or regulation issued by 
FEMA shall be presumed to be necessary to the achievement of a statutory 
objective of the program or activity to which the rule or regulation 
applies, notwithstanding the provisions of Sec. 7.921.

[55 FR 23078, June 6, 1990, as amended at 68 FR 51380, Aug. 26, 2003]

                        Duties of FEMA Recipients



Sec. 7.930  General responsibilities.

    Each FEMA recipient has primary responsibility to ensure that its 
programs or activities are in compliance with the Act and this 
regulation, and shall take steps to eliminate violations of the Act. A 
recipient also has responsibility to maintain records, provide 
information, and to afford FEMA access to its records to the extent FEMA 
finds necessary to determine whether

[[Page 50]]

the recipient is in compliance with the Act and this regulation.

[55 FR 23078, June 6, 1990, as amended at 68 FR 51380, Aug. 26, 2003]



Sec. 7.931  Notice to subrecipients and beneficiaries.

    (a) Where a recipient passes on Federal financial assistance from 
FEMA to subrecipients, the recipient shall provide the subrecipients 
written notice of their obligations under the Act and this regulation.
    (b) Each recipient shall make necessary information about the Act 
and this regulation available to its beneficiaries in order to inform 
them about the protection against discrimination provided by the Act and 
this regulation.

[55 FR 23078, June 6, 1990, as amended at 68 FR 51380, Aug. 26, 2003]



Sec. 7.932  Assurance of compliance and recipient assessment of age
distinctions.

    (a) Each recipient of Federal financial assistance from FEMA shall 
sign a written assurance as specified by FEMA that it will comply with 
Act and this regulation.
    (b) Recipient assessment of age distinctions. (1) As part of the 
compliance review under Sec. 7.940 or complaint investigation under 
Sec. 7.943, FEMA may require a recipient employing the equivalent of 
fifteen or more employees to complete written evaluation, in a manner 
specified by the responsible Agency official, of any age distinction 
imposed in its program or activity receiving Federal financial 
assistance from FEMA to assess the recipient's compliance with the Act.
    (2) Whenever an assessment indicates a violation of the Act and the 
FEMA regulations, the recipient shall take corrective action.



Sec. 7.933  Information requirement.

    Each recipient shall:
    (a) Keep records in a form acceptable to FEMA and containing 
information which FEMA determines are necessary to ascertain whether the 
recipient is complying with the Act and this regulation.
    (b) Provide to FEMA, upon request, information and reports which 
FEMA determines are necessary to ascertain whether the recipient is 
complying with the Act and this regulation.
    (c) Permit FEMA reasonable access to the books, records, accounts, 
and other recipient facilities and sources of information to the extent 
FEMA determines is necessary to ascertain whether the recipient is 
complying with the Act and this regulation.

         Investigation, Conciliation, and Enforcement Procedures



Sec. 7.940  Compliance reviews.

    (a) FEMA may conduct compliance reviews and preaward reviews or use 
other similar procedures that will permit it to investigate and correct 
violations of the Act and this regulation. FEMA may conduct these 
reviews even in the absence of a complaint against a recipient. The 
reviews may be as comprehensive as necessary to determine whether a 
violation of the Act and this regulation has occurred.
    (b) If a compliance review or preaward review indicates a violation 
of the Act or this regulation, FEMA will attempt to achieve voluntary 
compliance with the Act. If voluntary compliance cannot be achieved, 
FEMA will arrange for enforcement as described in Sec. 7.945.



Sec. 7.941  Complaints.

    (a) Any person, individually or as a member of a class or on behalf 
of others, may file a complaint with FEMA, alleging discrimination 
prohibited by the Act or these regulations occurring after the date of 
final adoption of this rule. A complainant shall file a complaint within 
180 days from the date the complainant first had knowledge of the 
alleged act of discrimination. However, for good cause showing, FEMA may 
extend this time limit.
    (b) FEMA will consider the date a complaint is filed to be the date 
upon which the complaint is sufficient to be processed. A complaint is 
deemed ``sufficient'' when it contains particulars (e.g., names, 
addresses, and telephone numbers of parties involved; date(s) of alleged 
discrimination; kind(s) of alleged discrimination) upon which to begin 
an investigation.

[[Page 51]]

    (c) FEMA will attempt to facilitate the filing of complaints 
wherever possible, including taking the following measures:
    (1) Accepting as a sufficient complaint any written statement which 
identifies the parties involved and the date the complainant first had 
knowledge of the alleged violation, describes generally the action or 
practice complained of, and is signed by the complainant.
    (2) Freely permitting a complainant to add information to the 
complaint to meet the requirements of a sufficient complaint.
    (3) Notifying the complainant and the recipient of their rights and 
obligations under the complaint procedure, including the right to have a 
representative at all stages of the complaint procedure.
    (4) Notifying the complainant and the recipient (or their 
representatives) of their right to contact FEMA for information and 
assistance regarding the complaint resolution process.
    (d) FEMA will return to the complainant any complaint outside the 
jurisdiction of this regulation, and will state the reason(s) why it is 
outside the jurisdiction of this regulation.



Sec. 7.942  Mediation.

    (a) FEMA will promptly refer to a mediation agency designated by the 
Administrator all sufficient complaints that:
    (1) Fall within the jurisdiction of the Act and this regulation, 
unless the age distinction complained of is clearly within an exception; 
and,
    (2) Contain all information necessary for further processing.
    (b) Both the complainant and the recipient shall participate in the 
mediation process to the extent necessary to reach an agreement or for 
the mediator to make an informed judgment that an agreement is not 
possible.
    (c) If the complainant and the recipient reach an agreement, the 
mediator shall prepare a written statement of the agreement and have the 
complainant and the recipient sign it. The mediator shall send a copy of 
the agreement to FEMA. FEMA will take no further action on the complaint 
unless the complainant or the recipient fails to comply with the 
agreement.
    (d) The mediator shall protect the confidentiality of all 
information obtained in the course of the mediation process. No mediator 
shall testify in any adjudicative proceeding, produce any document, or 
otherwise disclose any information obtained in the course of the 
mediation process without prior approval of the head of the mediation 
agency.
    (e) The mediation will proceed for a maximum of 60 days after a 
complaint is filed with FEMA. Mediation ends if:
    (1) Sixty days elapse from the time the complaint is filed; or
    (2) Prior to the end of that 60 day period, an agreement is reached; 
or
    (3) Prior to the end of that 60 day period, the mediator determines 
that an agreement cannot be reached. This 60 day period may be extended 
by the mediator, with the concurrence of FEMA, for not more than 30 days 
if the mediator determines agreement will likely be reached during such 
extended period.
    (f) The mediator shall return unresolved complaints to FEMA.



Sec. 7.943  Investigation.

    (a) Informal investigation. (1) FEMA will investigate complaints 
that are unresolved after mediation or are reopened because of a 
violation of a mediation agreement.
    (2) As part of the initial investigation, FEMA will use informal 
fact finding methods, including joint or separate discussion with the 
complainant and recipient, to establish the facts and, if possible, 
settle the complaint on terms that are mutually agreeable to the 
parties. FEMA may seek the assistance of any involved state agency.
    (3) FEMA will put any agreement in writing and have it signed by the 
parties and an authorized official at FEMA.
    (4) The settlement shall not affect the operation of any other 
enforcement effort of FEMA, including compliance reviews and 
investigation of other complaints which may involve the recipient.
    (5) The settlement is not a finding of discrimination against a 
recipient.

[[Page 52]]

    (b) Formal investigation. If FEMA cannot resolve the complaint 
through informal investigation, it will begin to develop formal findings 
through further investigation of the complaint. If the investigation 
indicates a violation of this regulation, FEMA will attempt to obtain 
voluntary compliance, it will begin enforcement as described in 
Sec. 7.945.

[55 FR 23078, June 6, 1990, as amended at 68 FR 51380, Aug. 26, 2003]



Sec. 7.944  Prohibition against intimidation or retaliation.

    A recipient may not engage in acts of intimidation or retaliation 
against any person who:
    (a) Attempts to assert a right protected by the Act or this 
regulation; or
    (b) Cooperates in any mediation, investigation, hearing, or other 
part of FEMA's investigation, conciliation and enforcement process.



Sec. 7.945  Compliance procedure.

    (a) FEMA may enforce the Act and this regulation through:
    (1) Termination of a recipient's Federal financial assistance from 
FEMA under the program or activity involved where the recipient has 
violated the Act or this regulation. The determination of the 
recipient's violation may be made only after a recipient has had an 
opportunity for a hearing on the record before an administrative law 
judge.
    (2) Any other means authorized by law including but not limited to:
    (i) Referral to the Department of Justice for proceedings to enforce 
any rights of the United States or obligations of the recipient created 
by the Act or this regulation.
    (ii) Use of any requirement of or referral to any Federal, State or 
local government agency that will have the effect of correcting a 
violation of the Act or this regulation.
    (b) FEMA will limit any termination under Sec. 7.945(a)(1) to the 
particular recipient and particular program or activity or part of such 
program or activity FEMA finds in violation of this regulation. FEMA 
will not base any part of a termination on a finding with respect to any 
program or activity of the recipient which does not receive Federal 
financial assistance from FEMA.
    (c) FEMA will take no action under paragraph (a) until:
    (1) The Administrator has advised the recipient of its failure to 
comply with the Act and this regulation and has determined that 
voluntary compliance cannot be obtained.
    (2) Thirty days have elapsed after the Administrator has sent a 
written report of the circumstances and grounds of the action to the 
committees of the Congress having legislative jurisdiction over the 
program or activity involved. The Administrator will file a report 
whenever any action is taken under paragraph (a).
    (d) FEMA also may defer granting new Federal financial assistance 
from FEMA to a recipient when a hearing under Sec. 7.945(a)(1) is 
initiated.
    (1) New Federal financial assistance from FEMA includes all 
assistance for which FEMA requires an application or approval, including 
renewal or continuation of existing activities, or authorization of new 
activities, during the deferral period. New Federal financial assistance 
from FEMA does not include increases in funding as a result of changed 
computation of formula awards or assistance approved prior to the 
beginning of a hearing under Sec. 7.945(a)(1).
    (2) FEMA will not begin a deferral until the recipient has received 
a notice of an opportunity for a hearing under Sec. 7.945(a)(1). FEMA 
will not continue a deferral for more than 60 days unless a hearing has 
begun within that time or the time for beginning the hearing has been 
extended by mutual consent of the recipient for more than 30 days after 
the close of the hearing, unless the hearing results in a finding 
against the recipient.
    (3) FEMA will limit any deferral to the particular recipient and 
particular program or activity or part of such program or activity FEMA 
finds in violation of this regulation. FEMA will not base any part of a 
deferral on a finding with respect to any program or activity of the 
recipient which does not and would not, in connection with new funds, 
receive Federal financial assistance from FEMA.

[55 FR 23078, June 6, 1990, as amended at 68 FR 51380, Aug. 26, 2003]

[[Page 53]]



Sec. 7.946  Hearings, decisions, post-termination proceedings.

    Certain FEMA procedural provisions applicable to title VI of the 
Civil Rights Act of 1964 apply to FEMA enforcement of this regulation. 
They are found at 44 CFR 7.10 through 7.16.



Sec. 7.947  Remedial action by recipient.

    Where FEMA finds a recipient has discriminated on the basis of age, 
the recipient shall take any remedial action that FEMA may require to 
overcome the effects of the discrimination. If another recipient 
exercises control over the recipient that had discriminated, FEMA may 
require both recipients to take remedial action.



Sec. 7.948  Alternate funds disbursal procedure.

    (a) When FEMA withholds funds from recipient under this regulation, 
the Administrator may, if allowable under the statute governing the 
assistance, disburse the withheld funds directly to an alternate 
recipient: Any public or nonprofit private organization or agency, or 
State or political subdivision of the State.
    (b) The Administrator will require any alternate recipient to 
demonstrate:
    (1) The ability to comply with this regulation; and
    (2) The ability to achieve the goals of the Federal statute 
authorizing the Federal financial assistance.

[55 FR 23078, June 6, 1990, as amended at 68 FR 51380, Aug. 26, 2003]



Sec. 7.949  Exhaustion of administrative remedies.

    (a) A complainant may file a civil action following the exhaustion 
of administrative remedies under the Act. Administrative remedies are 
exhausted if:
    (1) 180 days have elapsed since the complainant filed the complaint 
and FEMA had made no finding with regard to the complaint; or
    (2) FEMA issues any finding in favor of the recipient.
    (b) If FEMA fails to make a finding within 180 days or issues a 
finding in favor of the recipient, FEMA shall:
    (1) Promptly advise the complainant in writing of this fact; and
    (2) Advise the complainant of his or her right to bring a civil 
action for injunctive relief; and
    (3) Inform the complainant:
    (i) That the complainant may bring a civil action only in a United 
States District Court for the district in which the recipient is located 
or transacts business;
    (ii) That a complainant prevailing in a civil action has the right 
to be awarded the costs of the action, including reasonable attorney's 
fees, but that the complainant must demand these costs in the complaint 
at the time it is filed.
    (iii) That before commencing the action, the complainant shall give 
30 days notice by registered mail to the Administrator, the Attorney 
General of the United States, and the recipient;
    (iv) That the notice must state: The alleged violation of the Act; 
the relief requested; the court in which the complainant is bringing the 
action; and whether or not attorney's fees are demanded in the event the 
complainant prevails; and
    (v) That the complainant may not bring an action if the same alleged 
violation of the Act by the same recipient is the subject of a pending 
action in any court (Federal or State) of the United States.

                            PART 8 [RESERVED]



PART 9_FLOODPLAIN MANAGEMENT AND PROTECTION OF WETLANDS--Table of Contents



Sec.
9.1  Purpose of part.
9.2  Policy.
9.3  Authority.
9.4  Definitions.
9.5  Scope.
9.6  Decision-making process.
9.7  Determination of proposed action's location.
9.8  Public notice requirements.
9.9  Analysis and reevaluation of practicable alternatives.
9.10  Identify impacts of proposed actions.
9.11  Mitigation.
9.12  Final public notice.
9.13  Particular types of temporary housing.
9.14  Disposal of Agency property.
9.15  Planning programs affecting land use.
9.16  Guidance for applicants.
9.17  Instructions to applicants.

[[Page 54]]

9.18  Responsibilities.

Appendix A to Part 9--Decision-Making Process for E.O. 11988

    Authority: E.O. 11988 of May 24, 1977. 3 CFR, 1977 Comp., p. 117; 
E.O. 11990 of May 24 1977, 3 CFR, 1977 Comp. p. 121; Reorganization Plan 
No. 3 of 1978, 43 FR 41943, 3 CFR, 1978 Comp., p. 329; E.O. 12127 of 
March 31, 1979, 44 FR 19367, 3 CFR, 1979 Comp., p. 376; E.O. 12148 of 
July 20, 1979, 44 FR 43239, 3 CFR, 1979 Comp., p. 412, as amended.; E.O. 
12127; E.O. 12148; 42 U.S.C. 5201.

    Source: 45 FR 59526, Sept. 9, 1980, unless otherwise noted.



Sec. 9.1  Purpose of part.

    This regulation sets forth the policy, procedure and 
responsibilities to implement and enforce Executive Order 11988, 
Floodplain Management, and Executive Order 11990, Protection of 
Wetlands.



Sec. 9.2  Policy.

    (a) FEMA shall take no action unless and until the requirements of 
this regulation are complied with.
    (b) It is the policy of the Agency to provide leadership in 
floodplain management and the protection of wetlands. Further, the 
Agency shall integrate the goals of the Orders to the greatest possible 
degree into its procedures for implementing NEPA. The Agency shall take 
action to:
    (1) Avoid long- and short-term adverse impacts associated with the 
occupancy and modification of floodplains and the destruction and 
modification of wetlands;
    (2) Avoid direct and indirect support of floodplain development and 
new construction in wetlands wherever there is a practicable 
alternative;
    (3) Reduce the risk of flood loss;
    (4) Promote the use of nonstructural flood protection methods to 
reduce the risk of flood loss;
    (5) Minimize the impact of floods on human health, safety and 
welfare;
    (6) Minimize the destruction, loss or degradation of wetlands;
    (7) Restore and preserve the natural and beneficial values served by 
floodplains;
    (8) Preserve and enhance the natural values of wetlands;
    (9) Involve the public throughout the floodplain management and 
wetlands protection decision-making process;
    (10) Adhere to the objectives of the Unified National Program for 
Floodplain Management; and
    (11) Improve and coordinate the Agency's plans, programs, functions 
and resources so that the Nation may attain the widest range of 
beneficial uses of the environment without degradation or risk to health 
and safety.



Sec. 9.3  Authority.

    The authority for these regulations is (a) Executive Order 11988, 
May 24, 1977, which replaced Executive Order 11296, August 10, 1966, (b) 
Executive Order 11990, May 24, 1977, (c) Reorganization Plan No. 3 of 
1978 (43 FR 41943); and (d) Executive Order 12127, April 1, 1979 (44 FR 
1936). E.O. 11988 was issued in furtherance of the National Flood 
Insurance Act of 1968, as amended (Pub. L. 90-488); the Flood Disaster 
Protection Act of 1973, as amended (Pub. L. 93-234); and the National 
Environmental Policy Act of 1969 (NEPA) (Pub. L. 91-190). Section 2(d) 
of Executive Order 11988 requires issuance of new or amended regulations 
and procedures to satisfy its substantive and procedural provisions. 
E.O. 11990 was issued in furtherance of NEPA, and at section 6 required 
issuance of new or amended regulations and procedures to satisfy its 
substantive and procedural provisions.

[45 FR 59526, Sept. 9, 1980, as amended at 48 FR 44543, Sept. 29, 1983]



Sec. 9.4  Definitions.

    The following definitions shall apply throughout this regulation.
    Action means any action or activity including: (a) Acquiring, 
managing and disposing of Federal lands and facilities; (b) providing 
federally undertaken, financed or assisted construction and 
improvements; and (c) conducting Federal activities and programs 
affecting land use, including, but not limited to, water and related 
land resources, planning, regulating and licensing activities.
    Actions Affecting or Affected by Floodplains or Wetlands means 
actions which have the potential to result in the long- or short-term 
impacts associated with (a) the occupancy or modification of 
floodplains, and the direct or indirect support of floodplain 
development, or (b) the destruction and

[[Page 55]]

modification of wetlands and the direct or indirect support of new 
construction in wetlands.
    Administrator means the Administrator of the Federal Emergency 
Management Agency.
    Agency means the Federal Emergency Management Agency (FEMA).
    Agency Assistance means grants for projects or planning activities, 
loans, and all other forms of financial or technical assistance provided 
by the Agency.
    Base Flood means the flood which has a one percent chance of being 
equalled or exceeded in any given year (also known as a 100-year flood). 
This term is used in the National Flood Insurance Program (NFIP) to 
indicate the minimum level of flooding to be used by a community in its 
floodplain management regulations.
    Base Floodplain means the 100-year floodplain (one percent chance 
floodplain).
    Coastal High Hazard Area means the areas subject to high velocity 
waters including but not limited to hurricane wave wash or tsunamis. On 
a Flood Insurance Rate Map (FIRM), this appears as zone V1-30, VE or V.
    Critical Action means an action for which even a slight chance of 
flooding is too great. The minimum floodplain of concern for critical 
actions is the 500-year floodplain, i.e., critical action floodplain. 
Critical actions include, but are not limited to, those which create or 
extend the useful life of structures or facilities:
    (a) Such as those which produce, use or store highly volatile, 
flammable, explosive, toxic or water-reactive materials;
    (b) Such as hospitals and nursing homes, and housing for the 
elderly, which are likely to contain occupants who may not be 
sufficiently mobile to avoid the loss of life or injury during flood and 
storm events;
    (c) Such as emergency operation centers, or data storage centers 
which contain records or services that may become lost or inoperative 
during flood and storm events; and
    (d) Such as generating plants, and other principal points of utility 
lines.
    Direct Impacts means changes in floodplain or wetland values and 
functions and changes in the risk to lives and property caused or 
induced by an action or related activity. Impacts are caused whenever 
these natural values and functions are affected as a direct result of an 
action. An action which would result in the discharge of polluted storm 
waters into a floodplain or wetland, for example, would directly affect 
their natural values and functions. Construction-related activities, 
such as dredging and filling operations within the floodplain or a 
wetland would be another example of impacts caused by an action.
    Emergency Actions means emergency work essential to save lives and 
protect property and public health and safety performed under sections 
305 and 306 of the Disaster Relief Act of 1974 (42 U.S.C. 5145 and 
5146). See 44 CFR part 205, subpart E.
    Enhance means to increase, heighten, or improve the natural and 
beneficial values associated with wetlands.
    Facility means any man-made or man-placed item other than a 
structure.
    FEMA means the Federal Emergency Management Agency.
    FIA means the Federal Insurance Administration.
    Five Hundred Year Floodplain (the 500-year floodplain or 0.2 percent 
change floodplain) means that area, including the base floodplain, which 
is subject to inundation from a flood having a 0.2 percent chance of 
being equalled or exceeded in any given year.
    Flood or flooding means a general and temporary condition of partial 
or complete inundation of normally dry land areas from the overflow of 
inland and/or tidal waters, and/or the unusual and rapid accumulation or 
runoff of surface waters from any source.
    Flood Fringe means that portion of the floodplain outside of the 
floodway (often referred to as ``floodway fringe'').
    Flood Hazard Boundary Map (FHBM) means an official map of a 
community, issued by the Administrator, where the boundaries of the 
flood, mudslide (i.e., mudflow) and related erosion areas having special 
hazards have been designated as Zone A, M, or E.
    Flood Insurance Rate Map (FIRM) means an official map of a community

[[Page 56]]

on which the Administrator has delineated both the special hazard areas 
and the risk premium zones applicable to the community. FIRMs are also 
available digitally, and are called Digital Flood Insurance Rate Maps 
(DFIRM).
    Flood Insurance Study (FIS) means an examination, evaluation and 
determination of flood hazards and, if appropriate, corresponding water 
surface elevations or an examination, evaluation and determination of 
mudslide (i.e., mudflow) and/or flood-related erosion hazards.
    Floodplain means the lowland and relatively flat areas adjoining 
inland and coastal waters including, at a minimum, that area subject to 
a one percent or greater chance of flooding in any given year. Wherever 
in this regulation the term ``floodplain'' is used, if a critical action 
is involved, ``floodplain'' shall mean the area subject to inundation 
from a flood having a 0.2 percent chance of occurring in any given year 
(500-year floodplain). ``Floodplain'' does not include areas subject 
only to mudflow until FIA adopts maps identifying ``M'' Zones.
    Floodproofing means the modification of individual structures and 
facilities, their sites, and their contents to protect against 
structural failure, to keep water out, or to reduce effects of water 
entry.
    Floodway means that portion of the floodplain which is effective in 
carrying flow, within which this carrying capacity must be preserved and 
where the flood hazard is generally highest, i.e., where water depths 
and velocities are the greatest. It is that area which provides for the 
discharge of the base flood so the cumulative increase in water surface 
elevation is no more than one foot.
    Functionally Dependent Use means a use which cannot perform its 
intended purpose unless it is located or carried out in close proximity 
to water, (e.g., bridges, and piers).
    Indirect Impacts means an indirect result of an action whenever the 
action induces or makes possible related activities which effect the 
natural values and functions of floodplains or wetlands or the risk to 
lives and property. Such impacts occur whenever these values and 
functions are potentially affected, either in the short- or long-term, 
as a result of undertaking an action.
    Minimize means to reduce to the smallest amount or degree possible.
    Mitigation means all steps necessary to minimize the potentially 
adverse effects of the proposed action, and to restore and preserve the 
natural and beneficial floodplain values and to preserve and enhance 
natural values of wetlands.
    Mitigation Directorate means the Mitigation Directorate of the 
Federal Emergency Management Agency.
    Natural Values of Floodplains and Wetlands means the qualities of or 
functions served by floodplains and wetlands which include but are not 
limited to: (a) Water resource values (natural moderation of floods, 
water quality maintenance, groundwater recharge); (b) living resource 
values (fish, wildlife, plant resources and habitats); (c) cultural 
resource values (open space, natural beauty, scientific study, outdoor 
education, archeological and historic sites, recreation); and (d) 
cultivated resource values (agriculture, aquaculture, forestry).
    New Construction means the construction of a new structure 
(including the placement of a mobile home) or facility or the 
replacement of a structure or facility which has been totally destroyed.
    New Construction in Wetlands includes draining, dredging, 
channelizing, filling, diking, impounding, and related activities and 
any structures or facilities begun or authorized after the effective 
dates of the Orders, May 24, 1977.
    Orders means Executive Orders 11988, Floodplain Management, and 
11990, Protection of Wetlands.
    Practicable means capable of being done within existing constraints. 
The test of what is practicable depends upon the situation and includes 
consideration of all pertinent factors, such as environment, cost and 
technology.
    Preserve means to prevent alterations to natural conditions and to 
maintain the values and functions which operate the floodplains or 
wetlands in their natural states.
    Regional Administrator means the Regional Administrator of the 
Federal Emergency Management Agency for

[[Page 57]]

the Region in which FEMA is acting, or the Disaster Recovery Manager 
when one is designated.
    Regulatory Floodway means the area regulated by federal, State or 
local requirements to provide for the discharge of the base flood so the 
cumulative increase in water surface elevation is no more than a 
designated amount (not to exceed one foot as set by the National Flood 
Insurance Program).
    Restore means to reestablish a setting or environment in which the 
natural functions of the floodplain can again operate.
    Structures means walled or roofed buildings, including mobile homes 
and gas or liquid storage tanks.
    Substantial Improvement means any repair, reconstruction or other 
improvement of a structure or facility, which has been damaged in excess 
of, or the cost of which equals or exceeds, 50% of the market value of 
the structure or replacement cost of the facility (including all 
``public facilities'' as defined in the Disaster Relief Act of 1974) (a) 
before the repair or improvement is started, or (b) if the structure or 
facility has been damaged and is proposed to be restored, before the 
damage occurred. If a facility is an essential link in a larger system, 
the percentage of damage will be based on the relative cost of repairing 
the damaged facility to the replacement cost of the portion of the 
system which is operationally dependent on the facility. The term 
``substantial improvement'' does not include any alteration of a 
structure or facility listed on the National Register of Historic Places 
or a State Inventory of Historic Places.
    Support means to encourage, allow, serve or otherwise facilitate 
floodplain or wetland development. Direct support results from actions 
within a floodplain or wetland, and indirect support results from 
actions outside of floodplains or wetlands.
    Wetlands means those areas which are inundated or saturated by 
surface or ground water with a frequency sufficient to support, or that 
under normal hydrologic conditions does or would support, a prevalence 
of vegetation or aquatic life typically adapted for life in saturated or 
seasonally saturated soil conditions. Examples of wetlands include, but 
are not limited to, swamps, fresh and salt water marshes, estuaries, 
bogs, beaches, wet meadows, sloughs, potholes, mud flats, river 
overflows and other similar areas. This definition includes those 
wetlands areas separated from their natural supply of water as a result 
of activities such as the construction of structural flood protection 
methods or solid-fill road beds and activities such as mineral 
extraction and navigation improvements. This definition is intended to 
be consistent with the definition utilized by the U.S. Fish and Wildlife 
Service in the publication entitled Classification of Wetlands and Deep 
Water Habitats of the United States (Cowardin, et al., 1977).

[45 FR 59526, Sept. 9, 1980, as amended at 47 FR 13149, Mar. 29, 1982; 
50 FR 40006, Oct. 1, 1985; 74 FR 15335, Apr. 3, 2009]



Sec. 9.5  Scope.

    (a) Applicability. (1) These regulations apply to all Agency actions 
which have the potential to affect floodplains or wetlands or their 
occupants, or which are subject to potential harm by location in 
floodplains or wetlands.
    (2) The basic test of the potential of an action to affect 
floodplains or wetlands is the action's potential (both by itself and 
when viewed cumulatively with other proposed actions) to result in the 
long- or short-term adverse impacts associated with:
    (i) The occupancy or modification of floodplains, and the direct and 
indirect support of floodplain development; or
    (ii) The destruction or modification of wetlands and the direct or 
indirect support of new construction in wetlands.
    (3) This regulation applies to actions that were, on the effective 
date of the Orders (May 24, 1977), ongoing, in the planning and/or 
development stages, or undergoing implementation, and are incomplete as 
of the effective date of these regulations. The regulation also applies 
to proposed (new) actions. The Agency shall:
    (i) Determine the applicable provisions of the Orders by analyzing 
whether the action in question has progressed beyond critical stages in 
the floodplain management and wetlands protection decision-making 
process, as

[[Page 58]]

set out below in Sec. 9.6. This determination need only be made at the 
time that followup actions are being taken to complete or implement the 
action in question; and
    (ii) Apply the provisions of the Orders and of this regulation to 
all such actions to the fullest extent practicable.
    (b) Limited exemption of ongoing actions involving wetlands located 
outside the floodplains. (1) Executive Order 11990, Protection of 
Wetlands, contains a limited exemption not found in Executive Order 
11988, Floodplain Management. Therefore, this exemption applies only to 
actions affecting wetlands which are located outside the floodplains, 
and which have no potential to result in harm to or within floodplains 
or to support floodplain development.
    (2) The following proposed actions that impact wetlands located 
outside of floodplains are exempt from this regulation:
    (i) Agency-assisted or permitted projects which were under 
construction before May 24, 1977; and
    (ii) Projects for which the Agency has proposed a draft of a final 
environmental impact statement (EIS) which adequately analyzes the 
action and which was filed before October 1, 1977. Proposed actions that 
impact wetlands outside of floodplains are not exempt if the EIS:
    (A) Only generally covers the proposed action;
    (B) Is devoted largely to related activities; or
    (C) Treats the project area or program without an adequate and 
specific analysis of the floodplain and wetland implications of the 
proposed action.
    (c) Decision-making involving certain categories of actions. The 
provisions set forth in this regulation are not applicable to the 
actions enumerated below except that the Regional Administrators shall 
comply with the spirit of the Order to the extent practicable. For any 
action which is excluded from the actions enumerated below, the full 8-
step process applies (see Sec. 9.6) (except as indicated at paragraphs 
(d), (f) and (g) of this section regarding other categories of partial 
or total exclusions). The provisions of these regulations do not apply 
to the following (all references are to the Disaster Relief Act of 1974, 
Pub. L. 93-288, as amended, except as noted):
    (1) Assistance provided for emergency work essential to save lives 
and protect property and public health and safety performed pursuant to 
sections 305 and 306;
    (2) Emergency Support Teams (section 304);
    (3) Unemployment Assistance (section 407);
    (4) Emergency Communications (section 415);
    (5) Emergency Public Transportation (section 416);
    (6) Fire Management Assistance (Section 420);
    (7) Community Disaster Loans (section 414), except to the extent 
that the proceeds of the loan will be used for repair of facilities or 
structures or for construction of additional facilities or structures;
    (8) The following Individual and Family Grant Program (section 408) 
actions:
    (i) Housing needs or expenses, except for restoring, repairing or 
building private bridges, purchase of mobile homes and provision of 
structures as minimum protective measures;
    (ii) Personal property needs or expenses;
    (iii) Transportation expenses;
    (iv) Medical/dental expenses;
    (v) Funeral expenses;
    (vi) Limited home repairs;
    (vii) Flood insurance premium;
    (viii) Cost estimates;
    (ix) Food expenses; and
    (x) Temporary rental accommodations.
    (9) Mortgage and rental assistance under section 404(b);
    (10) Use of existing resources in the temporary housing assistance 
program [section 404(a)], except that Step 1 (Sec. 9.7) shall be carried 
out;
    (11) Minimal home repairs [section 404(c)];
    (12) Debris removal (section 403), except those grants involving 
non-emergency disposal of debris within a floodplain or wetland;
    (13) Repairs or replacements under section 402, of less than $5,000 
to damaged structures or facilities.

[[Page 59]]

    (14) Placement of families in existing resources and Temporary 
Relocation Assistance provided to those families so placed under the 
Comprehensive Environmental Response, Compensation, and Liability Act of 
1980, Public Law 96-510.
    (d) For each action enumerated below, the Regional Administrator 
shall apply steps 1, 2, 4, 5 and 8 of the decision-making process 
(Secs. 9.7, 9.8, 9.10 and 9.11, see Sec. 9.6). Steps 3 and 6 (Sec. 9.9) 
shall be carried out except that alternative sites outside the 
floodplain or wetland need not be considered. After assessing impacts of 
the proposed action on the floodplain or wetlands and of the site on the 
proposed action, alternative actions to the proposed action, if any, and 
the ``no action'' alternative shall be considered. The Regional 
Administrator may also require certain other portions of the decision-
making process to be carried out for individual actions as is deemed 
necessary. For any action which is excluded from the actions listed 
below. (except as indicated in paragraphs (c), (f) and (g) of this 
section regarding other categories of partial or total exclusion), the 
full 8-step process applies (see Sec. 9.6). The references are to the 
Disaster Relief Act of 1974, Public Law 93-288, as amended.
    (1) Actions performed under the Individual and Family Grant Program 
(section 408) for restoring or repairing a private bridge, except where 
two or more individuals or families are authorized to pool their grants 
for this purpose.
    (2) Small project grants (section 419), except to the extent that 
Federal funding involved is used for construction of new facilities or 
structures.
    (3) Replacement of building contents, materials and equipment. 
(sections 402 and 419).
    (4) Repairs under section 402 to damaged facilities or structures, 
except any such action for which one or more of the following is 
applicable:
    (i) FEMA estimated cost of repairs is more than 50% of the estimated 
reconstruction cost of the entire facility or structure, or is more than 
$100,000, or
    (ii) The action is located in a floodway or coastal high hazard 
area, or
    (iii) The facility or structure is one which has previously 
sustained structural damage from flooding due to a major disaster or 
emergency or on which a flood insurance claim has been paid, or
    (iv) The action is a critical action.
    (e) Other categories of actions. Based upon the completion of the 8-
step decision-making process (Sec. 9.6), the Director may find that a 
specific category of actions either offers no potential for carrying out 
the purposes of the Orders and shall be treated as those actions listed 
in Sec. 9.5(c), or has no practicable alternative sites and shall be 
treated as those actions listed in Sec. 9.5(d), or has no practicable 
alternative actions or sites and shall be treated as those actions 
listed in Sec. 9.5(g). This finding will be made in consultation with 
the Federal Insurance Administration and the Council on Environmental 
Quality as provided in section 2(d) of E.O. 11988. Public notice of each 
of these determinations shall include publication in the Federal 
Register and a 30-day comment period.
    (f) The National Flood Insurance Program (NFIP). (1) Most of what is 
done by FIA or the Mitigation Directorate, in administering the National 
Flood Insurance Program is performed on a program-wide basis. For all 
regulations, procedures or other issuances making or amending program 
policy, FIA or the Mitigation Directorate, shall apply the 8-step 
decision-making process to that program-wide action. The action to which 
the 8-step process must be applied is the establishment of programmatic 
standards or criteria, not the application of programmatic standards or 
criteria to specific situations. Thus, for example, FIA or the 
Mitigation Directorate, would apply the 8-step process to a programmatic 
determination of categories of structures to be insured, but not to 
whether to insure each individual structure. The two prime examples of 
where FIA or the Mitigation Directorate, does take site specific actions 
which would require individual application of the 8-step process are 
property acquisition under section 1362 of the National Flood Insurance 
Act of 1968, as amended, and the issuance of an exception to

[[Page 60]]

a community under 44 CFR 60.6(b). (See also Sec. 9.9(e)(6) and 
Sec. 9.11(e).)
    (2) The provisions set forth in this regulation are not applicable 
to the actions enumerated below except that the Federal Insurance 
Administrator or the Assistant Administrator for Mitigation, as 
appropriate shall comply with the spirit of the Orders to the extent 
practicable:
    (i) The issuance of individual flood insurance policies and policy 
interpretations;
    (ii) The adjustment of claims made under the Standard Flood 
Insurance Policy;
    (iii) The hiring of independent contractors to assist in the 
implementation of the National Flood Insurance Program;
    (iv) The issuance of individual flood insurance maps, Map 
Information Facility map determinations, and map amendments; and
    (v) The conferring of eligibility for emergency or regular program 
(NFIP) benefits upon communities.
    (g) For the action listed below, the Regional Administrator shall 
apply steps 1, 4, 5 and 8 of the decision-making process (Secs. 9.7, 
9.10 and 9.11). For any action which is excluded from the actions listed 
below, (except as indicated in paragraphs (c), (d) and (f) of this 
section regarding other categories of partial or total exclusion), the 
full 8-step process applies (See Sec. 9.6). The Regional Administrator 
may also require certain other portions of the decision-making process 
to be carried out for individual actions as is deemed necessary. The 
references are to the Disaster Relief Act of 1974, Public Law 93-288. 
The above requirements apply to repairs, under section 402, between 
$5,000 and $25,000 to damaged structures of facilities except for:
    (1) Actions in a floodway or coastal high hazard area; or
    (2) New or substantially improved structures or facilities; or
    (3) Facilities or structures which have previously sustained 
structural damage from flooding due to a major disaster or emergency.

[45 FR 59526, Sept. 9, 1980, as amended at 47 FR 13149, Mar. 29, 1982; 
49 FR 35583, Sept. 10, 1984; 50 FR 40006, Oct. 1, 1985; 51 FR 39531, 
Oct. 29, 1986; 66 FR 57347, Nov. 14, 2001]



Sec. 9.6  Decision-making process.

    (a) Purpose. The purpose of this section is to set out the 
floodplain management and wetlands protection decision-making process to 
be followed by the Agency in applying the Orders to its actions. While 
the decision-making process was initially designed to address the 
floodplain Order's requirements, the process will also satisfy the 
wetlands Order's provisions due to the close similarity of the two 
directives. The numbering of Steps 1 through 8 does not firmly require 
that the steps be followed sequentially. As information is gathered 
throughout the decision-making process and as additional information is 
needed, reevaluation of lower numbered steps may be necessary.
    (b) Except as otherwise provided in Sec. 9.5 (c), (d), (f), and (g) 
regarding categories of partial or total exclusion when proposing an 
action, the Agency shall apply the 8-step decision-making process. FEMA 
shall:
    Step 1. Determine whether the proposed action is located in a 
wetland and/or the 100-year floodplain (500-year floodplain for critical 
actions); and whether it has the potential to affect or be affected by a 
floodplain or wetland (see Sec. 9.7);
    Step 2. Notify the public at the earliest possible time of the 
intent to carry out an action in a floodplain or wetland, and involve 
the affected and interested public in the decision-making process (see 
Sec. 9.8);
    Step 3. Identify and evaluate practicable alternatives to locating 
the proposed action in a floodplain or wetland (including alternative 
sites, actions and the ``no action'' option) (see Sec. 9.9). If a 
practicable alternative exists outside the floodplain or wetland FEMA 
must locate the action at the alternative site.
    Step 4. Identify the potential direct and indirect impacts 
associated with the occupancy or modification of floodplains and 
wetlands and the potential direct and indirect support of floodplain and 
wetland development that could result from the proposed action (see 
Sec. 9.10);
    Step 5. Minimize the potential adverse impacts and support to or 
within

[[Page 61]]

floodplains and wetlands to be identified under Step 4, restore and 
preserve the natural and beneficial values served by floodplains, and 
preserve and enhance the natural and beneficial values served by 
wetlands (see Sec. 9.11);
    Step 6. Reevaluate the proposed action to determine first, if it is 
still practicable in light of its exposure to flood hazards, the extent 
to which it will aggravate the hazards to others, and its potential to 
disrupt floodplain and wetland values and second, if alternatives 
preliminarily rejected at Step 3 are practicable in light of the 
information gained in Steps 4 and 5. FEMA shall not act in a floodplain 
or wetland unless it is the only practicable location (see Sec. 9.9);
    Step 7. Prepare and provide the public with a finding and public 
explanation of any final decision that the floodplain or wetland is the 
only practicable alternative (see Sec. 9.12); and
    Step 8. Review the implementation and post-implementation phases of 
the proposed action to ensure that the requirements stated in Sec. 9.11 
are fully implemented. Oversight responsibility shall be integrated into 
existing processes.

[45 FR 59526, Sept. 9, 1980, as amended at 49 FR 35583, Sept. 10, 1984; 
50 FR 40006, Oct. 1, 1985]



Sec. 9.7  Determination of proposed action's location.

    (a) The purpose of this section is to establish Agency procedures 
for determining whether any action as proposed is located in or affects 
(1) the base floodplain (the Agency shall substitute the 500-year 
floodplain for the base floodplain where the action being proposed 
involves a critical action), or (2) a wetland.
    (b) Information needed. The Agency shall obtain enough information 
so that it can fulfill the requirements of the Orders to (1) avoid 
floodplain and wetland locations unless they are the only practicable 
alternatives; and (2) minimize harm to and within floodplains and 
wetlands. In all cases, FEMA shall determine whether the proposed action 
is located in a floodplain or wetland. In the absence of a finding to 
the contrary, FEMA may assume that a proposed action involving a 
facility or structure that has been flooded is in the floodplain. 
Information about the 100-year and 500-year floods and location of 
floodways and coastal high hazard areas may also be needed to comply 
with these regulations, especially Sec. 9.11. The following additional 
flooding characteristics shall be identified by the Regional 
Administrator as appropriate:
    (i) Velocity of floodwater;
    (ii) Rate of rise of floodwater;
    (iii) Duration of flooding;
    (iv) Available warning and evacuation time and routes;
    (v) Special problems:
    (A) Levees;
    (B) Erosion;
    (C) Subsidence;
    (D) Sink holes;
    (E) Ice jams;
    (F) Debris load;
    (G) Pollutants;
    (H) Wave heights;
    (I) Groundwater flooding;
    (J) Mudflow.
    (c) Floodplain determination. (1) In the search for flood hazard 
information, FEMA shall follow the sequence below:
    (i) The Regional Administrator shall consult the FEMA Flood 
Insurance Rate Map (FIRM) the Flood Boundary Floodway Map (FBFM) and the 
Flood Insurance Study (FIS).
    (ii) If a detailed map (FIRM or FBFM) is not available, the Regional 
Administrator shall consult an FEMA Flood Hazard Boundary Map (FHBM) . 
If data on flood elevations, floodways, or coastal high hazard areas are 
needed, or if the map does not delineate the flood hazard boundaries in 
the vicinity of the proposed site, the Regional Administrator shall seek 
the necessary detailed information and assistance from the sources 
listed below.

                Sources of Maps and Technical Information

Department of Agriculture: Soil Conservation Service
Department of the Army: Corps of Engineers
Department of Commerce: National Oceanic and Atmospheric Administration
Federal Insurance Administration
FEMA Regional Offices/Natural and Technological Hazards Division
Department of the Interior:
    Geological Survey
    Bureau of Land Management
    Bureau of Reclamation

[[Page 62]]

Tennessee Valley Authority
Delaware River Basin Commission
Susquehanna River Basin Commission
States

    (iii) If the sources listed do not have or know of the information 
necessary to comply with the Orders' requirements, the Regional 
Administrator shall seek the services of a Federal or other engineer 
experienced in this type of work.
    (2) If a decision involves an area or location within extensive 
Federal or state holdings or a headwater area, and an FIS, FIRM, FBFM, 
or FHBM is not available, the Regional Administrator shall seek 
information from the land administering agency before information and/or 
assistance is sought from the sources listed in this section. If none of 
these sources has information or can provide assistance, the services of 
an experienced Federal or other engineer shall be sought as described 
above.
    (d) Wetland determination. The following sequence shall be followed 
by the Agency in making the wetland determination.
    (1) The Agency shall consult with the U.S. Fish and Wildlife Service 
(FWS) for information concerning the location, scale and type of 
wetlands within the area which could be affected by the proposed action.
    (2) If the FWS does not have adequate information upon which to base 
the determination, the Agency shall consult wetland inventories 
maintained by the Army Corps of Engineers, the Environmental Protection 
Agency, various states, communities and others.
    (3) If state or other sources do not have adequate information upon 
which to base the determination, the Agency shall carry out an on-site 
analysis performed by a representative of the FWS or other qualified 
individual for wetlands characteristics based on the performance 
definition of what constitutes a wetland.
    (4) If an action is in a wetland but not in a floodplain, and the 
action is new construction, the provisions of this regulation shall 
apply. Even if the action is not in a wetland, the Regional 
Administrator shall determine if the action has the potential to result 
in indirect impacts on wetlands. If so, all adverse impacts shall be 
minimized. For actions which are in a wetland and the floodplain, 
completion of the decision-making process is required. (See Sec. 9.6.) 
In such a case the wetland will be considered as one of the natural and 
beneficial values of floodplain.

[45 FR 59526, Sept. 9, 1980, as amended at 47 FR 13149, Mar. 29, 1982; 
49 FR 33879, Aug. 27, 1984; 50 FR 40006, Oct. 1, 1985; 51 FR 34605, 
Sept. 30, 1986]



Sec. 9.8  Public notice requirements.

    (a) Purpose. The purpose of this section is to establish the initial 
notice procedures to be followed when proposing any action in or 
affecting floodplains or wetlands.
    (b) General. The Agency shall provide adequate information to enable 
the public to have impact on the decision outcome for all actions having 
potential to affect, adversely, or be affected by floodplains or 
wetlands that it proposes. To achieve this objective, the Agency shall:
    (1) Provide the public with adequate information and opportunity for 
review and comment at the earliest possible time and throughout the 
decision-making process; and upon completion of this process, provide 
the public with an accounting of its final decisions (see Sec. 9.12); 
and
    (2) Rely on its environmental assessment processes, to the extent 
possible, as vehicles for public notice, involvement and explanation.
    (c) Early public notice. The Agency shall provide opportunity for 
public involvement in the decision-making process through the provision 
of public notice upon determining that the proposed action can be 
expected to affect or be affected by floodplains or wetlands. Whenever 
possible, notice shall precede major project site identification and 
analysis in order to preclude the foreclosure of options consistent with 
the Orders.
    (1) For an action for which an environmental impact statement is 
being prepared, the Notice of Intent to File an EIS is adequate to 
constitute the early public notice, if it includes the information 
required under paragraph (c)(5) of this section.
    (2) For each action having national significance for which notice is 
being

[[Page 63]]

provided, the Agency shall use the Federal Register as the minimum means 
for notice, and shall provide notice by mail to national organizations 
reasonably expected to be interested in the action. The additional 
notices listed in paragraph (c)(4) of this section shall be used in 
accordance with the determination made under paragraph (c)(3) of this 
section.
    (3) The Agency shall base its determination of appropriate notices, 
adequate comment periods, and whether to issue cumulative notices 
(paragraphs (c)(4), (6) and (7) of this section) on factors which 
include, but are not limited to:
    (i) Scale of the action;
    (ii) Potential for controversy;
    (iii) Degree of public need;
    (iv) Number of affected agencies and individuals; and
    (v) Its anticipated potential impact.
    (4) For each action having primarily local importance for which 
notice is being provided, notice shall be made in accordance with the 
criteria under paragraph (c)(3) of this section, and shall entail as 
appropriate:
    (i) [Reserved]
    (ii) Notice to Indian tribes when effects may occur on reservations.
    (iii) Information required in the affected State's public notice 
procedures for comparable actions.
    (iv) Publication in local newspapers (in papers of general 
circulation rather than legal papers).
    (v) Notice through other local media.
    (vi) Notice to potentially interested community organizations.
    (vii) Publication in newsletters that may be expected to reach 
potentially interested persons.
    (viii) Direct mailing to owners and occupants of nearby or affected 
property.
    (ix) Posting of notice on and off site in the area where the action 
is to be located.
    (x) Holding a public hearing.
    (5) The notice shall include:
    (i) A description of the action, its purpose and a statement of the 
intent to carry out an action affecting or affected by a floodplain or 
wetland;
    (ii) Based on the factors in paragraph (c)(3) of this section, a map 
of the area or other indentification of the floodplain and/or wetland 
areas which is of adequate scale and detail so that the location is 
discernible; instead of publication of such map, FEMA may state that 
such map is available for public inspection, including the location at 
which such map may be inspected and a telephone number to call for 
information;
    (iii) Based on the factors in paragraph (c)(3) of this section, a 
description of the type, extent and degree of hazard involved and the 
floodplain or wetland values present; and
    (iv) Identification of the responsible official or organization for 
implementing the proposed action, and from whom further information can 
be obtained.
    (6) The Agency shall provide for an adequate comment period.
    (7) In a post-disaster situation in particular, the requirement for 
early public notice may be met in a cumulative manner based on the 
factors set out in paragraph (c)(3) of this section. Several actions may 
be addressed in one notice or series of notices. For some actions 
involving limited public interest a single notice in a local newspaper 
or letter to interested parties may suffice.
    (d) Continuing public notice. The Agency shall keep the public 
informed of the progress of the decision-making process through 
additional public notices at key points in the process. The preliminary 
information provided under paragraph (c)(5) of this section shall be 
augmented by the findings of the adverse effects of the proposed actions 
and steps necessary to mitigate them. This responsibility shall be 
performed for actions requiring the preparation of an EIS, and all other 
actions having the potential for major adverse impacts, or the potential 
for harm to the health and safety of the general public.

[45 FR 59526, Sept. 9, 1980, as amended at 48 FR 29318, June 24, 1983]



Sec. 9.9  Analysis and reevaluation of practicable alternatives.

    (a) Purpose. (1) The purpose of this section is to expand upon the 
directives set out in Sec. 9.6, of this part, in order to clarify and 
emphasize the Orders' key requirements to avoid floodplains and

[[Page 64]]

wetlands unless there is no practicable alternative.
    (2) Step 3 is a preliminary determination as to whether the 
floodplain is the only practicable location for the action. It is a 
preliminary determination because it comes early in the decision-making 
process when the Agency has a limited amount of information. If it is 
clear that there is a practicable alternative, or the floodplain or 
wetland is itself not a practicable location, FEMA shall then act on 
that basis. Provided that the location outside the floodplain or wetland 
does not indirectly impact floodplains or wetlands or support 
development therein (see Sec. 9.10), the remaining analysis set out by 
this regulation is not required. If such location does indirectly impact 
floodplains or wetlands or support development therein, the remaining 
analysis set out by this regulation is required. If the preliminary 
determination is to act in the floodplain, FEMA shall gather the 
additional information required under Steps 4 and 5 and then reevaluate 
all the data to determine if the floodplain or wetland is the only 
practicable alternative.
    (b) Analysis of practicable alternatives. The Agency shall identify 
and evaluate practicable alternatives to carrying out a proposed action 
in floodplains or wetlands, including:
    (1) Alternative sites outside the floodplain or wetland;
    (2) Alternative actions which serve essentially the same purpose as 
the proposed action, but which have less potential to affect or be 
affected by the floodplain or wetlands; and
    (3) No action. The floodplain and wetland site itself must be a 
practicable location in light of the factors set out in this section.
    (c) The Agency shall analyze the following factors in determining 
the practicability of the alternatives set out in paragraph (b) of this 
section:
    (1) Natural environment (topography, habitat, hazards, etc.);
    (2) Social concerns (aesthetics, historical and cultural values, 
land patterns, etc.);
    (3) Economic aspects (costs of space, construction, services, and 
relocation); and
    (4) Legal constraints (deeds, leases, etc.).
    (d) Action following the analysis of practicable alternatives. (1) 
The Agency shall not locate the proposed action in the floodplain or in 
a wetland if a practicable alternative exists outside the floodplain or 
wetland.
    (2) For critical actions, the Agency shall not locate the proposed 
action in the 500-year floodplain if a practicable alternative exists 
outside the 500-year floodplain.
    (3) Even if no practicable alternative exists outside the floodplain 
or wetland, in order to carry out the action the floodplain or wetland 
must itself be a practicable location in light of the review required in 
this section.
    (e) Reevaluation of alternatives. Upon determination of the impact 
of the proposed action to or within the floodplain or wetland and of 
what measures are necessary to comply with the requirement to minimize 
harm to and within floodplains and wetlands (Sec. 9.11), FEMA shall:
    (1) Determine whether:
    (i) The action is still practicable at a floodplain or wetland site 
in light of the exposure to flood risk and the ensuing disruption of 
natural values;
    (ii) The floodplain or wetland site is the only practicable 
alternative;
    (iii) There is a potential for limiting the action to increase the 
practicability of previously rejected non-floodplain or wetland sites 
and alternative actions; and
    (iv) Minimization of harm to or within the floodplain can be 
achieved using all practicable means.
    (2) Take no action in a floodplain unless the importance of the 
floodplain site clearly outweighs the requirement of E.O. 11988 to:
    (i) Avoid direct or indirect support of floodplain development;
    (ii) Reduce the risk of flood loss;
    (iii) Minimize the impact of floods on human safety, health and 
welfare; and
    (iv) Restore and preserve floodplain values.
    (3) Take no action in a wetland unless the importance of the wetland 
site clearly outweighs the requirements of E.O. 11990 to:
    (i) Avoid the destruction or modification of the wetlands;

[[Page 65]]

    (ii) Avoid direct or indirect support of new construction in 
wetlands;
    (iii) Minimize the destruction, loss or degradation of wetlands; and
    (iv) Preserve and enhance the natural and beneficial values of 
wetlands.
    (4) In carrying out this balancing process, give the factors in 
paragraphs (e)(2) and (3) of this section, the great weight intended by 
the Orders.
    (5) Choose the ``no action'' alternative where there are no 
practicable alternative actions or sites and where the floodplain or 
wetland is not itself a practicable alternative. In making the 
assessment of whether a floodplain or wetland location is itself a 
practicable alternative, the practicability of the floodplain or wetland 
location shall be balanced against the practicability of not carrying 
out the action at all. That is, even if there is no practicable 
alternative outside of the floodplain or wetland, the floodplain or 
wetland itself must be a practicable location in order for the action to 
be carried out there. To be a practicable location, the importance of 
carrying out the action must clearly outweigh the requirements of the 
Orders listed in paragraphs (e)(2) and (e)(3) of this section. Unless 
the importance of carrying out the action clearly outweighs those 
requirements, the ``no action'' alternative shall be selected.
    (6) In any case in which the Regional Director has selected the ``no 
action'' option, FIA may not provide a new or renewed contract of flood 
insurance for that structure.

    Effective Date Note: At 45 FR 79070, Nov. 28, 1980, Sec. 9.9(e)(6) 
was temporarily suspended until further notice.



Sec. 9.10  Identify impacts of proposed actions.

    (a) Purpose. The purpose of this section is to ensure that the 
effects of proposed Agency actions are identified.
    (b) The Agency shall identify the potential direct and indirect 
adverse impacts associated with the occupancy and modification of 
floodplains and wetlands and the potential direct and indirect support 
of floodplain and wetland development that could result from the 
proposed action. Such identification of impacts shall be to the extent 
necessary to comply with the requirements of the Orders to avoid 
floodplain and wetland locations unless they are the only practicable 
alternatives and to minimize harm to and within floodplains and 
wetlands.
    (c) This identification shall consider whether the proposed action 
will result in an increase in the useful life of any structure or 
facility in question, maintain the investment at risk and exposure of 
lives to the flood hazard or forego an opportunity to restore the 
natural and beneficial values served by floodplains or wetlands. 
Regional Offices of the U.S. Fish and Wildlife Service may be contacted 
to aid in the identification and evaluation of potential impacts of the 
proposed action on natural and beneficial floodplain and wetland values.
    (d) In the review of a proposed or alternative action, the Regional 
Administrator shall specifically consider and evaluate: impacts 
associated with modification of wetlands and floodplains regardless of 
its location; additional impacts which may occur when certain types of 
actions may support subsequent action which have additional impacts of 
their own; adverse impacts of the proposed actions on lives and property 
and on natural and beneficial floodplain and wetland values; and the 
three categories of factors listed below:
    (1) Flood hazard-related factors. These include for example, the 
factors listed in Sec. 9.7(b)(2);
    (2) Natural values-related factors. These include, for example, the 
following: Water resource values (natural moderation of floods, water 
quality maintenance, and ground water recharge); living resource values 
(fish and wildlife and biological productivity); cultural resource 
values (archeological and historic sites, and open space recreation and 
green belts); and agricultural, aquacultural and forestry resource 
values.
    (3) Factors relevant to a proposed action's effects on the survival 
and quality of wetlands. These include, for example, the following: 
Public health, safety, and welfare, including water supply, quality, 
recharge and discharge; pollution; flood and storm hazards; and sediment 
and erosion; maintenance of natural systems, including conservation

[[Page 66]]

and long term productivity of existing flora and fauna, species and 
habitat diversity and stability, hydrologic utility, fish, wildlife, 
timber, and food and fiber resources; and other uses of wetlands in the 
public interest, including recreational, scientific, and cultural uses.



Sec. 9.11  Mitigation.

    (a) Purpose. The purpose of this section is to expand upon the 
directives set out in Sec. 9.6 of this part, and to set out the 
mitigative actions required if the preliminary determination is made to 
carry out an action that affects or is in a floodplain or wetland.
    (b) General provisions. (1) The Agency shall design or modify its 
actions so as to minimize harm to or within the floodplain;
    (2) The Agency shall minimize the destruction, loss or degradation 
of wetlands;
    (3) The Agency shall restore and preserve natural and beneficial 
floodplain values; and
    (4) The Agency shall preserve and enhance natural and beneficial 
wetland values.
    (c) Minimization provisions. The Agency shall minimize:
    (1) Potential harm to lives and the investment at risk from the base 
flood, or, in the case of critical actions, from the 500-year flood;
    (2) Potential adverse impacts the action may have on others; and
    (3) Potential adverse impact the action may have on floodplain and 
wetland values.
    (d) Minimization Standards. In its implementation of the Disaster 
Relief Act of 1974, the Agency shall apply at a minimum, the following 
standards to its actions to comply with the requirements of paragraphs 
(b) and (c), of this section, (except as provided in Sec. 9.5 (c), (d), 
and (g) regarding categories of partial or total exclusion). Any Agency 
action to which the following specific requirements do not apply, shall 
nevertheless be subject to the full 8-step process (Sec. 9.6) including 
the general requirement to minimize harm to and within floodplains:
    (1) There shall be no new construction or substantial improvement in 
a floodway, and no new construction in a coastal high hazard area, 
except for:
    (i) A functionally dependent use; or
    (ii) A structure or facility which facilitates an open space use.
    (2) For a structure which is a functionally dependent use, or which 
facilitates an open space use, the following applies. There shall be no 
construction of a new or substantially improved structure in a coastal 
high hazard area unless it is elevated on adequately anchored pilings or 
columns, and securely anchored to such piles or columns so that the 
lowest portion of the structural members of the lowest floor (excluding 
the pilings or columns) is elevated to or above the base flood level 
(the 500-year flood level for critical actions) (including wave height). 
The structure shall be anchored so as to withstand velocity waters and 
hurricane wave wash. The Regional Administrator shall be responsible for 
determining the base flood level, including the wave height, in all 
cases. Where there is a FIRM in effect, it shall be the basis of the 
Regional Administrator's determination. If the FIRM does not reflect 
wave heights, or if there is no FIRM in effect, the Regional 
Administrator is responsible for delineating the base flood level, 
including wave heights.
    (3) Elevation of structures. (i) There shall be no new construction 
or substantial improvement of structures unless the lowest floor of the 
structures (including basement) is at or above the level of the base 
flood.
    (ii) There shall be no new construction or substantial improvement 
of structures involving a critical action unless the lowest floor of the 
structure (including the basement) is at or above the level of the 500-
year flood.
    (iii) If the subject structure is nonresidential, FEMA may, instead 
of elevating the structure to the 100-year or 500-year level, as 
appropriate, approve the design of the structure and its attendant 
utility and sanitary facilities so that below the flood level the 
structure is water tight with walls substantially impermeable to the 
passage of water and with structural components having the capability of 
resisting hydrostatic and hydrodynamic loads and effects of buoyancy.

[[Page 67]]

    (iv) The provisions of paragraphs (d)(3)(i), (ii), and (iii) of this 
section do not apply to the extent that the Federal Insurance 
Administration has granted an exception under 44 CFR Sec. 60.6(b) 
(formerly 24 CFR 1910.6(b)), or the community has granted a variance 
which the Regional Administrator determines is consistent with 44 CFR 
60.6(a) (formerly 24 CFR 1910.6(a)). In a community which does not have 
a FIRM in effect, FEMA may approve a variance from the standards of 
paragraphs (d)(3)(i), (ii), and (iii) of this section, after compliance 
with the standards of 44 CFR 60.6(a).
    (4) There shall be no encroachments, including fill, new 
construction, substantial improvements of structures or facilities, or 
other development within a designated regulatory floodway that would 
result in any increase in flood levels within the community during the 
occurrence of the base flood discharge. Until a regulatory floodway is 
designated, no new construction, substantial improvements, or other 
development (including fill) shall be permitted within the base 
floodplain unless it is demonstrated that the cumulative effect of the 
proposed development, when combined with all other existing and 
anticipated development, will not increase the water surface elevation 
of the base flood more than one foot at any point within the community.
    (5) Even if an action is a functionally dependent use or facilitates 
open space uses (under paragraph (d) (1) or (2) of this section) and 
does not increase flood heights (under paragraph (d)(4) of this 
section), such action may only be taken in a floodway or coastal high 
hazard area if:
    (i) Such site is the only practicable alternative; and
    (ii) Harm to and within the floodplain is minimized.
    (6) In addition to standards (d)(1) through (d)(5) of this section, 
no action may be taken if it is inconsistent with the criteria of the 
National Flood Insurance Program (44 CFR part 59 et seq.) or any more 
restrictive Federal, State or local floodplain management standards.
    (7) New construction and substantial improvement of structures shall 
be elevated on open works (walls, columns, piers, piles, etc.) rather 
than on fill, in all cases in coastal high hazard areas and elsewhere, 
where practicable.
    (8) To minimize the effect of floods on human health, safety and 
welfare, the Agency shall:
    (i) Where appropriate, integrate all of its proposed actions in 
floodplains into existing flood warning and preparedness plans and 
ensure that available flood warning time is reflected;
    (ii) Facilitate adequate access and egress to and from the site of 
the proposed action; and
    (iii) Give special consideration to the unique hazard potential in 
flash flood, rapid-rise or tsunami areas.
    (9) In the replacement of building contents, materials and 
equipment, the Regional Administrator shall require as appropriate, 
disaster proofing of the building and/or elimination of such future 
losses by relocation of those building contents, materials and equipment 
outside or above the base floodplain or the 500-year floodplain for 
critical actions.
    (e) In the implementation of the National Flood Insurance Program. 
(1) The Federal Insurance Administration shall make identification of 
all coastal high hazard areas a priority;
    (2) Beginning October 1, 1981, the Federal Insurance Administration 
of FEMA may only provide flood insurance for new construction or 
substantial improvements in a coastal high hazard area if:
    (i) Wave heights have been designated for the site of the structure 
either by the Administrator of FEMA based upon data generated by FEMA or 
by another source, satisfactory to the Administrator; and
    (ii) The structure is rated by FEMA-FIA based on a system which 
reflects the capacity to withstand the effects of the 100-year frequency 
flood including, but not limited to, the following factors:
    (A) Wave heights;
    (B) The ability of the structure to withstand the force of waves.
    (3)(i) FEMA shall accept and take fully into account information 
submitted by a property owner indicating that the rate for a particular 
structure is too high based on the ability of the

[[Page 68]]

structure to withstand the force of waves. In order to obtain a rate 
adjustment, a property owner must submit to FEMA specific information 
regarding the structure and its immediate environment. Such information 
must be certified by a registered professional architect or engineer who 
has demonstrable experience and competence in the fields of foundation, 
soils, and structural engineering. Such information should include:
    (A) Elevation of the structure (bottom of lowest floor beam) in 
relation to the Base Flood Elevation including wave height;
    (B) Distance of the structure from the shoreline;
    (C) Dune protection and other environmental factors;
    (D) Description of the building support system; and
    (E) Other relevant building details.

Adequate completion of the ``V-Zone Risk Factor Rating Form'' is 
sufficient for FEMA to determine whether a rate adjustment is 
appropriate. The form is available from and applications for rate 
adjustments should be submitted to:

National Flood Insurance Program
Attention: V-Zone Underwriting Specialist
9901-A George Palmer Highway
Lanham, MD 20706


Pending a determination on a rate adjustment, insurance will be issued 
at the class rate. If the rate adjustment is granted, a refund of the 
appropriate portion of the premium will be made. Unless a property owner 
is seeking an adjustment of the rate prescribed by FEMA-FIA, this 
information need not be submitted.
    (ii) FIA shall notify communities with coastal high hazard areas and 
federally related lenders in such communities, of the provisions of this 
paragraph. Notice to the lenders may be accomplished by the Federal 
instrumentalities to which the lenders are related.
    (4) In any case in which the Regional Director has been, pursuant to 
Sec. 9.11(d)(1), precluded from providing assistance for a new or 
substantially improved structure in a floodway, FIA may not provide a 
new or renewed policy of flood insurance for that structure.
    (f) Restore and preserve. (1) For any action taken by the Agency 
which affects the floodplain or wetland and which has resulted in, or 
will result in, harm to the floodplain or wetland, the Agency shall act 
to restore and preserve the natural and beneficial values served by 
floodplains and wetlands.
    (2) Where floodplain or wetland values have been degraded by the 
proposed action, the Agency shall identify, evaluate and implement 
measures to restore the values.
    (3) If an action will result in harm to or within the floodplain or 
wetland, the Agency shall design or modify the action to preserve as 
much of the natural and beneficial floodplain and wetland values as is 
possible.

[45 FR 59526, Sept. 9, 1980, as amended at 46 FR 51752, Oct. 22, 1981; 
48 FR 44543, Sept. 29, 1983; 49 FR 33879, Aug. 27, 1984; 49 FR 35584, 
Sept. 10, 1984; 50 FR 40006, Oct. 1, 1985]

    Effective Date Note: At 45 FR 79070, Nov. 28, 1980, Sec. 9.11(e)(4) 
was temporarily suspended until further notice.



Sec. 9.12  Final public notice.

    If the Agency decides to take an action in or affecting a floodplain 
or wetland, it shall provide the public with a statement of its final 
decision and shall explain the relevant factors considered by the Agency 
in making this determination.
    (a) In addition, those sent notices under Sec. 9.8 shall also be 
provided the final notice.
    (b) For actions for which an environmental impact statement is being 
prepared, the FEIS is adequate to constitute final notice in all cases 
except where:
    (1) Significant modifications are made in the FEIS after its initial 
publication;
    (2) Significant modifications are made in the development plan for 
the proposed action; or
    (3) Significant new information becomes available in the interim 
between issuance of the FEIS and implementation of the proposed action.

If any of these situations develop, the Agency shall prepare a separate 
final notice that contains the contents of paragraph (e) of this section 
and shall

[[Page 69]]

make it available to those who received the FEIS. A minimum of 15 days 
shall, without good cause shown, be allowed for comment on the final 
notice.
    (c) For actions for which an environmental assessment was prepared, 
the Notice of No Significant Impact is adequate to constitute final 
public notice, if it includes the information required under paragraph 
(e) of this section.
    (d) For all other actions, the finding shall be made in a document 
separate from those described in paragraphs (a), (b), and (c) of this 
section. Based on an assessment of the following factors, the 
requirement for final notice may be met in a cumulative manner:
    (1) Scale of the action;
    (2) Potential for controversy;
    (3) Degree of public need;
    (4) Number of affected agencies and individuals;
    (5) Its anticipated potential impact; and
    (6) Similarity of the actions, i.e., to the extent that they are 
susceptible of common descriptions and assessments.

When a damaged structure or facility is already being repaired by the 
State or local government at the time of the Damage Survey Report, the 
requirements of Steps 2 and 7 (Secs. 9.8 and 9.12) may be met by a 
single notice. Such notice shall contain all the information required by 
both sections.
    (e) The final notice shall include the following:
    (1) A statement of why the proposed action must be located in an 
area affecting or affected by a floodplain or a wetland;
    (2) A description of all significant facts considered in making this 
determination;
    (3) A list of the alternatives considered;
    (4) A statement indicating whether the action conforms to applicable 
state and local floodplain protection standards;
    (5) A statement indicating how the action affects or is affected by 
the floodplain and/or wetland, and how mitigation is to be achieved;
    (6) Identification of the responsible official or organization for 
implementation and monitoring of the proposed action, and from whom 
further information can be obtained; and
    (7) A map of the area or a statement that such map is available for 
public inspection, including the location at which such map may be 
inspected and a telephone number to call for information.
    (f) After providing the final notice, the Agency shall, without good 
cause shown, wait at least 15 days before carrying out the action.

[45 FR 59526, Sept. 9, 1980, as amended at 48 FR 29318, June 24, 1983]



Sec. 9.13  Particular types of temporary housing.

    (a) The purpose of this section is to set forth the procedures 
whereby the Agency will provide certain specified types of temporary 
housing.
    (b) Prior to providing the types of temporary housing enumerated in 
paragraph (c) of this section, the Agency shall comply with the 
provisions of this section. For all temporary housing not enumerated 
below, the full 8-step process (see Sec. 9.6) applies.
    (c) The following temporary housing actions are subject to the 
provisions of this section and not the full 8-step process:
    (1) [Reserved]
    (2) Placing a mobile home or readily fabricated dwelling on a 
private or commercial site, but not a group site.
    (d) The actions set out in paragraph (c) of this section are subject 
to the following decision-making process:
    (1) The temporary housing action shall be evaluated in accordance 
with the provisions of Sec. 9.7 to determine if it is in or affects a 
floodplain or wetland.
    (2) No mobile home or readily fabricated dwelling may be placed on a 
private or commercial site in a floodway or coastal high hazard area.
    (3) An individual or family shall not be housed in a floodplain or 
wetland unless the Regional Administrator has complied with the 
provisions of Sec. 9.9 to determine that such site is the only 
practicable alternative. The following factors shall be substituted for 
the factors in Sec. 9.9 (c) and (e) (2) through (4):
    (i) Speedy provision of temporary housing;
    (ii) Potential flood risk to the temporary housing occupant;
    (iii) Cost effectiveness;

[[Page 70]]

    (iv) Social and neighborhood patterns;
    (v) Timely availability of other housing resources; and
    (vi) Potential harm to the floodplain or wetland.
    (4) An individual or family shall not be housed in a floodplain or 
wetland (except in existing resources) unless the Regional Administrator 
has complied with the provisions of Sec. 9.11 to minimize harm to and 
within floodplains and wetlands. The following provisions shall be 
substituted for the provisions of Sec. 9.11(d) for mobile homes:
    (i) No mobile home or readily fabricated dwelling may be placed on a 
private or commercial site unless it is elevated to the fullest extent 
practicable up to the base flood level and adequately anchored.
    (ii) No mobile home or readily fabricated dwelling may be placed if 
such placement is inconsistent with the criteria of the National Flood 
Insurance Program (44 CFR part 59 et seq.) or any more restrictive 
Federal, State or local floodplain management standard. Such standards 
may require elevation to the base flood level in the absence of a 
variance.
    (iii) Mobile homes shall be elevated on open works (walls, columns, 
piers, piles, etc.) rather than on fill where practicable.
    (iv) To minimize the effect of floods on human health, safety and 
welfare, the Agency shall:
    (A) Where appropriate, integrate all of its proposed actions in 
placing mobile homes for temporary housing in floodplains into existing 
flood warning and preparedness plans and ensure that available flood 
warning time is reflected;
    (B) Provide adequate access and egress to and from the proposed site 
of the mobile home; and
    (C) Give special consideration to the unique hazard potential in 
flash flood and rapid-rise areas.
    (5) FEMA shall comply with Step 2 Early Public Notice (Sec. 9.8(c)) 
and Step 7 Final Public Notice (Sec. 9.12). In providing these notices, 
the emergency nature of temporary housing shall be taken into account.
    (e) FEMA shall not sell or otherwise dispose of mobile homes or 
other readily fabricated dwellings which would be located in floodways 
or coastal high hazard areas. FEMA shall not sell or otherwise dispose 
of mobile homes or other readily fabricated dwellings which would be 
located in floodplains or wetlands unless there is full compliance with 
the 8-step process. Given the vulnerability of mobile homes to flooding, 
a rejection of a non-floodplain location alternative and of the no-
action alternative shall be based on (1) a compelling need of the family 
or individual to buy a mobile home for permanent housing, and (2) a 
compelling requirement to locate the unit in a floodplain. Further, FEMA 
shall not sell or otherwise dispose of mobile homes or other readily 
fabricated dwellings in a floodplain unless they are elevated at least 
to the level of the 100-year flood. The Regional Administrator shall 
notify the Assistant Administrator for Mitigation of each instance where 
a floodplain location has been found to be the only practicable 
alternative for a mobile home sale.

[45 FR 59526, Sept. 9, 1980, as amended at 47 FR 13149, Mar. 29, 1982; 
49 FR 35584, Sept. 10, 1984; 50 FR 40006, Oct. 1, 1985]



Sec. 9.14  Disposal of Agency property.

    (a) The purpose of this section is to set forth the procedures 
whereby the Agency shall dispose of property.
    (b) Prior to its disposal by sale, lease or other means of disposal, 
property proposed to be disposed of by the Agency shall be reviewed 
according to the decision-making process set out in Sec. 9.6 of this 
part, as follows:
    (1) The property shall be evaluated in accordance with the 
provisions of Sec. 9.7 to determine if it affects or is affected by a 
floodplain or wetland;
    (2) The public shall be notified of the proposal and involved in the 
decision-making process in accordance with the provisions of Sec. 9.8;
    (3) Practicable alternatives to disposal shall be evaluated in 
accordance with the provisions of Sec. 9.9. For disposals, this 
evaluation shall focus on alternative actions (conveyance for an 
alternative use that is more consistent with the floodplain management 
and wetland protection policies set out in Sec. 9.2 than the one 
proposed, e.g., open

[[Page 71]]

space use for park or recreational purposes rather than high intensity 
uses), and on the ``no action'' option (retain the property);
    (4) Identify the potential impacts and support associated with the 
disposal of the property in accordance with Sec. 9.10;
    (5) Identify the steps necessary to minimize, restore, preserve and 
enhance in accordance with Sec. 9.11. For disposals, this analysis shall 
address all four of these components of mitigation where unimproved 
property is involved, but shall focus on minimization through 
floodproofing and restoration of natural values where improved property 
is involved;
    (6) Reevaluate the proposal to dispose of the property in light of 
its exposure to the flood hazard and its natural values-related impacts, 
in accordance with Sec. 9.9. This analysis shall focus on whether it is 
practicable in light of the findings from Secs. 9.10 and 9.11 to dispose 
of the property, or whether it must be retained. If it is determined 
that it is practicable to dispose of the property, this analysis shall 
identify the practicable alternative that best achieves all of the 
components of the Orders' mitigation responsibility;
    (7) To the extent that it would decrease the flood hazard to lives 
and property, the Agency shall, wherever practicable, dispose of the 
properties according to the following priorities:
    (i) Properties located outside the floodplain;
    (ii) Properties located in the flood fringe; and
    (iii) Properties located in a floodway, regulatory floodway or 
coastal high hazard area.
    (8) The Agency shall prepare and provide the public with a finding 
and public explanation in accordance with Sec. 9.12.
    (9) The Agency shall ensure that the applicable mitigation 
requirements are fully implemented in accordance with Sec. 9.11.
    (c) At the time of disposal, for all disposed property, the Agency 
shall reference in the conveyance uses that are restricted under 
existing Federal, State and local floodplain management and wetland 
protection standards relating to flood hazards and floodplain and 
wetland values.



Sec. 9.15  Planning programs affecting land use.

    The Agency shall take floodplain management into account when 
formulating or evaluating any water and land use plans. No plan may be 
approved unless it:
    (a) Reflects consideration of flood hazards and floodplain 
management and wetlands protection; and
    (b) Prescribes planning procedures to implement the policies and 
requirements of the Orders and this regulation.



Sec. 9.16  Guidance for applicants.

    (a) The Agency shall encourage and provide adequate guidance to 
applicants for agency assistance to evaluate the effects of their plans 
and proposals in or affecting floodplains and wetlands.
    (b) This shall be accomplished primarily through amendment of all 
Agency instructions to applicants, e.g., program handbooks, contracts, 
application and agreement forms, etc., and also through contact made by 
agency staff during the normal course of their activities, to fully 
inform prospective applicants of:
    (1) The Agency's policy on floodplain management and wetlands 
protection as set out in Sec. 9.2;
    (2) The decision-making process to be used by the Agency in making 
the determination of whether to provide the required assistance as set 
out in Sec. 9.6;
    (3) The nature of the Orders' practicability analysis as set out in 
Sec. 9.9;
    (4) The nature of the Orders' mitigation responsibilities as set out 
in Sec. 9.11;
    (5) The nature of the Orders' public notice and involvement process 
as set out in Secs. 9.8 and 9.12; and
    (6) The supplemental requirements applicable to applications for the 
lease or other disposal of Agency owned properties set out in Sec. 9.14.
    (c) Guidance to applicants shall be provided where possible, prior 
to the time of application in order to minimize potential delays in 
process application due to failure of applicants to recognize and 
reflect the provisions of the Orders and this regulation.

[[Page 72]]



Sec. 9.17  Instructions to applicants.

    (a) Purpose. In accordance with Executive Orders 11988 and 11990, 
the Federal executive agencies must respond to a number of floodplain 
management and wetland protection responsibilities before carrying out 
any of their activities, including the provision of Federal financial 
and technical assistance. The purpose of this section is to put 
applicants for Agency assistance on notice concerning both the criteria 
that it is required to follow under the Orders, and applicants' 
responsibilities under this regulation.
    (b) Responsibilities of Applicants. Based upon the guidance provided 
by the Agency under Sec. 9.16, that guidance included in the U.S. Water 
Resources Council's Guidance for Implementing E.O. 11988, and based upon 
the provisions of the Orders and this regulation, applicants for Agency 
assistance shall recognize and reflect in their application:
    (1) The Agency's policy on floodplain management and wetlands 
protection as set out in Sec. 9.2;
    (2) The decision-making process to be used by the Agency in making 
the determination of whether to provide the requested assistance as set 
out in Sec. 9.6;
    (3) The nature of the Orders' practicability analysis as set out in 
Sec. 9.9;
    (4) The nature of the Orders' mitigation responsibilities as set out 
in Sec. 9.11;
    (5) The nature of the Orders' public and involvement process as set 
out in Secs. 9.8 and 9.12; and
    (6) The supplemental requirements for application for the lease or 
other disposal of Agency-owned properties, as set out in Sec. 9.13.
    (c) Provision of supporting information. Applicants for Agency 
assistance may be called upon to provide supporting information relative 
to the various responsibilities set out in paragraph (b) of this section 
as a prerequisite to the approval of their applications.
    (d) Approval of applications. Applications for Agency assistance 
shall be reviewed for the recognition and reflection of the provisions 
of this regulation in addition to the Agency's existing approval 
criteria.



Sec. 9.18  Responsibilities.

    (a) Regional Administrators' responsibilities. Regional 
Administrators shall, for all actions falling within their respective 
jurisdictions:
    (1) Implement the requirements of the Orders and this regulation. 
Anywhere in Secs. 9.2, 9.6 through 9.13, and 9.15 where a direction is 
given to the Agency, it is the responsibility of the Regional 
Administrator.
    (2) Consult with the Chief Counsel regarding any question of 
interpretation concerning this regulation or the Orders.
    (b) The Heads of the Offices, Directorates and Administrations of 
FEMA shall:
    (1) Implement the requirements of the Orders and this regulation. 
When a decision of a Regional Administrator relating to disaster 
assistance is appealed, the Assistant Administrator for Mitigation may 
make determinations under these regulations on behalf of the Agency.
    (2) Prepare and submit to the Office of Chief Counsel reports to the 
Office of Management and Budget in accordance with section 2(b) of E.O. 
11988 and section 3 of E.O. 11990. If a proposed action is to be located 
in a floodplain or wetland, any requests to the Office of Management and 
Budget for new authorizations or appropriations shall be accompanied by 
a report indicating whether the proposed action is in accord with the 
Orders and these regulations.

[45 FR 59526, Sept. 9, 1980, as amended at 49 FR 33879, Aug. 27, 1984; 
74 FR 15336, Apr. 3, 2009]

[[Page 73]]



    Sec. Appendix A to Part 9--Decision-making Process for E.O. 11988
[GRAPHIC] [TIFF OMITTED] TC02FE91.074

                           PART 10 [RESERVED]



PART 11_CLAIMS--Table of Contents



                            Subpart A_General

Sec.
11.1  General collection standards.
11.2  Delegations of authority.

      Subpart B_Administrative Claims Under Federal Tort Claims Act

11.10  Scope of regulation.
11.11  Administrative claim; when presented; appropriate FEMA office.
11.12  Administrative claim; who may file.
11.13  Investigations.
11.14  Administrative claim; evidence and information to be submitted.
11.15  Authority to adjust, determine, compromise and settle.
11.16  Limitations on authority.
11.17  Referral to Department of Justice.
11.18  Final denial of claim.
11.19  Action on approved claim.

Subpart C [Reserved]

                 Subpart D_Personnel Claims Regulations

11.70  Scope and purpose.
11.71  Claimants.
11.72  Time limitations.
11.73  Allowable claims.
11.74  Claims not allowed.
11.75  Claims involving carriers and insurers.
11.76  Claims procedures.
11.77  Settlement of claims.
11.78  Computation of amount of award.
11.79  Attorney's fees.

    Authority: 31 U.S.C. 3701 et seq.

    Source: 45 FR 15930, Mar. 12, 1980, unless otherwise noted.

[[Page 74]]



                            Subpart A_General



Sec. 11.1  General collection standards.

    The general standards and procedures governing the collection, 
compromise, termination and referral to the Department of Justice of 
claims for money and property that are prescribed in the regulations 
issued jointly by the Government Accountability Office and the 
Department of Justice pursuant to the Federal Claims Collection Act of 
1966 (4 CFR part 101 et seq.), apply to the administrative claim 
collection activities of the Federal Emergency Management Agency (FEMA).



Sec. 11.2  Delegations of authority.

    Any and all claims that arise under subchapter III of chapter 83, 
chapter 87 and chapter 88 of title 5, the United States Code, the 
Retired Federal Employees Health Benefits Act (74 Stat. 849), the Panama 
Canal Construction Annuity Act (58 Stat. 257), and the Lighthouse 
Service Widow's Annuity Act (64 Stat. 465) shall be referred to the 
Director of the Bureau of Retirement and Insurance, Office of Personnel 
Management, for handling. The Chief Counsel, FEMA shall act on all other 
claims against FEMA for money and property.



      Subpart B_Administrative Claims Under Federal Tort Claims Act



Sec. 11.10  Scope of regulation.

    This regulation applies to claims asserted under the Federal Tort 
Claims Act against the Federal Emergency Management Agency (FEMA). It 
does not include any contractor with FEMA.



Sec. 11.11  Administrative claim; when presented; appropriate FEMA office.

    (a) For the purpose of this part, and the provisions of the Federal 
Tort Claims Act a claim is deemed to have been presented when FEMA 
receives, at a place designated in paragraph (b) or (c) of this section, 
an executed ``Claim for Damage or Injury,'' Standard Form 95, or other 
written notification of an incident, accompanied by a claim for money 
damages in a sum certain for injury to or loss of property, for personal 
injury, or for death alleged to have occurred by reason of the incident. 
A claim which should have been presented to FEMA, but which was 
mistakenly addressed to or filed with another Federal agency, is deemed 
to be presented to FEMA as of the date that the claim is received by 
FEMA. If a claim is mistakenly addressed to or filed with FEMA, the 
claim shall forthwith be transferred to the appropriate Federal Agency, 
if ascertainable, or returned to the claimant.
    (b) Except as provided in paragraph (c) of this section, a claimant 
shall mail or deliver his or her claim to the Office of Chief Counsel, 
Federal Emergency Management Agency, Washington, DC, 20472.
    (c) When a claim is for $200 or less, does not involve a personal 
injury, and involves a FEMA regional employee, the claimant shall mail 
or deliver the claim to the Administrator of the FEMA Regional Office in 
which is employed the FEMA employee whose negligence or wrongful act or 
omission is alleged to have caused the loss or injury complained of. The 
addresses of the Regional Offices of FEMA are set out in part 2 of this 
chapter.
    (d) A claim presented in compliance with paragraph (a) of this 
section may be amended by the claimant at any time prior to final FEMA 
action or prior to the exercise of the claimant's option under 28 U.S.C. 
2675(a). Amendments shall be submitted in writing and signed by the 
claimant or his or her duly authorized agent or legal representative. 
Upon the timely filing of an amendment to a pending claim, FEMA shall 
have six months in which to make a final disposition of the claim as 
amended and the claimant's option under 28 U.S.C. 2675(a) shall not 
accrue until six months after the filing of an amendment.

[45 FR 15930, Mar. 12, 1980, as amended at 48 FR 6711, Feb. 15, 1983; 49 
FR 33879, Aug. 27, 1984]



Sec. 11.12  Administrative claim; who may file.

    (a) A claim for injury to or loss of property may be presented by 
the owner of the property interest which is

[[Page 75]]

the subject of the claim, his or her authorized agent, or legal 
representative.
    (b) A claim for personal injury may be presented by the injured 
person or, his or her authorized agent or legal representative.
    (c) A claim based on death may be presented by the executor or 
administrator of the decedent's estate or by any other person legally 
entitled to assert such a claim under applicable State law.
    (d) A claim for loss wholly compensated by an insurer with the 
rights of a subrogee may be presented by the insurer or the insured 
individually, as their respective interests appear, or jointly. When an 
insurer presents a claim asserting the rights of a subrogee, he or she 
shall present with the claim appropriate evidence that he or she has the 
rights of a subrogee.
    (e) A claim presented by an agent or legal representative shall be 
presented in the name of the claimant, be signed by the agent or legal 
representative, show the title of legal capacity of the person signing, 
and be accompanied by evidence of his or her authority to present a 
claim on behalf of the claimant as agent, executor, administrator, 
parent, guardian, or other representative.



Sec. 11.13  Investigations.

    FEMA may investigate, or may request any other Federal agency to 
investigate, a claim filed under this part.



Sec. 11.14  Administrative claim; evidence and information to be submitted.

    (a) Death. In support of a claim based on death the claimant may be 
required to submit the following evidence or information:
    (1) An authenticated death certificate or other competent evidence 
showing cause of death, date of death, and age of the decedent.
    (2) Decedent's employment or occupation at time of death, including 
his or her monthly or yearly salary or earnings (if any), and the 
duration of his or her last employment or occupation.
    (3) Full names, addresses, birth dates, kinship, and marital status 
of the decedent's survivors, including identification of those survivors 
who were dependent for support on the decedent at the time of his or her 
death.
    (4) Degree of support afforded by the decedent to each survivor 
dependent on him or her for support at the time of death.
    (5) Decedent's general physical and mental condition before death.
    (6) Itemized bills or medical and burial expenses incurred by reason 
of the incident causing death, or itemized receipts of payment for such 
expenses.
    (7) If damages for pain and suffering before death are claimed, a 
physician's detailed statement specifying the injuries suffered, 
duration of pain and suffering, any drugs administered for pain, and the 
decedent's physical condition in the interval between injury and death.
    (8) Any other evidence or information which may have a bearing on 
either the responsibility of the United States for the death or the 
amount of damages claimed.
    (b) Personal injury. In support of a claim for personal injury, 
including pain and suffering, the claimant may be required to submit the 
following evidence or information:
    (1) A written report by his or her attending physician or dentist 
setting forth the nature and extent of the injury, nature and extent of 
treatment, any degree of temporary or permanent disability, the 
prognosis, period of hospitalization, and any diminished earning 
capacity. In addition, the claimant may be required to submit to a 
physical or mental examination by a physician employed by FEMA or 
another Federal agency. FEMA shall make available to the claimant a copy 
of the report of the examining physician on written request by the 
claimant, if he or she has, on request, furnished the report referred to 
in the first sentence of this subparagraph and has made or agrees to 
make available to FEMA any other physician's reports previously or 
thereafter made of the physical or mental condition which is the subject 
matter of the claim.
    (2) Itemized bills for medical, dental, and hospital expenses 
incurred, or itemized receipts of payment of such expenses.
    (3) If the prognosis reveals the necessity for future treatment, a 
statement

[[Page 76]]

of expected expenses for such treatment.
    (4) If a claim is made for loss of time from employment, a written 
statement from the employer showing actual time lost from employment, 
whether he or she is a full- or part-time employee, and wages or salary 
actually lost.
    (5) If a claim is made for loss of income and the claimant is self-
employed, documentary evidence showing the amount of earnings actually 
lost.
    (6) Any other evidence or information which may have a bearing on 
either the responsibility of the United States for the personal injury 
or the damages claimed.
    (c) Property damage. In support of a claim for injury to or loss of 
property, real or personal, the claimant may be required to submit the 
following evidence or information:
    (1) Proof of ownership of the property interest which is the subject 
of the claim.
    (2) A detailed statement of the amount claimed with respect to each 
item of property.
    (3) An itemized receipt of payment for necessary repairs or itemized 
written estimates of the cost of such repairs.
    (4) A statement listing date of purchase, purchase price, and 
salvage value, where repair is not economical.
    (5) Any other evidence or information which may have a bearing on 
either the responsibility of the United States for the injury to or loss 
of property or the damages claimed.



Sec. 11.15  Authority to adjust, determine, compromise and settle.

    (a) The Chief Counsel of FEMA, or a designee of the Chief Counsel, 
is delegated authority to consider, ascertain, adjust, determine, 
compromise, and settle claims under the provisions of section 2672 of 
title 28, United States Code, and this part.
    (b) Notwithstanding the delegation of authority in paragraph (a) of 
this section, a Regional Administrator is delegated authority to be 
exercised in his or her discretion, to consider, ascertain, adjust, 
determine, compromise, and settle under the provisions of section 2672 
of title 28, United States Code, and this part, any claim for $200 or 
less which is based on alleged negligence or wrongful act or omission of 
an employee of the appropriate Region, except when:
    (1) There are personal injuries to either Government personnel or 
individuals not employed by the Government; or
    (2) All damage to Government property or to property being used by 
FEMA, or both, is more than $200, or all damage to non-Government 
property being used by individuals not employed by the Government is 
more than $200.

[45 FR 15930, Mar. 12, 1980, as amended at 48 FR 6711, Feb. 15, 1983]



Sec. 11.16  Limitations on authority.

    (a) An award, compromise, or settlement of a claim under this part 
in excess of $25,000 may be effected only with the advance written 
approval of the Attorney General or his or her designee. For the purpose 
of this paragraph, a principal claim and any derivative or subrogated 
claim shall be treated as a single claim.
    (b) An administrative claim may be adjusted, determined, 
compromised, or settled under this part only after consultation with the 
Department of Justice, when, in the opinion of the Chief Counsel of FEMA 
or his or her designee:
    (1) A new precedent or a new point of law is involved; or
    (2) A question of policy is or may be involved; or
    (3) The United States is or may be entitled to indemnity or 
contribution from a third party and FEMA is unable to adjust the third 
party claim; or
    (4) The compromise of a particular claim, as a practical matter, 
will or may control the disposition of a related claim in which the 
amount to be paid may exceed $25,000.
    (c) An administrative claim may be adjusted, determined, compromised 
or settled under this part only after consultation with the Department 
of Justice when FEMA is informed or is otherwise aware that the United 
States or an employee, agent or cost-type contractor of the United 
States is involved in litigation based on a claim arising out of the 
same incident or transaction.

[[Page 77]]



Sec. 11.17  Referral to Department of Justice.

    When Department of Justice approval or consultation is required 
under Sec. 11.16, the referral or request shall be transmitted to the 
Department of Justice by the Chief Counsel or his or her designee.



Sec. 11.18  Final denial of claim.

    (a) Final denial of an administrative claim under this part shall be 
in writing and sent to the claimant, his or her attorney, or legal 
representative by certified or registered mail. The notification of 
final denial may include a statement of the reasons for the denial and 
shall include a statement that, if the claimant is dissatisfied with the 
FEMA action, he or she may file suit in an appropriate U.S. District 
Court not later than 6 months after the date of mailing of the 
notification.
    (b) Prior to the commencement of suit and prior to the expiration of 
the 6-month period provided in 28 U.S.C. 2401(b), a claimant, his or her 
duly authorized agent, or legal representative, may file a written 
request with FEMA for reconsideration of a final denial of a claim under 
paragraph (a) of this section. Upon the timely filing of a request for 
reconsideration the FEMA shall have 6 months from the date of filing in 
which to make a final FEMA disposition of the claim and the claimant's 
option under 28 U.S.C. 2675(a) shall not accrue until 6 months after the 
filing of a request for reconsideration. Final FEMA action on a request 
for reconsideration shall be effected in accordance with the provisions 
of paragraph (a) of this section.



Sec. 11.19  Action on approved claim.

    (a) Payment of a claim approved under this part is contingent on 
claimant's execution of (1) a ``Claim for Damage or Injury,'' Standard 
Form 95, or a claims settlement agreement, and (2) a ``Voucher for 
Payment,'' Standard Form 1145, as appropriate. When a claimant is 
represented by an attorney, the voucher for payment shall designate both 
the claimant and his or her attorney as payees, and the check shall be 
delivered to the attorney, whose address shall appear on the voucher.
    (b) Acceptance by the claimant, his or her agent, or legal 
representative, of an award, compromise, or settlement made under 
section 2672 or 2677 of title 28, United States Code, is final and 
conclusive on the claimant, his or her agent or legal representative, 
and any other person on whose behalf or for whose benefit the claim has 
been presented, and constitutes a complete release of any claim against 
the United States and against any employee of the Government whose act 
or omission gave rise to the claim, by reason of the same subject 
matter.

Subpart C [Reserved]



                 Subpart D_Personnel Claims Regulations

    Authority: 31 U.S.C. 3721.

    Source: 50 FR 8112, Feb. 28, 1985, unless otherwise noted.



Sec. 11.70  Scope and purpose.

    (a) The Administrator, Federal Emergency Management Agency (FEMA), 
is authorized by 31 U.S.C. 3721 to settle and pay (including replacement 
in kind) claims of officers and employees of FEMA, amounting to not more 
than $25,000 for damage to or loss of personal property incident to 
their service. Property may be replaced in-kind at the option of the 
Government. Claims are payable only for such types, quantities, or 
amounts of tangible personal property (including money) as the approving 
authority shall determine to be reasonable, useful, or proper under the 
circumstances existing at the time and place of the loss. In determining 
what is reasonable, useful, or proper, the approving authority will 
consider the type and quantity of property involved, circumstances 
attending acquisition and use of the property, and whether possession or 
use by the claimant at the time of damage or loss was incident to 
service.
    (b) The Government does not underwrite all personal property losses 
that a claimant may sustain and it does not underwrite individual 
tastes. While the Government does not attempt to limit possession of 
property by an individual, payment for damage or loss is made

[[Page 78]]

only to the extent that the possession of the property is determined to 
be reasonable, useful, or proper. If individuals possess excessive 
quantities of items, or expensive items, they should have such property 
privately insured. Failure of the claimant to comply with these 
procedures may reduce or preclude payment of the claim under this 
subpart.



Sec. 11.71  Claimants.

    (a) A claim pursuant to this subpart may only be made by: (1) An 
employee of FEMA; (2) a former employee of FEMA whose claim arises out 
of an incident occurring before his/her separation from FEMA; (3) 
survivors of a person named in paragraph (a) (1) or (2) of this section, 
in the following order of precedence: (i) Spouse; (ii) children; (iii) 
father or mother, or both or (iv) brothers or sisters, or both; (4) the 
authorized agent or legal representative of a person named in paragraphs 
(a) (1), (2), and (3) of this section.
    (b) A claim may not be presented by or for the benefit of a 
subrogee, assignee, conditional vendor, or other third party.



Sec. 11.72  Time limitations.

    (a) A claim under this part may be allowed only if it is in writing, 
specifies a sum certain and is received in the Office of Chief Counsel, 
Federal Emergency Management Agency, Washington, DC 20472: (1) Within 2 
years after it accrues; (2) or if it cannot be filed within the time 
limits of paragraph (a)(1) of this section because it accrues in time of 
war or in time of armed conflict in which any armed force of the United 
States is engaged or if such a war or armed conflict intervenes within 2 
years after the claim accrues, when the claimant shows good cause, the 
claim may be filed within 2 years after the cause ceases to exist but 
not more than 2 years after termination of the war or armed conflict.
    (b) For purposes of this subpart, a claim accrues at the time of the 
accident or incident causing the loss or damage, or at such time as the 
loss or damage should have been discovered by the claimant by the 
exercise of due diligence.



Sec. 11.73  Allowable claims.

    (a) A claim may be allowed only if: (1) The damage or loss was not 
caused wholly or partly by the negligent or wrongful act of the 
claimant, his/her agent, the members of his/her family, or his/her 
private employee (the standard to be applied is that of reasonable care 
under the circumstances); and (2) the possession of the property lost or 
damaged and the quantity possessed is determined to have been 
reasonable, useful, or proper under the circumstances; and (3) the claim 
is substantiated by proper and convincing evidence.
    (b) Claims which are otherwise allowable under this subpart shall 
not be disallowed solely because the property was not in the possession 
of the claimant at the time of the damage or loss, or solely because the 
claimant was not the legal owner of the property for which the claim is 
made. For example, borrowed property may be the subject of a claim.
    (c) Subject to the conditions in paragraph (a) of this section, and 
the other provisions of this subpart, any claim for damage to, or loss 
of, personal property incident to service with FEMA may be considered 
and allowed. The following are examples of the principal types of claims 
which may be allowed, unless excluded by Sec. 11.74.
    (1) Property loss or damage in quarters or other authorized places. 
Claims may be allowed for damage to, or loss of, property arising from 
fire, flood, hurricane, other natural disaster, theft, or other unusual 
occurrence, while such property is located at:
    (i) Quarters within the 50 states or the District of Columbia that 
were assigned to the claimant or otherwise provided in-kind by the 
United States; or
    (ii) Any warehouse, office, working area, or other place (except 
quarters) authorized for the reception or storage of property.
    (2) Transportation or travel losses. Claims may be allowed for 
damage to, or loss of, property incident to transportation or storage 
pursuant to orders, or in connection with travel under orders, including 
property in the custody of a carrier, an agent or agency of the 
Government, or the claimant.

[[Page 79]]

    (3) Motor vehicles. Claims may be allowed for automobiles and other 
motor vehicles damaged or lost by overseas shipments provided by the 
Government. ``Shipments provided by the Government'' means via 
Government vessels, charter of commercial vessels, or by Government 
bills of lading on commercial vessels, and includes storage, unloading, 
and offloading incident thereto. Other claims for damage to or loss of 
automobiles and other major vehicles may be allowed when use of the 
vehicles on a nonreimbursable basis was required by the claimant's 
supervisor, but these claims shall be limited to a maximum of $1,000.00.
    (4) Mobile homes. Claims may be allowed for damage to or loss of 
mobile homes and their content under the provisions of paragraph (c)(2) 
of this section. Claims for structural damage to mobile homes resulting 
from such structural damage must contain conclusive evidence that the 
damage was not caused by structural deficiency of the mobile home and 
that it was not overloaded. Claims for damage to or loss of tires 
mounted on mobile homes may be allowed only in cases of collision, 
theft, or vandalism.
    (5) Money. Claims for money in an amount that is determined to be 
reasonable for the claimant to possess at the time of the loss are 
payable:
    (i) Where personal funds were accepted by responsible Government 
personnel with apparent authority to receive them for safekeeping, 
deposit, transmittal, or other authorized disposition, but were neither 
applied as directed by the owner nor returned;
    (ii) When lost incident to a marine or aircraft disaster;
    (iii) When lost by fire, flood, hurricane, or other natural 
disaster;
    (iv) When stolen from the quarters of the claimant where it is 
conclusively shown that the money was in a locked container and that the 
quarters themselves were locked. Exceptions to the foregoing ``double 
lock'' rule are permitted when the adjudicating authority determines 
that the theft loss was not caused wholly or partly by the negligent or 
wrongful act of the claimant, their agent, or their employee. The 
adjudicating authority should use the test of whether the claimant did 
their best under the circumstances to protect the property; or
    (v) When taken by force from the claimant's person.
    (6) Clothing. Claims may be allowed for clothing and accessories 
customarily worn on the person which are damaged or lost:
    (i) During the performance of official duties in an unusual or 
extraordinary-risk situation;
    (ii) In cases involving emergency action required by natural 
disaster such as fire, flood, hurricane, or by enemy or other 
belligerent action;
    (iii) In cases involving faulty equipment or defective furniture 
maintained by the Government and used by the claimant required by the 
job situation; or
    (iv) When using a motor vehicle.
    (7) Property used for benefit of the Government. Claims may be 
allowed for damage to or loss of property (except motor vehicles, see 
Secs. 11.73(c)(3) and 11.74(b)(13)) used for the benefit of the 
Government at the request of, or with the knowledge and consent of, 
superior authority or by reason of necessity.
    (8) Enemy action or public service. Claims may be allowed for damage 
to or loss of property as a direct consequence of:
    (i) Enemy action or threat thereof, or combat, guerrilla, 
brigandage, or other belligerent activity, or unjust confiscation by a 
foreign power or its nation:
    (ii) Action by the claimant to quiet a civil disturbance or to 
alleviate a public disaster; or
    (iii) Efforts by the claimant to save human life or Government 
property.
    (9) Marine or aircraft disaster. Claims may be allowed for personal 
property damaged or lost as a result of marine or aircraft disaster or 
accident.
    (10) Government property. Claims may be allowed for property owned 
by the United States only when the claimant is financially responsible 
to an agency of the Government other than FEMA.
    (11) Borrowed property. Claims may be allowed for borrowed property 
that has been damaged or lost.
    (12)(i) A claim against the Government may be made for not more than 
$40,000 by an officer or employee of the agency for damage to, or loss 
of, personal property in a foreign country

[[Page 80]]

that was incurred incident to service, and--
    (A) The officer, or employee was evacuated from the country on a 
recommendation or order of the Secretary of State or other competent 
authority that was made in responding to an incident of political unrest 
or hostile act by people in that country; and the damage or loss 
resulted from the evacuation, incident, or hostile act; or
    (B) The damage or loss resulted from a hostile act directed against 
the Government or its officers, or employees.
    (ii) On paying the claim under this section, the Government is 
subrogated for the amount of the payment to a right or claim that the 
claimant may have against the foreign country for the damage or loss for 
which the Government made the payment.
    (iii) Amounts may be obligated or expended for claims under this 
section only to the extent provided in advance in appropriation laws.



Sec. 11.74  Claims not allowed.

    (a) A claim is not allowable if:
    (1) The damage or loss was caused wholly or partly by the negligent 
or wrongful act of the claimant, claimant's agent, claimant's employee, 
or a member of claimant's family;
    (2) The damage or loss occurred in quarters occupied by the claimant 
within the 50 states and the District of Columbia that were not assigned 
to the claimant or otherwise provided in-kind by the United States;
    (3) Possession of the property lost or damaged was not incident to 
service or not reasonable or proper under the circumstances.
    (b) In addition to claims falling within the categories of paragraph 
(a) of this section, the following are examples of claims which are not 
payable:
    (1) Claims not incident to service. Claims which arose during the 
conduct of personal business are not payable.
    (2) Subrogation claims. Claims based upon payment or other 
consideration to a proper claimant are not payable.
    (3) Assigned claims. Claims based upon assignment of a claim by a 
proper claimant are not payable.
    (4) Conditional vendor claims. Claims asserted by or on behalf of a 
conditional vendor are not payable.
    (5) Claims by improper claimants. Claims by persons not designated 
in Sec. 11.71 are not payable.
    (6) Articles of extraordinary value. Claims are not payable for 
valuable or expensive articles, such as cameras, watches, jewelry, furs, 
or other articles of extraordinary value, when shipped with household 
goods or as unaccompanied baggage (shipment includes storage). This 
prohibition does not apply to articles in the personal custody of the 
claimant or articles properly checked, provided that reasonable 
protection or security measures have been taken, by the claimant.
    (7) Articles acquired for other persons. Claims are not payable for 
articles intended directly or indirectly for persons other than the 
claimant or members of the claimants' immediate household. This 
prohibition includes articles acquired at the request of others and 
articles for sale.
    (8) Property used for business. Claims are not payable for property 
normally used for business or profit.
    (9) Unserviceable property. Claims are not payable for wornout or 
unserviceable property.
    (10) Violation of law or directive. Claims are not payable for 
property acquired, possessed, or transported in violation of law, 
regulation, or other directive. This does not apply to limitation 
imposed on the weight of shipments of household goods.
    (11) Intangible property. Claims are not payable for intangible 
property such as bank books, checks, promissory notes, stock 
certificates, bonds, bills of lading, warehouse receipts, baggage 
checks, insurance policies, money orders, and traveler's checks.
    (12) Government property. Claims are not payable for property owned 
by the United States unless the claimant is financially responsible for 
the property to an agency of the Government other than FEMA.
    (13) Motor vehicles. Claims for motor vehicles, except as provided 
for by Sec. 11.73(c)(3), will ordinarily not be paid. However, in 
exceptional cases, meritorious claims for damage to or loss of motor 
vehicles, limited to a maximum of $1,000.00, may be recommended to the 
Office of Chief Counsel for consideration and approval for payment.

[[Page 81]]

    (14) Enemy property. Claims are not payable for enemy property, 
including war trophies.
    (15) Losses recoverable from carrier, insurer or contractor. Claims 
are not payable for losses, or any portion thereof, which have been 
recovered or are recoverable from a carrier, insurer or under contract 
except as permitted under Sec. 11.75.
    (16) Fees for estimates. Claims are not normally payable for fees 
paid to obtain estimates of repair in conjunction with submitting a 
claim under this subpart. However, where, in the opinion of the 
adjudicating authority, the claimant could not obtain an estimate 
without paying a fee, such a claim may be considered in an amount 
reasonable in relation to the value for the cost of repairs of the 
articles involved, provided that the evidence furnished clearly 
indicates that the amount of the fee paid will not be deducted from the 
cost of repairs if the work is accomplished by the estimator.
    (17) Items fraudulently claimed. Claims are not payable for items 
fraudulently claimed. When investigation discloses that a claimant, 
claimant's agent, claimant's employee, or member of claimant's family 
has intentionally misrepresented an item claimed as to cost, condition, 
costs to repair, etc., the item will be disallowed in its entirety even 
though some actual damage has been sustained. However, if the remainder 
of the claim is proper, it may be paid. This does not preclude 
appropriate disciplinary action if warranted.
    (18) Minimum amount. Loss or damage amounting to less than $10.



Sec. 11.75  Claims involving carriers and insurers.

    In the event the property which is the subject of a claim was lost 
or damaged while in the possession of a carrier or was insured, the 
following procedures will apply:
    (a) Whenever property is damaged, lost, or destroyed while being 
shipped pursuant to authorized travel orders, the owner must file a 
written claim for reimbursement with the last commercial carrier known 
or believed to have handled the goods, or the carrier known to be in 
possession of the property when the damage or loss occurred, according 
to the terms of its bill of lading or contract, before submitting a 
claim against the Government under this subpart.
    (1) If more than one bill of lading or contract was issued, a 
separate demand should be made against the last carrier on each such 
document.
    (2) The demand should be made within the time limit provided in the 
policy and prior to the filing of a claim against the Government.
    (3) If it is apparent that the damage or loss is attributable to 
packing, storage, or unpacking while in the custody of the Government, 
no demand need be made against the carrier.
    (b) Whenever property which is damaged, lost, or destroyed incident 
to the claimant's service is insured in whole or in part, the claimant 
must make demand in writing against the insurer for reimbursement under 
terms and conditions of the insurance coverage, prior to the filing of 
the concurrent claim against the Government.
    (c) Failure to make a demand on a carrier or insurer or to make all 
reasonable efforts to protect and prosecute rights available against a 
carrier or insurer and to collect the amount recoverable from the 
carrier or insurer may result in reducing the amount recoverable from 
the Government by the maximum amount which would have been recoverable 
from the carrier or insurer, had the claim been timely or diligently 
prosecuted. However, no deduction will be made where the circumstances 
of the claimant's service preclude reasonable filing of such a claim or 
diligent prosecution, or the evidence indicates a demand was 
impracticable or would have been unavailing.
    (d) Following the submission of the claim against the carrier or 
insurer, the claimant may immediately submit a claim against the 
Government in accordance with the provisions of this subpart, without 
waiting until either final approval or denial of the claim is made by 
the carrier or insurer.
    (1) Upon submission of a claim to the Government, the claimant must 
certify in the claim that no recovery (or the amount of recovery) has 
been gained from a carrier or insurer, and enclose all correspondence 
pertinent thereto.

[[Page 82]]

    (2) If the carrier or insurer has not taken final action on the 
claim against them, by the time the claimant submits a claim to the 
Government, the claimant will immediately notify them to address all 
correspondence in regard to the claim to him/her, in care of the Chief 
Counsel of FEMA.
    (3) The claimant shall timely advise the Chief Counsel in writing, 
of any action which is taken by the carrier or insurer on the claim. On 
request, the claimant also will furnish such evidence as may be required 
to enable the United States to enforce the claim.
    (e) When a claim is paid by FEMA, the claimant will assign to the 
United States, to the extent of any payment on the claim accepted by 
claimant, all rights, title, and interest in any claim against the 
carrier, insurer, or other party arising out of the incident on which 
the claim against the Government is based. After payment of the claim by 
the Government, the claimant will, upon receipt of any payment from a 
carrier or insurer, pay the proceeds to the United States to the extent 
of the payment received by the claimant from the United States.
    (f) When a claimant recovers for the loss from the carrier or 
insurer before the claim against the Government under this subpart is 
settled, the amount or recovery shall be applied to the claim as 
follows:
    (1) When the amount recovered from a carrier, insurer, or other 
third party is greater than or equal to the claimant's total loss as 
determined under this subpart, no compensation is allowable under this 
subpart.
    (2) When the amount recovered is less than such total loss, the 
allowable amount is determined by deducting the recovery from the amount 
of such total loss;
    (3) For the purpose of this paragraph (f) the claimant's total loss 
is to be determined without regard to the $25,000 maximum set forth 
above. However, if the resulting amount, after making this deduction, 
exceeds $25,000, the claimant will be allowed only $25,000.



Sec. 11.76  Claims procedures.

    (a) Filing a claim. Applicants shall file claims in writing with the 
Chief Counsel, Federal Emergency Management Agency, Washington, DC 
20472. Each written claim shall contain, as a minimum:
    (1) Name, address, and place of employment of the claimant;
    (2) Place and date of the damage or loss:
    (3) A brief statement of the facts and circumstances surrounding the 
damage or loss;
    (4) Cost, date, and place of acquisition of each price of property 
damaged or lost;
    (5) Two itemized repair estimates, or value estimates, whichever is 
applicable;
    (6) Copies of police reports, if applicable;
    (7) A statement from the claimant's supervisor that the loss was 
incident to service;
    (8) A statement that the property was or was not insured;
    (9) With respect to claims involving thefts or losses in quarters or 
other places where the property was reasonably kept, a statement as to 
what security precautions were taken to protect the property involved;
    (10) With respect to claims involving property being used for the 
benefit of the Government, a statement by the claimant's supervisor that 
the claimant was required to provide such property or that the 
claimant's providing it was in the interest of the Government; and
    (11) Other evidence as may be required.
    (b) Single claim. A single claim shall be presented for all lost or 
damaged property resulting from the same incident. If this procedure 
causes a hardship, the claimant may present an initial claim with notice 
that it is a partial claim, an explanation of the circumstances causing 
the hardship, and an estimate of the balance of the claim and the date 
it will be submitted. Payment may be made on a partial claim if the 
adjudicating authority determines that a genuine hardship exists.
    (c) Loss in quarters. Claims for property loss in quarters or other 
authorized places should be accompanied by a statement indicating:
    (1) Geographical location;

[[Page 83]]

    (2) Whether the quarters were assigned or provided in-kind by the 
Government;
    (3) Whether the quarters are regularly occupied by the claimant;
    (4) Names of the authority, if any, who designated the place of 
storage of the property if other than quarters;
    (5) Measures taken to protect the property; and
    (6) Whether the claimant is a local inhabitant.
    (d) Loss by theft or robbery. Claims for property loss by theft or 
robbery should be accompanied by a statement indicating:
    (1) Geographical location;
    (2) Facts and circumstances surrounding the loss, including evidence 
of the crime such as breaking and entering, capture of the thief or 
robber, or recovery of part of the stolen goods; and
    (3) Evidence that the claimant exercised due care in protecting the 
property prior to the loss, including information as to the degree of 
care normally exercised in the locale of the loss due to any unusual 
risks involved.
    (e) Transportation losses. Claims for transportation losses should 
be accompanied by the following:
    (1) Copies of orders authorizing the travel, transportation, or 
shipment or a certificate explaining the absence of orders and stating 
their substance;
    (2) Statement in cases where property was turned over to a shipping 
officer, supply officer, or contract packer indicating:
    (i) Name (or designation) and address of the shipping officer, 
supply officer, or contract packer indicating;
    (ii) Date the property was turned over;
    (iii) Inventoried condition when the property was turned over;
    (iv) When and where the property was packed and by whom;
    (v) Date of shipment;
    (vi) Copies of all bills of lading, inventories, and other 
applicable shipping documents;
    (vii) Date and place of delivery to the claimant;
    (viii) Date the property was unpacked by the carrier, claimant, or 
Government;
    (ix) Statement of disinterested witnesses as to the condition of the 
property when received and delivered, or as to handling or storage;
    (x) Whether the negligence of any Government employee acting within 
the scope of his/her employment caused the damage or loss;
    (xi) Whether the last common carrier or local carrier was given a 
clear receipt, except for concealed damages;
    (xii) Total gross, tare, and new weight of shipment;
    (xiii) Insurance certificate or policy if losses are privately 
insured;
    (xiv) Copy of the demand on carrier or insured, or both, when 
required, and the reply, if any;
    (xv) Action taken by the claimant to locate missing baggage or 
household effects, including related correspondence.
    (f) Marine or aircraft disaster. Claims for property losses due to 
marine or aircraft disaster should be accompanied by a copy of orders or 
other evidence to establish the claimant's right to be, or to have 
property on board.
    (g) Enemy action, public disaster, or public service. Claims for 
property losses due to enemy action, public disaster, or public service 
should be accompanied by:
    (1) Copies of orders or other evidence establishing the claimant's 
required presence in the area involved; and
    (2) A detailed statement of facts and circumstances showing an 
applicable case enumerated in Sec. 11.73(c)(8).
    (h) Money. Claims for loss of money deposited for safekeeping, 
transmittal, or other authorized disposition should be accompanied by:
    (1) Name, grade, and address of the person or persons who received 
money and any others involved;
    (2) Name and designation of the authority who authorized such person 
or persons to accept personal funds and the disposition required; and
    (3) Receipts and written sworn statements explaining the failure to 
account for funds or return them to the claimant.
    (i) Motor vehicles or mobile homes in transit. Claims for damage to 
motor vehicles or mobile homes in transit

[[Page 84]]

should be accompanied by a copy of orders or other available evidence to 
establish the claimant's lawful right to have the property shipped and 
evidence to establish damage in transit.



Sec. 11.77  Settlement of claims.

    (a) The Chief Counsel, FEMA, is authorized to settle (consider, 
ascertain, adjust, determine, and dispose of, whether by full or partial 
allowance or disallowance) any claim under this subpart.
    (b) The Chief Counsel may formulate such procedures and make such 
redelegations as may be required to fulfill the objectives of this 
subpart.
    (c) The Chief Counsel shall conduct or request the Office of 
Inspector General to conduct such investigation as may be appropriate in 
order to determine the validity of a claim.
    (d) The Chief Counsel shall notify a claimant in writing of action 
taken on their claim, and if partial or full disallowance is made, the 
reasons therefor.
    (e) In the event a claim submitted against a carrier under 
Sec. 11.75 has not been settled, before settlement of the claim against 
the Government pursuant to this subpart, the Chief Counsel shall notify 
such carrier or insurer to pay the proceeds of the claim to FEMA to the 
extent FEMA has paid such to claimant in settlement.
    (f) The settlement of a claim under this subpart, whether by full or 
partial allowance or disallowance, is final and conclusive.



Sec. 11.78  Computation of amount of award.

    (a) The amount allowed for damage to or loss of any items of 
property may not exceed the cost of the item (either the price paid in 
cash or property, or the value at the time of acquisition if not 
acquired by purchase or exchange), and there will be no allowance for 
replacement cost or for appreciation in the value of the property. 
Subject to these limitations, the amount allowable is either:
    (1) The depreciated value, immediately prior to the loss or damage, 
of property lost or damaged beyond economical repair, less any salvage 
value; or
    (2) The reasonable cost or repairs, when property is economically 
repairable, provided that the cost of repairs does not exceed the amount 
allowable under paragraph (a)(1) of this section.
    (b) Depreciation in value is determined by considering the type of 
article involved, its costs, its conditions when damaged or lost, and 
the time elapsed between the date of acquisition and the date of damage 
or loss.
    (c) Replacement of lost or damaged property may be made in-kind 
whenever appropriate.



Sec. 11.79  Attorney's fees.

    No more than 10 per centum of the amount paid in settlement of each 
individual claim submitted and settled under this subpart shall be paid 
or delivered to or received by any agent or attorney on account of 
services rendered in connection with that claim. A person violating this 
section shall be fined not more than $1,000.

[45 FR 15930, Mar. 12, 1980, as amended at 74 FR 15337, Apr. 3, 2009]

                         PARTS 12	14 [RESERVED]



PART 15_CONDUCT AT THE MT. WEATHER EMERGENCY ASSISTANCE CENTER AND AT
THE NATIONAL EMERGENCY TRAINING CENTER--Table of Contents



Sec.
15.1  Applicability.
15.2  Definitions.
15.3  Access to Mt. Weather.
15.4  Inspection.
15.5  Preservation of property.
15.6  Compliance with signs and directions.
15.7  Disturbances.
15.8  Gambling.
15.9  Alcoholic beverages and narcotics.
15.10  Soliciting, vending, and debt collection.
15.11  Distribution of handbills.
15.12  Photographs and other depictions.
15.13  Dogs and other animals.
15.14  Vehicular and pedestrian traffic.
15.15  Weapons and explosives.
15.16  Penalties.
15.17  Other laws.

    Authority: Reorganization Plan No. 3 of 1978, 43 FR 41943, 3 CFR, 
1978 Comp., p. 329; E.O. 12127 of Mar. 31, 1979, 44 FR 19367, 3 CFR, 
1979 Comp., p. 376; E.O. 12148, 44 FR 13239, 3

[[Page 85]]

CFR, 1979 Comp., p. 412; Federal Fire Prevention and Control Act of 
1974, 15 U.S.C. 2201 et seq.; delegation of authority from the 
Administrator of General Services, dated July 18, 1979; Pub. L. 80-566, 
approved June 1, 1948, 40 U.S.C. 318-318d; and the Federal Property and 
Administrative Services Act of 1949, 40 U.S.C. 271 et seq.

    Source: 64 FR 31137, June 10, 1999, unless otherwise noted.



Sec. 15.1  Applicability.

    The rules and regulations in this part apply to all persons 
entering, while on, or leaving all the property known as the Mt. Weather 
Emergency Operations Center (Mt. Weather) located at 19844 Blue Ridge 
Mountain Road, Bluemont, Virginia 20135, and all the property known as 
the National Emergency Training Center (NETC), located on 16825 South 
Seton Avenue in Emmitsburg, Maryland, which the Federal Emergency 
Management Agency (FEMA) owns, operates and controls.



Sec. 15.2  Definitions.

    Terms used in part 15 have these meanings:
    Administrator means the Administrator of the Federal Emergency 
Management Agency.
    Assistant Administrator means the Assistant Administrator, United 
States Fire Administration, FEMA.
    FEMA means the Federal Emergency Management Agency.
    Mt. Weather means the Mt. Weather Emergency Operations Center, 
Bluemont, Virginia.
    Mt. Weather Executive Director means the Executive Director of the 
Mt. Weather Emergency Operations Center.
    NETC means the National Emergency Training Center, Emmitsburg, MD.
    We means the Federal Emergency Management Agency or FEMA.

[64 FR 31137, June 10, 1999, as amended at 74 FR 15338, Apr. 3, 2009]



Sec. 15.3  Access to Mt. Weather.

    Mt. Weather contains classified material and areas that we must 
protect in the interest of national security. The facility is a 
restricted area. We deny access to Mt. Weather to the general public and 
limit access to those persons having official business related to the 
missions and operations of Mt. Weather. The Administrator or the Mt. 
Weather Executive Director must approve all persons and vehicles 
entering Mt. Weather. All persons must register with the Mt. Weather 
Police/Security Force and must receive a Mt. Weather identification 
badge and vehicle parking decal or permit to enter or remain on the 
premises. No person will enter or remain on Mt. Weather premises unless 
he or she has received permission from the Administrator or the Mt. 
Weather Executive Director and has complied with these procedures.



Sec. 15.4  Inspection.

    (a) In general. All vehicles, packages, handbags, briefcases, and 
other containers being brought into, while on or being removed from Mt. 
Weather or the NETC are subject to inspection by the Police/Security 
Force and other authorized officials. A full search of a vehicle or 
person may accompany an arrest.
    (b) Inspection at Mt. Weather. We authorize inspection at Mt. 
Weather to prevent the possession and use of items prohibited by these 
rules and regulations or by other applicable laws, to prevent theft of 
property and to prevent the wrongful obtaining of defense information 
under 18 U.S.C. 793. If individuals object to such inspections they must 
tell the officer on duty at the entrance gate before entering Mt. 
Weather. The Police/Security Force and other authorized officials must 
not authorize or allow individuals who refuse to permit an inspection of 
their vehicle or possessions to enter the premises of Mt. Weather.



Sec. 15.5  Preservation of property.

    At both Mt. Weather and NETC we prohibit:
    (a) The improper disposal of rubbish;
    (b) Willful destruction of or damage to property;
    (c) Theft of property;
    (d) Creation of any hazard on the property to persons or things;
    (e) Throwing articles of any kind from or at a building;
    (f) Climbing upon a fence; or
    (g) Climbing upon the roof or any part of a building.

[[Page 86]]



Sec. 15.6  Compliance with signs and directions.

    Persons at Mt. Weather and the NETC must comply at all times with 
official signs that prohibit, regulate, or direct, and with the 
directions of the Police/Security Force and other authorized officials.



Sec. 15.7  Disturbances.

    At both Mt. Weather and NETC we prohibit any unwarranted loitering, 
disorderly conduct, or other conduct at Mt. Weather and NETC that:
    (a) Creates loud or unusual noise or a nuisance;
    (b) Unreasonably obstructs the usual use of classrooms, dormitory 
rooms, entrances, foyers, lobbies, corridors, offices, elevators, 
stairways, roadways or parking lots;
    (c) Otherwise impedes or disrupts the performance of official duties 
by government employees or government contractors;
    (d) Interferes with the delivery of educational or other programs; 
or
    (e) Prevents persons from obtaining in a timely manner the 
administrative services provided at both facilities.



Sec. 15.8  Gambling.

    We prohibit participating in games for money or other personal 
property, including the operation of gambling devices, the conduct of a 
lottery or pool, or the sale or purchase of numbers tickets at both 
facilities.



Sec. 15.9  Alcoholic beverages and narcotics.

    At both Mt. Weather and the NETC we prohibit:
    (a) Operating a motor vehicle by any person under the influence of 
alcoholic beverages, narcotic drugs, hallucinogens, marijuana, 
barbiturates or amphetamines as defined in Title 21 of the Annotated 
Code of Maryland, Transportation, sec. 21-902 or in Title 18.2, ch. 7, 
Art. 2 of the Code of Virginia, secs. 18.2-266 and 18.2-266.1, as 
applicable;
    (b) Entering upon or while on either property being under the 
influence of or using or possessing any narcotic drug, marijuana, 
hallucinogen, barbiturate or amphetamine. This prohibition does not 
apply in cases where a licensed physician has prescribed the drug for 
the person;
    (c) Entering upon either property or being on either property under 
the influence of alcoholic beverages;
    (d) Bringing alcoholic beverages, narcotic drugs, hallucinogens, 
marijuana, barbiturates or amphetamines onto the premises unless the 
Assistant Administrator, the Mt. Weather Executive Director, or the 
Administrator or designee for the NETC authorizes it in writing; and
    (e) Use of alcoholic beverages on the property except:
    (1) In the Balloon Shed Lounge at Mt. Weather and in other locations 
that the Administrator or the Mt. Weather Executive Director authorizes 
in writing; and
    (2) In the NETC Recreation Association and other locations that the 
Assistant Administrator for the United States Fire Administration or the 
Administrator, or designee, authorizes in writing.



Sec. 15.10  Soliciting, vending, and debt collection.

    (a) We prohibit soliciting alms and contributions, commercial or 
political soliciting and vending of all kinds, displaying or 
distributing commercial advertising, or collecting private debts unless 
the Assistant Administrator for the United States Fire Administration or 
the Mt. Weather Executive Director approve the activities in writing and 
in advance.
    (b) The prohibitions of this section do not apply to:
    (1) National or local drives for funds for welfare, health, or other 
purposes as authorized by 5 CFR part 950, Solicitation of Federal 
Civilian and Uniformed Service Personnel for Contributions to Private 
Voluntary Organizations. The Administrator, or the Senior Resident 
Manager, or the Assistant Administrator for the United States Fire 
Administration or designee, must approve all such national or local 
drives before they are conducted on either premises;
    (2) Authorized concessions;
    (3) Personal notices posted by employees on authorized bulletin 
boards; and

[[Page 87]]

    (4) Solicitation of labor organization membership or dues authorized 
by occupant agencies under the Civil Service Reform Act of 1978, 5 
U.S.C. 7101 et seq.



Sec. 15.11  Distribution of handbills.

    We prohibit the distribution of materials such as pamphlets, 
handbills or flyers, and the displaying of placards or posting of 
materials on bulletin boards or elsewhere at Mt. Weather and the NETC 
unless the Administrator, the Mt. Weather Executive Director, or the 
Deputy Assistant Administrator for the United States Fire Administration 
or designee, approves such distribution or display, or when such 
distribution or display is conducted as part of authorized government 
activities.



Sec. 15.12  Photographs and other depictions.

    (a) Photographs and other depictions at Mt. Weather. We prohibit 
taking photographs and making notes, sketches, or diagrams of buildings, 
grounds or other features of Mt. Weather, or the possession of a camera 
while at Mt. Weather except when the Administrator or Mt. Weather 
Executive Director approves in advance.
    (b) Photographs and other depictions at the NETC. (1) Photographs 
may be taken inside classroom or office areas of the NETC only with the 
consent of the occupants. Except where security regulations apply or a 
Federal court order or rule prohibits it, photographs may be taken in 
entrances, lobbies, foyers, corridors, or auditoriums when used for 
public meetings.
    (2) Subject to the foregoing prohibitions, photographs for 
advertising and commercial purposes may be taken only with written 
permission of the Director of Management Operations and Systems Support, 
United States Fire Administration, Federal Emergency Management Agency, 
Emmitsburg, MD 21727, (telephone) (301) 447-1223, (facsimile) (301) 447-
1052, or other authorized official where photographs are to be taken.



Sec. 15.13  Dogs and other animals.

    Dogs and other animals, except seeing-eye dogs, must not be brought 
onto Mt. Weather grounds or into the buildings at NETC for other than 
official purposes.



Sec. 15.14  Vehicular and pedestrian traffic.

    (a) Drivers of all vehicles entering or while at Mt. Weather or the 
NETC must drive carefully and safely at all times and must obey the 
signals and directions of the Police/Security Force or other authorized 
officials and all posted traffic signs;
    (b) Drivers must comply with NETC parking requirements and vehicle 
registration requirements;
    (c) At both Mt. Weather and the NETC we prohibit:
    (1) Blocking entrances, driveways, walks, loading platforms, or fire 
hydrants on the property; and
    (2) Parking without authority, parking in unauthorized locations or 
in locations reserved for other persons, or parking contrary to the 
direction of posted signs.
    (3) Where warning signs are posted vehicles parked in violation may 
be removed at the owners' risk and expense.
    (d) The Administrator, Mt. Weather Executive Director, or the 
Assistant Administrator for the United States Fire Administration or 
designee may issue and post specific supplemental traffic directives if 
needed. When issued and posted supplemental traffic directives will have 
the same force and effect as if they were in these rules. Proof that a 
parked motor vehicle violated these rules or directives may be taken as 
prima facie evidence that the registered owner was responsible for the 
violation.



Sec. 15.15  Weapons and explosives.

    No person entering or while at Mt. Weather or the NETC will carry or 
possess firearms, other dangerous or deadly weapons, explosives or items 
intended to be used or that could reasonably be used to fabricate an 
explosive or incendiary device, either openly or concealed, except:
    (a) For official purposes if the Administrator, Mt. Weather 
Executive Director, or the Assistant Administrator for the United States 
Fire Administration or designee approves; and
    (b) In accordance with FEMA policy governing the possession of 
firearms.

[[Page 88]]



Sec. 15.16  Penalties.

    (a) Misconduct. (1) Whoever is found guilty of violating any of 
these rules and regulations is subject to a fine of not more than $50 or 
imprisonment for not more than 30 days, or both. (See 40 U.S.C. 318c.)
    (2) We will process any misconduct at NETC according to FEMA/NETC 
policy or instructions.
    (b) Parking violations. We may tow at the owner's expense any 
vehicles parked in violation of State law, FEMA, Mt. Weather, or NETC 
instructions.



Sec. 15.17  Other laws.

    Nothing in the rules and regulations in this part will be construed 
to abolish any other Federal laws or any State and local laws and 
regulations applicable to Mt. Weather or NETC premises. The rules and 
regulations in this part supplement penal provisions of Title 18, United 
States Code, relating to Crimes and Criminal Procedure, which apply 
without regard to the place of the offense and to those penal provisions 
that apply in areas under the special maritime and territorial 
jurisdiction of the United States, as defined in 18 U.S.C. 7. They 
supersede provisions of State law, however, that Federal law makes 
criminal offenses under the Assimilated Crimes Act (18 U.S.C. 13) to the 
extent that State laws conflict with these regulations. State and local 
criminal laws apply as such only to the extent that the State reserved 
such authority to itself by the State consent or cession statute or that 
a Federal statute vests such authority in the State.



PART 16_ENFORCEMENT OF NONDISCRIMINATION ON THE BASIS OF HANDICAP IN
PROGRAMS OR ACTIVITIES CONDUCTED BY THE FEDERAL EMERGENCY MANAGEMENT
AGENCY--Table of Contents



Sec.
16.101  Purpose.
16.102  Application.
16.103  Definitions.
16.104-16.109  [Reserved]
16.110  Self-evaluation.
16.111  Notice.
16.112-16.129  [Reserved]
16.130  General prohibitions against discrimination.
16.131-16.139  [Reserved]
16.140  Employment.
16.141-16.148  [Reserved]
16.149  Program accessibility: Discrimination prohibited.
16.150  Program accessibility: Existing facilities.
16.151  Program accessibility: New construction and alterations.
16.152-16.159  [Reserved]
16.160  Communications.
16.161-16.169  [Reserved]
16.170  Compliance procedures.
16.171-16.999  [Reserved]

    Authority: 29 U.S.C. 794.

    Source: 53 FR 25885, July 8, 1988, unless otherwise noted.



Sec. 16.101  Purpose.

    The purpose of this regulation is to effectuate section 119 of the 
Rehabilitation, Comprehensive Services, and Developmental Disabilities 
Amendments of 1978, which amended section 504 of the Rehabilitation Act 
of 1973 to prohibit discrimination on the basis of handicap in programs 
or activities conducted by Executive agencies or the United States 
Postal Service.



Sec. 16.102  Application.

    This regulation (Secs. 16.101 through 16.170) applies to all 
programs or activities conducted by the agency, except for programs or 
activities conducted outside the United States that do not involve 
individuals with handicaps in the United States.



Sec. 16.103  Definitions.

    For purposes of this regulation, the term--
    Assistant Attorney General means the Assistant Attorney General, 
Civil Rights Division, United States Department of Justice.
    Auxiliary aids means services or devices that enable persons with 
impaired sensory, manual, or speaking skills to have an equal 
opportunity to participate in, and enjoy the benefits of, programs or 
activities conducted by the agency. For example, auxiliary aids useful 
for persons with impaired vision include readers, Brailled materials, 
audio recordings, and other similar services and devices. Auxiliary aids

[[Page 89]]

useful for persons with impaired hearing include telephone handset 
amplifiers, telephones compatible with hearing aids, telecommunication 
devices for deaf persons (TDD's), interpreters, notetakers, written 
materials, and other similar services and devices.
    Complete complaint means a written statement that contains the 
complainant's name and address and describes the agency's alleged 
discriminatory action in sufficient detail to inform the agency of the 
nature and date of the alleged violation of section 504. It shall be 
signed by the complainant or by someone authorized to do so on his or 
her behalf. Complaints filed on behalf of classes or third parties shall 
describe or identify (by name, if possible) the alleged victims of 
discrimination.
    Facility means all or any portion of buildings, structures, 
equipment, roads, walks, parking lots, rolling stock or other 
conveyances, or other real or personal property.
    Historic preservation programs means programs conducted by the 
agency that have preservation of historic properties as a primary 
purpose.
    Historic properties means those properties that are listed or 
eligible for listing in the National Register of Historic Places or 
properties designated as historic under a statute of the appropriate 
State or local government body.
    Individual with handicaps means any person who has a physical or 
mental impairment that substantially limits one or more major life 
activities, has a record of such an impairment, or is regarded as having 
such an impairment.
    As used in this definition, the phrase:
    (1) Physical or mental impairment includes--
    (i) Any physiological disorder or condition, cosmetic disfigurement, 
or anatomical loss affecting one or more of the following body systems: 
Neurological; musculoskeletal; special sense organs; respiratory, 
including speech organs; cardiovascular; reproductive; digestive; 
genitourinary; hemic and lymphatic; skin; and endocrine; or
    (ii) Any mental or psychological disorder, such as mental 
retardation, organic brain syndrome, emotional or mental illness, and 
specific learning disabilities. The term physical or mental impairment 
includes, but is not limited to, such diseases and conditions as 
orthopedic, visual, speech, and hearing impairments, cerebral palsy, 
epilepsy, muscular dystrophy, multiple sclerosis, cancer, heart disease, 
diabetes, mental retardation, emotional illness, and drug addiction and 
alcoholism.
    (2) Major life activities includes functions such as caring for 
one's self, performing manual tasks, walking, seeing, hearing, speaking, 
breathing, learning, and working.
    (3) Has a record of such an impairment means has a history of, or 
has been misclassified as having, a mental or physical impairment that 
substantially limits one or more major life activities.
    (4) Is regarded as having an impairment means--
    (i) Has a physical or mental impairment that does not substantially 
limit major life activities but is treated by the agency as constituting 
such a limitation;
    (ii) Has a physical or mental impairment that substantially limits 
major life activities only as a result of the attitudes of others toward 
such impairment; or
    (iii) Has none of the impairments defined in paragraph (1) of this 
definition but is treated by the agency as having such an impairment.
    Qualified individual with handicaps means--
    (1) With respect to preschool, elementary, or secondary education 
services provided by the agency, an individual with handicaps who is a 
member of a class of persons otherwise entitled by statute, regulation, 
or agency policy to receive education services from the agency;
    (2) With respect to any other agency program or activity under which 
a person is required to perform services or to achieve a level of 
accomplishment, an individual with handicaps who meets the essential 
eligibility requirements and who can achieve the purpose of the program 
or activity without modifications in the program or activity that the 
agency can demonstrate would result in a fundamental alteration in its 
nature;
    (3) With respect to any other program or activity, an individual 
with

[[Page 90]]

handicaps who meets the essential eligibility requirements for 
participation in, or receipt of benefits from, that program or activity; 
and
    (4) Qualified handicapped person as that term is defined for 
purposes of employment in 29 CFR 1613.702(f), which is made applicable 
to this regulation by Sec. 16.140.
    Section 504 means section 504 of the Rehabilitation Act of 1973 
(Pub. L. 93-112, 87 Stat. 394 (29 U.S.C. 794)), as amended by the 
Rehabilitation Act Amendments of 1974 (Pub. L. 93-516, 88 Stat. 1617); 
the Rehabilitation, Comprehensive Services, and Developmental 
Disabilities Amendments of 1978 (Pub. L. 95-602, 92 Stat. 2955); and the 
Rehabilitation Act Amendments of 1986 (Pub. L. 99-506, 100 Stat. 1810). 
As used in this regulation, section 504 applies only to programs or 
activities conducted by Executive agencies and not to federally assisted 
programs.
    Substantial impairment means a significant loss of the integrity of 
finished materials, design quality, or special character resulting from 
a permanent alteration.



Secs. 16.104-16.109  [Reserved]



Sec. 16.110  Self-evaluation.

    (a) The agency shall, by September 6, 1989, evaluate its current 
policies and practices, and the effects thereof, that do not or may not 
meet the requirements of this regulation and, to the extent modification 
of any such policies and practices is required, the agency shall proceed 
to make the necessary modifications.
    (b) The agency shall provide an opportunity to interested persons, 
including individuals with handicaps or organizations representing 
individuals with handicaps, to participate in the self-evaluation 
process by submitting comments (both oral and written).
    (c) The agency shall, for at least three years following completion 
of the self-evaluation, maintain on file and make available for public 
inspection:
    (1) A description of areas examined and any problems identified; and
    (2) A description of any modifications made.



Sec. 16.111  Notice.

    The agency shall make available to employees, applicants, 
participants, beneficiaries, and other interested persons such 
information regarding the provisions of this regulation and its 
applicability to the programs or activities conducted by the agency, and 
make such information available to them in such manner as the head of 
the agency finds necessary to apprise such persons of the protections 
against discrimination assured them by section 504 and this regulation.



Secs. 16.112-16.129  [Reserved]



Sec. 16.130  General prohibitions against discrimination.

    (a) No qualified individual with handicaps shall, on the basis of 
handicap, be excluded from participation in, be denied the benefits of, 
or otherwise be subjected to discrimination under any program or 
activity conducted by the agency.
    (b)(1) The agency, in providing any aid, benefit, or service, may 
not, directly or through contractual, licensing, or other arrangements, 
on the basis of handicap--
    (i) Deny a qualified individual with handicaps the opportunity to 
participate in or benefit from the aid, benefit, or service;
    (ii) Afford a qualified individual with handicaps an opportunity to 
participate in or benefit from the aid, benefit, or service that is not 
equal to that afforded others;
    (iii) Provide a qualified individual with handicaps with an aid, 
benefit, or service that is not as effective in affording equal 
opportunity to obtain the same result, to gain the same benefit, or to 
reach the same level of achievement as that provided to others;
    (iv) Provide different or separate aid, benefits, or services to 
individuals with handicaps or to any class of individuals with handicaps 
than is provided to others unless such action is necessary to provide 
qualified individuals with handicaps with aid, benefits, or services 
that are as effective as those provided to others;

[[Page 91]]

    (v) Deny a qualified individual with handicaps the opportunity to 
participate as a member of planning or advisory boards;
    (vi) Otherwise limit a qualified individual with handicaps in the 
enjoyment of any right, privilege, advantage, or opportunity enjoyed by 
others receiving the aid, benefit, or service.
    (2) The agency may not deny a qualified individual with handicaps 
the opportunity to participate in programs or activities that are not 
separate or different, despite the existence of permissibly separate or 
different programs or activities.
    (3) The agency may not, directly or through contractual or other 
arrangements, utilize criteria or methods of administration the purpose 
or effect of which would--
    (i) Subject qualified individuals with handicaps to discrimination 
on the basis of handicap; or
    (ii) Defeat or substantially impair accomplishment of the objectives 
of a program or activity with respect to individuals with handicaps.
    (4) The agency may not, in determining the site or location of a 
facility, make selections the purpose or effect of which would--
    (i) Exclude individuals with handicaps from, deny them the benefits 
of, or otherwise subject them to discrimination under any program or 
activity conducted by the agency; or
    (ii) Defeat or substantially impair the accomplishment of the 
objectives of a program or activity with respect to individuals with 
handicaps.
    (5) The agency, in the selection of procurement contractors, may not 
use criteria that subject qualified individuals with handicaps to 
discrimination on the basis of handicap.
    (6) The agency may not administer a licensing or certification 
program in a manner that subjects qualified individuals with handicaps 
to discrimination on the basis of handicap, nor may the agency establish 
requirements for the programs or activities of licensees or certified 
entities that subject qualified individuals with handicaps to 
discrimination on the basis of handicap. However, the programs or 
activities of entities that are licensed or certified by the agency are 
not, themselves, covered by this regulation.
    (c) The exclusion of nonhandicapped persons from the benefits of a 
program limited by Federal statute or Executive order to individuals 
with handicaps or the exclusion of a specific class of individuals with 
handicaps from a program limited by Federal statute or Executive order 
to a different class of individuals with handicaps is not prohibited by 
this regulation.
    (d) The agency shall administer programs and activities in the most 
integrated setting appropriate to the needs of qualified individuals 
with handicaps.



Secs. 16.131-16.139  [Reserved]



Sec. 16.140  Employment.

    No qualified individual with handicaps shall, on the basis of 
handicap, be subject to discrimination in employment under any program 
or activity conducted by the agency. The definitions, requirements, and 
procedures of section 501 of the Rehabilitation Act of 1973 (29 U.S.C. 
791), as established by the Equal Employment Opportunity Commission in 
29 CFR part 1613, shall apply to employment in federally conducted 
programs or activities.



Secs. 16.141-16.148  [Reserved]



Sec. 16.149  Program accessibility: Discrimination prohibited.

    Except as otherwise provided in Sec. 16.150, no qualified individual 
with handicaps shall, because the agency's facilities are inaccessible 
to or unusable by individuals with handicaps, be denied the benefits of, 
be excluded from participation in, or otherwise be subjected to 
discrimination under any program or activity conducted by the agency.



Sec. 16.150  Program accessibility: Existing facilities.

    (a) General. The agency shall operate each program or activity so 
that the program or activity, when viewed in its entirety, is readily 
accessible to and usable by individuals with handicaps. This paragraph 
does not--
    (1) Necessarily require the agency to make each of its existing 
facilities accessible to and usable by individuals with handicaps;

[[Page 92]]

    (2) In the case of historic preservation programs, require the 
agency to take any action that would result in a substantial impairment 
of significant historic features of an historic property; or
    (3) Require the agency to take any action that it can demonstrate 
would result in a fundamental alteration in the nature of a program or 
activity or in undue financial and administrative burdens. In those 
circumstances where agency personnel believe that the proposed action 
would fundamentally alter the program or activity or would result in 
undue financial and administrative burdens, the agency has the burden of 
proving that compliance with Sec. 16.150(a) would result in such 
alteration or burdens. The decision that compliance would result in such 
alteration or burdens must be made by the agency head or his or her 
designee after considering all agency resources available for use in the 
funding and operation of the conducted program or activity, and must be 
accompanied by a written statement of the reasons for reaching that 
conclusion. If an action would result in such an alteration or such 
burdens, the agency shall take any other action that would not result in 
such an alteration or such burdens but would nevertheless ensure that 
individuals with handicaps receive the benefits and services of the 
program or activity.
    (b) Methods--(1) General. The agency may comply with the 
requirements of this section through such means as redesign of 
equipment, reassignment of services to accessible buildings, assignment 
of aides to beneficiaries, home visits, delivery of services at 
alternate accessible sites, alteration of existing facilities and 
construction of new facilities, use of accessible rolling stock, or any 
other methods that result in making its programs or activities readily 
accessible to and usable by individuals with handicaps. The agency is 
not required to make structural changes in existing facilities where 
other methods are effective in achieving compliance with this section. 
The agency, in making alterations to existing buildings, shall meet 
accessibility requirements to the extent compelled by the Architectural 
Barriers Act of 1968, as amended (42 U.S.C. 4151 through 4157), and any 
regulations implementing it. In choosing among available methods for 
meeting the requirements of this section, the agency shall give priority 
to those methods that offer programs and activities to qualified 
individuals with handicaps in the most integrated setting appropriate.
    (2) Historic preservation programs. In meeting the requirements of 
Sec. 16.150(a) in historic preservation programs, the agency shall give 
priority to methods that provide physical access to individuals with 
handicaps. In cases where a physical alteration to an historic property 
is not required because of Sec. 16.150(a) (2) or (3), alternative 
methods of achieving program accessibility include--
    (i) Using audio-visual materials and devices to depict those 
portions of an historic property that cannot otherwise be made 
accessible;
    (ii) Assigning persons to guide individuals with handicaps into or 
through portions of historic properties that cannot otherwise be made 
accessible; or
    (iii) Adopting other innovative methods.
    (c) Time period for compliance. The agency shall comply with the 
obligations established under this section by November 7, 1988, except 
that where structural changes in facilities are undertaken, such changes 
shall be made by September 6, 1991, but in any event as expeditiously as 
possible.
    (d) Transition plan. In the event that structural changes to 
facilities will be undertaken to achieve program accessibility, the 
agency shall develop, by March 6, 1989, a transition plan setting forth 
the steps necessary to complete such changes. The agency shall provide 
an opportunity to interested persons, including individuals with 
handicaps or organizations representing individuals with handicaps, to 
participate in the development of the transition plan by submitting 
comments (both oral and written). A copy of the transition plan shall be 
made available for public inspection. The plan shall, at a minimum--

[[Page 93]]

    (1) Identify physical obstacles in the agency's facilities that 
limit the accessibility of its programs or activities to individuals 
with handicaps;
    (2) Describe in detail the methods that will be used to make the 
facilities accessible;
    (3) Specify the schedule for taking the steps necessary to achieve 
compliance with this section and, if the time period of the transition 
plan is longer than one year, identify steps that will be taken during 
each year of the transition period; and
    (4) Indicate the official responsible for implementation of the 
plan.



Sec. 16.151  Program accessibility: New construction and alterations.

    Each building or part of a building that is constructed or altered 
by, on behalf of, or for the use of the agency shall be designed, 
constructed, or altered so as to be readily accessible to and usable by 
individuals with handicaps. The definitions, requirements, and standards 
of the Architectural Barriers Act (42 U.S.C. 4151-4157), as established 
in 41 CFR 101-19.600 to 101-19.607, apply to buildings covered by this 
section.



Secs. 16.152-16.159  [Reserved]



Sec. 16.160  Communications.

    (a) The agency shall take appropriate steps to ensure effective 
communication with applicants, participants, personnel of other Federal 
entities, and members of the public.
    (1) The agency shall furnish appropriate auxiliary aids where 
necessary to afford an individual with handicaps an equal opportunity to 
participate in, and enjoy the benefits of, a program or activity 
conducted by the agency.
    (i) In determining what type of auxiliary aid is necessary, the 
agency shall give primary consideration to the requests of the 
individual with handicaps.
    (ii) The agency need not provide individually prescribed devices, 
readers for personal use or study, or other devices of a personal 
nature.
    (2) Where the agency communicates with applicants and beneficiaries 
by telephone, telecommunication devices for deaf persons (TDD's) or 
equally effective telecommunication systems shall be used to communicate 
with persons with impaired hearing.
    (b) The agency shall ensure that interested persons, including 
persons with impaired vision or hearing, can obtain information as to 
the existence and location of accessible services, activities, and 
facilities.
    (c) The agency shall provide signage at a primary entrance to each 
of its inaccessible facilities, directing users to a location at which 
they can obtain information about accessible facilities. The 
international symbol for accessibility shall be used at each primary 
entrance of an accessible facility.
    (d) This section does not require the agency to take any action that 
it can demonstrate would result in a fundamental alteration in the 
nature of a program or activity or in undue financial and administrative 
burdens. In those circumstances where agency personnel believe that the 
proposed action would fundamentally alter the program or activity or 
would result in undue financial and administrative burdens, the agency 
has the burden of proving that compliance with Sec. 16.160 would result 
in such alteration or burdens. The decision that compliance would result 
in such alteration or burdens must be made by the agency head or his or 
her designee after considering all agency resources available for use in 
the funding and operation of the conducted program or activity and must 
be accompanied by a written statement of the reasons for reaching that 
conclusion. If an action required to comply with this section would 
result in such an alteration or such burdens, the agency shall take any 
other action that would not result in such an alteration or such burdens 
but would nevertheless ensure that, to the maximum extent possible, 
individuals with handicaps receive the benefits and services of the 
program or activity.



Secs. 16.161-16.169  [Reserved]



Sec. 16.170  Compliance procedures.

    (a) Except as provided in paragraph (b) of this section, this 
section applies to all allegations of discrimination on the basis of 
handicap in programs and activities conducted by the agency.

[[Page 94]]

    (b) The agency shall process complaints alleging violations of 
section 504 with respect to employment according to the procedures 
established by the Equal Employment Opportunity Commission in 29 CFR 
part 1613 pursuant to section 501 of the Rehabilitation Act of 1973 (29 
U.S.C. 791).
    (c) The Director of the Office of Equal Rights shall be responsible 
for coordinating implementation of this section. Complaints may be sent 
to Director of the Office of Equal Rights, Room 810, Federal Emergency 
Management Agency, 500 C Street, SW., Washington, DC 20472.
    (d) The agency shall accept and investigate all complete complaints 
for which it has jurisdiction. All complete complaints must be filed 
within 180 days of the alleged act of discrimination. The agency may 
extend this time period for good cause.
    (e) If the agency receives a complaint over which it does not have 
jurisdiction, it shall promptly notify the complainant and shall make 
reasonable efforts to refer the complaint to the appropriate Government 
entity.
    (f) The agency shall notify the Architectural and Transportation 
Barriers Compliance Board upon receipt of any complaint alleging that a 
building or facility that is subject to the Architectural Barriers Act 
of 1968, as amended (42 U.S.C. 4151-4157), is not readily accessible to 
and usable by individuals with handicaps.
    (g) Within 180 days of the receipt of a complete complaint for which 
it has jurisdiction, the agency shall notify the complainant of the 
results of the investigation in a letter containing--
    (1) Findings of fact and conclusions of law;
    (2) A description of a remedy for each violation found; and
    (3) A notice of the right to appeal.
    (h) Appeals of the findings of fact and conclusions of law or 
remedies must be filed by the complainant within 90 days of receipt from 
the agency of the letter required by paragraph (g) of this section. The 
agency may extend this time for good cause.
    (i) Timely appeals shall be accepted and processed by the head of 
the agency.
    (j) The head of the agency shall notify the complainant of the 
results of the appeal within 60 days of the receipt of the request. If 
the head of the agency determines that additional information is needed 
from the complainant, he or she shall have 60 days from the date of 
receipt of the additional information to make his or her determination 
on the appeal.
    (k) The time limits cited in paragraphs (g) and (j) of this section 
may be extended with the permission of the Assistant Attorney General.
    (l) The agency may delegate its authority for conducting complaint 
investigations to other Federal agencies, except that the authority for 
making the final determination may not be delegated to another agency.



Secs. 16.171-16.999  [Reserved]

                           PART 17 [RESERVED]



PART 18_NEW RESTRICTIONS ON LOBBYING--Table of Contents



                            Subpart A_General

Sec.
18.100  Conditions on use of funds.
18.105  Definitions.
18.110  Certification and disclosure.

                  Subpart B_Activities by Own Employees

18.200  Agency and legislative liaison.
18.205  Professional and technical services.
18.210  Reporting.

            Subpart C_Activities by Other Than Own Employees

18.300  Professional and technical services.

                   Subpart D_Penalties and Enforcement

18.400  Penalties.
18.405  Penalty procedures.
18.410  Enforcement.

                          Subpart E_Exemptions

18.500  Secretary of Defense.

                        Subpart F_Agency Reports

18.600  Semi-annual compilation.
18.605  Inspector General report.

Appendix A to Part 18--Certification Regarding Lobbying
Appendix B to Part 18--Disclosure Form To Report Lobbying


[[Page 95]]


    Authority: Section 319, Public Law 101-121 (31 U.S.C. 1352); 5 
U.S.C. 551, 552, 553; 5 U.S.C. 601, et seq.; E.O. 12291. Reorganization 
Plan No. 3 of 1978, E.O. 12127, E.O. 12148, E.O. 12657, E.O. 12699.

    Source: 55 FR 6737, 6754, Feb. 26, 1990, unless otherwise noted.

    Cross Reference: See also Office of Management and Budget notice 
published at 54 FR 52306, December 20, 1989.



                            Subpart A_General



Sec. 18.100  Conditions on use of funds.

    (a) No appropriated funds may be expended by the recipient of a 
Federal contract, grant, loan, or cooperative agreement to pay any 
person for influencing or attempting to influence an officer or employee 
of any agency, a Member of Congress, an officer or employee of Congress, 
or an employee of a Member of Congress in connection with any of the 
following covered Federal actions: the awarding of any Federal contract, 
the making of any Federal grant, the making of any Federal loan, the 
entering into of any cooperative agreement, and the extension, 
continuation, renewal, amendment, or modification of any Federal 
contract, grant, loan, or cooperative agreement.
    (b) Each person who requests or receives from an agency a Federal 
contract, grant, loan, or cooperative agreement shall file with that 
agency a certification, set forth in appendix A, that the person has not 
made, and will not make, any payment prohibited by paragraph (a) of this 
section.
    (c) Each person who requests or receives from an agency a Federal 
contract, grant, loan, or a cooperative agreement shall file with that 
agency a disclosure form, set forth in appendix B, if such person has 
made or has agreed to make any payment using nonappropriated funds (to 
include profits from any covered Federal action), which would be 
prohibited under paragraph (a) of this section if paid for with 
appropriated funds.
    (d) Each person who requests or receives from an agency a commitment 
providing for the United States to insure or guarantee a loan shall file 
with that agency a statement, set forth in appendix A, whether that 
person has made or has agreed to make any payment to influence or 
attempt to influence an officer or employee of any agency, a Member of 
Congress, an officer or employee of Congress, or an employee of a Member 
of Congress in connection with that loan insurance or guarantee.
    (e) Each person who requests or receives from an agency a commitment 
providing for the United States to insure or guarantee a loan shall file 
with that agency a disclosure form, set forth in appendix B, if that 
person has made or has agreed to make any payment to influence or 
attempt to influence an officer or employee of any agency, a Member of 
Congress, an officer or employee of Congress, or an employee of a Member 
of Congress in connection with that loan insurance or guarantee.



Sec. 18.105  Definitions.

    For purposes of this part:
    (a) Agency, as defined in 5 U.S.C. 552(f), includes Federal 
executive departments and agencies as well as independent regulatory 
commissions and Government corporations, as defined in 31 U.S.C. 
9101(1).
    (b) Covered Federal action means any of the following Federal 
actions:
    (1) The awarding of any Federal contract;
    (2) The making of any Federal grant;
    (3) The making of any Federal loan;
    (4) The entering into of any cooperative agreement; and,
    (5) The extension, continuation, renewal, amendment, or modification 
of any Federal contract, grant, loan, or cooperative agreement.

Covered Federal action does not include receiving from an agency a 
commitment providing for the United States to insure or guarantee a 
loan. Loan guarantees and loan insurance are addressed independently 
within this part.
    (c) Federal contract means an acquisition contract awarded by an 
agency, including those subject to the Federal Acquisition Regulation 
(FAR), and any other acquisition contract for real or personal property 
or services not subject to the FAR.
    (d) Federal cooperative agreement means a cooperative agreement 
entered into by an agency.

[[Page 96]]

    (e) Federal grant means an award of financial assistance in the form 
of money, or property in lieu of money, by the Federal Government or a 
direct appropriation made by law to any person. The term does not 
include technical assistance which provides services instead of money, 
or other assistance in the form of revenue sharing, loans, loan 
guarantees, loan insurance, interest subsidies, insurance, or direct 
United States cash assistance to an individual.
    (f) Federal loan means a loan made by an agency. The term does not 
include loan guarantee or loan insurance.
    (g) Indian tribe and tribal organization have the meaning provided 
in section 4 of the Indian Self-Determination and Education Assistance 
Act (25 U.S.C. 450B). Alaskan Natives are included under the definitions 
of Indian tribes in that Act.
    (h) Influencing or attempting to influence means making, with the 
intent to influence, any communication to or appearance before an 
officer or employee or any agency, a Member of Congress, an officer or 
employee of Congress, or an employee of a Member of Congress in 
connection with any covered Federal action.
    (i) Loan guarantee and loan insurance means an agency's guarantee or 
insurance of a loan made by a person.
    (j) Local government means a unit of government in a State and, if 
chartered, established, or otherwise recognized by a State for the 
performance of a governmental duty, including a local public authority, 
a special district, an intrastate district, a council of governments, a 
sponsor group representative organization, and any other instrumentality 
of a local government.
    (k) Officer or employee of an agency includes the following 
individuals who are employed by an agency:
    (1) An individual who is appointed to a position in the Government 
under title 5, U.S. Code, including a position under a temporary 
appointment;
    (2) A member of the uniformed services as defined in section 101(3), 
title 37, U.S. Code;
    (3) A special Government employee as defined in section 202, title 
18, U.S. Code; and,
    (4) An individual who is a member of a Federal advisory committee, 
as defined by the Federal Advisory Committee Act, title 5, U.S. Code 
appendix 2.
    (l) Person means an individual, corporation, company, association, 
authority, firm, partnership, society, State, and local government, 
regardless of whether such entity is operated for profit or not for 
profit. This term excludes an Indian tribe, tribal organization, or any 
other Indian organization with respect to expenditures specifically 
permitted by other Federal law.
    (m) Reasonable compensation means, with respect to a regularly 
employed officer or employee of any person, compensation that is 
consistent with the normal compensation for such officer or employee for 
work that is not furnished to, not funded by, or not furnished in 
cooperation with the Federal Government.
    (n) Reasonable payment means, with respect to professional and other 
technical services, a payment in an amount that is consistent with the 
amount normally paid for such services in the private sector.
    (o) Recipient includes all contractors, subcontractors at any tier, 
and subgrantees at any tier of the recipient of funds received in 
connection with a Federal contract, grant, loan, or cooperative 
agreement. The term excludes an Indian tribe, tribal organization, or 
any other Indian organization with respect to expenditures specifically 
permitted by other Federal law.
    (p) Regularly employed means, with respect to an officer or employee 
of a person requesting or receiving a Federal contract, grant, loan, or 
cooperative agreement or a commitment providing for the United States to 
insure or guarantee a loan, an officer or employee who is employed by 
such person for at least 130 working days within one year immediately 
preceding the date of the submission that initiates agency consideration 
of such person for receipt of such contract, grant, loan, cooperative 
agreement, loan insurance commitment, or loan guarantee commitment. An 
officer or employee who is employed by such person for less than

[[Page 97]]

130 working days within one year immediately preceding the date of the 
submission that initiates agency consideration of such person shall be 
considered to be regularly employed as soon as he or she is employed by 
such person for 130 working days.
    (q) State means a State of the United States, the District of 
Columbia, the Commonwealth of Puerto Rico, a territory or possession of 
the United States, an agency or instrumentality of a State, and a multi-
State, regional, or interstate entity having governmental duties and 
powers.



Sec. 18.110  Certification and disclosure.

    (a) Each person shall file a certification, and a disclosure form, 
if required, with each submission that initiates agency consideration of 
such person for:
    (1) Award of a Federal contract, grant, or cooperative agreement 
exceeding $100,000; or
    (2) An award of a Federal loan or a commitment providing for the 
United States to insure or guarantee a loan exceeding $150,000.
    (b) Each person shall file a certification, and a disclosure form, 
if required, upon receipt by such person of:
    (1) A Federal contract, grant, or cooperative agreement exceeding 
$100,000; or
    (2) A Federal loan or a commitment providing for the United States 
to insure or guarantee a loan exceeding $150,000, unless such person 
previously filed a certification, and a disclosure form, if required, 
under paragraph (a) of this section.
    (c) Each person shall file a disclosure form at the end of each 
calendar quarter in which there occurs any event that requires 
disclosure or that materially affects the accuracy of the information 
contained in any disclosure form previously filed by such person under 
paragraphs (a) or (b) of this section. An event that materially affects 
the accuracy of the information reported includes:
    (1) A cumulative increase of $25,000 or more in the amount paid or 
expected to be paid for influencing or attempting to influence a covered 
Federal action; or
    (2) A change in the person(s) or individual(s) influencing or 
attempting to influence a covered Federal action; or,
    (3) A change in the officer(s), employee(s), or Member(s) contacted 
to influence or attempt to influence a covered Federal action.
    (d) Any person who requests or receives from a person referred to in 
paragraphs (a) or (b) of this section:
    (1) A subcontract exceeding $100,000 at any tier under a Federal 
contract;
    (2) A subgrant, contract, or subcontract exceeding $100,000 at any 
tier under a Federal grant;
    (3) A contract or subcontract exceeding $100,000 at any tier under a 
Federal loan exceeding $150,000; or,
    (4) A contract or subcontract exceeding $100,000 at any tier under a 
Federal cooperative agreement,


shall file a certification, and a disclosure form, if required, to the 
next tier above.
    (e) All disclosure forms, but not certifications, shall be forwarded 
from tier to tier until received by the person referred to in paragraphs 
(a) or (b) of this section. That person shall forward all disclosure 
forms to the agency.
    (f) Any certification or disclosure form filed under paragraph (e) 
of this section shall be treated as a material representation of fact 
upon which all receiving tiers shall rely. All liability arising from an 
erroneous representation shall be borne solely by the tier filing that 
representation and shall not be shared by any tier to which the 
erroneous representation is forwarded. Submitting an erroneous 
certification or disclosure constitutes a failure to file the required 
certification or disclosure, respectively. If a person fails to file a 
required certification or disclosure, the United States may pursue all 
available remedies, including those authorized by section 1352, title 
31, U.S. Code.
    (g) For awards and commitments in process prior to December 23, 
1989, but not made before that date, certifications shall be required at 
award or commitment, covering activities occurring between December 23, 
1989, and the date of award or commitment. However, for awards and 
commitments in process prior to the December 23, 1989 effective date of 
these provisions,

[[Page 98]]

but not made before December 23, 1989, disclosure forms shall not be 
required at time of award or commitment but shall be filed within 30 
days.
    (h) No reporting is required for an activity paid for with 
appropriated funds if that activity is allowable under either subpart B 
or C.



                  Subpart B_Activities by Own Employees



Sec. 18.200  Agency and legislative liaison.

    (a) The prohibition on the use of appropriated funds, in Sec. 18.100 
(a), does not apply in the case of a payment of reasonable compensation 
made to an officer or employee of a person requesting or receiving a 
Federal contract, grant, loan, or cooperative agreement if the payment 
is for agency and legislative liaison activities not directly related to 
a covered Federal action.
    (b) For purposes of paragraph (a) of this section, providing any 
information specifically requested by an agency or Congress is allowable 
at any time.
    (c) For purposes of paragraph (a) of this section, the following 
agency and legislative liaison activities are allowable at any time only 
where they are not related to a specific solicitation for any covered 
Federal action:
    (1) Discussing with an agency (including individual demonstrations) 
the qualities and characteristics of the person's products or services, 
conditions or terms of sale, and service capabilities; and,
    (2) Technical discussions and other activities regarding the 
application or adaptation of the person's products or services for an 
agency's use.
    (d) For purposes of paragraph (a) of this section, the following 
agencies and legislative liaison activities are allowable only where 
they are prior to formal solicitation of any covered Federal action:
    (1) Providing any information not specifically requested but 
necessary for an agency to make an informed decision about initiation of 
a covered Federal action;
    (2) Technical discussions regarding the preparation of an 
unsolicited proposal prior to its official submission; and,
    (3) Capability presentations by persons seeking awards from an 
agency pursuant to the provisions of the Small Business Act, as amended 
by Public Law 95-507 and other subsequent amendments.
    (e) Only those activities expressly authorized by this section are 
allowable under this section.



Sec. 18.205  Professional and technical services.

    (a) The prohibition on the use of appropriated funds, in Sec. 18.100 
(a), does not apply in the case of a payment of reasonable compensation 
made to an officer or employee of a person requesting or receiving a 
Federal contract, grant, loan, or cooperative agreement or an extension, 
continuation, renewal, amendment, or modification of a Federal contract, 
grant, loan, or cooperative agreement if payment is for professional or 
technical services rendered directly in the preparation, submission, or 
negotiation of any bid, proposal, or application for that Federal 
contract, grant, loan, or cooperative agreement or for meeting 
requirements imposed by or pursuant to law as a condition for receiving 
that Federal contract, grant, loan, or cooperative agreement.
    (b) For purposes of paragraph (a) of this section, ``professional 
and technical services'' shall be limited to advice and analysis 
directly applying any professional or technical discipline. For example, 
drafting of a legal document accompanying a bid or proposal by a lawyer 
is allowable. Similarly, technical advice provided by an engineer on the 
performance or operational capability of a piece of equipment rendered 
directly in the negotiation of a contract is allowable. However, 
communications with the intent to influence made by a professional (such 
as a licensed lawyer) or a technical person (such as a licensed 
accountant) are not allowable under this section unless they provide 
advice and analysis directly applying their professional or technical 
expertise and unless the advice or analysis is rendered directly and 
solely in the preparation, submission or negotiation of a covered 
Federal action. Thus, for example, communications with the intent to 
influence

[[Page 99]]

made by a lawyer that do not provide legal advice or analysis directly 
and solely related to the legal aspects of his or her client's proposal, 
but generally advocate one proposal over another are not allowable under 
this section because the lawyer is not providing professional legal 
services. Similarly, communications with the intent to influence made by 
an engineer providing an engineering analysis prior to the preparation 
or submission of a bid or proposal are not allowable under this section 
since the engineer is providing technical services but not directly in 
the preparation, submission or negotiation of a covered Federal action.
    (c) Requirements imposed by or pursuant to law as a condition for 
receiving a covered Federal award include those required by law or 
regulation, or reasonably expected to be required by law or regulation, 
and any other requirements in the actual award documents.
    (d) Only those services expressly authorized by this section are 
allowable under this section.



Sec. 18.210  Reporting.

    No reporting is required with respect to payments of reasonable 
compensation made to regularly employed officers or employees of a 
person.



            Subpart C_Activities by Other Than Own Employees



Sec. 18.300  Professional and technical services.

    (a) The prohibition on the use of appropriated funds, in Sec. 18.100 
(a), does not apply in the case of any reasonable payment to a person, 
other than an officer or employee of a person requesting or receiving a 
covered Federal action, if the payment is for professional or technical 
services rendered directly in the preparation, submission, or 
negotiation of any bid, proposal, or application for that Federal 
contract, grant, loan, or cooperative agreement or for meeting 
requirements imposed by or pursuant to law as a condition for receiving 
that Federal contract, grant, loan, or cooperative agreement.
    (b) The reporting requirements in Sec. 18.110 (a) and (b) regarding 
filing a disclosure form by each person, if required, shall not apply 
with respect to professional or technical services rendered directly in 
the preparation, submission, or negotiation of any commitment providing 
for the United States to insure or guarantee a loan.
    (c) For purposes of paragraph (a) of this section, ``professional 
and technical services'' shall be limited to advice and analysis 
directly applying any professional or technical discipline. For example, 
drafting or a legal document accompanying a bid or proposal by a lawyer 
is allowable. Similarly, technical advice provided by an engineer on the 
performance or operational capability of a piece of equipment rendered 
directly in the negotiation of a contract is allowable. However, 
communications with the intent to influence made by a professional (such 
as a licensed lawyer) or a technical person (such as a licensed 
accountant) are not allowable under this section unless they provide 
advice and analysis directly applying their professional or technical 
expertise and unless the advice or analysis is rendered directly and 
solely in the preparation, submission or negotiation of a covered 
Federal action. Thus, for example, communications with the intent to 
influence made by a lawyer that do not provide legal advice or analysis 
directly and solely related to the legal aspects of his or her client's 
proposal, but generally advocate one proposal over another are not 
allowable under this section because the lawyer is not providing 
professional legal services. Similarly, communications with the intent 
to influence made by an engineer providing an engineering analysis prior 
to the preparation or submission of a bid or proposal are not allowable 
under this section since the engineer is providing technical services 
but not directly in the preparation, submission or negotiation of a 
covered Federal action.
    (d) Requirements imposed by or pursuant to law as a condition for 
receiving a covered Federal award include those required by law or 
regulation, or reasonably expected to be required by law or regulation, 
and any other requirements in the actual award documents.

[[Page 100]]

    (e) Persons other than officers or employees of a person requesting 
or receiving a covered Federal action include consultants and trade 
associations.
    (f) Only those services expressly authorized by this section are 
allowable under this section.



                   Subpart D_Penalties and Enforcement



Sec. 18.400  Penalties.

    (a) Any person who makes an expenditure prohibited herein shall be 
subject to a civil penalty of not less than $10,000 and not more than 
$100,000 for each such expenditure.
    (b) Any person who fails to file or amend the disclosure form (see 
appendix B) to be filed or amended if required herein, shall be subject 
to a civil penalty of not less than $10,000 and not more than $100,000 
for each such failure.
    (c) A filing or amended filing on or after the date on which an 
administrative action for the imposition of a civil penalty is commenced 
does not prevent the imposition of such civil penalty for a failure 
occurring before that date. An administrative action is commenced with 
respect to a failure when an investigating official determines in 
writing to commence an investigation of an allegation of such failure.
    (d) In determining whether to impose a civil penalty, and the amount 
of any such penalty, by reason of a violation by any person, the agency 
shall consider the nature, circumstances, extent, and gravity of the 
violation, the effect on the ability of such person to continue in 
business, any prior violations by such person, the degree of culpability 
of such person, the ability of the person to pay the penalty, and such 
other matters as may be appropriate.
    (e) First offenders under paragraphs (a) or (b) of this section 
shall be subject to a civil penalty of $10,000, absent aggravating 
circumstances. Second and subsequent offenses by persons shall be 
subject to an appropriate civil penalty between $10,000 and $100,000, as 
determined by the agency head or his or her designee.
    (f) An imposition of a civil penalty under this section does not 
prevent the United States from seeking any other remedy that may apply 
to the same conduct that is the basis for the imposition of such civil 
penalty.



Sec. 18.405  Penalty procedures.

    Agencies shall impose and collect civil penalties pursuant to the 
provisions of the Program Fraud and Civil Remedies Act, 31 U.S.C. 3803 
(except subsection (c)), 3804, 3805, 3806, 3807, 3808, and 3812, insofar 
as these provisions are not inconsistent with the requirements herein.



Sec. 18.410  Enforcement.

    The head of each agency shall take such actions as are necessary to 
ensure that the provisions herein are vigorously implemented and 
enforced in that agency.



                          Subpart E_Exemptions



Sec. 18.500  Secretary of Defense.

    (a) The Secretary of Defense may exempt, on a case-by-case basis, a 
covered Federal action from the prohibition whenever the Secretary 
determines, in writing, that such an exemption is in the national 
interest. The Secretary shall transmit a copy of each such written 
exemption to Congress immediately after making such a determination.
    (b) The Department of Defense may issue supplemental regulations to 
implement paragraph (a) of this section.



                        Subpart F_Agency Reports



Sec. 18.600  Semi-annual compilation.

    (a) The head of each agency shall collect and compile the disclosure 
reports (see appendix B) and, on May 31 and November 30 of each year, 
submit to the Secretary of the Senate and the Clerk of the House of 
Representatives a report containing a compilation of the information 
contained in the disclosure reports received during the six-month period 
ending on March 31 or September 30, respectively, of that year.
    (b) The report, including the compilation, shall be available for 
public inspection 30 days after receipt of the report by the Secretary 
and the Clerk.

[[Page 101]]

    (c) Information that involves intelligence matters shall be reported 
only to the Select Committee on Intelligence of the Senate, the 
Permanent Select Committee on Intelligence of the House of 
Representatives, and the Committees on Appropriations of the Senate and 
the House of Representatives in accordance with procedures agreed to by 
such committees. Such information shall not be available for public 
inspection.
    (d) Information that is classified under Executive Order 12356 or 
any successor order shall be reported only to the Committee on Foreign 
Relations of the Senate and the Committee on Foreign Affairs of the 
House of Representatives or the Committees on Armed Services of the 
Senate and the House of Representatives (whichever such committees have 
jurisdiction of matters involving such information) and to the 
Committees on Appropriations of the Senate and the House of 
Representatives in accordance with procedures agreed to by such 
committees. Such information shall not be available for public 
inspection.
    (e) The first semi-annual compilation shall be submitted on May 31, 
1990, and shall contain a compilation of the disclosure reports received 
from December 23, 1989 to March 31, 1990.
    (f) Major agencies, designated by the Office of Management and 
Budget (OMB), are required to provide machine-readable compilations to 
the Secretary of the Senate and the Clerk of the House of 
Representatives no later than with the compilations due on May 31, 1991. 
OMB shall provide detailed specifications in a memorandum to these 
agencies.
    (g) Non-major agencies are requested to provide machine-readable 
compilations to the Secretary of the Senate and the Clerk of the House 
of Representatives.
    (h) Agencies shall keep the originals of all disclosure reports in 
the official files of the agency.



Sec. 18.605  Inspector General report.

    (a) The Inspector General, or other official as specified in 
paragraph (b) of this section, of each agency shall prepare and submit 
to Congress each year, commencing with submission of the President's 
Budget in 1991, an evaluation of the compliance of that agency with, and 
the effectiveness of, the requirements herein. The evaluation may 
include any recommended changes that may be necessary to strengthen or 
improve the requirements.
    (b) In the case of an agency that does not have an Inspector 
General, the agency official comparable to an Inspector General shall 
prepare and submit the annual report, or, if there is no such comparable 
official, the head of the agency shall prepare and submit the annual 
report.
    (c) The annual report shall be submitted at the same time the agency 
submits its annual budget justifications to Congress.
    (d) The annual report shall include the following: All alleged 
violations relating to the agency's covered Federal actions during the 
year covered by the report, the actions taken by the head of the agency 
in the year covered by the report with respect to those alleged 
violations and alleged violations in previous years, and the amounts of 
civil penalties imposed by the agency in the year covered by the report.



      Sec. Appendix A to Part 18--Certification Regarding Lobbying

 Certification for Contracts, Grants, Loans, and Cooperative Agreements

    The undersigned certifies, to the best of his or her knowledge and 
belief, that:
    (1) No Federal appropriated funds have been paid or will be paid, by 
or on behalf of the undersigned, to any person for influencing or 
attempting to influence an officer or employee of an agency, a Member of 
Congress, an officer or employee of Congress, or an employee of a Member 
of Congress in connection with the awarding of any Federal contract, the 
making of any Federal grant, the making of any Federal loan, the 
entering into of any cooperative agreement, and the extension, 
continuation, renewal, amendment, or modification of any Federal 
contract, grant, loan, or cooperative agreement.
    (2) If any funds other than Federal appropriated funds have been 
paid or will be paid to any person for influencing or attempting to 
influence an officer or employee of any agency, a Member of Congress, an 
officer or employee of Congress, or an employee of a Member of Congress 
in connection with this Federal contract, grant, loan, or cooperative 
agreement, the undersigned shall complete and submit Standard Form-LLL, 
``Disclosure

[[Page 102]]

Form to Report Lobbying,'' in accordance with its instructions.
    (3) The undersigned shall require that the language of this 
certification be included in the award documents for all subawards at 
all tiers (including subcontracts, subgrants, and contracts under 
grants, loans, and cooperative agreements) and that all subrecipients 
shall certify and disclose accordingly.
    This certification is a material representation of fact upon which 
reliance was placed when this transaction was made or entered into. 
Submission of this certification is a prerequisite for making or 
entering into this transaction imposed by section 1352, title 31, U.S. 
Code. Any person who fails to file the required certification shall be 
subject to a civil penalty of not less than $10,000 and not more than 
$100,000 for each such failure.

            Statement for Loan Guarantees and Loan Insurance

    The undersigned states, to the best of his or her knowledge and 
belief, that:
    If any funds have been paid or will be paid to any person for 
influencing or attempting to influence an officer or employee of any 
agency, a Member of Congress, an officer or employee of Congress, or an 
employee of a Member of Congress in connection with this commitment 
providing for the United States to insure or guarantee a loan, the 
undersigned shall complete and submit Standard Form-LLL, ``Disclosure 
Form to Report Lobbying,'' in accordance with its instructions.
    Submission of this statement is a prerequisite for making or 
entering into this transaction imposed by section 1352, title 31, U.S. 
Code. Any person who fails to file the required statement shall be 
subject to a civil penalty of not less than $10,000 and not more than 
$100,000 for each such failure.

[[Page 103]]



     Sec. Appendix B to Part 18--Disclosure Form To Report Lobbying
[GRAPHIC] [TIFF OMITTED] TC02FE91.075


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[GRAPHIC] [TIFF OMITTED] TC02FE91.076


[[Page 105]]


[GRAPHIC] [TIFF OMITTED] TC02FE91.077


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PART 19_NONDISCRIMINATION ON THE BASIS OF SEX IN EDUCATION PROGRAMS
OR ACTIVITIES RECEIVING FEDERAL FINANCIAL ASSISTANCE--Table of Contents



                         Subpart A_Introduction

Sec.
19.100  Purpose and effective date.
19.105  Definitions.
19.110  Remedial and affirmative action and self-evaluation.
19.115  Assurance required.
19.120  Transfers of property.
19.125  Effect of other requirements.
19.130  Effect of employment opportunities.
19.135  Designation of responsible employee and adoption of grievance 
          procedures.
19.140  Dissemination of policy.

                           Subpart B_Coverage

19.200  Application.
19.205  Educational institutions and other entities controlled by 
          religious organizations.
19.210  Military and merchant marine educational institutions.
19.215  Membership practices of certain organizations.
19.220  Admissions.
19.225  Educational institutions eligible to submit transition plans.
19.230  Transition plans.
19.235  Statutory amendments.

     Subpart C_Discrimination on the Basis of Sex in Admission and 
                         Recruitment Prohibited

19.300  Admission.
19.305  Preference in admission.
19.310  Recruitment.

 Subpart D_Discrimination on the Basis of Sex in Education Programs or 
                          Activities Prohibited

19.400  Education programs or activities.
19.405  Housing.
19.410  Comparable facilities.
19.415  Access to course offerings.
19.420  Access to schools operated by LEAs.
19.425  Counseling and use of appraisal and counseling materials.
19.430  Financial assistance.
19.435  Employment assistance to students.
19.440  Health and insurance benefits and services.
19.445  Marital or parental status.
19.450  Athletics.
19.455  Textbooks and curricular material.

Subpart E_Discrimination on the Basis of Sex in Employment in Education 
                    Programs or Activities Prohibited

19.500  Employment.
19.505  Employment criteria.
19.510  Recruitment.
19.515  Compensation.
19.520  Job classification and structure.
19.525  Fringe benefits.
19.530  Marital or parental status.
19.535  Effect of state or local law or other requirements.
19.540  Advertising.
19.545  Pre-employment inquiries.
19.550  Sex as a bona fide occupational qualification.

                          Subpart F_Procedures

19.600  Notice of covered programs.
19.605  Enforcement procedures.

    Authority: 20 U.S.C. 1681, 1682, 1683, 1685, 1686, 1687, 1688.

    Source: 65 FR 52865, 52892, Aug. 30, 2000, unless otherwise noted.



                         Subpart A_Introduction



Sec. 19.100  Purpose and effective date.

    The purpose of these Title IX regulations is to effectuate Title IX 
of the Education Amendments of 1972, as amended (except sections 904 and 
906 of those Amendments) (20 U.S.C. 1681, 1682, 1683, 1685, 1686, 1687, 
1688), which is designed to eliminate (with certain exceptions) 
discrimination on the basis of sex in any education program or activity 
receiving Federal financial assistance, whether or not such program or 
activity is offered or sponsored by an educational institution as 
defined in these Title IX regulations. The effective date of these Title 
IX regulations shall be September 29, 2000.



Sec. 19.105  Definitions.

    As used in these Title IX regulations, the term:
    Administratively separate unit means a school, department, or 
college of an educational institution (other than a local educational 
agency) admission to which is independent of admission to any other 
component of such institution.
    Admission means selection for part-time, full-time, special, 
associate,

[[Page 107]]

transfer, exchange, or any other enrollment, membership, or 
matriculation in or at an education program or activity operated by a 
recipient.
    Applicant means one who submits an application, request, or plan 
required to be approved by an official of the Federal agency that awards 
Federal financial assistance, or by a recipient, as a condition to 
becoming a recipient.
    Designated agency official means Director, Office of Equal Rights.
    Educational institution means a local educational agency (LEA) as 
defined by 20 U.S.C. 8801(18), a preschool, a private elementary or 
secondary school, or an applicant or recipient that is an institution of 
graduate higher education, an institution of undergraduate higher 
education, an institution of professional education, or an institution 
of vocational education, as defined in this section.
    Federal financial assistance means any of the following, when 
authorized or extended under a law administered by the Federal agency 
that awards such assistance:
    (1) A grant or loan of Federal financial assistance, including funds 
made available for:
    (i) The acquisition, construction, renovation, restoration, or 
repair of a building or facility or any portion thereof; and
    (ii) Scholarships, loans, grants, wages, or other funds extended to 
any entity for payment to or on behalf of students admitted to that 
entity, or extended directly to such students for payment to that 
entity.
    (2) A grant of Federal real or personal property or any interest 
therein, including surplus property, and the proceeds of the sale or 
transfer of such property, if the Federal share of the fair market value 
of the property is not, upon such sale or transfer, properly accounted 
for to the Federal Government.
    (3) Provision of the services of Federal personnel.
    (4) Sale or lease of Federal property or any interest therein at 
nominal consideration, or at consideration reduced for the purpose of 
assisting the recipient or in recognition of public interest to be 
served thereby, or permission to use Federal property or any interest 
therein without consideration.
    (5) Any other contract, agreement, or arrangement that has as one of 
its purposes the provision of assistance to any education program or 
activity, except a contract of insurance or guaranty.
    Institution of graduate higher education means an institution that:
    (1) Offers academic study beyond the bachelor of arts or bachelor of 
science degree, whether or not leading to a certificate of any higher 
degree in the liberal arts and sciences;
    (2) Awards any degree in a professional field beyond the first 
professional degree (regardless of whether the first professional degree 
in such field is awarded by an institution of undergraduate higher 
education or professional education); or
    (3) Awards no degree and offers no further academic study, but 
operates ordinarily for the purpose of facilitating research by persons 
who have received the highest graduate degree in any field of study.
    Institution of professional education means an institution (except 
any institution of undergraduate higher education) that offers a program 
of academic study that leads to a first professional degree in a field 
for which there is a national specialized accrediting agency recognized 
by the Secretary of Education.
    Institution of undergraduate higher education means:
    (1) An institution offering at least two but less than four years of 
college-level study beyond the high school level, leading to a diploma 
or an associate degree, or wholly or principally creditable toward a 
baccalaureate degree; or
    (2) An institution offering academic study leading to a 
baccalaureate degree; or
    (3) An agency or body that certifies credentials or offers degrees, 
but that may or may not offer academic study.
    Institution of vocational education means a school or institution 
(except an institution of professional or graduate or undergraduate 
higher education) that has as its primary purpose preparation of 
students to pursue a technical, skilled, or semiskilled occupation or 
trade, or to pursue study in a

[[Page 108]]

technical field, whether or not the school or institution offers 
certificates, diplomas, or degrees and whether or not it offers full-
time study.
    Recipient means any State or political subdivision thereof, or any 
instrumentality of a State or political subdivision thereof, any public 
or private agency, institution, or organization, or other entity, or any 
person, to whom Federal financial assistance is extended directly or 
through another recipient and that operates an education program or 
activity that receives such assistance, including any subunit, 
successor, assignee, or transferee thereof.
    Student means a person who has gained admission.
    Title IX means Title IX of the Education Amendments of 1972, Public 
Law 92-318, 86 Stat. 235, 373 (codified as amended at 20 U.S.C. 1681-
1688) (except sections 904 and 906 thereof), as amended by section 3 of 
Public Law 93-568, 88 Stat. 1855, by section 412 of the Education 
Amendments of 1976, Public Law 94-482, 90 Stat. 2234, and by Section 3 
of Public Law 100-259, 102 Stat. 28, 28-29 (20 U.S.C. 1681, 1682, 1683, 
1685, 1686, 1687, 1688).
    Title IX regulations means the provisions set forth at Secs. 19.100 
through 19.605.
    Transition plan means a plan subject to the approval of the 
Secretary of Education pursuant to section 901(a)(2) of the Education 
Amendments of 1972, 20 U.S.C. 1681(a)(2), under which an educational 
institution operates in making the transition from being an educational 
institution that admits only students of one sex to being one that 
admits students of both sexes without discrimination.



Sec. 19.110  Remedial and affirmative action and self-evaluation.

    (a) Remedial action. If the designated agency official finds that a 
recipient has discriminated against persons on the basis of sex in an 
education program or activity, such recipient shall take such remedial 
action as the designated agency official deems necessary to overcome the 
effects of such discrimination.
    (b) Affirmative action. In the absence of a finding of 
discrimination on the basis of sex in an education program or activity, 
a recipient may take affirmative action consistent with law to overcome 
the effects of conditions that resulted in limited participation therein 
by persons of a particular sex. Nothing in these Title IX regulations 
shall be interpreted to alter any affirmative action obligations that a 
recipient may have under Executive Order 11246, 3 CFR, 1964-1965 Comp., 
p. 339; as amended by Executive Order 11375, 3 CFR, 1966-1970 Comp., p. 
684; as amended by Executive Order 11478, 3 CFR, 1966-1970 Comp., p. 
803; as amended by Executive Order 12086, 3 CFR, 1978 Comp., p. 230; as 
amended by Executive Order 12107, 3 CFR, 1978 Comp., p. 264.
    (c) Self-evaluation. Each recipient education institution shall, 
within one year of September 29, 2000:
    (1) Evaluate, in terms of the requirements of these Title IX 
regulations, its current policies and practices and the effects thereof 
concerning admission of students, treatment of students, and employment 
of both academic and non-academic personnel working in connection with 
the recipient's education program or activity;
    (2) Modify any of these policies and practices that do not or may 
not meet the requirements of these Title IX regulations; and
    (3) Take appropriate remedial steps to eliminate the effects of any 
discrimination that resulted or may have resulted from adherence to 
these policies and practices.
    (d) Availability of self-evaluation and related materials. 
Recipients shall maintain on file for at least three years following 
completion of the evaluation required under paragraph (c) of this 
section, and shall provide to the designated agency official upon 
request, a description of any modifications made pursuant to paragraph 
(c)(2) of this section and of any remedial steps taken pursuant to 
paragraph (c)(3) of this section.



Sec. 19.115  Assurance required.

    (a) General. Either at the application stage or the award stage, 
Federal agencies must ensure that applications for Federal financial 
assistance or awards of Federal financial assistance contain, be 
accompanied by, or be covered by a specifically identified assurance 
from

[[Page 109]]

the applicant or recipient, satisfactory to the designated agency 
official, that each education program or activity operated by the 
applicant or recipient and to which these Title IX regulations apply 
will be operated in compliance with these Title IX regulations. An 
assurance of compliance with these Title IX regulations shall not be 
satisfactory to the designated agency official if the applicant or 
recipient to whom such assurance applies fails to commit itself to take 
whatever remedial action is necessary in accordance with Sec. 19.110(a) 
to eliminate existing discrimination on the basis of sex or to eliminate 
the effects of past discrimination whether occurring prior to or 
subsequent to the submission to the designated agency official of such 
assurance.
    (b) Duration of obligation. (1) In the case of Federal financial 
assistance extended to provide real property or structures thereon, such 
assurance shall obligate the recipient or, in the case of a subsequent 
transfer, the transferee, for the period during which the real property 
or structures are used to provide an education program or activity.
    (2) In the case of Federal financial assistance extended to provide 
personal property, such assurance shall obligate the recipient for the 
period during which it retains ownership or possession of the property.
    (3) In all other cases such assurance shall obligate the recipient 
for the period during which Federal financial assistance is extended.
    (c) Form. (1) The assurances required by paragraph (a) of this 
section, which may be included as part of a document that addresses 
other assurances or obligations, shall include that the applicant or 
recipient will comply with all applicable Federal statutes relating to 
nondiscrimination. These include but are not limited to: Title IX of the 
Education Amendments of 1972, as amended (20 U.S.C. 1681-1683, 1685-
1688).
    (2) The designated agency official will specify the extent to which 
such assurances will be required of the applicant's or recipient's 
subgrantees, contractors, subcontractors, transferees, or successors in 
interest.



Sec. 19.120  Transfers of property.

    If a recipient sells or otherwise transfers property financed in 
whole or in part with Federal financial assistance to a transferee that 
operates any education program or activity, and the Federal share of the 
fair market value of the property is not upon such sale or transfer 
properly accounted for to the Federal Government, both the transferor 
and the transferee shall be deemed to be recipients, subject to the 
provisions of Secs. 19.205 through 19.235(a).



Sec. 19.125  Effect of other requirements.

    (a) Effect of other Federal provisions. The obligations imposed by 
these Title IX regulations are independent of, and do not alter, 
obligations not to discriminate on the basis of sex imposed by Executive 
Order 11246, 3 CFR, 1964-1965 Comp., p. 339; as amended by Executive 
Order 11375, 3 CFR, 1966-1970 Comp., p. 684; as amended by Executive 
Order 11478, 3 CFR, 1966-1970 Comp., p. 803; as amended by Executive 
Order 12087, 3 CFR, 1978 Comp., p. 230; as amended by Executive Order 
12107, 3 CFR, 1978 Comp., p. 264; sections 704 and 855 of the Public 
Health Service Act (42 U.S.C. 295m, 298b-2); Title VII of the Civil 
Rights Act of 1964 (42 U.S.C. 2000e et seq.); the Equal Pay Act of 1963 
(29 U.S.C. 206); and any other Act of Congress or Federal regulation.
    (b) Effect of State or local law or other requirements. The 
obligation to comply with these Title IX regulations is not obviated or 
alleviated by any State or local law or other requirement that would 
render any applicant or student ineligible, or limit the eligibility of 
any applicant or student, on the basis of sex, to practice any 
occupation or profession.
    (c) Effect of rules or regulations of private organizations. The 
obligation to comply with these Title IX regulations is not obviated or 
alleviated by any rule or regulation of any organization, club, athletic 
or other league, or association that would render any applicant or 
student ineligible to participate or limit the eligibility or 
participation of any applicant or student, on the basis of sex, in any 
education program or activity operated by a recipient and that receives 
Federal financial assistance.

[[Page 110]]



Sec. 19.130  Effect of employment opportunities.

    The obligation to comply with these Title IX regulations is not 
obviated or alleviated because employment opportunities in any 
occupation or profession are or may be more limited for members of one 
sex than for members of the other sex.



Sec. 19.135  Designation of responsible employee and adoption of
grievance procedures.

    (a) Designation of responsible employee. Each recipient shall 
designate at least one employee to coordinate its efforts to comply with 
and carry out its responsibilities under these Title IX regulations, 
including any investigation of any complaint communicated to such 
recipient alleging its noncompliance with these Title IX regulations or 
alleging any actions that would be prohibited by these Title IX 
regulations. The recipient shall notify all its students and employees 
of the name, office address, and telephone number of the employee or 
employees appointed pursuant to this paragraph.
    (b) Complaint procedure of recipient. A recipient shall adopt and 
publish grievance procedures providing for prompt and equitable 
resolution of student and employee complaints alleging any action that 
would be prohibited by these Title IX regulations.



Sec. 19.140  Dissemination of policy.

    (a) Notification of policy. (1) Each recipient shall implement 
specific and continuing steps to notify applicants for admission and 
employment, students and parents of elementary and secondary school 
students, employees, sources of referral of applicants for admission and 
employment, and all unions or professional organizations holding 
collective bargaining or professional agreements with the recipient, 
that it does not discriminate on the basis of sex in the educational 
programs or activities that it operates, and that it is required by 
Title IX and these Title IX regulations not to discriminate in such a 
manner. Such notification shall contain such information, and be made in 
such manner, as the designated agency official finds necessary to 
apprise such persons of the protections against discrimination assured 
them by Title IX and these Title IX regulations, but shall state at 
least that the requirement not to discriminate in education programs or 
activities extends to employment therein, and to admission thereto 
unless Secs. 19.300 through 19.310 do not apply to the recipient, and 
that inquiries concerning the application of Title IX and these Title IX 
regulations to such recipient may be referred to the employee designated 
pursuant to Sec. 19.135, or to the designated agency official.
    (2) Each recipient shall make the initial notification required by 
paragraph (a)(1) of this section within 90 days of September 29, 2000 or 
of the date these Title IX regulations first apply to such recipient, 
whichever comes later, which notification shall include publication in:
    (i) Newspapers and magazines operated by such recipient or by 
student, alumnae, or alumni groups for or in connection with such 
recipient; and
    (ii) Memoranda or other written communications distributed to every 
student and employee of such recipient.
    (b) Publications. (1) Each recipient shall prominently include a 
statement of the policy described in paragraph (a) of this section in 
each announcement, bulletin, catalog, or application form that it makes 
available to any person of a type, described in paragraph (a) of this 
section, or which is otherwise used in connection with the recruitment 
of students or employees.
    (2) A recipient shall not use or distribute a publication of the 
type described in paragraph (b)(1) of this section that suggests, by 
text or illustration, that such recipient treats applicants, students, 
or employees differently on the basis of sex except as such treatment is 
permitted by these Title IX regulations.
    (c) Distribution. Each recipient shall distribute without 
discrimination on the basis of sex each publication described in 
paragraph (b)(1) of this section, and shall apprise each of its 
admission and employment recruitment representatives of the policy of 
nondiscrimination described in paragraph (a) of this section, and shall 
require such representatives to adhere to such policy.

[[Page 111]]



                           Subpart B_Coverage



Sec. 19.200  Application.

    Except as provided in Secs. 19.205 through 19.235(a), these Title IX 
regulations apply to every recipient and to each education program or 
activity operated by such recipient that receives Federal financial 
assistance.



Sec. 19.205  Educational institutions and other entities controlled by
religious organizations.

    (a) Exemption. These Title IX regulations do not apply to any 
operation of an educational institution or other entity that is 
controlled by a religious organization to the extent that application of 
these Title IX regulations would not be consistent with the religious 
tenets of such organization.
    (b) Exemption claims. An educational institution or other entity 
that wishes to claim the exemption set forth in paragraph (a) of this 
section shall do so by submitting in writing to the designated agency 
official a statement by the highest-ranking official of the institution, 
identifying the provisions of these Title IX regulations that conflict 
with a specific tenet of the religious organization.



Sec. 19.210  Military and merchant marine educational institutions.

    These Title IX regulations do not apply to an educational 
institution whose primary purpose is the training of individuals for a 
military service of the United States or for the merchant marine.



Sec. 19.215  Membership practices of certain organizations.

    (a) Social fraternities and sororities. These Title IX regulations 
do not apply to the membership practices of social fraternities and 
sororities that are exempt from taxation under section 501(a) of the 
Internal Revenue Code of 1954, 26 U.S.C. 501(a), the active membership 
of which consists primarily of students in attendance at institutions of 
higher education.
    (b) YMCA, YWCA, Girl Scouts, Boy Scouts, and Camp Fire Girls. These 
Title IX regulations do not apply to the membership practices of the 
Young Men's Christian Association (YMCA), the Young Women's Christian 
Association (YWCA), the Girl Scouts, the Boy Scouts, and Camp Fire 
Girls.
    (c) Voluntary youth service organizations. These Title IX 
regulations do not apply to the membership practices of a voluntary 
youth service organization that is exempt from taxation under section 
501(a) of the Internal Revenue Code of 1954, 26 U.S.C. 501(a), and the 
membership of which has been traditionally limited to members of one sex 
and principally to persons of less than nineteen years of age.



Sec. 19.220  Admissions.

    (a) Admissions to educational institutions prior to June 24, 1973, 
are not covered by these Title IX regulations.
    (b) Administratively separate units. For the purposes only of this 
section, Secs. 19.225 and 19.230, and Secs. 19.300 through 19.310, each 
administratively separate unit shall be deemed to be an educational 
institution.
    (c) Application of Secs. 19.300 through .310. Except as provided in 
paragraphs (d) and (e) of this section, Secs. 19.300 through 19.310 
apply to each recipient. A recipient to which Secs. 19.300 through 
19.310 apply shall not discriminate on the basis of sex in admission or 
recruitment in violation of Secs. 19.300 through 19.310.
    (d) Educational institutions. Except as provided in paragraph (e) of 
this section as to recipients that are educational institutions, 
Secs. 19.300 through 19.310 apply only to institutions of vocational 
education, professional education, graduate higher education, and public 
institutions of undergraduate higher education.
    (e) Public institutions of undergraduate higher education. 
Secs. 19.300 through 19.310 do not apply to any public institution of 
undergraduate higher education that traditionally and continually from 
its establishment has had a policy of admitting students of only one 
sex.



Sec. 19.225  Educational institutions eligible to submit transition plans.

    (a) Application. This section applies to each educational 
institution to which Secs. 19.300 through 19.310 apply that:

[[Page 112]]

    (1) Admitted students of only one sex as regular students as of June 
23, 1972; or
    (2) Admitted students of only one sex as regular students as of June 
23, 1965, but thereafter admitted, as regular students, students of the 
sex not admitted prior to June 23, 1965.
    (b) Provision for transition plans. An educational institution to 
which this section applies shall not discriminate on the basis of sex in 
admission or recruitment in violation of Secs. 19.300 through 19.310.



Sec. 19.230  Transition plans.

    (a) Submission of plans. An institution to which Sec. 19.225 applies 
and that is composed of more than one administratively separate unit may 
submit either a single transition plan applicable to all such units, or 
a separate transition plan applicable to each such unit.
    (b) Content of plans. In order to be approved by the Secretary of 
Education, a transition plan shall:
    (1) State the name, address, and Federal Interagency Committee on 
Education Code of the educational institution submitting such plan, the 
administratively separate units to which the plan is applicable, and the 
name, address, and telephone number of the person to whom questions 
concerning the plan may be addressed. The person who submits the plan 
shall be the chief administrator or president of the institution, or 
another individual legally authorized to bind the institution to all 
actions set forth in the plan.
    (2) State whether the educational institution or administratively 
separate unit admits students of both sexes as regular students and, if 
so, when it began to do so.
    (3) Identify and describe with respect to the educational 
institution or administratively separate unit any obstacles to admitting 
students without discrimination on the basis of sex.
    (4) Describe in detail the steps necessary to eliminate as soon as 
practicable each obstacle so identified and indicate the schedule for 
taking these steps and the individual directly responsible for their 
implementation.
    (5) Include estimates of the number of students, by sex, expected to 
apply for, be admitted to, and enter each class during the period 
covered by the plan.
    (c) Nondiscrimination. No policy or practice of a recipient to which 
Sec. 19.225 applies shall result in treatment of applicants to or 
students of such recipient in violation of Secs. 19.300 through 19.310 
unless such treatment is necessitated by an obstacle identified in 
paragraph (b)(3) of this section and a schedule for eliminating that 
obstacle has been provided as required by paragraph (b)(4) of this 
section.
    (d) Effects of past exclusion. To overcome the effects of past 
exclusion of students on the basis of sex, each educational institution 
to which Sec. 19.225 applies shall include in its transition plan, and 
shall implement, specific steps designed to encourage individuals of the 
previously excluded sex to apply for admission to such institution. Such 
steps shall include instituting recruitment programs that emphasize the 
institution's commitment to enrolling students of the sex previously 
excluded.



Sec. 19.235  Statutory amendments.

    (a) This section, which applies to all provisions of these Title IX 
regulations, addresses statutory amendments to Title IX.
    (b) These Title IX regulations shall not apply to or preclude:
    (1) Any program or activity of the American Legion undertaken in 
connection with the organization or operation of any Boys State 
conference, Boys Nation conference, Girls State conference, or Girls 
Nation conference;
    (2) Any program or activity of a secondary school or educational 
institution specifically for:
    (i) The promotion of any Boys State conference, Boys Nation 
conference, Girls State conference, or Girls Nation conference; or
    (ii) The selection of students to attend any such conference;
    (3) Father-son or mother-daughter activities at an educational 
institution or in an education program or activity, but if such 
activities are provided for students of one sex, opportunities for 
reasonably comparable activities shall be provided to students of the 
other sex;

[[Page 113]]

    (4) Any scholarship or other financial assistance awarded by an 
institution of higher education to an individual because such individual 
has received such award in a single-sex pageant based upon a combination 
of factors related to the individual's personal appearance, poise, and 
talent. The pageant, however, must comply with other nondiscrimination 
provisions of Federal law.
    (c) Program or activity or program means:
    (1) All of the operations of any entity described in paragraphs 
(c)(1)(i) through (iv) of this section, any part of which is extended 
Federal financial assistance:
    (i)(A) A department, agency, special purpose district, or other 
instrumentality of a State or of a local government; or
    (B) The entity of such State or local government that distributes 
such assistance and each such department or agency (and each other State 
or local government entity) to which the assistance is extended, in the 
case of assistance to a State or local government;
    (ii)(A) A college, university, or other postsecondary institution, 
or a public system of higher education; or
    (B) A local educational agency (as defined in section 8801 of title 
20), system of vocational education, or other school system;
    (iii)(A) An entire corporation, partnership, or other private 
organization, or an entire sole proprietorship--
    (1) If assistance is extended to such corporation, partnership, 
private organization, or sole proprietorship as a whole; or
    (2) Which is principally engaged in the business of providing 
education, health care, housing, social services, or parks and 
recreation; or
    (B) The entire plant or other comparable, geographically separate 
facility to which Federal financial assistance is extended, in the case 
of any other corporation, partnership, private organization, or sole 
proprietorship; or
    (iv) Any other entity that is established by two or more of the 
entities described in paragraphs (c)(1)(i), (ii), or (iii) of this 
section.
    (2)(i) Program or activity does not include any operation of an 
entity that is controlled by a religious organization if the application 
of 20 U.S.C. 1681 to such operation would not be consistent with the 
religious tenets of such organization.
    (ii) For example, all of the operations of a college, university, or 
other postsecondary institution, including but not limited to 
traditional educational operations, faculty and student housing, campus 
shuttle bus service, campus restaurants, the bookstore, and other 
commercial activities are part of a ``program or activity'' subject to 
these Title IX regulations if the college, university, or other 
institution receives Federal financial assistance.
    (d)(1) Nothing in these Title IX regulations shall be construed to 
require or prohibit any person, or public or private entity, to provide 
or pay for any benefit or service, including the use of facilities, 
related to an abortion. Medical procedures, benefits, services, and the 
use of facilities, necessary to save the life of a pregnant woman or to 
address complications related to an abortion are not subject to this 
section.
    (2) Nothing in this section shall be construed to permit a penalty 
to be imposed on any person or individual because such person or 
individual is seeking or has received any benefit or service related to 
a legal abortion. Accordingly, subject to paragraph (d)(1) of this 
section, no person shall be excluded from participation in, be denied 
the benefits of, or be subjected to discrimination under any academic, 
extracurricular, research, occupational training, employment, or other 
educational program or activity operated by a recipient that receives 
Federal financial assistance because such individual has sought or 
received, or is seeking, a legal abortion, or any benefit or service 
related to a legal abortion.



     Subpart C_Discrimination on the Basis of Sex in Admission and 
                         Recruitment Prohibited



Sec. 19.300  Admission.

    (a) General. No person shall, on the basis of sex, be denied 
admission, or be

[[Page 114]]

subjected to discrimination in admission, by any recipient to which 
Secs. 19.300 through Secs. 19.310 apply, except as provided in 
Secs. 19.225 and Secs. 19.230.
    (b) Specific prohibitions. (1) In determining whether a person 
satisfies any policy or criterion for admission, or in making any offer 
of admission, a recipient to which Secs. 19.300 through 19.310 apply 
shall not:
    (i) Give preference to one person over another on the basis of sex, 
by ranking applicants separately on such basis, or otherwise;
    (ii) Apply numerical limitations upon the number or proportion of 
persons of either sex who may be admitted; or
    (iii) Otherwise treat one individual differently from another on the 
basis of sex.
    (2) A recipient shall not administer or operate any test or other 
criterion for admission that has a disproportionately adverse effect on 
persons on the basis of sex unless the use of such test or criterion is 
shown to predict validly success in the education program or activity in 
question and alternative tests or criteria that do not have such a 
disproportionately adverse effect are shown to be unavailable.
    (c) Prohibitions relating to marital or parental status. In 
determining whether a person satisfies any policy or criterion for 
admission, or in making any offer of admission, a recipient to which 
Secs. 19.300 through 19.310 apply:
    (1) Shall not apply any rule concerning the actual or potential 
parental, family, or marital status of a student or applicant that 
treats persons differently on the basis of sex;
    (2) Shall not discriminate against or exclude any person on the 
basis of pregnancy, childbirth, termination of pregnancy, or recovery 
therefrom, or establish or follow any rule or practice that so 
discriminates or excludes;
    (3) Subject to Sec. 19.235(d), shall treat disabilities related to 
pregnancy, childbirth, termination of pregnancy, or recovery therefrom 
in the same manner and under the same policies as any other temporary 
disability or physical condition; and
    (4) Shall not make pre-admission inquiry as to the marital status of 
an applicant for admission, including whether such applicant is ``Miss'' 
or ``Mrs.'' A recipient may make pre-admission inquiry as to the sex of 
an applicant for admission, but only if such inquiry is made equally of 
such applicants of both sexes and if the results of such inquiry are not 
used in connection with discrimination prohibited by these Title IX 
regulations.



Sec. 19.305  Preference in admission.

    A recipient to which Secs. 19.300 through 19.310 apply shall not 
give preference to applicants for admission, on the basis of attendance 
at any educational institution or other school or entity that admits as 
students only or predominantly members of one sex, if the giving of such 
preference has the effect of discriminating on the basis of sex in 
violation of Secs. 19.300 through 19.310.



Sec. 19.310  Recruitment.

    (a) Nondiscriminatory recruitment. A recipient to which Secs. 19.300 
through 19.310 apply shall not discriminate on the basis of sex in the 
recruitment and admission of students. A recipient may be required to 
undertake additional recruitment efforts for one sex as remedial action 
pursuant to Sec. 19.110(a), and may choose to undertake such efforts as 
affirmative action pursuant to Sec. 19.110(b).
    (b) Recruitment at certain institutions. A recipient to which 
Secs. 19.300 through 19.310 apply shall not recruit primarily or 
exclusively at educational institutions, schools, or entities that admit 
as students only or predominantly members of one sex, if such actions 
have the effect of discriminating on the basis of sex in violation of 
Secs. 19.300 through 19.310.



 Subpart D_Discrimination on the Basis of Sex in Education Programs or 
                          Activities Prohibited



Sec. 19.400  Education programs or activities.

    (a) General. Except as provided elsewhere in these Title IX 
regulations, no person shall, on the basis of sex, be excluded from 
participation in, be denied the benefits of, or be subjected to 
discrimination under any academic, extracurricular, research, 
occupational training, or other education program or activity operated 
by a recipient that

[[Page 115]]

receives Federal financial assistance. Sections 19.400 through 19.455 do 
not apply to actions of a recipient in connection with admission of its 
students to an education program or activity of a recipient to which 
Secs. 19.300 through 19.310 do not apply, or an entity, not a recipient, 
to which Secs. 19.300 through 19.310 would not apply if the entity were 
a recipient.
    (b) Specific prohibitions. Except as provided in Secs. 19.400 
through 19.455, in providing any aid, benefit, or service to a student, 
a recipient shall not, on the basis of sex:
    (1) Treat one person differently from another in determining whether 
such person satisfies any requirement or condition for the provision of 
such aid, benefit, or service;
    (2) Provide different aid, benefits, or services or provide aid, 
benefits, or services in a different manner;
    (3) Deny any person any such aid, benefit, or service;
    (4) Subject any person to separate or different rules of behavior, 
sanctions, or other treatment;
    (5) Apply any rule concerning the domicile or residence of a student 
or applicant, including eligibility for in-state fees and tuition;
    (6) Aid or perpetuate discrimination against any person by providing 
significant assistance to any agency, organization, or person that 
discriminates on the basis of sex in providing any aid, benefit, or 
service to students or employees;
    (7) Otherwise limit any person in the enjoyment of any right, 
privilege, advantage, or opportunity.
    (c) Assistance administered by a recipient educational institution 
to study at a foreign institution. A recipient educational institution 
may administer or assist in the administration of scholarships, 
fellowships, or other awards established by foreign or domestic wills, 
trusts, or similar legal instruments, or by acts of foreign governments 
and restricted to members of one sex, that are designed to provide 
opportunities to study abroad, and that are awarded to students who are 
already matriculating at or who are graduates of the recipient 
institution; Provided, that a recipient educational institution that 
administers or assists in the administration of such scholarships, 
fellowships, or other awards that are restricted to members of one sex 
provides, or otherwise makes available, reasonable opportunities for 
similar studies for members of the other sex. Such opportunities may be 
derived from either domestic or foreign sources.
    (d) Aids, benefits or services not provided by recipient. (1) This 
paragraph (d) applies to any recipient that requires participation by 
any applicant, student, or employee in any education program or activity 
not operated wholly by such recipient, or that facilitates, permits, or 
considers such participation as part of or equivalent to an education 
program or activity operated by such recipient, including participation 
in educational consortia and cooperative employment and student-teaching 
assignments.
    (2) Such recipient:
    (i) Shall develop and implement a procedure designed to assure 
itself that the operator or sponsor of such other education program or 
activity takes no action affecting any applicant, student, or employee 
of such recipient that these Title IX regulations would prohibit such 
recipient from taking; and
    (ii) Shall not facilitate, require, permit, or consider such 
participation if such action occurs.



Sec. 19.405  Housing.

    (a) Generally. A recipient shall not, on the basis of sex, apply 
different rules or regulations, impose different fees or requirements, 
or offer different services or benefits related to housing, except as 
provided in this section (including housing provided only to married 
students).
    (b) Housing provided by recipient. (1) A recipient may provide 
separate housing on the basis of sex.
    (2) Housing provided by a recipient to students of one sex, when 
compared to that provided to students of the other sex, shall be as a 
whole:
    (i) Proportionate in quantity to the number of students of that sex 
applying for such housing; and
    (ii) Comparable in quality and cost to the student.

[[Page 116]]

    (c) Other housing. (1) A recipient shall not, on the basis of sex, 
administer different policies or practices concerning occupancy by its 
students of housing other than that provided by such recipient.
    (2)(i) A recipient which, through solicitation, listing, approval of 
housing, or otherwise, assists any agency, organization, or person in 
making housing available to any of its students, shall take such 
reasonable action as may be necessary to assure itself that such housing 
as is provided to students of one sex, when compared to that provided to 
students of the other sex, is as a whole:
    (A) Proportionate in quantity; and
    (B) Comparable in quality and cost to the student.
    (ii) A recipient may render such assistance to any agency, 
organization, or person that provides all or part of such housing to 
students of only one sex.



Sec. 19.410  Comparable facilities.

    A recipient may provide separate toilet, locker room, and shower 
facilities on the basis of sex, but such facilities provided for 
students of one sex shall be comparable to such facilities provided for 
students of the other sex.



Sec. 19.415  Access to course offerings.

    (a) A recipient shall not provide any course or otherwise carry out 
any of its education program or activity separately on the basis of sex, 
or require or refuse participation therein by any of its students on 
such basis, including health, physical education, industrial, business, 
vocational, technical, home economics, music, and adult education 
courses.
    (b)(1) With respect to classes and activities in physical education 
at the elementary school level, the recipient shall comply fully with 
this section as expeditiously as possible but in no event later than one 
year from September 29, 2000. With respect to physical education classes 
and activities at the secondary and post-secondary levels, the recipient 
shall comply fully with this section as expeditiously as possible but in 
no event later than three years from September 29, 2000.
    (2) This section does not prohibit grouping of students in physical 
education classes and activities by ability as assessed by objective 
standards of individual performance developed and applied without regard 
to sex.
    (3) This section does not prohibit separation of students by sex 
within physical education classes or activities during participation in 
wrestling, boxing, rugby, ice hockey, football, basketball, and other 
sports the purpose or major activity of which involves bodily contact.
    (4) Where use of a single standard of measuring skill or progress in 
a physical education class has an adverse effect on members of one sex, 
the recipient shall use appropriate standards that do not have such 
effect.
    (5) Portions of classes in elementary and secondary schools, or 
portions of education programs or activities, that deal exclusively with 
human sexuality may be conducted in separate sessions for boys and 
girls.
    (6) Recipients may make requirements based on vocal range or quality 
that may result in a chorus or choruses of one or predominantly one sex.



Sec. 19.420  Access to schools operated by LEAs.

    A recipient that is a local educational agency shall not, on the 
basis of sex, exclude any person from admission to:
    (a) Any institution of vocational education operated by such 
recipient; or
    (b) Any other school or educational unit operated by such recipient, 
unless such recipient otherwise makes available to such person, pursuant 
to the same policies and criteria of admission, courses, services, and 
facilities comparable to each course, service, and facility offered in 
or through such schools.



Sec. 19.425  Counseling and use of appraisal and counseling materials.

    (a) Counseling. A recipient shall not discriminate against any 
person on the basis of sex in the counseling or guidance of students or 
applicants for admission.
    (b) Use of appraisal and counseling materials. A recipient that uses 
testing or

[[Page 117]]

other materials for appraising or counseling students shall not use 
different materials for students on the basis of their sex or use 
materials that permit or require different treatment of students on such 
basis unless such different materials cover the same occupations and 
interest areas and the use of such different materials is shown to be 
essential to eliminate sex bias. Recipients shall develop and use 
internal procedures for ensuring that such materials do not discriminate 
on the basis of sex. Where the use of a counseling test or other 
instrument results in a substantially disproportionate number of members 
of one sex in any particular course of study or classification, the 
recipient shall take such action as is necessary to assure itself that 
such disproportion is not the result of discrimination in the instrument 
or its application.
    (c) Disproportion in classes. Where a recipient finds that a 
particular class contains a substantially disproportionate number of 
individuals of one sex, the recipient shall take such action as is 
necessary to assure itself that such disproportion is not the result of 
discrimination on the basis of sex in counseling or appraisal materials 
or by counselors.



Sec. 19.430  Financial assistance.

    (a) General. Except as provided in paragraphs (b) and (c) of this 
section, in providing financial assistance to any of its students, a 
recipient shall not:
    (1) On the basis of sex, provide different amounts or types of such 
assistance, limit eligibility for such assistance that is of any 
particular type or source, apply different criteria, or otherwise 
discriminate;
    (2) Through solicitation, listing, approval, provision of 
facilities, or other services, assist any foundation, trust, agency, 
organization, or person that provides assistance to any of such 
recipient's students in a manner that discriminates on the basis of sex; 
or
    (3) Apply any rule or assist in application of any rule concerning 
eligibility for such assistance that treats persons of one sex 
differently from persons of the other sex with regard to marital or 
parental status.
    (b) Financial aid established by certain legal instruments. (1) A 
recipient may administer or assist in the administration of 
scholarships, fellowships, or other forms of financial assistance 
established pursuant to domestic or foreign wills, trusts, bequests, or 
similar legal instruments or by acts of a foreign government that 
require that awards be made to members of a particular sex specified 
therein; Provided, that the overall effect of the award of such sex-
restricted scholarships, fellowships, and other forms of financial 
assistance does not discriminate on the basis of sex.
    (2) To ensure nondiscriminatory awards of assistance as required in 
paragraph (b)(1) of this section, recipients shall develop and use 
procedures under which:
    (i) Students are selected for award of financial assistance on the 
basis of nondiscriminatory criteria and not on the basis of availability 
of funds restricted to members of a particular sex;
    (ii) An appropriate sex-restricted scholarship, fellowship, or other 
form of financial assistance is allocated to each student selected under 
paragraph (b)(2)(i) of this section; and
    (iii) No student is denied the award for which he or she was 
selected under paragraph (b)(2)(i) of this section because of the 
absence of a scholarship, fellowship, or other form of financial 
assistance designated for a member of that student's sex.
    (c) Athletic scholarships. (1) To the extent that a recipient awards 
athletic scholarships or grants-in-aid, it must provide reasonable 
opportunities for such awards for members of each sex in proportion to 
the number of students of each sex participating in interscholastic or 
intercollegiate athletics.
    (2) A recipient may provide separate athletic scholarships or 
grants-in-aid for members of each sex as part of separate athletic teams 
for members of each sex to the extent consistent with this paragraph (c) 
and Sec. 19.450.

[[Page 118]]



Sec. 19.435  Employment assistance to students.

    (a) Assistance by recipient in making available outside employment. 
A recipient that assists any agency, organization, or person in making 
employment available to any of its students:
    (1) Shall assure itself that such employment is made available 
without discrimination on the basis of sex; and
    (2) Shall not render such services to any agency, organization, or 
person that discriminates on the basis of sex in its employment 
practices.
    (b) Employment of students by recipients. A recipient that employs 
any of its students shall not do so in a manner that violates 
Secs. 19.500 through 19.550.



Sec. 19.440  Health and insurance benefits and services.

    Subject to Sec. 19.235(d), in providing a medical, hospital, 
accident, or life insurance benefit, service, policy, or plan to any of 
its students, a recipient shall not discriminate on the basis of sex, or 
provide such benefit, service, policy, or plan in a manner that would 
violate Secs. 19.500 through 19.550 if it were provided to employees of 
the recipient. This section shall not prohibit a recipient from 
providing any benefit or service that may be used by a different 
proportion of students of one sex than of the other, including family 
planning services. However, any recipient that provides full coverage 
health service shall provide gynecological care.



Sec. 19.445  Marital or parental status.

    (a) Status generally. A recipient shall not apply any rule 
concerning a student's actual or potential parental, family, or marital 
status that treats students differently on the basis of sex.
    (b) Pregnancy and related conditions. (1) A recipient shall not 
discriminate against any student, or exclude any student from its 
education program or activity, including any class or extracurricular 
activity, on the basis of such student's pregnancy, childbirth, false 
pregnancy, termination of pregnancy, or recovery therefrom, unless the 
student requests voluntarily to participate in a separate portion of the 
program or activity of the recipient.
    (2) A recipient may require such a student to obtain the 
certification of a physician that the student is physically and 
emotionally able to continue participation as long as such a 
certification is required of all students for other physical or 
emotional conditions requiring the attention of a physician.
    (3) A recipient that operates a portion of its education program or 
activity separately for pregnant students, admittance to which is 
completely voluntary on the part of the student as provided in paragraph 
(b)(1) of this section, shall ensure that the separate portion is 
comparable to that offered to non-pregnant students.
    (4) Subject to Sec. 19.235(d), a recipient shall treat pregnancy, 
childbirth, false pregnancy, termination of pregnancy and recovery 
therefrom in the same manner and under the same policies as any other 
temporary disability with respect to any medical or hospital benefit, 
service, plan, or policy that such recipient administers, operates, 
offers, or participates in with respect to students admitted to the 
recipient's educational program or activity.
    (5) In the case of a recipient that does not maintain a leave policy 
for its students, or in the case of a student who does not otherwise 
qualify for leave under such a policy, a recipient shall treat 
pregnancy, childbirth, false pregnancy, termination of pregnancy, and 
recovery therefrom as a justification for a leave of absence for as long 
a period of time as is deemed medically necessary by the student's 
physician, at the conclusion of which the student shall be reinstated to 
the status that she held when the leave began.



Sec. 19.450  Athletics.

    (a) General. No person shall, on the basis of sex, be excluded from 
participation in, be denied the benefits of, be treated differently from 
another person, or otherwise be discriminated against in any 
interscholastic, intercollegiate, club, or intramural athletics offered 
by a recipient, and no recipient shall provide any such athletics 
separately on such basis.
    (b) Separate teams. Notwithstanding the requirements of paragraph 
(a) of this section, a recipient may operate or sponsor separate teams 
for members of each sex where selection for such teams is based upon 
competitive skill

[[Page 119]]

or the activity involved is a contact sport. However, where a recipient 
operates or sponsors a team in a particular sport for members of one sex 
but operates or sponsors no such team for members of the other sex, and 
athletic opportunities for members of that sex have previously been 
limited, members of the excluded sex must be allowed to try out for the 
team offered unless the sport involved is a contact sport. For the 
purposes of these Title IX regulations, contact sports include boxing, 
wrestling, rugby, ice hockey, football, basketball, and other sports the 
purpose or major activity of which involves bodily contact.
    (c) Equal opportunity. (1) A recipient that operates or sponsors 
interscholastic, intercollegiate, club, or intramural athletics shall 
provide equal athletic opportunity for members of both sexes. In 
determining whether equal opportunities are available, the designated 
agency official will consider, among other factors:
    (i) Whether the selection of sports and levels of competition 
effectively accommodate the interests and abilities of members of both 
sexes;
    (ii) The provision of equipment and supplies;
    (iii) Scheduling of games and practice time;
    (iv) Travel and per diem allowance;
    (v) Opportunity to receive coaching and academic tutoring;
    (vi) Assignment and compensation of coaches and tutors;
    (vii) Provision of locker rooms, practice, and competitive 
facilities;
    (viii) Provision of medical and training facilities and services;
    (ix) Provision of housing and dining facilities and services;
    (x) Publicity.
    (2) For purposes of paragraph (c)(1) of this section, unequal 
aggregate expenditures for members of each sex or unequal expenditures 
for male and female teams if a recipient operates or sponsors separate 
teams will not constitute noncompliance with this section, but the 
designated agency official may consider the failure to provide necessary 
funds for teams for one sex in assessing equality of opportunity for 
members of each sex.
    (d) Adjustment period. A recipient that operates or sponsors 
interscholastic, intercollegiate, club, or intramural athletics at the 
elementary school level shall comply fully with this section as 
expeditiously as possible but in no event later than one year from 
September 29, 2000. A recipient that operates or sponsors 
interscholastic, intercollegiate, club, or intramural athletics at the 
secondary or postsecondary school level shall comply fully with this 
section as expeditiously as possible but in no event later than three 
years from September 29, 2000.



Sec. 19.455  Textbooks and curricular material.

    Nothing in these Title IX regulations shall be interpreted as 
requiring or prohibiting or abridging in any way the use of particular 
textbooks or curricular materials.



Subpart E_Discrimination on the Basis of Sex in Employment in Education 
                    Programs or Activities Prohibited



Sec. 19.500  Employment.

    (a) General. (1) No person shall, on the basis of sex, be excluded 
from participation in, be denied the benefits of, or be subjected to 
discrimination in employment, or recruitment, consideration, or 
selection therefor, whether full-time or part-time, under any education 
program or activity operated by a recipient that receives Federal 
financial assistance.
    (2) A recipient shall make all employment decisions in any education 
program or activity operated by such recipient in a nondiscriminatory 
manner and shall not limit, segregate, or classify applicants or 
employees in any way that could adversely affect any applicant's or 
employee's employment opportunities or status because of sex.
    (3) A recipient shall not enter into any contractual or other 
relationship which directly or indirectly has the effect of subjecting 
employees or students to discrimination prohibited by Secs. 19.500 
through 19.550, including relationships with employment and referral 
agencies, with labor unions, and

[[Page 120]]

with organizations providing or administering fringe benefits to 
employees of the recipient.
    (4) A recipient shall not grant preferences to applicants for 
employment on the basis of attendance at any educational institution or 
entity that admits as students only or predominantly members of one sex, 
if the giving of such preferences has the effect of discriminating on 
the basis of sex in violation of these Title IX regulations.
    (b) Application. The provisions of Secs. 19.500 through 19.550 apply 
to:
    (1) Recruitment, advertising, and the process of application for 
employment;
    (2) Hiring, upgrading, promotion, consideration for and award of 
tenure, demotion, transfer, layoff, termination, application of nepotism 
policies, right of return from layoff, and rehiring;
    (3) Rates of pay or any other form of compensation, and changes in 
compensation;
    (4) Job assignments, classifications, and structure, including 
position descriptions, lines of progression, and seniority lists;
    (5) The terms of any collective bargaining agreement;
    (6) Granting and return from leaves of absence, leave for pregnancy, 
childbirth, false pregnancy, termination of pregnancy, leave for persons 
of either sex to care for children or dependents, or any other leave;
    (7) Fringe benefits available by virtue of employment, whether or 
not administered by the recipient;
    (8) Selection and financial support for training, including 
apprenticeship, professional meetings, conferences, and other related 
activities, selection for tuition assistance, selection for sabbaticals 
and leaves of absence to pursue training;
    (9) Employer-sponsored activities, including social or recreational 
programs; and
    (10) Any other term, condition, or privilege of employment.



Sec. 19.505  Employment criteria.

    A recipient shall not administer or operate any test or other 
criterion for any employment opportunity that has a disproportionately 
adverse effect on persons on the basis of sex unless:
    (a) Use of such test or other criterion is shown to predict validly 
successful performance in the position in question; and
    (b) Alternative tests or criteria for such purpose, which do not 
have such disproportionately adverse effect, are shown to be 
unavailable.



Sec. 19.510  Recruitment.

    (a) Nondiscriminatory recruitment and hiring. A recipient shall not 
discriminate on the basis of sex in the recruitment and hiring of 
employees. Where a recipient has been found to be presently 
discriminating on the basis of sex in the recruitment or hiring of 
employees, or has been found to have so discriminated in the past, the 
recipient shall recruit members of the sex so discriminated against so 
as to overcome the effects of such past or present discrimination.
    (b) Recruitment patterns. A recipient shall not recruit primarily or 
exclusively at entities that furnish as applicants only or predominantly 
members of one sex if such actions have the effect of discriminating on 
the basis of sex in violation of Secs. 19.500 through 19.550.



Sec. 19.515  Compensation.

    A recipient shall not make or enforce any policy or practice that, 
on the basis of sex:
    (a) Makes distinctions in rates of pay or other compensation;
    (b) Results in the payment of wages to employees of one sex at a 
rate less than that paid to employees of the opposite sex for equal work 
on jobs the performance of which requires equal skill, effort, and 
responsibility, and that are performed under similar working conditions.



Sec. 19.520  Job classification and structure.

    A recipient shall not:
    (a) Classify a job as being for males or for females;
    (b) Maintain or establish separate lines of progression, seniority 
lists, career ladders, or tenure systems based on sex; or
    (c) Maintain or establish separate lines of progression, seniority 
systems, career ladders, or tenure systems for

[[Page 121]]

similar jobs, position descriptions, or job requirements that classify 
persons on the basis of sex, unless sex is a bona fide occupational 
qualification for the positions in question as set forth in Sec. 19.550.



Sec. 19.525  Fringe benefits.

    (a) ``Fringe benefits'' defined. For purposes of these Title IX 
regulations, fringe benefits means: Any medical, hospital, accident, 
life insurance, or retirement benefit, service, policy or plan, any 
profit-sharing or bonus plan, leave, and any other benefit or service of 
employment not subject to the provision of Sec. 19.515.
    (b) Prohibitions. A recipient shall not:
    (1) Discriminate on the basis of sex with regard to making fringe 
benefits available to employees or make fringe benefits available to 
spouses, families, or dependents of employees differently upon the basis 
of the employee's sex;
    (2) Administer, operate, offer, or participate in a fringe benefit 
plan that does not provide for equal periodic benefits for members of 
each sex and for equal contributions to the plan by such recipient for 
members of each sex; or
    (3) Administer, operate, offer, or participate in a pension or 
retirement plan that establishes different optional or compulsory 
retirement ages based on sex or that otherwise discriminates in benefits 
on the basis of sex.



Sec. 19.530  Marital or parental status.

    (a) General. A recipient shall not apply any policy or take any 
employment action:
    (1) Concerning the potential marital, parental, or family status of 
an employee or applicant for employment that treats persons differently 
on the basis of sex; or
    (2) Which is based upon whether an employee or applicant for 
employment is the head of household or principal wage earner in such 
employee's or applicant's family unit.
    (b) Pregnancy. A recipient shall not discriminate against or exclude 
from employment any employee or applicant for employment on the basis of 
pregnancy, childbirth, false pregnancy, termination of pregnancy, or 
recovery therefrom.
    (c) Pregnancy as a temporary disability. Subject to Sec. 19235(d), a 
recipient shall treat pregnancy, childbirth, false pregnancy, 
termination of pregnancy, recovery therefrom, and any temporary 
disability resulting therefrom as any other temporary disability for all 
job-related purposes, including commencement, duration, and extensions 
of leave, payment of disability income, accrual of seniority and any 
other benefit or service, and reinstatement, and under any fringe 
benefit offered to employees by virtue of employment.
    (d) Pregnancy leave. In the case of a recipient that does not 
maintain a leave policy for its employees, or in the case of an employee 
with insufficient leave or accrued employment time to qualify for leave 
under such a policy, a recipient shall treat pregnancy, childbirth, 
false pregnancy, termination of pregnancy, and recovery therefrom as a 
justification for a leave of absence without pay for a reasonable period 
of time, at the conclusion of which the employee shall be reinstated to 
the status that she held when the leave began or to a comparable 
position, without decrease in rate of compensation or loss of 
promotional opportunities, or any other right or privilege of 
employment.



Sec. 19.535  Effect of state or local law or other requirements.

    (a) Prohibitory requirements. The obligation to comply with 
Secs. 19.500 through 19.550 is not obviated or alleviated by the 
existence of any State or local law or other requirement that imposes 
prohibitions or limits upon employment of members of one sex that are 
not imposed upon members of the other sex.
    (b) Benefits. A recipient that provides any compensation, service, 
or benefit to members of one sex pursuant to a State or local law or 
other requirement shall provide the same compensation, service, or 
benefit to members of the other sex.



Sec. 19.540  Advertising.

    A recipient shall not in any advertising related to employment 
indicate preference, limitation, specification, or discrimination based 
on sex unless sex is a bona fide occupational qualification for the 
particular job in question.

[[Page 122]]



Sec. 19.545  Pre-employment inquiries.

    (a) Marital status. A recipient shall not make pre-employment 
inquiry as to the marital status of an applicant for employment, 
including whether such applicant is ``Miss'' or ``Mrs.''
    (b) Sex. A recipient may make pre-employment inquiry as to the sex 
of an applicant for employment, but only if such inquiry is made equally 
of such applicants of both sexes and if the results of such inquiry are 
not used in connection with discrimination prohibited by these Title IX 
regulations.



Sec. 19.550  Sex as a bona fide occupational qualification.

    A recipient may take action otherwise prohibited by Secs. 19.500 
through 19.550 provided it is shown that sex is a bona fide occupational 
qualification for that action, such that consideration of sex with 
regard to such action is essential to successful operation of the 
employment function concerned. A recipient shall not take action 
pursuant to this section that is based upon alleged comparative 
employment characteristics or stereotyped characterizations of one or 
the other sex, or upon preference based on sex of the recipient, 
employees, students, or other persons, but nothing contained in this 
section shall prevent a recipient from considering an employee's sex in 
relation to employment in a locker room or toilet facility used only by 
members of one sex.



                          Subpart F_Procedures



Sec. 19.600  Notice of covered programs.

    Within 60 days of September 29, 2000, each Federal agency that 
awards Federal financial assistance shall publish in the Federal 
Register a notice of the programs covered by these Title IX regulations. 
Each such Federal agency shall periodically republish the notice of 
covered programs to reflect changes in covered programs. Copies of this 
notice also shall be made available upon request to the Federal agency's 
office that enforces Title IX.



Sec. 19.605  Enforcement procedures.

    The investigative, compliance, and enforcement procedural provisions 
of Title VI of the Civil Rights Act of 1964 (42 U.S.C. 2000d) (``Title 
VI'') are hereby adopted and applied to these Title IX regulations. 
These procedures may be found at 32 CFR 195.7 through 195.12.

                         PARTS 20	24 [RESERVED]



PART 25_UNIFORM RELOCATION ASSISTANCE AND REAL PROPERTY ACQUISITION FOR
FEDERAL AND FEDERALLY ASSISTED PROGRAMS--Table of Contents



    Authority: Sec. 213, Uniform Relocation Assistance and Real Property 
Acquisition Policies Act of 1970, Pub. L. 91-646, 84 Stat. 1894 (42 
U.S.C. 4601) as amended by the Surface Transportation and Uniform 
Relocation Assistance Act of 1987, title IV of Pub. L. 100-17, 101 Stat. 
246-256 (42 U.S.C. 4601 note).



Sec. 25.1  Uniform relocation assistance and real property acquisition.

    Regulations and procedures for complying with the Uniform Relocation 
Assistance and Real Property Acquisition Policies Act of 1970 (Pub. L. 
91-646, 84 Stat. 1894, 42 U.S.C. 4601), as amended by the Surface 
Transportation and Uniform Relocation Assistance Act of 1987 (title IV 
of Pub. L. 100-17, 101 Stat. 246-256, 42 U.S.C. 4601 note) are set forth 
in 49 CFR part 24.

[52 FR 48026, Dec. 17, 1987 and 54 FR 8912, Mar. 2, 1989]

                         PARTS 26	49 [RESERVED]

[[Page 123]]



              SUBCHAPTER B_INSURANCE AND HAZARD MITIGATION



                         PARTS 50	54 [RESERVED]



National Insurance Development Program--Table of Contents



                         PARTS 55	58 [RESERVED]



National Flood Insurance Program--Table of Contents





PART 59_GENERAL PROVISIONS--Table of Contents



                            Subpart A_General

Sec.
59.1  Definitions.
59.2  Description of program.
59.3  Emergency program.
59.4  References.

                   Subpart B_Eligibility Requirements

59.21  Purpose of subpart.
59.22  Prerequisites for the sale of flood insurance.
59.23  Priorities for the sale of flood insurance under the regular 
          program.
59.24  Suspension of community eligibility.

                   Subpart C_Pilot Inspection Program

59.30  A pilot inspection procedure.

    Authority: 42 U.S.C. 4001 et seq.; Reorganization Plan No. 3 of 
1978, 43 FR 41943, 3 CFR, 1978 Comp., p. 329; E.O. 12127 of Mar. 31, 
1979, 44 FR 19367, 3 CFR, 1979 Comp., p. 376.



                            Subpart A_General



Sec. 59.1  Definitions.

    As used in this subchapter--
    Act means the statutes authorizing the National Flood Insurance 
Program that are incorporated in 42 U.S.C. 4001-4128.
    Actuarial rates--see risk premium rates.
    Administrator means the Administrator of the Federal Emergency 
Management Agency.
    Agency means the Federal Emergency Management Agency, Washington DC.
    Alluvial fan flooding means flooding occurring on the surface of an 
alluvial fan or similar landform which originates at the apex and is 
characterized by high-velocity flows; active processes of erosion, 
sediment transport, and deposition; and, unpredictable flow paths.
    Apex means a point on an alluvial fan or similar landform below 
which the flow path of the major stream that formed the fan becomes 
unpredictable and alluvial fan flooding can occur.
    Applicant means a community which indicates a desire to participate 
in the Program.
    Appurtenant structure means a structure which is on the same parcel 
of property as the principal structure to be insured and the use of 
which is incidental to the use of the principal structure.
    Area of future-conditions flood hazard means the land area that 
would be inundated by the 1-percent-annual-chance (100-year) flood based 
on future-conditions hydrology.
    Area of shallow flooding means a designated AO, AH, AR/AO, AR/AH, or 
VO zone on a community's Flood Insurance Rate Map (FIRM) with a 1 
percent or greater annual chance of flooding to an average depth of 1 to 
3 feet where a clearly defined channel does not exist, where the path of 
flooding is unpredictable, and where velocity flow may be evident. Such 
flooding is characterized by ponding or sheet flow.
    Area of special flood-related erosion hazard is the land within a 
community which is most likely to be subject to severe flood-related 
erosion losses. The area may be designated as Zone E on the Flood Hazard 
Boundary Map (FHBM). After the detailed evaluation of the special flood-
related erosion hazard area in preparation for publication of the FIRM, 
Zone E may be further refined.
    Area of special flood hazard is the land in the flood plain within a 
community subject to a 1 percent or greater chance of flooding in any 
given year. The area may be designated as Zone A on the FHBM. After 
detailed ratemaking has been completed in preparation for publication of 
the flood insurance rate map, Zone A usually is refined into Zones A, 
AO, AH, A1-30, AE, A99, AR, AR/A1-30, AR/AE, AR/AO, AR/AH, AR/A, VO, or 
V1-30, VE, or V. For purposes of these regulations, the term ``special

[[Page 124]]

flood hazard area'' is synonymous in meaning with the phrase ``area of 
special flood hazard''.
    Area of special mudslide (i.e., mudflow) hazard is the land within a 
community most likely to be subject to severe mudslides (i.e., 
mudflows). The area may be designated as Zone M on the FHBM. After the 
detailed evaluation of the special mudslide (i.e., mudflow) hazard area 
in preparation for publication of the FIRM, Zone M may be further 
refined.
    Base flood means the flood having a one percent chance of being 
equalled or exceeded in any given year.
    Basement'' means any area of the building having its floor subgrade 
(below ground level) on all sides.
    Breakaway wall means a wall that is not part of the structural 
support of the building and is intended through its design and 
construction to collapse under specific lateral loading forces, without 
causing damage to the elevated portion of the building or supporting 
foundation system.
    Building--see structure.
    Chargeable rates mean the rates established by the Federal Insurance 
Administrator pursuant to section 1308 of the Act for first layer limits 
of flood insurance on existing structures.
    Chief Executive Officer of the community (CEO) means the official of 
the community who is charged with the authority to implement and 
administer laws, ordinances and regulations for that community.
    Coastal high hazard area means an area of special flood hazard 
extending from offshore to the inland limit of a primary frontal dune 
along an open coast and any other area subject to high velocity wave 
action from storms or seismic sources.
    Community means any State or area or political subdivision thereof, 
or any Indian tribe or authorized tribal organization, or Alaska Native 
village or authorized native organization, which has authority to adopt 
and enforce flood plain management regulations for the areas within its 
jurisdiction.
    Contents coverage is the insurance on personal property within an 
enclosed structure, including the cost of debris removal, and the 
reasonable cost of removal of contents to minimize damage. Personal 
property may be household goods usual or incidental to residential 
occupancy, or merchandise, furniture, fixtures, machinery, equipment and 
supplies usual to other than residential occupancies.
    Criteria means the comprehensive criteria for land management and 
use for flood-prone areas developed under 42 U.S.C. 4102 for the 
purposes set forth in part 60 of this subchapter.
    Critical feature means an integral and readily identifiable part of 
a flood protection system, without which the flood protection provided 
by the entire system would be compromised.
    Curvilinear Line means the border on either a FHBM or FIRM that 
delineates the special flood, mudslide (i.e., mudflow) and/or flood-
related erosion hazard areas and consists of a curved or contour line 
that follows the topography.
    Deductible means the fixed amount or percentage of any loss covered 
by insurance which is borne by the insured prior to the insurer's 
liability.
    Developed area means an area of a community that is:
    (a) A primarily urbanized, built-up area that is a minimum of 20 
contiguous acres, has basic urban infrastructure, including roads, 
utilities, communications, and public facilities, to sustain industrial, 
residential, and commercial activities, and
    (1) Within which 75 percent or more of the parcels, tracts, or lots 
contain commercial, industrial, or residential structures or uses; or
    (2) Is a single parcel, tract, or lot in which 75 percent of the 
area contains existing commercial or industrial structures or uses; or
    (3) Is a subdivision developed at a density of at least two 
residential structures per acre within which 75 percent or more of the 
lots contain existing residential structures at the time the designation 
is adopted.
    (b) Undeveloped parcels, tracts, or lots, the combination of which 
is less than 20 acres and contiguous on at least 3 sides to areas 
meeting the criteria of paragraph (a) at the time the designation is 
adopted.

[[Page 125]]

    (c) A subdivision that is a minimum of 20 contiguous acres that has 
obtained all necessary government approvals, provided that the actual 
``start of construction'' of structures has occurred on at least 10 
percent of the lots or remaining lots of a subdivision or 10 percent of 
the maximum building coverage or remaining building coverage allowed for 
a single lot subdivision at the time the designation is adopted and 
construction of structures is underway. Residential subdivisions must 
meet the density criteria in paragraph (a)(3).
    Development means any man-made change to improved or unimproved real 
estate, including but not limited to buildings or other structures, 
mining, dredging, filling, grading, paving, excavation or drilling 
operations or storage of equipment or materials.
    Eligible community or participating community means a community for 
which the Federal Insurance Administrator has authorized the sale of 
flood insurance under the National Flood Insurance Program..
    Elevated building means, for insurance purposes, a nonbasement 
building which has its lowest elevated floor raised above ground level 
by foundation walls, shear walls, posts, piers, pilings, or columns.
    Emergency Flood Insurance Program or emergency program means the 
Program as implemented on an emergency basis in accordance with section 
1336 of the Act. It is intended as a program to provide a first layer 
amount of insurance on all insurable structures before the effective 
date of the initial FIRM.
    Erosion means the process of the gradual wearing away of land 
masses. This peril is not per se covered under the Program.
    Exception means a waiver from the provisions of part 60 of this 
subchapter directed to a community which relieves it from the 
requirements of a rule, regulation, order or other determination made or 
issued pursuant to the Act.
    Existing construction, means for the purposes of determining rates, 
structures for which the ``start of construction'' commenced before the 
effective date of the FIRM or before January 1, 1975, for FIRMs 
effective before that date. ``Existing construction'' may also be 
referred to as ``existing structures.''
    Existing manufactured home park or subdivision means a manufactured 
home park or subdivision for which the construction of facilities for 
servicing the lots on which the manufactured homes are to be affixed 
(including, at a minimum, the installation of utilities, the 
construction of streets, and either final site grading or the pouring of 
concrete pads) is completed before the effective date of the floodplain 
management regulations adopted by a community.
    Existing structures see existing construction.
    Expansion to an existing manufactured home park or subdivision means 
the preparation of additional sites by the construction of facilities 
for servicing the lots on which the manufacturing homes are to be 
affixed (including the installation of utilities, the construction of 
streets, and either final site grading or the pouring of concrete pads).
    Federal agency means any department, agency, corporation, or other 
entity or instrumentality of the executive branch of the Federal 
Government, and includes the Federal National Mortgage Association and 
the Federal Home Loan Mortgage Corporation.
    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.
    Financial assistance means any form of loan, grant, guaranty, 
insurance, payment, rebate, subsidy, disaster assistance loan or grant, 
or any other form of direct or indirect Federal assistance, other than 
general or special revenue sharing or formula grants made to States.
    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

[[Page 126]]

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 pursuant to 
the Disaster Relief Act of 1974 other than assistance under such Act in 
connection with a flood. It includes only financial assistance insurable 
under the Standard Flood Insurance Policy.
    First-layer coverage is the maximum amount of structural and 
contents insurance coverage available under the Emergency Program.
    Flood or Flooding means:
    (a) A general and temporary condition of partial or complete 
inundation of normally dry land areas from:
    (1) The overflow of inland or tidal waters.
    (2) The unusual and rapid accumulation or runoff of surface waters 
from any source.
    (3) Mudslides (i.e., mudflows) which are proximately caused by 
flooding as defined in paragraph (a)(2) of this definition and are akin 
to a river of liquid and flowing mud on the surfaces of normally dry 
land areas, as when earth is carried by a current of water and deposited 
along the path of the current.
    (b) The collapse or subsidence of land along the shore of a lake or 
other body of water as a result of erosion or undermining caused by 
waves or currents of water exceeding anticipated cyclical levels or 
suddenly caused by an unusually high water level in a natural body of 
water, accompanied by a severe storm, or by an unanticipated force of 
nature, such as flash flood or an abnormal tidal surge, or by some 
similarly unusual and unforeseeable event which results in flooding as 
defined in paragraph (a)(1) of this definition.
    Flood elevation determination means a determination by the Federal 
Insurance Administrator of the water surface elevations of the base 
flood, that is, the flood level that has a one percent or greater chance 
of occurrence in any given year.
    Flood elevation study means an examination, evaluation and 
determination of flood hazards and, if appropriate, corresponding water 
surface elevations, or an examination, evaluation and determination of 
mudslide (i.e., mudflow) and/or flood-related erosion hazards.
    Flood Hazard Boundary Map means an official map of a community, 
issued by the Federal Insurance Administrator, where the boundaries of 
the flood, mudslide (i.e., mudflow) related erosion areas having special 
hazards have been designated as Zones A, M, and/or E.
    Flood insurance means the insurance coverage provided under the 
Program.
    Flood Insurance Rate Map (FIRM) means an official map of a 
community, on which the Federal Insurance Administrator has delineated 
both the special hazard areas and the risk premium zones applicable to 
the community. A FIRM that has been made available digitally is called a 
Digital Flood Insurance Rate Map (DFIRM).
    Flood Insurance Study see flood elevation study.
    Flood plain or flood-prone area means any land area susceptible to 
being inundated by water from any source (see definition of 
``flooding'').
    Flood plain management means the operation of an overall program of 
corrective and preventive measures for reducing flood damage, including 
but not limited to emergency preparedness plans, flood control works and 
flood plain management regulations.
    Flood plain management regulations means zoning ordinances, 
subdivision regulations, building codes, health regulations, special 
purpose ordinances (such as a flood plain ordinance, grading ordinance 
and erosion control ordinance) and other applications of police power. 
The term describes such state or local regulations, in any combination 
thereof, which provide standards for the purpose of flood damage 
prevention and reduction.
    Flood protection system means those physical structural works for 
which funds have been authorized, appropriated, and expended and which 
have been constructed specifically to modify flooding in order to reduce 
the extent of the area within a community subject to a ``special flood 
hazard'' and the extent of the depths of associated flooding. Such a 
system typically includes hurricane tidal barriers, dams, reservoirs, 
levees or dikes. These specialized flood modifying works are those

[[Page 127]]

constructed in conformance with sound engineering standards.
    Flood proofing means any combination of structural and non-
structural additions, changes, or adjustments to structures which reduce 
or eliminate flood damage to real estate or improved real property, 
water and sanitary facilities, structures and their contents.
    Flood-related erosion means the collapse or subsidence of land along 
the shore of a lake or other body of water as a result of undermining 
caused by waves or currents of water exceeding anticipated cyclical 
levels or suddenly caused by an unusually high water level in a natural 
body of water, accompanied by a severe storm, or by an unanticipated 
force of nature, such as a flash flood or an abnormal tidal surge, or by 
some similarly unusual and unforeseeable event which results in 
flooding.
    Flood-related erosion area or flood-related erosion prone area means 
a land area adjoining the shore of a lake or other body of water, which 
due to the composition of the shoreline or bank and high water levels or 
wind-driven currents, is likely to suffer flood-related erosion damage.
    Flood-related erosion area management means the operation of an 
overall program of corrective and preventive measures for reducing 
flood-related erosion damage, including but not limited to emergency 
preparedness plans, flood-related erosion control works, and flood plain 
management regulations.
    Floodway--see regulatory floodway.
    Floodway encroachment lines mean the lines marking the limits of 
floodways on Federal, State and local flood plain maps.
    Freeboard means a factor of safety usually expressed in feet above a 
flood level for purposes of flood plain management. ``Freeboard'' tends 
to compensate for the many unknown factors that could contribute to 
flood heights greater than the height calculated for a selected size 
flood and floodway conditions, such as wave action, bridge openings, and 
the hydrological effect of urbanization of the watershed.
    Functionally dependent use means a use which cannot perform its 
intended purpose unless it is located or carried out in close proximity 
to water. The term includes only docking facilities, port facilities 
that are necessary for the loading and unloading of cargo or passengers, 
and ship building and ship repair facilities, but does not include long-
term storage or related manufacturing facilities.
    Future-conditions flood hazard area, or future-conditions 
floodplain--see Area of future-conditions flood hazard.
    Future-conditions hydrology means the flood discharges associated 
with projected land-use conditions based on a community's zoning maps 
and/or comprehensive land-use plans and without consideration of 
projected future construction of flood detention structures or projected 
future hydraulic modifications within a stream or other waterway, such 
as bridge and culvert construction, fill, and excavation.
    Highest adjacent grade means the highest natural elevation of the 
ground surface prior to construction next to the proposed walls of a 
structure.
    Historic Structure means any structure that is:
    (a) Listed individually in the National Register of Historic Places 
(a listing maintained by the Department of Interior) or preliminarily 
determined by the Secretary of the Interior as meeting the requirements 
for individual listing on the National Register;
    (b) Certified or preliminarily determined by the Secretary of the 
Interior as contributing to the historical significance of a registered 
historic district or a district preliminarily determined by the 
Secretary to qualify as a registered historic district;
    (c) Individually listed on a state inventory of historic places in 
states with historic preservation programs which have been approved by 
the Secretary of the Interior; or
    (d) Individually listed on a local inventory of historic places in 
communities with historic preservation programs that have been certified 
either:
    (1) By an approved state program as determined by the Secretary of 
the Interior or
    (2) Directly by the Secretary of the Interior in states without 
approved programs.

[[Page 128]]

    Independent scientific body means a non-Federal technical or 
scientific organization involved in the study of land use planning, 
flood plain management, hydrology, geology, geography, or any other 
related field of study concerned with flooding.
    Insurance adjustment organization means any organization or person 
engaged in the business of adjusting loss claims arising under the 
Standard Flood Insurance Policy.
    Insurance company or insurer means any person or organization 
authorized to engage in the insurance business under the laws of any 
State.
    Levee means a man-made structure, usually an earthen embankment, 
designed and constructed in accordance with sound engineering practices 
to contain, control, or divert the flow of water so as to provide 
protection from temporary flooding.
    Levee System means a flood protection system which consists of a 
levee, or levees, and associated structures, such as closure and 
drainage devices, which are constructed and operated in accordance with 
sound engineering practices.
    Lowest Floor means the lowest floor of the lowest enclosed area 
(including basement). An unfinished or flood resistant enclosure, usable 
solely for parking of vehicles, building access or storage in an area 
other than a basement area is not considered a building's lowest floor; 
Provided, that such enclosure is not built so as to render the structure 
in violation of the applicable non-elevation design requirements of 
Sec. 60.3.
    Mangrove stand means an assemblage of mangrove trees which are 
mostly low trees noted for a copious development of interlacing 
adventitious roots above the ground and which contain one or more of the 
following species: Black mangrove (Avicennia Nitida); red mangrove 
(Rhizophora Mangle); white mangrove (Languncularia Racemosa); and 
buttonwood (Conocarpus Erecta).
    Manufactured home means a structure, transportable in one or more 
sections, which is built on a permanent chassis and is designed for use 
with or without a permanent foundation when attached to the required 
utilities. The term ``manufactured home'' does not include a 
``recreational vehicle''.
    Manufactured home park or subdivision'' means a parcel (or 
contiguous parcels) of land divided into two or more manufactured home 
lots for rent or sale.
    Map means the Flood Hazard Boundary Map (FHBM) or the Flood 
Insurance Rate Map (FIRM) for a community issued by the Agency.
    Mean sea level means, for purposes of the National Flood Insurance 
Program, the National Geodetic Vertical Datum (NGVD) of 1929 or other 
datum, to which base flood elevations shown on a community's Flood 
Insurance Rate Map are referenced.
    Mudslide (i.e., mudflow) describes a condition where there is a 
river, flow or inundation of liquid mud down a hillside usually as a 
result of a dual condition of loss of brush cover, and the subsequent 
accumulation of water on the ground preceded by a period of unusually 
heavy or sustained rain. A mudslide (i.e., mudflow) may occur as a 
distinct phenomenon while a landslide is in progress, and will be 
recognized as such by the Administrator only if the mudflow, and not the 
landslide, is the proximate cause of damage that occurs.
    Mudslide (i.e., mudflow) area management means the operation of an 
overall program of corrective and preventive measures for reducing 
mudslide (i.e., mudflow) damage, including but not limited to emergency 
preparedness plans, mudslide control works, and flood plain management 
regulations.
    Mudslide (i.e., mudflow) prone area means an area with land surfaces 
and slopes of unconsolidated material where the history, geology and 
climate indicate a potential for mudflow.
    New construction means, for the purposes of determining insurance 
rates, structures for which the ``start of construction'' commenced on 
or after the effective date of an initial FIRM or after December 31, 
1974, whichever is later, and includes any subsequent improvements to 
such structures. For floodplain management purposes, new construction 
means structures for which the start of construction commenced on or 
after the effective date of a floodplain management regulation adopted

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by a community and includes any subsequent improvements to such 
structures.
    New manufactured home park or subdivision means a manufactured home 
park or subdivision for which the construction of facilities for 
servicing the lots on which the manufactured homes are to be affixed 
(including at a minimum, the installation of utilities, the construction 
of streets, and either final site grading or the pouring of concrete 
pads) is completed on or after the effective date of floodplain 
management regulations adopted by a community.
    100-year flood see base flood.
    Participating community, also known as an eligible community, means 
a community in which the Administrator has authorized the sale of flood 
insurance.
    Person includes any individual or group of individuals, corporation, 
partnership, association, or any other entity, including State and local 
governments and agencies.
    Policy means the Standard Flood Insurance Policy.
    Premium means the total premium payable by the insured for the 
coverage or coverages provided under the policy. The calculation of the 
premium may be based upon either chargeable rates or risk premium rates, 
or a combination of both.
    Primary frontal dune means a continuous or nearly continuous mound 
or ridge of sand with relatively steep seaward and landward slopes 
immediately landward and adjacent to the beach and subject to erosion 
and overtopping from high tides and waves during major coastal storms. 
The inland limit of the primary frontal dune occurs at the point where 
there is a distinct change from a relatively steep slope to a relatively 
mild slope.
    Principally above ground means that at least 51 percent of the 
actual cash value of the structure, less land value, is above ground.
    Program means the National Flood Insurance Program authorized by 42 
U.S.C. 4001 through 4128.
    Program deficiency means a defect in a community's flood plain 
management regulations or administrative procedures that impairs 
effective implementation of those flood plain management regulations or 
of the standards in Sec. 60.3, Sec. 60.4, Sec. 60.5, or Sec. 60.6.
    Project cost means the total financial cost of a flood protection 
system (including design, land acquisition, construction, fees, 
overhead, and profits), unless the Federal Insurance Administrator 
determines a given ``cost'' not to be a part of such project cost.
    Recreational vehicle means a vehicle which is:
    (a) Built on a single chassis;
    (b) 400 square feet or less when measured at the largest horizontal 
projection;
    (c) Designed to be self-propelled or permanently towable by a light 
duty truck; and
    (d) Designed primarily not for use as a permanent dwelling but as 
temporary living quarters for recreational, camping, travel, or seasonal 
use.
    Reference feature is the receding edge of a bluff or eroding frontal 
dune, or if such a feature is not present, the normal high-water line or 
the seaward line of permanent vegetation if a high-water line cannot be 
identified.
    Regular Program means the Program authorized by the Act under which 
risk premium rates are required for the first half of available coverage 
(also known as ``first layer'' coverage) for all new construction and 
substantial improvements started on or after the effective date of the 
FIRM, or after December 31, 1974, for FIRM's effective on or before that 
date. All buildings, the construction of which started before the 
effective date of the FIRM, or before January 1, 1975, for FIRMs 
effective before that date, are eligible for first layer coverage at 
either subsidized rates or risk premium rates, whichever are lower. 
Regardless of date of construction, risk premium rates are always 
required for the second layer coverage and such coverage is offered only 
after the Administrator has completed a risk study for the community.
    Regulatory floodway means the channel of a river or other 
watercourse and the adjacent land areas that must be reserved in order 
to discharge the base flood without cumulatively increasing the water 
surface elevation more than a designated height.
    Remedy a violation means to bring the structure or other development 
into

[[Page 130]]

compliance with State or local flood plain management regulations, or, 
if this is not possible, to reduce the impacts of its noncompliance. 
Ways that impacts may be reduced include protecting the structure or 
other affected development from flood damages, implementing the 
enforcement provisions of the ordinance or otherwise deterring future 
similar violations, or reducing Federal financial exposure with regard 
to the structure or other development.
    Risk premium rates means those rates established by the Federal 
Insurance Administrator pursuant to individual community studies and 
investigations which are undertaken to provide flood insurance in 
accordance with section 1307 of the Act and the accepted actuarial 
principles. ``Risk premium rates'' include provisions for operating 
costs and allowances.
    Riverine means relating to, formed by, or resembling a river 
(including tributaries), stream, brook, etc.
    Sand dunes mean naturally occurring accumulations of sand in ridges 
or mounds landward of the beach.
    Scientifically incorrect. The methodology(ies) and/or assumptions 
which have been utilized are inappropriate for the physical processes 
being evaluated or are otherwise erroneous.
    Second layer coverage means an additional limit of coverage equal to 
the amounts made available under the Emergency Program, and made 
available under the Regular Program.
    Servicing company means a corporation, partnership, association, or 
any other organized entity which contracts with the Federal Insurance 
Administration to service insurance policies under the National Flood 
Insurance Program for a particular area.
    Sheet flow area--see area of shallow flooding.
    60-year setback means a distance equal to 60 times the average 
annual long term recession rate at a site, measured from the reference 
feature.
    Special flood hazard area--see ``area of special flood hazard''.
    Special hazard area means an area having special flood, mudslide 
(i.e., mudflow), or flood-related erosion hazards, and shown on an FHBM 
or FIRM as Zone A, AO, A1-30, AE, AR, AR/A1-30, AR/AE, AR/AO, AR/AH, AR/
A, A99, AH, VO, V1-30, VE, V, M, or E.
    Standard Flood Insurance Policy means the flood insurance policy 
issued by the Federal Insurance Administrator or an insurer pursuant to 
an arrangement with the Federal Insurance Administrator pursuant to 
Federal statutes and regulations.
    Start of Construction (for other than new construction or 
substantial improvements under the Coastal Barrier Resources Act (Pub. 
L. 97-348)), includes substantial improvement, and means the date the 
building permit was issued, provided the actual start of construction, 
repair, reconstruction, rehabilitation, addition placement, or other 
improvement was within 180 days of the permit date. The actual start 
means either the first placement of permanent construction of a 
structure on a site, such as the pouring of slab or footings, the 
installation of piles, the construction of columns, or any work beyond 
the stage of excavation; or the placement of a manufactured home on a 
foundation. Permanent construction does not include land preparation, 
such as clearing, grading and filling; nor does it include the 
installation of streets and/or walkways; nor does it include excavation 
for a basement, footings, piers, or foundations or the erection of 
temporary forms; nor does it include the installation on the property of 
accessory buildings, such as garages or sheds not occupied as dwelling 
units or not part of the main structure. For a substantial improvement, 
the actual start of construction means the first alteration of any wall, 
ceiling, floor, or other structural part of a building, whether or not 
that alteration affects the external dimensions of the building.
    State means any State of the United States, the District of 
Columbia, Puerto Rico, the Virgin Islands, Guam, American Samoa, and the 
Commonwealth of the Northern Mariana Islands.
    State Coordinating Agency means the agency of the state government 
(or other office designated by the Governor of the state or by state 
statute) that, at the request of the Federal Insurance

[[Page 131]]

Administrator, assists in the implementation of the National Flood 
Insurance Program in that state.
    Storm cellar means a space below grade used to accommodate occupants 
of the structure and emergency supplies as a means of temporary shelter 
against severe tornado or similar wind storm activity.
    Structure means, for floodplain management purposes, a walled and 
roofed building, including a gas or liquid storage tank, that is 
principally above ground, as well as a manufactured home. Structure, for 
insurance purposes, means:
    (1) A building with two or more outside rigid walls and a fully 
secured roof, that is affixed to a permanent site;
    (2) A manufactured home (``a manufactured home,'' also known as a 
mobile home, is a structure: built on a permanent chassis, transported 
to its site in one or more sections, and affixed to a permanent 
foundation); or
    (3) A travel trailer without wheels, built on a chassis and affixed 
to a permanent foundation, that is regulated under the community's 
floodplain management and building ordinances or laws.

For the latter purpose, ``structure'' does not mean a recreational 
vehicle or a park trailer or other similar vehicle, except as described 
in paragraph (3) of this definition, or a gas or liquid storage tank.
    Subsidized rates mean the rates established by the Federal Insurance 
Administrator involving in the aggregate a subsidization by the Federal 
Government.
    Substantial damage means damage of any origin sustained by a 
structure whereby the cost of restoring the structure to its before 
damaged condition would equal or exceed 50 percent of the market value 
of the structure before the damage occurred.
    Substantial improvement means any reconstruction, rehabilitation, 
addition, or other improvement of a structure, the cost of which equals 
or exceeds 50 percent of the market value of the structure before the 
``start of construction'' of the improvement. This term includes 
structures which have incurred ``substantial damage'', regardless of the 
actual repair work performed. The term does not, however, include 
either:
    (1) Any project for improvement of a structure to correct existing 
violations of state or local health, sanitary, or safety code 
specifications which have been identified by the local code enforcement 
official and which are the minimum necessary to assure safe living 
conditions or
    (2) Any alteration of a ``historic structure'', provided that the 
alteration will not preclude the structure's continued designation as a 
``historic structure''.
    30-year setback means a distance equal to 30 times the average 
annual long term recession rate at a site, measured from the reference 
feature.
    Technically incorrect. The methodology(ies) utilized has been 
erroneously applied due to mathematical or measurement error, changed 
physical conditions, or insufficient quantity or quality of input data.
    V Zone--see ``coastal high hazard area.''
    Variance means a grant of relief by a community from the terms of a 
flood plain management regulation.
    Violation means the failure of a structure or other development to 
be fully compliant with the community's flood plain management 
regulations. A structure or other development without the elevation 
certificate, other certifications, or other evidence of compliance 
required in Sec. 60.3(b)(5), (c)(4), (c)(10), (d)(3), (e)(2), (e)(4), or 
(e)(5) is presumed to be in violation until such time as that 
documentation is provided.
    Water surface elevation means the height, in relation to the 
National Geodetic Vertical Datum (NGVD) of 1929, (or other datum, where 
specified) of floods of various magnitudes and frequencies in the flood 
plains of coastal or riverine areas.
    Zone of imminent collapse means an area subject to erosion adjacent 
to the shoreline of an ocean, bay, or lake and within a distance equal 
to 10 feet plus 5 times the average annual long-term erosion rate for 
the site, measured from the reference feature.

[41 FR 46968, Oct. 26, 1976]

[[Page 132]]


    Editorial Note: For Federal Register citations affecting Sec. 59.1, 
see the List of CFR Sections Affected, which appears in the Finding Aids 
section of the printed volume and at www.fdsys.gov.



Sec. 59.2  Description of program.

    (a) The National Flood Insurance Act of 1968 was enacted by title 
XIII of the Housing and Urban Development Act of 1968 (Pub. L. 90-448, 
August 1, 1968) to provide previously unavailable flood insurance 
protection to property owners in flood-prone areas. Mudslide (as defined 
in Sec. 59.1) protection was added to the Program by the Housing and 
Urban Development Act of 1969 (Pub. L. 91-152, December 24, 1969). 
Flood-related erosion (as defined in Sec. 59.1) protection was added to 
the Program by the Flood Disaster Protection Act of 1973 (Pub. L. 93-
234, December 31, 1973). The Flood Disaster Protection Act of 1973 
requires the purchase of flood insurance on and after March 2, 1974, as 
a condition of receiving any form of Federal or federally-related 
financial assistance for acquisition or construction purposes with 
respect to insurable buildings and mobile homes within an identified 
special flood, mudslide (i.e., mudflow), or flood-related erosion hazard 
area that is located within any community participating in the Program. 
The Act also requires that on and after July 1, 1975, or one year after 
a community has been formally notified by the Federal Insurance 
Administrator. of its identification as community containing one or more 
special flood, mudslide (i.e., mudflow), or flood-related erosion hazard 
areas, no such Federal financial assistance, shall be provided within 
such an area unless the community in which the area is located is then 
participating in the Program, subject to certain exceptions. See FIA 
published Guidelines at Sec. 59.4(c).
    (b) To qualify for the sale of federally-subsidized flood insurance 
a community must adopt and submit to the Federal Insurance 
Administrator. as part of its application, flood plain management 
regulations, satisfying at a minimum the criteria set forth at part 60 
of this subchapter, designed to reduce or avoid future flood, mudslide 
(i.e., mudflow) or flood-related erosion damages. These regulations must 
include effective enforcement provisions.
    (c) Minimum requirements for adequate flood plain management 
regulations are set forth in Sec. 60.3 for flood-prone areas, in 
Sec. 60.4 for mudslide (i.e., mudflow) areas and in Sec. 60.5 for flood-
related erosion areas. Those applicable requirements and standards are 
based on the amount of technical information available to the community.

[41 FR 46968, Oct. 26, 1976, as amended at 43 FR 7140, Feb. 17, 1978. 
Redesignated at 44 FR 31177, May 31, 1979, and amended at 48 FR 44552, 
Sept. 29, 1983; 49 FR 4751, Feb. 8, 1984]



Sec. 59.3  Emergency program.

    The 1968 Act required a risk study to be undertaken for each 
community before it could become eligible for the sale of flood 
insurance. Since this requirement resulted in a delay in providing 
insurance, the Congress, in section 408 of the Housing and Urban 
Development Act of 1969 (Pub. L. 91-152, December 24, 1969), established 
an Emergency Flood Insurance Program as a new section 1336 of the 
National Flood Insurance Act (42 U.S.C. 4056) to permit the early sale 
of insurance in flood-prone communities. The emergency program does not 
affect the requirement that a community must adopt adequate flood plain 
management regulations pursuant to part 60 of this subchapter but 
permits insurance to be sold before a study is conducted to determine 
risk premium rates for the community. The program still requires upon 
the effective date of a FIRM the charging of risk premium rates for all 
new construction and substantial improvements and for higher limits of 
coverage for existing structures.

[43 FR 7140, Feb. 17, 1978. Redesignated at 44 FR 31177, May 31, 1979, 
and amended at 48 FR 44543, Sept. 29, 1983]



Sec. 59.4  References.

    (a) The following are statutory references for the National Flood 
Insurance Program, under which these regulations are issued:
    (1) National Flood Insurance Act of 1968 (title XIII of the Housing 
and Urban Development Act of 1968), Pub. L. 90-448, approved August 1, 
1968, 42 U.S.C. 4001 et seq.

[[Page 133]]

    (2) Housing and Urban Development Act of 1969 (Pub. L. 91-152, 
approved December 24, 1969).
    (3) Flood Disaster Protection Act of 1973 (87 Stat. 980), Public Law 
93-234, approved December 31, 1973.
    (4) Section 816 of the Housing and Community Development Act of 1974 
(87 Stat. 975), Public Law 93-383, approved August 22, 1974.
    (5) Public Law 5-128 (effective October 12, 1977).
    (6) The above statutes are included in 42 U.S.C. 4001 et seq.
    (b) The following are references relevant to the National Flood 
Insurance Program:
    (1) Executive Order 11988 (Floodplain Management, dated May 24, 1977 
(42 FR 26951, May 25, 1977)).
    (2) The Flood Control Act of 1960 (Pub. L. 86-645).
    (3) Title II, section 314 of title III and section 406 of title IV 
of the Disaster Relief Act of 1974 (Pub. L. 93-288).
    (4) Coastal Zone Management Act (Pub. L. 92-583), as amended Public 
Law 94-370.
    (5) Water Resources Planning Act (Pub. L. 89-90), as amended Public 
Law 94-112 (October 16, 1975).
    (6) Title I, National Environmental Policy Act (Pub. L. 91-190).
    (7) Land and Water Conservation Fund Act (Pub. L. 89-578), and 
subsequent amendments thereto.
    (8) Water Resources Council, Principals and Standards for Planning, 
Water and Related Land Resources (38 FR 24778-24869, September 10, 
1973).
    (9) Executive Order 11593 (Protection and Enchancement of the 
Cultural Environment), dated May 13, 1971 (36 FR 8921, May 15, 1971).
    (10) 89th Cong., 2nd Session, H.D. 465.
    (11) Required land use element for comprehensive planning assistance 
under section 701 of the Housing Act of 1954, as amended by the Housing 
and Community Development Act of 1974 (24 CFR 600.72).
    (12) Executive Order 11990 (Protection of Wetlands, dated May 24, 
1977 (42 FR 26951, May 25, 1977)).
    (13) Water Resources Council (Guidance for Floodplain Management) 
(42 FR 52590, September 30, 1977).
    (14) Unified National Program for Floodplain Management of the 
United States Water Resources Council, July 1976.
    (c) The following reference guidelines represent the views of the 
Federal Insurance Administration with respect to the mandatory purchase 
of flood insurance under section 102 of the Flood Disaster Protection 
Act of 1973: Mandatory Purchase of Flood Insurance Guidelines (54 FR 
29666-29695, July 13, 1989).

[41 FR 46968, Oct. 26, 1976, as amended at 43 FR 7140, Feb. 17, 1978. 
Redesignated at 44 FR 31177, May 31, 1979, and amended at 57 FR 19540, 
May 7, 1992]



                   Subpart B_Eligibility Requirements



Sec. 59.21  Purpose of subpart.

    This subpart lists actions that must be taken by a community to 
become eligible and to remain eligible for the Program.

[41 FR 46968, Oct. 26, 1976. Redesignated at 44 FR 31177, May 31, 1979]



Sec. 59.22  Prerequisites for the sale of flood insurance.

    (a) To qualify for flood insurance availability a community shall 
apply for the entire area within its jurisdiction, and shall submit:
    (1) Copies of legislative and executive actions indicating a local 
need for flood insurance and an explicit desire to participate in the 
National Flood Insurance Program;
    (2) Citations to State and local statutes and ordinances authorizing 
actions regulating land use and copies of the local laws and regulations 
cited;
    (3) A copy of the flood plain management regulations the community 
has adopted to meet the requirements of Secs. 60.3, 60.4 and/or 
Sec. 60.5 of this subchapter. This submission shall include copies of 
any zoning, building, and subdivision regulations, health codes, special 
purpose ordinances (such as a flood plain ordinance, grading ordinance, 
or flood-related erosion control ordinance), and any other corrective 
and preventive measures enacted to reduce or prevent flood, mudslide 
(i.e., mudflow) or flood-related erosion damage;
    (4) A list of the incorporated communities within the applicant's 
boundaries;

[[Page 134]]

    (5) Estimates relating to the community as a whole and to the flood, 
mudslide (i.e., mudflow) and flood-related erosion prone areas 
concerning:
    (i) Population;
    (ii) Number of one to four family residences;
    (iii) Number of small businesses; and
    (iv) Number of all other structures.
    (6) Address of a local repository, such as a municipal building, 
where the Flood Hazard Boundary Maps (FHBM's) and Flood Insurance Rate 
Maps (FIRM's) will be made available for public inspection;
    (7) A summary of any State or Federal activities with respect to 
flood plain, mudslide (i.e., mudflow) or flood-related erosion area 
management within the community, such as federally-funded flood control 
projects and State-administered flood plain management regulations;
    (8) A commitment to recognize and duly evaluate flood, mudslide 
(i.e., mudflow) and/or flood-related erosion hazards in all official 
actions in the areas having special flood, mudslide (i.e., mudflow) and/
or flood-related erosion hazards and to take such other official action 
reasonably necessary to carry out the objectives of the program; and
    (9) A commitment to:
    (i) Assist the Federal Insurance Administrator at his/her request, 
in his/her delineation of the limits of the areas having special flood, 
mudslide (i.e., mudflow) or flood-related erosion hazards;
    (ii) Provide such information concerning present uses and occupancy 
of the flood plain, mudslide (i.e., mudflow) or flood-related erosion 
areas as the Federal Insurance Administrator may request;
    (iii) Maintain for public inspection and furnish upon request, for 
the determination of applicable flood insurance risk premium rates 
within all areas having special flood hazards identified on a FHBM or 
FIRM, any certificates of floodproofing, and information on the 
elevation (in relation to mean sea level) of the level of the lowest 
floor (including basement) of all new or substantially improved 
structures, and include whether or not such structures contain a 
basement, and if the structure has been floodproofed, the elevation (in 
relation to mean sea level) to which the structure was floodproofed;
    (iv) Cooperate with Federal, State, and local agencies and private 
firms which undertake to study, survey, map, and identify flood plain, 
mudslide (i.e., mudflow) or flood-related erosion areas, and cooperate 
with neighboring communities with respect to the management of adjoining 
flood plain, mudslide (i.e., mudflow) and/or flood-related erosion areas 
in order to prevent aggravation of existing hazards;
    (v) Upon occurrence, notify the Federal Insurance Administrator in 
writing whenever the boundaries of the community have been modified by 
annexation or the community has otherwise assumed or no longer has 
authority to adopt and enforce flood plain management regulations for a 
particular area. In order that all FHBM's and FIRM's accurately 
represent the community's boundaries, include within such notification a 
copy of a map of the community suitable for reproduction, clearly 
delineating the new corporate limits or new area for which the community 
has assumed or relinquished flood plain management regulatory authority.
    (b) An applicant shall legislatively:
    (1) Appoint or designate the agency or official with the 
responsibility, authority, and means to implement the commitments made 
in paragraph (a) of this section, and
    (2) Designate the official responsible to submit a report to the 
Federal Insurance Administrator concerning the community participation 
in the Program, including, but not limited to the development and 
implementation of flood plain management regulations. This report shall 
be submitted annually or biennially as determined by the Federal 
Insurance Administrator.
    (c) The documents required by paragraph (a) of this section and 
evidence of the actions required by paragraph (b) of this section shall 
be submitted to

[[Page 135]]

the Federal Emergency Management Agency, Washington DC 20472.

[41 FR 46968, Oct. 26, 1976. Redesignated at 44 FR 31177, May 31, 1979 
and amended at 48 FR 29318, June 24, 1983; 48 FR 44543 and 44552, Sept. 
29, 1983; 49 FR 4751, Feb. 8, 1984; 49 FR 33656, Aug. 24, 1984; 50 FR 
36023, Sept. 4, 1985]



Sec. 59.23  Priorities for the sale of flood insurance under the 
regular program.

    Flood-prone, mudslide (i.e., mudflow) and flood-related erosion 
prone communities are placed on a register of areas eligible for 
ratemaking studies and then selected from this register for ratemaking 
studies on the basis of the following considerations--
    (a) Recommendations of State officials;
    (b) Location of community and urgency of need for flood insurance;
    (c) Population of community and intensity of existing or proposed 
development of the flood plain, the mudslide (i.e., mudflow) and the 
flood-related erosion area;
    (d) Availability of information on the community with respect to its 
flood, mudslide (i.e., mudflow) and flood-related erosion 
characteristics and previous losses;
    (e) Extent of State and local progress in flood plain, mudslide 
(i.e., mudflow) area and flood-related erosion area management, 
including adoption of flood plain management regulations consistent with 
related ongoing programs in the area.

[41 FR 46968, Oct. 26, 1976. Redesignated at 44 FR 31177, May 31, 1979]



Sec. 59.24  Suspension of community eligibility.

    (a) A community eligible for the sale of flood insurance shall be 
subject to suspension from the Program for failing to submit copies of 
adequate flood plain management regulations meeting the minimum 
requirements of paragraphs (b), (c), (d), (e) or (f) of Sec. 60.3 or 
paragraph (b) of Secs. 60.4 or 60.5, within six months from the date the 
Federal Insurance Administrator provides the data upon which the flood 
plain regulations for the applicable paragraph shall be based. Where 
there has not been any submission by the community, the Federal 
Insurance Administrator shall notify the community that 90 days remain 
in the six month period in order to submit adequate flood plain 
management regulations. Where there has been an inadequate submission, 
the Federal Insurance Administrator shall notify the community of the 
specific deficiencies in its submitted flood plain management 
regulations and inform the community of the amount of time remaining 
within the six month period. If, subsequently, copies of adequate flood 
plain management regulations are not received by the Administrator, no 
later than 30 days before the expiration of the original six month 
period the Federal Insurance Administrator shall provide written notice 
to the community and to the state and assure publication in the Federal 
Register under part 64 of this subchapter of the community's loss of 
eligibility for the sale of flood insurance, such suspension to become 
effective upon the expiration of the six month period. Should the 
community remedy the defect and the Federal Insurance Administrator 
receive copies of adequate flood plain management regulations within the 
notice period, the suspension notice shall be rescinded by the Federal 
Insurance Administrator. If the Federal Insurance Administrator receives 
notice from the State that it has enacted adequate flood plain 
management regulations for the community within the notice period, the 
suspension notice shall be rescinded by the Federal Insurance 
Administrator. The community's eligibility shall remain terminated after 
suspension until copies of adequate flood plain management regulations 
have been received and approved by the Federal Insurance Administrator.
    (b) A community eligible for the sale of flood insurance which fails 
to adequately enforce flood plain management regulations meeting the 
minimum requirements set forth in Secs. 60.3, 60.4 and/or 60.5 shall be 
subject to probation. Probation shall represent formal notification to 
the community that the Federal Insurance Administrator regards the 
community's flood plain management program as not compliant with NFIP 
criteria. Prior to imposing probation, the Federal Insurance 
Administrator (1) shall inform the community upon 90 days prior written

[[Page 136]]

notice of the impending probation and of the specific program 
deficiencies and violations relative to the failure to enforce, (2) 
shall, at least 60 days before probation is to begin, issue a press 
release to local media explaining the reasons for and the effects of 
probation, and (3) shall, at least 90 days before probation is to begin, 
advise all policyholders in the community of the impending probation and 
the additional premium that will be charged, as provided in this 
paragraph, on policies sold or renewed during the period of probation. 
During this 90-day period the community shall have the opportunity to 
avoid probation by demonstrating compliance with Program requirements, 
or by correcting Program deficiencies and remedying all violations to 
the maximum extent possible. If, at the end of the 90-day period, the 
Federal Insurance Administrator determines that the community has failed 
to do so, the probation shall go into effect. Probation may be continued 
for up to one year after the community corrects all Program deficiencies 
and remedies all violations to the maximum extent possible. Flood 
insurance may be sold or renewed in the community while it is on 
probation. Where a policy covers property located in a community placed 
on probation on or after October 1, 1986, but prior to October 1, 1992, 
an additional premium of $25.00 shall be charged on each such policy 
newly issued or renewed during the one-year period beginning on the date 
the community is placed on probation and during any successive one-year 
periods that begin prior to October 1, 1992. Where a community's 
probation begins on or after October 1, 1992, the additional premium 
described in the preceding sentence shall be $50.00, which shall also be 
charged during any successive one-year periods during which the 
community remains on probation for any part thereof. This $50.00 
additional premium shall further be charged during any successive one-
year periods that begin on or after October 1, 1992, where the preceding 
one-year probation period began prior to October 1, 1992.
    (c) A community eligible for the sale of flood insurance which fails 
to adequately enforce its flood plain management regulations meeting the 
minimum requirements set forth in Secs. 60.3, 60.4 and/or 60.5 and does 
not correct its Program deficiencies and remedy all violations to the 
maximum extent possible in accordance with compliance deadlines 
established during a period of probation shall be subject to suspension 
of its Program eligibility. Under such circumstances, the Federal 
Insurance Administrator shall grant the community 30 days in which to 
show cause why it should not be suspended. The Federal Insurance 
Administrator may conduct a hearing, written or oral, before commencing 
suspensive action. If a community is to be suspended, the Federal 
Insurance Administrator shall inform it upon 30 days prior written 
notice and upon publication in the Federal Register under part 64 of 
this subchapter of its loss of eligibility for the sale of flood 
insurance. In the event of impending suspension, the Federal Insurance 
Administrator shall issue a press release to the local media explaining 
the reasons and effects of the suspension. The community's eligibility 
shall only be reinstated by the Federal Insurance Administrator upon his 
receipt of a local legislative or executive measure reaffirming the 
community's formal intent to adequately enforce the flood plain 
management requirements of this subpart, together with evidence of 
action taken by the community to correct Program deficiencies and remedy 
to the maximum extent possible those violations which caused the 
suspension. In certain cases, the Federal Insurance Administrator, in 
order to evaluate the community's performance under the terms of its 
submission, may withhold reinstatement for a period not to exceed one 
year from the date of his receipt of the satisfactory submission or 
place the community on probation as provided for in paragraph (b) of 
this section.
    (d) A community eligible for the sale of flood insurance which 
repeals its flood plain management regulations, allows its regulations 
to lapse, or amends its regulations so that they no longer meet the 
minimum requirements set forth in Secs. 60.3, 60.4 and/or

[[Page 137]]

60.5 shall be suspended from the Program. If a community is to be 
suspended, the Federal Insurance Administrator shall inform it upon 30 
days prior written notice and upon publication in the Federal Register 
under part 64 of this subchapter of its loss of eligibility for the sale 
of flood insurance. The community eligibility shall remain terminated 
after suspension until copies of adequate flood plain management 
regulations have been received and approved by the Federal Insurance 
Administrator.
    (e) A community eligible for the sale of flood insurance may 
withdraw from the Program by submitting to theFederal Insurance 
Administrator a copy of a legislative action that explicitly states its 
desire to withdraw from the National Flood Insurance Program. Upon 
receipt of a certified copy of a final legislative action, the Federal 
Insurance Administrator shall withdraw the community from the Program 
and publish in the Federal Register under part 64 of this subchapter its 
loss of eligibility for the sale of flood insurance. A community that 
has withdrawn from the Program may be reinstated if its submits the 
application materials specified in Sec. 59.22(a).
    (f) If during a period of ineligibility under paragraphs (a), (d), 
or (e) of this section, a community has permitted actions to take place 
that have aggravated existing flood plain, mudslide (i.e., mudflow) and/
or flood related erosion hazards, the Federal Insurance Administrator 
may withhold reinstatement until the community submits evidence that it 
has taken action to remedy to the maximum extent possible the increased 
hazards. The Administrator may also place the reinstated community on 
probation as provided for in paragraph (b) of this section.
    (g) The Federal Insurance Administrator shall promptly notify the 
servicing company and any insurers issuing flood insurance pursuant to 
an arrangement with the Federal Insurance Administrator of those 
communities whose eligibility has been suspended or which have withdrawn 
from the program. Flood insurance shall not be sold or renewed in those 
communities. Policies sold or renewed within a community during a period 
of ineligibility are deemed to be voidable by the Federal Insurance 
Administrator whether or not the parties to sale or renewal had actual 
notice of the ineligibility.

[41 FR 46968, Oct. 26, 1976. Redesignated at 44 FR 31177, May 31, 1979, 
and amended at 48 FR 44543 and 44552, Sept. 29, 1983; 49 FR 4751, Feb. 
8, 1984; 50 FR 36023, Sept. 4, 1985; 57 FR 19540, May 7, 1992; 59 FR 
53598, Oct. 25, 1994; 62 FR 55715, Oct. 27, 1997]



                   Subpart C_Pilot Inspection Program



Sec. 59.30  A pilot inspection procedure.

    (a) Purpose. This section sets forth the criteria for implementing a 
pilot inspection procedure in Monroe County and the Village of 
Islamorada, Florida. Areas within Monroe County that become communities 
by incorporating on or after January 1, 1999, are required to implement 
the pilot inspection procedure as a condition of participating in the 
NIP. The criteria will also be used to implement the pilot inspection 
procedure in these communities. The purpose of this inspection procedure 
is to provide the communities participating in the pilot inspection 
procedure with an additional means to identify whether structures built 
in Special Flood Hazard Areas (SFHAs) after the effective date of the 
initial Flood Insurance Rate Map (FIRM) comply with the community's 
floodplain management regulations. The pilot inspection procedure will 
also assist FEMA in verifying that structures insured under the National 
Flood Insurance Program's Standard Flood Insurance Policy are properly 
rated. FEMA will publish notices in the Federal Register when 
communities in Monroe County incorporate, agree to implement the pilot 
inspection procedure, and become eligible for the sale of flood 
insurance.
    (b) Procedures and requirements for implementation. Each community 
must establish procedures and requirements for implementing the pilot 
inspection procedure consistent with the criteria established in this 
section.
    (c) Inspection procedure--(1) Starting and termination dates. The 
Federal Insurance Administrator will establish the starting date and the 
termination

[[Page 138]]

date for implementing the pilot inspection procedure upon the 
recommendation of the Regional Administrator. The Regional Director will 
consult with each community.
    (2) Extension. TheFederal Insurance Administrator may extend the 
implementation of the inspection procedure with a new termination date 
upon the recommendation of the Regional Administrator. The Regional 
Administrator will consult with the community. An extension will be 
granted based on good cause.
    (3) Notices. Before the starting date of the inspection procedure, 
each community must publish a notice in a prominent local newspaper and 
publish other notices as appropriate. The Federal Insurance 
Administrator will publish a notice in the Federal Register that the 
community will undertake an inspection procedure. Published notices will 
include the purpose for implementing the inspection procedure and the 
effective period of time that the inspection procedure will cover.
    (4) Community reviews. The communities participating in the pilot 
inspection procedure must review a list of all pre-FIRM and post-FIRM 
flood insurance policies in SFHAs to confirm that the start of 
construction or substantial improvement of insured pre-FIRM buildings 
occurred on or before December 31, 1974, and to identify possible 
violations of insured post-FIRM buildings. The community will provide to 
FEMA a list of insured buildings incorrectly rated as pre-FIRM and a 
list of insured post-FIRM buildings that the community identifies as 
possible violations.
    (5) SFIP endorsement. In the communities that undertake the pilot 
inspection procedure, all new and renewed flood insurance policies that 
become effective on and after the date that we and the community 
establish for the start of the inspection procedure will contain an 
endorsement to the Standard Flood Insurance Policy that an inspection 
may be necessary before a subsequent policy renewal [see Part 61, 
Appendices A(4), (5), and (6)].
    (6) Notice from insurer. For a building identified as a possible 
violation under paragraph (c)(4) of this section, the insurer will send 
a notice to the policyholder that an inspection is necessary in order to 
renew the policy and that the policyholder must submit a community 
inspection report as part of the policy renewal process, which includes 
the payment of the premium. The insurer will send this notice about 6 
months before the Standard Flood Insurance Policy expires.
    (7) Conditions for renewal. If a policyholder receives a notice 
under paragraph (c)(6) of this section that an inspection is necessary 
in order to renew the Standard Flood Insurance Policy the following 
conditions apply:
    (i) If the policyholder obtains an inspection from the community and 
the policyholder sends the community inspection report to the insurer as 
part of the renewal process, which includes the payment of the premium, 
the insurer will renew the policy and will verify the flood insurance 
rate, or
    (ii) If the policyholder does not obtain and submit a community 
inspection report the insurer will not renew the policy.
    (8) Community responsibilities. For insured post-FIRM buildings that 
the community inspects and determines to violate the community's 
floodplain management regulations, the community must demonstrate to 
FEMA that the community is undertaking measures to remedy the violation 
to the maximum extent possible. Nothing in this section modifies the 
community's responsibility under the NFIP to enforce floodplain 
management regulations adequately that meet the minimum requirements in 
Sec. 60.3 for all new construction and substantial improvements within 
the community's SFHAs. The community's responsibility also includes the 
insured buildings where the policyholder did not obtain an inspection 
report, and non-insured buildings that this procedure does not cover.
    (d) Restoration of flood insurance coverage. Insurers will not 
provide new flood insurance on any building if a property owner does not 
obtain a community inspection report or if the property owner obtains a 
community inspection report but does not submit the report with the 
renewal premium payment. Flood insurance policies sold on a building 
ineligible in accordance with paragraph (c)(6)(ii) of this section

[[Page 139]]

are void under the Standard Flood Insurance Policy inspection 
endorsements [44 CFR part 61, Appendices (A)(4), (A)(5), and (A)(6)]. 
When the property owner applies for a flood insurance policy and submits 
a completed community inspection report by the community with an 
application and renewal premium payment, the insurer will issue a flood 
insurance policy.

[65 FR 39748, June 27, 2000, as amended at 67 FR 10633, Mar. 8, 2002; 74 
FR 15339, Apr. 3, 2009]



PART 60_CRITERIA FOR LAND MANAGEMENT AND USE--Table of Contents



      Subpart A_Requirements for Flood Plain Management Regulations

Sec.
60.1  Purpose of subpart.
60.2  Minimum compliance with flood plain management criteria.
60.3  Flood plain management criteria for flood-prone areas.
60.4  Flood plain management criteria for mudslide (i.e., mudflow)-prone 
          areas.
60.5  Flood plain management criteria for flood-related erosion-prone 
          areas.
60.6  Variances and exceptions.
60.7  Revisions of criteria for flood plain management regulations.
60.8  Definitions.

   Subpart B_Requirements for State Flood Plain Management Regulations

60.11  Purpose of this subpart.
60.12  Flood plain management criteria for State-owned properties in 
          special hazard areas.
60.13  Noncompliance.

 Subpart C_Additional Considerations in Managing Flood-Prone, Mudslide 
      (i.e., Mudflow)-Prone, and Flood-Related Erosion-Prone Areas

60.21  Purpose of this subpart.
60.22  Planning considerations for flood-prone areas.
60.23  Planning considerations for mudslide (i.e., mudflow)-prone areas.
60.24  Planning considerations for flood-related erosion-prone areas.
60.25  Designation, duties, and responsibilities of State Coordinating 
          Agencies.
60.26  Local coordination.

    Authority: 42 U.S.C. 4001 et seq.; Reorganization Plan No. 3 of 
1978, 43 FR 41943, 3 CFR, 1978 Comp., p. 329; E.O. 12127 of Mar. 31, 
1979, 44 FR 19367, 3 CFR, 1979 Comp., p. 376.

    Source: 41 FR 46975, Oct. 26, 1976, unless otherwise noted. 
Redesignated at 44 FR 31177, May 31, 1979.



      Subpart A_Requirements for Flood Plain Management Regulations



Sec. 60.1  Purpose of subpart.

    (a) The Act provides that flood insurance shall not be sold or 
renewed under the program within a community, unless the community has 
adopted adequate flood plain management regulations consistent with 
Federal criteria. Responsibility for establishing such criteria is 
delegated to the Federal Insurance Administrator.
    (b) This subpart sets forth the criteria developed in accordance 
with the Act by which the Federal Insurance Administrator will determine 
the adequacy of a community's flood plain management regulations. These 
regulations must be legally-enforceable, applied uniformly throughout 
the community to all privately and publicly owned land within flood-
prone, mudslide (i.e., mudflow) or flood-related erosion areas, and the 
community must provide that the regulations take precedence over any 
less restrictive conflicting local laws, ordinances or codes. Except as 
otherwise provided in Sec. 60.6, the adequacy of such regulations shall 
be determined on the basis of the standards set forth in Sec. 60.3 for 
flood-prone areas, Sec. 60.4 for mudslide areas and Sec. 60.5 for flood-
related erosion areas.
    (c) Nothing in this subpart shall be construed as modifying or 
replacing the general requirement that all eligible communities must 
take into account flood, mudslide (i.e., mudflow) and flood-related 
erosion hazards, to the extent that they are known, in all official 
actions relating to land management and use.
    (d) The criteria set forth in this subpart are minimum standards for 
the adoption of flood plain management regulations by flood-prone, 
mudslide (i.e., mudflow)-prone and flood-related erosion-prone 
communities. Any community may exceed the minimum criteria under this 
part by adopting more

[[Page 140]]

comprehensive flood plain management regulations utilizing the standards 
such as contained in subpart C of this part. In some instances, 
community officials may have access to information or knowledge of 
conditions that require, particularly for human safety, higher standards 
than the minimum criteria set forth in subpart A of this part. 
Therefore, any flood plain management regulations adopted by a State or 
a community which are more restrictive than the criteria set forth in 
this part are encouraged and shall take precedence.

[41 FR 46975, Oct. 26, 1976. Redesignated at 44 FR 31177, May 31, 1979, 
as amended at 48 FR 44552, Sept. 29, 1983; 49 FR 4751, Feb. 8, 1984]



Sec. 60.2  Minimum compliance with flood plain management criteria.

    (a) A flood-prone community applying for flood insurance eligibility 
shall meet the standards of Sec. 60.3(a) in order to become eligible if 
a FHBM has not been issued for the community at the time of application. 
Thereafter, the community will be given a period of six months from the 
date the Federal Insurance Administrator provides the data set forth in 
Sec. 60.3 (b), (c), (d), (e) or (f), in which to meet the requirements 
of the applicable paragraph. If a community has received a FHBM, but has 
not yet applied for Program eligibility, the community shall apply for 
eligibility directly under the standards set forth in Sec. 60.3(b). 
Thereafter, the community will be given a period of six months from the 
date the Federal Insurance Administrator provides the data set forth in 
Sec. 60.3 (c), (d), (e) or (f) in which to meet the requirements of the 
applicable paragraph.
    (b) A mudslide (i.e., mudflow)-prone community applying for flood 
insurance eligibility shall meet the standards of Sec. 60.4(a) to become 
eligible. Thereafter, the community will be given a period of six months 
from the date the mudslide (i.e., mudflow) areas having special mudslide 
hazards are delineated in which to meet the requirements of 
Sec. 60.4(b).
    (c) A flood-related erosion-prone community applying for flood 
insurance eligibility shall meet the standards of Sec. 60.5(a) to become 
eligible. Thereafter, the community will be given a period of six months 
from the date the flood-related erosion areas having special erosion 
hazards are delineated in which to meet the requirements of 
Sec. 60.5(b).
    (d) Communities identified in part 65 of this subchapter as 
containing more than one type of hazard (e.g., any combination of 
special flood, mudslide (i.e., mudflow), and flood-related erosion 
hazard areas) shall adopt flood plain management regulations for each 
type of hazard consistent with the requirements of Secs. 60.3, 60.4 and 
60.5.
    (e) Local flood plain management regulations may be submitted to the 
State Coordinating Agency designated pursuant to Sec. 60.25 for its 
advice and concurrence. The submission to the State shall clearly 
describe proposed enforcement procedures.
    (f) The community official responsible for submitting annual or 
biennial reports to the Federal Insurance Administrator pursuant to 
Sec. 59.22(b)(2) of this subchapter shall also submit copies of each 
annual or biennial report to any State Coordinating Agency.
    (g) A community shall assure that its comprehensive plan is 
consistent with the flood plain management objectives of this part.
    (h) The community shall adopt and enforce flood plain management 
regulations based on data provided by the Federal Insurance 
Administrator. Without prior approval of the Federal Insurance 
Administrator, the community shall not adopt and enforce flood plain 
management regulations based upon modified data reflecting natural or 
man-made physical changes.

[41 FR 46975, Oct. 26, 1976. Redesignated at 44 FR 31177, May 31, 1979, 
as amended at 48 FR 29318, June 24, 1983; 48 FR 44552, Sept. 29, 1983; 
49 FR 4751, Feb. 8, 1984; 50 FR 36024, Sept. 4, 1985; 59 FR 53598, Oct. 
25, 1994; 62 FR 55716, Oct. 27, 1997]



Sec. 60.3  Flood plain management criteria for flood-prone areas.

    The Federal Insurance Administrator will provide the data upon which 
flood plain management regulations shall be based. If the Federal 
Insurance Administrator has not provided sufficient data to furnish a 
basis for these regulations in a particular community, the community 
shall obtain, review and

[[Page 141]]

reasonably utilize data available from other Federal, State or other 
sources pending receipt of data from the Federal Insurance 
Administrator. However, when special flood hazard area designations and 
water surface elevations have been furnished by the Federal Insurance 
Administrator, they shall apply. The symbols defining such special flood 
hazard designations are set forth in Sec. 64.3 of this subchapter. In 
all cases the minimum requirements governing the adequacy of the flood 
plain management regulations for flood-prone areas adopted by a 
particular community depend on the amount of technical data formally 
provided to the community by the Federal Insurance Administrator. 
Minimum standards for communities are as follows:
    (a) When the Federal Insurance Administrator has not defined the 
special flood hazard areas within a community, has not provided water 
surface elevation data, and has not provided sufficient data to identify 
the floodway or coastal high hazard area, but the community has 
indicated the presence of such hazards by submitting an application to 
participate in the Program, the community shall:
    (1) Require permits for all proposed construction or other 
development in the community, including the placement of manufactured 
homes, so that it may determine whether such construction or other 
development is proposed within flood-prone areas;
    (2) Review proposed development to assure that all necessary permits 
have been received from those governmental agencies from which approval 
is required by Federal or State law, including section 404 of the 
Federal Water Pollution Control Act Amendments of 1972, 33 U.S.C. 1334;
    (3) Review all permit applications to determine whether proposed 
building sites will be reasonably safe from flooding. If a proposed 
building site is in a flood-prone area, all new construction and 
substantial improvements shall (i) be designed (or modified) and 
adequately anchored to prevent flotation, collapse, or lateral movement 
of the structure resulting from hydrodynamic and hydrostatic loads, 
including the effects of buoyancy, (ii) be constructed with materials 
resistant to flood damage, (iii) be constructed by methods and practices 
that minimize flood damages, and (iv) be constructed with electrical, 
heating, ventilation, plumbing, and air conditioning equipment and other 
service facilities that are designed and/or located so as to prevent 
water from entering or accumulating within the components during 
conditions of flooding.
    (4) Review subdivision proposals and other proposed new development, 
including manufactured home parks or subdivisions, to determine whether 
such proposals will be reasonably safe from flooding. If a subdivision 
proposal or other proposed new development is in a flood-prone area, any 
such proposals shall be reviewed to assure that (i) all such proposals 
are consistent with the need to minimize flood damage within the flood-
prone area, (ii) all public utilities and facilities, such as sewer, 
gas, electrical, and water systems are located and constructed to 
minimize or eliminate flood damage, and (iii) adequate drainage is 
provided to reduce exposure to flood hazards;
    (5) Require within flood-prone areas new and replacement water 
supply systems to be designed to minimize or eliminate infiltration of 
flood waters into the systems; and
    (6) Require within flood-prone areas (i) new and replacement 
sanitary sewage systems to be designed to minimize or eliminate 
infiltration of flood waters into the systems and discharges from the 
systems into flood waters and (ii) onsite waste disposal systems to be 
located to avoid impairment to them or contamination from them during 
flooding.
    (b) When the Federal Insurance Administrator has designated areas of 
special flood hazards (A zones) by the publication of a community's FHBM 
or FIRM, but has neither produced water surface elevation data nor 
identified a floodway or coastal high hazard area, the community shall:
    (1) Require permits for all proposed construction and other 
developments including the placement of manufactured homes, within Zone 
A on the community's FHBM or FIRM;
    (2) Require the application of the standards in paragraphs (a) (2), 
(3), (4),

[[Page 142]]

(5) and (6) of this section to development within Zone A on the 
community's FHBM or FIRM;
    (3) Require that all new subdivision proposals and other proposed 
developments (including proposals for manufactured home parks and 
subdivisions) greater than 50 lots or 5 acres, whichever is the lesser, 
include within such proposals base flood elevation data;
    (4) Obtain, review and reasonably utilize any base flood elevation 
and floodway data available from a Federal, State, or other source, 
including data developed pursuant to paragraph (b)(3) of this section, 
as criteria for requiring that new construction, substantial 
improvements, or other development in Zone A on the community's FHBM or 
FIRM meet the standards in paragraphs (c)(2), (c)(3), (c)(5), (c)(6), 
(c)(12), (c)(14), (d)(2) and (d)(3) of this section;
    (5) Where base flood elevation data are utilized, within Zone A on 
the community's FHBM or FIRM:
    (i) Obtain the elevation (in relation to mean sea level) of the 
lowest floor (including basement) of all new and substantially improved 
structures, and
    (ii) Obtain, if the structure has been floodproofed in accordance 
with paragraph (c)(3)(ii) of this section, the elevation (in relation to 
mean sea level) to which the structure was floodproofed, and
    (iii) Maintain a record of all such information with the official 
designated by the community under Sec. 59.22 (a)(9)(iii);
    (6) Notify, in riverine situations, adjacent communities and the 
State Coordinating Office prior to any alteration or relocation of a 
watercourse, and submit copies of such notifications to the Federal 
Insurance Administrator;
    (7) Assure that the flood carrying capacity within the altered or 
relocated portion of any watercourse is maintained;
    (8) Require that all manufactured homes to be placed within Zone A 
on a community's FHBM or FIRM shall be installed using methods and 
practices which minimize flood damage. For the purposes of this 
requirement, manufactured homes must be elevated and anchored to resist 
flotation, collapse, or lateral movement. Methods of anchoring may 
include, but are not to be limited to, use of over-the-top or frame ties 
to ground anchors. This requirement is in addition to applicable State 
and local anchoring requirements for resisting wind forces.
    (c) When the Federal Insurance Administrator has provided a notice 
of final flood elevations for one or more special flood hazard areas on 
the community's FIRM and, if appropriate, has designated other special 
flood hazard areas without base flood elevations on the community's 
FIRM, but has not identified a regulatory floodway or coastal high 
hazard area, the community shall:
    (1) Require the standards of paragraph (b) of this section within 
all A1-30 zones, AE zones, A zones, AH zones, and AO zones, on the 
community's FIRM;
    (2) Require that all new construction and substantial improvements 
of residential structures within Zones A1-30, AE and AH zones on the 
community's FIRM have the lowest floor (including basement) elevated to 
or above the base flood level, unless the community is granted an 
exception by the Federal Insurance Administrator for the allowance of 
basements in accordance with Sec. 60.6 (b) or (c);
    (3) Require that all new construction and substantial improvements 
of non-residential structures within Zones A1-30, AE and AH zones on the 
community's firm (i) have the lowest floor (including basement) elevated 
to or above the base flood level or, (ii) together with attendant 
utility and sanitary facilities, be designed so that below the base 
flood level the structure is watertight with walls substantially 
impermeable to the passage of water and with structural components 
having the capability of resisting hydrostatic and hydrodynamic loads 
and effects of buoyancy;
    (4) Provide that where a non-residential structure is intended to be 
made watertight below the base flood level, (i) a registered 
professional engineer or architect shall develop and/or review 
structural design, specifications, and plans for the construction, and 
shall certify that the design and methods of

[[Page 143]]

construction are in accordance with accepted standards of practice for 
meeting the applicable provisions of paragraph (c)(3)(ii) or (c)(8)(ii) 
of this section, and (ii) a record of such certificates which includes 
the specific elevation (in relation to mean sea level) to which such 
structures are floodproofed shall be maintained with the official 
designated by the community under Sec. 59.22(a)(9)(iii);
    (5) Require, for all new construction and substantial improvements, 
that fully enclosed areas below the lowest floor that are usable solely 
for parking of vehicles, building access or storage in an area other 
than a basement and which are subject to flooding shall be designed to 
automatically equalize hydrostatic flood forces on exterior walls by 
allowing for the entry and exit of floodwaters. Designs for meeting this 
requirement must either be certified by a registered professional 
engineer or architect or meet or exceed the following minimum criteria: 
A minimum of two openings having a total net area of not less than one 
square inch for every square foot of enclosed area subject to flooding 
shall be provided. The bottom of all openings shall be no higher than 
one foot above grade. Openings may be equipped with screens, louvers, 
valves, or other coverings or devices provided that they permit the 
automatic entry and exit of floodwaters.
    (6) Require that manufactured homes that are placed or substantially 
improved within Zones A1-30, AH, and AE on the community's FIRM on sites
    (i) Outside of a manufactured home park or subdivision,
    (ii) In a new manufactured home park or subdivision,
    (iii) In an expansion to an existing manufactured home park or 
subdivision, or
    (iv) In an existing manufactured home park or subdivision on which a 
manufactured home has incurred ``substantial damage'' as the result of a 
flood, be elevated on a permanent foundation such that the lowest floor 
of the manufactured home is elevated to or above the base flood 
elevation and be securely anchored to an adequately anchored foundation 
system to resist floatation collapse and lateral movement.
    (7) Require within any AO zone on the community's FIRM that all new 
construction and substantial improvements of residential structures have 
the lowest floor (including basement) elevated above the highest 
adjacent grade at least as high as the depth number specified in feet on 
the community's FIRM (at least two feet if no depth number is 
specified);
    (8) Require within any AO zone on the community's FIRM that all new 
construction and substantial improvements of nonresidential structures 
(i) have the lowest floor (including basement) elevated above the 
highest adjacent grade at least as high as the depth number specified in 
feet on the community's FIRM (at least two feet if no depth number is 
specified), or (ii) together with attendant utility and sanitary 
facilities be completely floodproofed to that level to meet the 
floodproofing standard specified in Sec. 60.3(c)(3)(ii);
    (9) Require within any A99 zones on a community's FIRM the standards 
of paragraphs (a)(1) through (a)(4)(i) and (b)(5) through (b)(9) of this 
section;
    (10) Require until a regulatory floodway is designated, that no new 
construction, substantial improvements, or other development (including 
fill) shall be permitted within Zones A1-30 and AE on the community's 
FIRM, unless it is demonstrated that the cumulative effect of the 
proposed development, when combined with all other existing and 
anticipated development, will not increase the water surface elevation 
of the base flood more than one foot at any point within the community.
    (11) Require within Zones AH and AO, adequate drainage paths around 
structures on slopes, to guide floodwaters around and away from proposed 
structures.
    (12) Require that manufactured homes to be placed or substantially 
improved on sites in an existing manufactured home park or subdivision 
within Zones A-1-30, AH, and AE on the community's FIRM that are not 
subject to the provisions of paragraph (c)(6) of this section be 
elevated so that either
    (i) The lowest floor of the manufactured home is at or above the 
base flood elevation, or

[[Page 144]]

    (ii) The manufactured home chassis is supported by reinforced piers 
or other foundation elements of at least equivalent strength that are no 
less than 36 inches in height above grade and be securely anchored to an 
adequately anchored foundation system to resist floatation, collapse, 
and lateral movement.
    (13) Notwithstanding any other provisions of Sec. 60.3, a community 
may approve certain development in Zones Al-30, AE, and AH, on the 
community's FIRM which increase the water surface elevation of the base 
flood by more than one foot, provided that the community first applies 
for a conditional FIRM revision, fulfills the requirements for such a 
revision as established under the provisions of Sec. 65.12, and receives 
the approval of the Federal Insurance Administrator.
    (14) Require that recreational vehicles placed on sites within Zones 
A1-30, AH, and AE on the community's FIRM either
    (i) Be on the site for fewer than 180 consecutive days,
    (ii) Be fully licensed and ready for highway use, or
    (iii) Meet the permit requirements of paragraph (b)(1) of this 
section and the elevation and anchoring requirements for ``manufactured 
homes'' in paragraph (c)(6) of this section.

A recreational vehicle is ready for highway use if it is on its wheels 
or jacking system, is attached to the site only by quick disconnect type 
utilities and security devices, and has no permanently attached 
additions.
    (d) When the Federal Insurance Administrator has provided a notice 
of final base flood elevations within Zones A1-30 and/or AE on the 
community's FIRM and, if appropriate, has designated AO zones, AH zones, 
A99 zones, and A zones on the community's FIRM, and has provided data 
from which the community shall designate its regulatory floodway, the 
community shall:
    (1) Meet the requirements of paragraphs (c) (1) through (14) of this 
section;
    (2) Select and adopt a regulatory floodway based on the principle 
that the area chosen for the regulatory floodway must be designed to 
carry the waters of the base flood, without increasing the water surface 
elevation of that flood more than one foot at any point;
    (3) Prohibit encroachments, including fill, new construction, 
substantial improvements, and other development within the adopted 
regulatory floodway unless it has been demonstrated through hydrologic 
and hydraulic analyses performed in accordance with standard engineering 
practice that the proposed encroachment would not result in any increase 
in flood levels within the community during the occurrence of the base 
flood discharge;
    (4) Notwithstanding any other provisions of Sec. 60.3, a community 
may permit encroachments within the adopted regulatory floodway that 
would result in an increase in base flood elevations, provided that the 
community first applies for a conditional FIRM and floodway revision, 
fulfills the requirements for such revisions as established under the 
provisions of Sec. 65.12, and receives the approval of the Federal 
Insurance Administrator.
    (e) When the Federal Insurance Administrator has provided a notice 
of final base flood elevations within Zones A1-30 and/or AE on the 
community's FIRM and, if appropriate, has designated AH zones, AO zones, 
A99 zones, and A zones on the community's FIRM, and has identified on 
the community's FIRM coastal high hazard areas by designating Zones V1-
30, VE, and/or V, the community shall:
    (1) Meet the requirements of paragraphs (c)(1) through (14) of this 
section;
    (2) Within Zones V1-30, VE, and V on a community's FIRM, (i) obtain 
the elevation (in relation to mean sea level) of the bottom of the 
lowest structural member of the lowest floor (excluding pilings and 
columns) of all new and substantially improved structures, and whether 
or not such structures contain a basement, and (ii) maintain a record of 
all such information with the official designated by the community under 
Sec. 59.22(a)(9)(iii);
    (3) Provide that all new construction within Zones V1-30, VE, and V 
on the community's FIRM is located landward of the reach of mean high 
tide;

[[Page 145]]

    (4) Provide that all new construction and substantial improvements 
in Zones V1-30 and VE, and also Zone V if base flood elevation data is 
available, on the community's FIRM, are elevated on pilings and columns 
so that (i) the bottom of the lowest horizontal structural member of the 
lowest floor (excluding the pilings or columns) is elevated to or above 
the base flood level; and (ii) the pile or column foundation and 
structure attached thereto is anchored to resist flotation, collapse and 
lateral movement due to the effects of wind and water loads acting 
simultaneously on all building components. Water loading values used 
shall be those associated with the base flood. Wind loading values used 
shall be those required by applicable State or local building standards. 
A registered professional engineer or architect shall develop or review 
the structural design, specifications and plans for the construction, 
and shall certify that the design and methods of construction to be used 
are in accordance with accepted standards of practice for meeting the 
provisions of paragraphs (e)(4) (i) and (ii) of this section.
    (5) Provide that all new construction and substantial improvements 
within Zones V1-30, VE, and V on the community's FIRM have the space 
below the lowest floor either free of obstruction or constructed with 
non-supporting breakaway walls, open wood lattice-work, or insect 
screening intended to collapse under wind and water loads without 
causing collapse, displacement, or other structural damage to the 
elevated portion of the building or supporting foundation system. For 
the purposes of this section, a breakway wall shall have a design safe 
loading resistance of not less than 10 and no more than 20 pounds per 
square foot. Use of breakway walls which exceed a design safe loading 
resistance of 20 pounds per square foot (either by design or when so 
required by local or State codes) may be permitted only if a registered 
professional engineer or architect certifies that the designs proposed 
meet the following conditions:
    (i) Breakaway wall collapse shall result from a water load less than 
that which would occur during the base flood; and,
    (ii) The elevated portion of the building and supporting foundation 
system shall not be subject to collapse, displacement, or other 
structural damage due to the effects of wind and water loads acting 
simultaneously on all building components (structural and non-
structural). Water loading values used shall be those associated with 
the base flood. Wind loading values used shall be those required by 
applicable State or local building standards.

Such enclosed space shall be useable solely for parking of vehicles, 
building access, or storage.
    (6) Prohibit the use of fill for structural support of buildings 
within Zones V1-30, VE, and V on the community's FIRM;
    (7) Prohibit man-made alteration of sand dunes and mangrove stands 
within Zones V1-30, VE, and V on the community's FIRM which would 
increase potential flood damage.
    (8) Require that manufactured homes placed or substantially improved 
within Zones V1-30, V, and VE on the community's FIRM on sites
    (i) Outside of a manufactured home park or subdivision,
    (ii) In a new manufactured home park or subdivision,
    (iii) In an expansion to an existing manufactured home park or 
subdivision, or
    (iv) In an existing manufactured home park or subdivision on which a 
manufactured home has incurred ``substantial damage'' as the result of a 
flood, meet the standards of paragraphs (e)(2) through (7) of this 
section and that manufactured homes placed or substantially improved on 
other sites in an existing manufactured home park or subdivision within 
Zones VI-30, V, and VE on the community's FIRM meet the requirements of 
paragraph (c)(12) of this section.
    (9) Require that recreational vehicles placed on sites within Zones 
V1-30, V, and VE on the community's FIRM either
    (i) Be on the site for fewer than 180 consecutive days,
    (ii) Be fully licensed and ready for highway use, or
    (iii) Meet the requirements in paragraphs (b)(1) and (e) (2) through 
(7) of this section.

[[Page 146]]


A recreational vehicle is ready for highway use if it is on its wheels 
or jacking system, is attached to the site only by quick disconnect type 
utilities and security devices, and has no permanently attached 
additions.
    (f) When the Federal Insurance Administrator has provided a notice 
of final base flood elevations within Zones A1-30 or AE on the 
community's FIRM, and, if appropriate, has designated AH zones, AO 
zones, A99 zones, and A zones on the community's FIRM, and has 
identified flood protection restoration areas by designating Zones AR, 
AR/A1-30, AR/AE, AR/AH, AR/AO, or AR/A, the community shall:
    (1) Meet the requirements of paragraphs (c)(1) through (14) and 
(d)(1) through (4) of this section.
    (2) Adopt the official map or legal description of those areas 
within Zones AR, AR/A1-30, AR/AE, AR/AH, AR/A, or AR/AO that are 
designated developed areas as defined in Sec. 59.1 in accordance with 
the eligibility procedures under Sec. 65.14.
    (3) For all new construction of structures in areas within Zone AR 
that are designated as developed areas and in other areas within Zone AR 
where the AR flood depth is 5 feet or less:
    (i) Determine the lower of either the AR base flood elevation or the 
elevation that is 3 feet above highest adjacent grade; and
    (ii) Using this elevation, require the standards of paragraphs 
(c)(1) through (14) of this section.
    (4) For all new construction of structures in those areas within 
Zone AR that are not designated as developed areas where the AR flood 
depth is greater than 5 feet:
    (i) Determine the AR base flood elevation; and
    (ii) Using that elevation require the standards of paragraphs (c)(1) 
through (14) of this section.
    (5) For all new construction of structures in areas within Zone AR/
A1-30, AR/AE, AR/AH, AR/AO, and AR/A:
    (i) Determine the applicable elevation for Zone AR from paragraphs 
(a)(3) and (4) of this section;
    (ii) Determine the base flood elevation or flood depth for the 
underlying A1-30, AE, AH, AO and A Zone; and
    (iii) Using the higher elevation from paragraphs (a)(5)(i) and (ii) 
of this section require the standards of paragraphs (c)(1) through (14) 
of this section.
    (6) For all substantial improvements to existing construction within 
Zones AR/A1-30, AR/AE, AR/AH, AR/AO, and AR/A:
    (i) Determine the A1-30 or AE, AH, AO, or A Zone base flood 
elevation; and
    (ii) Using this elevation apply the requirements of paragraphs 
(c)(1) through (14) of this section.
    (7) Notify the permit applicant that the area has been designated as 
an AR, AR/A1-30, AR/AE, AR/AH, AR/AO, or AR/A Zone and whether the 
structure will be elevated or protected to or above the AR base flood 
elevation.

[41 FR 46975, Oct. 26, 1976]

    Editorial Note: For Federal Register citations affecting Sec. 60.3, 
see the List of CFR Sections Affected, which appears in the Finding Aids 
section of the printed volume and at www.fdsys.gov.



Sec. 60.4  Flood plain management criteria for mudslide (i.e., mudflow)-prone areas.

    The Federal Insurance Administrator will provide the data upon which 
flood plain management regulations shall be based. If the Federal 
Insurance Administrator has not provided sufficient data to furnish a 
basis for these regulations in a particular community, the community 
shall obtain, review, and reasonably utilize data available from other 
Federal, State or other sources pending receipt of data from the Federal 
Insurance Administrator. However, when special mudslide (i.e., mudflow) 
hazard area designations have been furnished by the Federal Insurance 
Administrator, they shall apply. The symbols defining such special 
mudslide (i.e., mudflow) hazard designations are set forth in Sec. 64.3 
of this subchapter. In all cases, the minimum requirements for mudslide 
(i.e., mudflow)-prone areas adopted by a particular community depend on 
the amount of technical data provided to the community by the Federal 
Insurance Administrator. Minimum standards for communities are as 
follows:
    (a) When the Federal Insurance Administrator has not yet identified 
any

[[Page 147]]

area within the community as an area having special mudslide (i.e., 
mudflow) hazards, but the community has indicated the presence of such 
hazards by submitting an application to participate in the Program, the 
community shall
    (1) Require permits for all proposed construction or other 
development in the community so that it may determine whether 
development is proposed within mudslide (i.e., mudflow)-prone areas;
    (2) Require review of each permit application to determine whether 
the proposed site and improvements will be reasonably safe from 
mudslides (i.e., mudflows). Factors to be considered in making such a 
determination should include but not be limited to (i) the type and 
quality of soils, (ii) any evidence of ground water or surface water 
problems, (iii) the depth and quality of any fill, (iv) the overall 
slope of the site, and (v) the weight that any proposed structure will 
impose on the slope;
    (3) Require, if a proposed site and improvements are in a location 
that may have mudslide (i.e., mudflow) hazards, that (i) a site 
investigation and further review be made by persons qualified in geology 
and soils engineering, (ii) the proposed grading, excavations, new 
construction, and substantial improvements are adequately designed and 
protected against mudslide (i.e., mudflow) damages, (iii) the proposed 
grading, excavations, new construction and substantial improvements do 
not aggravate the existing hazard by creating either on-site or off-site 
disturbances, and (iv) drainage, planting, watering, and maintenance be 
such as not to endanger slope stability.
    (b) When the Federal Insurance Administrator has delineated Zone M 
on the community's FIRM, the community shall:
    (1) Meet the requirements of paragraph (a) of this section; and
    (2) Adopt and enforce a grading ordinance or regulation in 
accordance with data supplied by the Federal Insurance Administrator 
which (i) regulates the location of foundation systems and utility 
systems of new construction and substantial improvements, (ii) regulates 
the location, drainage and maintenance of all excavations, cuts and 
fills and planted slopes, (iii) provides special requirements for 
protective measures including but not necessarily limited to retaining 
walls, buttress fills, sub-drains, diverter terraces, benchings, etc., 
and (iv) requires engineering drawings and specifications to be 
submitted for all corrective measures, accompanied by supporting soils 
engineering and geology reports. Guidance may be obtained from the 
provisions of the 1973 edition and any subsequent edition of the Uniform 
Building Code, sections 7001 through 7006, and 7008 through 7015. The 
Uniform Building Code is published by the International Conference of 
Building Officials, 50 South Los Robles, Pasadena, California 91101.

[41 FR 46975, Oct. 26, 1976. Redesignated at 44 FR 31177, May 31, 1979, 
as amended at 48 FR 44552, Sept. 29, 1983; 49 FR 4751, Feb. 8, 1984]



Sec. 60.5  Flood plain management criteria for flood-related 
erosion-prone areas.

    The Federal Insurance Administrator will provide the data upon which 
flood plain management regulations for flood-related erosion-prone areas 
shall be based. If the Federal Insurance Administrator has not provided 
sufficient data to furnish a basis for these regulations in a particular 
community, the community shall obtain, review, and reasonably utilize 
data available from other Federal, State or other sources, pending 
receipt of data from the Federal Insurance Administrator. However, when 
special flood-related erosion hazard area designations have been 
furnished by the Federal Insurance Administrator they shall apply. The 
symbols defining such special flood-related erosion hazard designations 
are set forth in Sec. 64.3 of this subchapter. In all cases the minimum 
requirements governing the adequacy of the flood plain management 
regulations for flood-related erosion-prone areas adopted by a 
particular community depend on the amount of technical data provided to 
the community by the Federal Insurance Administrator. Minimum standards 
for communities are as follows:
    (a) When the Federal Insurance Administrator has not yet identified 
any area within the community as having

[[Page 148]]

special flood-related erosion hazards, but the community has indicated 
the presence of such hazards by submitting an application to participate 
in the Program, the community shall
    (1) Require the issuance of a permit for all proposed construction, 
or other development in the area of flood-related erosion hazard, as it 
is known to the community;
    (2) Require review of each permit application to determine whether 
the proposed site alterations and improvements will be reasonably safe 
from flood-related erosion and will not cause flood-related erosion 
hazards or otherwise aggravate the existing flood-related erosion 
hazard; and
    (3) If a proposed improvement is found to be in the path of flood-
related erosion or to increase the erosion hazard, require the 
improvement to be relocated or adequate protective measures to be taken 
which will not aggravate the existing erosion hazard.
    (b) When the Federal Insurance Administrator has delineated Zone E 
on the community's FIRM, the community shall
    (1) Meet the requirements of paragraph (a) of this section; and
    (2) Require a setback for all new development from the ocean, lake, 
bay, riverfront or other body of water, to create a safety buffer 
consisting of a natural vegetative or contour strip. This buffer will be 
designated by the Federal Insurance Administrator according to the 
flood-related erosion hazard and erosion rate, in conjunction with the 
anticipated ``useful life'' of structures, and depending upon the 
geologic, hydrologic, topographic and climatic characteristics of the 
community's land. The buffer may be used for suitable open space 
purposes, such as for agricultural, forestry, outdoor recreation and 
wildlife habitat areas, and for other activities using temporary and 
portable structures only.

[41 FR 46975, Oct. 26, 1976. Redesignated at 44 FR 31177, May 31, 1979, 
as amended at 48 FR 44552, Sept. 29, 1983; 49 FR 4751, Feb. 8, 1984]



Sec. 60.6  Variances and exceptions.

    (a) The Federal Insurance Administrator does not set forth absolute 
criteria for granting variances from the criteria set forth in 
Secs. 60.3, 60.4, and 60.5. The issuance of a variance is for flood 
plain management purposes only. Insurance premium rates are determined 
by statute according to actuarial risk and will not be modified by the 
granting of a variance. The community, after examining the applicant's 
hardships, shall approve or disapprove a request. While the granting of 
variances generally is limited to a lot size less than one-half acre (as 
set forth in paragraph (a)(2) of this section), deviations from that 
limitation may occur. However, as the lot size increases beyond one-half 
acre, the technical justification required for issuing a variance 
increases. The Federal Insurance Administrator may review a community's 
findings justifying the granting of variances, and if that review 
indicates a pattern inconsistent with the objectives of sound flood 
plain management, the Federal Insurance Administrator may take 
appropriate action under Sec. 59.24(b) of this subchapter. Variances may 
be issued for the repair or rehabilitation of historic structures upon a 
determination that the proposed repair or rehabilitation will not 
preclude the structure's continued designation as a historic structure 
and the variance is the minimum necessary to preserve the historic 
character and design of the structure. Procedures for the granting of 
variances by a community are as follows:
    (1) Variances shall not be issued by a community within any 
designated regulatory floodway if any increase in flood levels during 
the base flood discharge would result;
    (2) Variances may be issued by a community for new construction and 
substantial improvements to be erected on a lot of one-half acre or less 
in size contiguous to and surrounded by lots with existing structures 
constructed below the base flood level, in conformance with the 
procedures of paragraphs (a) (3), (4), (5) and (6) of this section;
    (3) Variances shall only be issued by a community upon (i) a showing 
of good and sufficient cause, (ii) a determination that failure to grant 
the variance would result in exceptional hardship to the applicant, and 
(iii) a determination that the granting of a variance will not result in 
increased flood heights, additional threats to public

[[Page 149]]

safety, extraordinary public expense, create nuisances, cause fraud on 
or victimization of the public, or conflict with existing local laws or 
ordinances;
    (4) Variances shall only be issued upon a determination that the 
variance is the minimum necessary, considering the flood hazard, to 
afford relief;
    (5) A community shall notify the applicant in writing over the 
signature of a community official that (i) the issuance of a variance to 
construct a structure below the base flood level will result in 
increased premium rates for flood insurance up to amounts as high as $25 
for $100 of insurance coverage and (ii) such construction below the base 
flood level increases risks to life and property. Such notification 
shall be maintained with a record of all variance actions as required in 
paragraph (a)(6) of this section; and
    (6) A community shall (i) maintain a record of all variance actions, 
including justification for their issuance, and (ii) report such 
variances issued in its annual or biennial report submitted to the 
Federal Insurance Administrator.
    (7) Variances may be issued by a community for new construction and 
substantial improvements and for other development necessary for the 
conduct of a functionally dependent use provided that (i) the criteria 
of paragraphs (a)(1) through (a)(4) of this section are met, and (ii) 
the structure or other development is protected by methods that minimize 
flood damages during the base flood and create no additional threats to 
public safety.
    (b)(1) The requirement that each flood-prone, mudslide (i.e., 
mudflow)-prone, and flood-related erosion prone community must adopt and 
submit adequate flood plain management regulations as a condition of 
initial and continued flood insurance eligibility is statutory and 
cannot be waived, and such regulations shall be adopted by a community 
within the time periods specified in Secs. 60.3, 60.4 or Sec. 60.5. 
However, certain exceptions from the standards contained in this subpart 
may be permitted where the Federal Insurance Administrator recognizes 
that, because of extraordinary circumstances, local conditions may 
render the application of certain standards the cause for severe 
hardship and gross inequity for a particular community. Consequently, a 
community proposing the adoption of flood plain management regulations 
which vary from the standards set forth in Secs. 60.3, 60.4, or 
Sec. 60.5, shall explain in writing to the Federal Insurance 
Administrator the nature and extent of and the reasons for the exception 
request and shall include sufficient supporting economic, environmental, 
topographic, hydrologic, and other scientific and technical data, and 
data with respect to the impact on public safety and the environment.
    (2) The Federal Insurance Administrator shall prepare a Special 
Environmental Clearance to determine whether the proposal for an 
exception under paragraph (b)(1) of this section will have significant 
impact on the human environment. The decision whether an Environmental 
Impact Statement or other environmental document will be prepared, will 
be made in accordance with applicable environmental and historic 
preservation laws, regulations, Executive Orders, and agency policy. 
Ninety or more days may be required for an environmental quality 
clearance if the proposed exception will have significant impact on the 
human environment thereby requiring an EIS.
    (c) A community may propose flood plain management measures which 
adopt standards for floodproofed residential basements below the base 
flood level in zones A1-30, AH, AO, and AE which are not subject to 
tidal flooding. Notwithstanding the requirements of paragraph (b) of 
this section the Federal Insurance Administrator may approve the 
proposal provided that:
    (1) The community has demonstrated that areas of special flood 
hazard in which basements will be permitted are subject to shallow and 
low velocity flooding and that there is adequate flood warning time to 
ensure that all residents are notified of impending floods. For the 
purposes of this paragraph flood characteristics must include:
    (i) Flood depths that are five feet or less for developable lots 
that are contiguous to land above the base flood level and three feet or 
less for other lots;

[[Page 150]]

    (ii) Flood velocities that are five feet per second or less; and
    (iii) Flood warning times that are 12 hours or greater. Flood 
warning times of two hours or greater may be approved if the community 
demonstrates that it has a flood warning system and emergency plan in 
operation that is adequate to ensure safe evacuation of flood plain 
residents.
    (2) The community has adopted flood plain management measures that 
require that new construction and substantial improvements of 
residential structures with basements in zones A1-30, AH, AO, and AE 
shall:
    (i) Be designed and built so that any basement area, together with 
attendant utilities and sanitary facilities below the floodproofed 
design level, is watertight with walls that are impermeable to the 
passage of water without human intervention. Basement walls shall be 
built with the capacity to resist hydrostatic and hydrodynamic loads and 
the effects of buoyancy resulting from flooding to the floodproofed 
design level, and shall be designed so that minimal damage will occur 
from floods that exceed that level. The floodproofed design level shall 
be an elevation one foot above the level of the base flood where the 
difference between the base flood and the 500-year flood is three feet 
or less and two feet above the level of the base flood where the 
difference is greater than three feet.
    (ii) Have the top of the floor of any basement area no lower than 
five feet below the elevation of the base flood;
    (iii) Have the area surrounding the structure on all sides filled to 
or above the elevation of the base flood. Fill must be compacted with 
slopes protected by vegetative cover;
    (iv) Have a registered professional engineer or architect develop or 
review the building's structural design, specifications, and plans, 
including consideration of the depth, velocity, and duration of flooding 
and type and permeability of soils at the building site, and certify 
that the basement design and methods of construction proposed are in 
accordance with accepted standards of practice for meeting the 
provisions of this paragraph;
    (v) Be inspected by the building inspector or other authorized 
representative of the community to verify that the structure is built 
according to its design and those provisions of this section which are 
verifiable.

[41 FR 46975, Oct. 26, 1976. Redesignated at 44 FR 31177, May 31, 1979, 
as amended at 48 FR 44543 and 44552, Sept. 29, 1983; 49 FR 4751, Feb. 8, 
1984; 50 FR 36025, Sept. 4, 1985; 51 FR 30308, Aug. 25, 1986; 54 FR 
33550, Aug. 15, 1989; 81 FR 56533, Aug. 22, 2016]



Sec. 60.7  Revisions of criteria for flood plain management regulations.

    From time to time part 60 may be revised as experience is acquired 
under the Program and new information becomes available. Communities 
will be given six months from the effective date of any new regulation 
to revise their flood plain management regulations to comply with any 
such changes.



Sec. 60.8  Definitions.

    The definitions set forth in part 59 of this subchapter are 
applicable to this part.



   Subpart B_Requirements for State Flood Plain Management Regulations



Sec. 60.11  Purpose of this subpart.

    (a) A State is considered a ``community'' pursuant to Sec. 59.1 of 
this subchapter; and, accordingly, the Act provides that flood insurance 
shall not be sold or renewed under the Program unless a community has 
adopted adequate flood plain management regulations consistent with 
criteria established by the Federal Insurance Administrator.
    (b) This subpart sets forth the flood plain management criteria 
required for State-owned properties located within special hazard areas 
identified by the Federal Insurance Administrator. A State shall satisfy 
such criteria as a condition to the purchase of a Standard Flood 
Insurance Policy for a State-owned structure or its contents, or as a 
condition to the approval by the Federal Insurance Administrator, 
pursuant

[[Page 151]]

to part 75 of this subchapter, of its plan of self-insurance.

[41 FR 46975, Oct. 26, 1976. Redesignated at 44 FR 31177, May 31, 1979, 
as amended at 48 FR 44552, Sept. 29, 1983; 49 FR 4751, Feb. 8, 1984]



Sec. 60.12  Flood plain management criteria for State-owned properties
in special hazard areas.

    (a) The State shall comply with the minimum flood plain management 
criteria set forth in Secs. 60.3, 60.4, and 60.5. A State either shall:
    (1) Comply with the flood plain management requirements of all local 
communities participating in the program in which State-owned properties 
are located; or
    (2) Establish and enforce flood plain management regulations which, 
at a minimum, satisfy the criteria set forth in Secs. 60.3, 60.4, and 
60.5.
    (b) The procedures by which a state government adopts and 
administers flood plain management regulations satisfying the criteria 
set forth in Secs. 60.3, 60.4 and 60.5 may vary from the procedures by 
which local governments satisfy the criteria.
    (c) If any State-owned property is located in a non-participating 
local community, then the State shall comply with the requirements of 
paragraph (a)(2) of this section for the property.



Sec. 60.13  Noncompliance.

    If a State fails to submit adequate flood plain management 
regulations applicable to State-owned properties pursuant to Sec. 60.12 
within six months of the effective date of this regulation, or fails to 
adequately enforce such regulations, the State shall be subject to 
suspensive action pursuant to Sec. 59.24. Where the State fails to 
adequately enforce its flood plain management regulations, the Federal 
Insurance Administrator shall conduct a hearing before initiating such 
suspensive action.

[41 FR 46975, Oct. 26, 1976. Redesignated at 44 FR 31177, May 31, 1979, 
as amended at 48 FR 44552, Sept. 29, 1983; 49 FR 4751, Feb. 8, 1984]



 Subpart C_Additional Considerations in Managing Flood-Prone, Mudslide 
       (i.e., Mudflow)-Prone and Flood-Related Erosion-Prone Areas



Sec. 60.21  Purpose of this subpart.

    The purpose of this subpart is to encourage the formation and 
adoption of overall comprehensive management plans for flood-prone, 
mudslide (i.e., mudflow)-prone and flood-related erosion-prone areas. 
While adoption by a community of the standards in this subpart is not 
mandatory, the community shall completely evaluate these standards.



Sec. 60.22  Planning considerations for flood-prone areas.

    (a) The flood plain management regulations adopted by a community 
for flood-prone areas should:
    (1) Permit only that development of flood-prone areas which (i) is 
appropriate in light of the probability of flood damage and the need to 
reduce flood losses, (ii) is an acceptable social and economic use of 
the land in relation to the hazards involved, and (iii) does not 
increase the danger to human life;
    (2) Prohibit nonessential or improper installation of public 
utilities and public facilities in flood-prone areas.
    (b) In formulating community development goals after the occurrence 
of a flood disaster, each community shall consider--
    (1) Preservation of the flood-prone areas for open space purposes;
    (2) Relocation of occupants away from flood-prone areas;
    (3) Acquisition of land or land development rights for public 
purposes consistent with a policy of minimization of future property 
losses;
    (4) Acquisition of frequently flood-damaged structures;
    (c) In formulating community development goals and in adopting flood 
plain management regulations, each community shall consider at least the 
following factors--
    (1) Human safety;
    (2) Diversion of development to areas safe from flooding in light of 
the need to reduce flood damages and in light of

[[Page 152]]

the need to prevent environmentally incompatible flood plain use;
    (3) Full disclosure to all prospective and interested parties 
(including but not limited to purchasers and renters) that (i) certain 
structures are located within flood-prone areas, (ii) variances have 
been granted for certain structures located within flood-prone areas, 
and (iii) premium rates applied to new structures built at elevations 
below the base flood substantially increase as the elevation decreases;
    (4) Adverse effects of flood plain development on existing 
development;
    (5) Encouragement of floodproofing to reduce flood damage;
    (6) Flood warning and emergency preparedness plans;
    (7) Provision for alternative vehicular access and escape routes 
when normal routes are blocked or destroyed by flooding;
    (8) Establishment of minimum floodproofing and access requirements 
for schools, hospitals, nursing homes, orphanages, penal institutions, 
fire stations, police stations, communications centers, water and sewage 
pumping stations, and other public or quasi-public facilities already 
located in the flood-prone area, to enable them to withstand flood 
damage, and to facilitate emergency operations;
    (9) Improvement of local drainage to control increased runoff that 
might increase the danger of flooding to other properties;
    (10) Coordination of plans with neighboring community's flood plain 
management programs;
    (11) The requirement that all new construction and substantial 
improvements in areas subject to subsidence be elevated above the base 
flood level equal to expected subsidence for at least a ten year period;
    (12) For riverine areas, requiring subdividers to furnish 
delineations for floodways before approving a subdivision;
    (13) Prohibition of any alteration or relocation of a watercourse, 
except as part of an overall drainage basin plan. In the event of an 
overall drainage basin plan, provide that the flood carrying capacity 
within the altered or relocated portion of the watercourse is 
maintained;
    (14) Requirement of setbacks for new construction within Zones V1-
30, VE, and V on a community's FIRM;
    (15) Requirement of additional elevation above the base flood level 
for all new construction and substantial improvements within Zones A1-
30, AE, V1-30, and VE on the community's FIRM to protect against such 
occurrences as wave wash and floating debris, to provide an added margin 
of safety against floods having a magnitude greater than the base flood, 
or to compensate for future urban development;
    (16) Requirement of consistency between state, regional and local 
comprehensive plans and flood plain management programs;
    (17) Requirement of pilings or columns rather than fill, for the 
elevation of structures within flood-prone areas, in order to maintain 
the storage capacity of the flood plain and to minimize the potential 
for negative impacts to sensitive ecological areas;
    (18) Prohibition, within any floodway or coastal high hazard area, 
of plants or facilities in which hazardous substances are manufactured.
    (19) Requirement that a plan for evacuating residents of all 
manufactured home parks or subdivisions located within flood prone areas 
be developed and filed with and approved by appropriate community 
emergency management authorities.

[41 FR 46975, Oct. 26, 1976. Redesignated at 44 FR 31177, May 31, 1979, 
as amended at 50 FR 36025, Sept. 4, 1985; 54 FR 40284, Sept. 29, 1989]



Sec. 60.23  Planning considerations for mudslide (i.e., mudflow)-prone
areas.

    The planning process for communities identified under part 65 of 
this subchapter as containing Zone M, or which indicate in their 
applications for flood insurance pursuant to Sec. 59.22 of this 
subchapter that they have mudslide (i.e., mudflow) areas, should 
include--
    (a) The existence and extent of the hazard;
    (b) The potential effects of inappropriate hillside development, 
including
    (1) Loss of life and personal injuries, and

[[Page 153]]

    (2) Public and private property losses, costs, liabilities, and 
exposures resulting from potential mudslide (i.e., mudflow) hazards;
    (c) The means of avoiding the hazard including the (1) availability 
of land which is not mudslide (i.e., mudflow)-prone and the feasibility 
of developing such land instead of further encroaching upon mudslide 
(i.e., mudflow) areas, (2) possibility of public acquisition of land, 
easements, and development rights to assure the proper development of 
hillsides, and (3) advisability of preserving mudslide (i.e., mudflow) 
areas as open space;
    (d) The means of adjusting to the hazard, including the (1) 
establishment by ordinance of site exploration, investigation, design, 
grading, construction, filing, compacting, foundation, sewerage, 
drainage, subdrainage, planting, inspection and maintenance standards 
and requirements that promote proper land use, and (2) provision for 
proper drainage and subdrainage on public property and the location of 
public utilities and service facilities, such as sewer, water, gas and 
electrical systems and streets in a manner designed to minimize exposure 
to mudslide (i.e., mudflow) hazards and prevent their aggravation;
    (e) Coordination of land use, sewer, and drainage regulations and 
ordinances with fire prevention, flood plain, mudslide (i.e., mudflow), 
soil, land, and water regulation in neighboring communities;
    (f) Planning subdivisions and other developments in such a manner as 
to avoid exposure to mudslide (i.e., mudflow) hazards and the control of 
public facility and utility extension to discourage inappropriate 
development;
    (g) Public facility location and design requirements with higher 
site stability and access standards for schools, hospitals, nursing 
homes, orphanages, correctional and other residential institutions, fire 
and police stations, communication centers, electric power transformers 
and substations, water and sewer pumping stations and any other public 
or quasi-public institutions located in the mudslide (i.e., mudflow) 
area to enable them to withstand mudslide (i.e., mudflow) damage and to 
facilitate emergency operations; and
    (h) Provision for emergencies, including:
    (1) Warning, evacuation, abatement, and access procedures in the 
event of mudslide (i.e., mudflow),
    (2) Enactment of public measures and initiation of private 
procedures to limit danger and damage from continued or future mudslides 
(i.e., mudflow),
    (3) Fire prevention procedures in the event of the rupture of gas or 
electrical distribution systems by mudslides,
    (4) Provisions to avoid contamination of water conduits or 
deterioration of slope stability by the rupture of such systems,
    (5) Similar provisions for sewers which in the event of rupture pose 
both health and site stability hazards and
    (6) Provisions for alternative vehicular access and escape routes 
when normal routes are blocked or destroyed by mudslides (i.e., 
mudflow);
    (i) The means for assuring consistency between state, areawide, and 
local comprehensive plans with the plans developed for mudslide (i.e., 
mudflow)-prone areas;
    (j) Deterring the nonessential installation of public utilities and 
public facilities in mudslide (i.e., mudflow)-prone areas.



Sec. 60.24  Planning considerations for flood-related erosion-prone areas.

    The planning process for communities identified under part 65 of 
this subchapter as containing Zone E or which indicate in their 
applications for flood insurance coverage pursuant to Sec. 59.22 of this 
subchapter that they have flood-related erosion areas should include--
    (a) The importance of directing future developments to areas not 
exposed to flood-related erosion;
    (b) The possibility of reserving flood-related erosion-prone areas 
for open space purposes;
    (c) The coordination of all planning for the flood-related erosion-
prone areas with planning at the State and Regional levels, and with 
planning at the level of neighboring communities;
    (d) Preventive action in E zones, including setbacks, shore 
protection works, relocating structures in the

[[Page 154]]

path of flood-related erosion, and community acquisition of flood-
related erosion-prone properties for public purposes;
    (e) Consistency of plans for flood-related erosion-prone areas with 
comprehensive plans at the state, regional and local levels.



Sec. 60.25  Designation, duties, and responsibilities of State 
Coordinating Agencies.

    (a) States are encouraged to demonstrate a commitment to the minimum 
flood plain management criteria set forth in Secs. 60.3, 60.4, and 60.5 
as evidenced by the designation of an agency of State government to be 
responsible for coordinating the Program aspects of flood plain 
management in the State.
    (b) State participation in furthering the objectives of this part 
shall include maintaining capability to perform the appropriate duties 
and responsibilities as follows:
    (1) Enact, whenever necessary, legislation enabling counties and 
municipalities to regulate development within flood-prone areas;
    (2) Encourage and assist communities in qualifying for participation 
in the Program;
    (3) Guide and assist county and municipal public bodies and agencies 
in developing, implementing, and maintaining local flood plain 
management regulations;
    (4) Provide local governments and the general public with Program 
information on the coordination of local activities with Federal and 
State requirements for managing flood-prone areas;
    (5) Assist communities in disseminating information on minimum 
elevation requirements for development within flood-prone areas;
    (6) Assist in the delineation of riverine and coastal flood-prone 
areas, whenever possible, and provide all relevant technical information 
to the Federal Insurance Administrator;
    (7) Recommend priorities for Federal flood plain management 
activities in relation to the needs of county and municipal localities 
within the State;
    (8) Provide notification to the Federal Insurance Administrator in 
the event of apparent irreconcilable differences between a community's 
local flood plain management program and the minimum requirements of the 
Program;
    (9) Establish minimum State flood plain management regulatory 
standards consistent with those established in this part and in 
conformance with other Federal and State environmental and water 
pollution standards for the prevention of pollution during periods of 
flooding;
    (10) Assure coordination and consistency of flood plain management 
activities with other State, areawide, and local planning and 
enforcement agencies;
    (11) Assist in the identification and implementation of flood hazard 
mitigation recommendations which are consistent with the minimum flood 
plain management criteria for the Program;
    (12) Participate in flood plain management training opportunities 
and other flood hazard preparedness programs whenever practicable.
    (c) Other duties and responsibilities, which may be deemed 
appropriate by the State and which are to be officially designated as 
being conducted in the capacity of the State Coordinating Agency for the 
Program, may be carried out with prior notification of the Federal 
Insurance Administrator.
    (d) For States which have demonstrated a commitment to and 
experience in application of the minimum flood plain management criteria 
set forth in Secs. 60.3, 60.4, and 60.5 as evidenced by the 
establishment and implementation of programs which substantially 
encompass the activities described in paragraphs (a), (b), and (c) of 
this section, the Federal Insurance Administrator shall take the 
foregoing into account when:
    (1) Considering State recommendations prior to implementing Program 
activities affecting State communities;
    (2) Considering State approval or certifications of local flood 
plain management regulations as meeting the requirements of this part.

[51 FR 30309, Aug. 25, 1986]



Sec. 60.26  Local coordination.

    (a) Local flood plain, mudslide (i.e., mudflow) and flood-related 
erosion

[[Page 155]]

area management, forecasting, emergency preparedness, and damage 
abatement programs should be coordinated with relevant Federal, State, 
and regional programs;
    (b) A community adopting flood plain management regulations pursuant 
to these criteria should coordinate with the appropriate State agency to 
promote public acceptance and use of effective flood plain, mudslide, 
(i.e., mudflow) and flood-related erosion regulations;
    (c) A community should notify adjacent communities prior to 
substantial commercial developments and large subdivisions to be 
undertaken in areas having special flood, mudslide (i.e., mudflow) and/
or flood-related erosion hazards.



PART 61_INSURANCE COVERAGE AND RATES--Table of Contents



Sec.
61.1  Purpose of part.
61.2  Definitions.
61.3  Types of coverage.
61.4  Limitations on coverage.
61.5  Special terms and conditions.
61.6  Maximum amounts of coverage available.
61.7  Risk premium rate determinations.
61.8  Applicability of risk premium rates.
61.9  Establishment of chargeable rates.
61.11  Effective date and time of coverage under the Standard Flood 
          Insurance Policy--New Business Applications and Endorsements.
61.12  Rates based on a flood protection system involving Federal funds.
61.13  Standard Flood Insurance Policy.
61.14  Standard Flood Insurance Policy Interpretations.
61.16  Probation additional premium.
61.17  Group Flood Insurance Policy.

Appendix A(1) to Part 61--Federal Emergency Management Agency, Federal 
          Insurance Administration, Standard Flood Insurance Policy
Appendix A(2) to Part 61--Federal Emergency Management Agency, Federal 
          Insurance Administration, Standard Flood Insurance Policy
Appendix A(3) to Part 61--Federal Emergency Management Agency, Federal 
          Insurance Administration, Standard Flood Insurance Policy
Appendix A(4) to Part 61--Federal Emergency Management Agency, Federal 
          Insurance Administration, Standard Flood Insurance Policy
Appendix A(5) to Part 61--Federal Emergency Management Agency, Federal 
          Insurance Administration, Standard Flood Insurance Policy
Appendix A(6) to Part 61--Federal Emergency Management Agency, Federal 
          Insurance Administration, Standard Flood Insurance Policy

    Authority: 42 U.S.C. 4001 et seq.; Reorganization Plan No. 3 of 
1978, 43 FR 41943, 3 CFR, 1978 Comp., p. 329; E.O. 12127 of Mar. 31, 
1979, 44 FR 19367, 3 CFR, 1979 Comp., p. 376.

    Source: 43 FR 2570, Jan. 17, 1978, unless otherwise noted. 
Redesignated at 44 FR 31177, May 31, 1979.



Sec. 61.1  Purpose of part.

    This part describes the types of properties eligible for flood 
insurance coverage under the Program, the limits of such coverage, and 
the premium rates actually to be paid by insureds. The specific 
communities eligible for coverage are designated by the Federal 
Insurance Administrator from time to time as applications are approved 
under the emergency program and as ratemaking studies of communities are 
completed prior to the regular program. Lists of such communities are 
periodically published under part 64 of this subchapter.

[43 FR 2570, Jan. 17, 1978. Redesignated at 44 FR 31177, May 31, 1979, 
as amended at 48 FR 39068, Aug. 29, 1983; 49 FR 4751, Feb. 8, 1984; 49 
FR 5621, Feb. 14, 1984]



Sec. 61.2  Definitions.

    The definitions set forth in part 59 of this subchapter are 
applicable to this part.



Sec. 61.3  Types of coverage.

    Insurance coverage under the Program is available for structures and 
their contents. Coverage for each may be purchased separately.

[43 FR 2570, Jan. 17, 1978. Redesignated at 44 FR 31177, May 31, 1979, 
as amended at 48 FR 39068, Aug. 29, 1983; 50 FR 36025, Sept. 4, 1985; 51 
FR 30309, Aug. 25, 1986; 58 FR 62424, Nov. 26, 1993]



Sec. 61.4  Limitations on coverage.

    All flood insurance made available under the Program is subject:
    (a) To the Act, the Amendments thereto, and the Regulations issued 
under the Act;

[[Page 156]]

    (b) To the terms and conditions of the Standard Flood Insurance 
Policy, which shall be promulgated by the Federal Insurance 
Administrator for substance and form, and which is subject to 
interpretation by the Federal Insurance Administrator as to scope of 
coverage pursuant to the applicable statutes and regulations;
    (c) To the specified limits of coverage set forth in the Application 
and Declarations page of the policy; and
    (d) To the maximum limits of coverage set forth in Sec. 61.6.

[43 FR 2570, Jan. 17, 1978. Redesignated at 44 FR 31177, May 31, 1979, 
as amended at 48 FR 39068, Aug. 29, 1983; 50 FR 36025, Sept. 4, 1985; 53 
FR 16277, May 6, 1988; 58 FR 62424, Nov. 26, 1993]



Sec. 61.5  Special terms and conditions.

    (a) No new flood insurance or renewal of flood insurance policies 
shall be written for properties declared by a duly constituted State or 
local zoning or other authority to be in violation of any flood plain, 
mudslide (i.e., mudflow) or flood-related erosion area management or 
control law, regulation, or ordinance.
    (b) In order to reduce the administrative costs of the Program, of 
which the Federal Government pays a major share, payment of the full 
policyholder premium must be made at the time of application.
    (c) Because of the seasonal nature of flooding, refunds of premiums 
upon cancellation of coverage by the insured are permitted only if the 
insurer ceases to have an ownership interest in the covered property at 
the location described in the policy. Refunds of premiums for any other 
reason are subject to the conditions set forth in Sec. 62.5 of this 
subchapter.
    (d) Optional Deductibles, All Zones, are available as follows:

   Category One--1 to 4 Family Building and Contents Coverage Policies
------------------------------------------------------------------------
                    Options                         Building/contents
------------------------------------------------------------------------
                                                               $500/$500
                                                             1,000/1,000
                                                             2,000/1,000
                                                             3,000/1,000
                                                             4,000/2,000
                                                             5,000/2,000
------------------------------------------------------------------------


 Category Two--1 to 4 Family Building Coverage Only or Contents Coverage
                              Only Policies
------------------------------------------------------------------------
              Options                    Building         Contents \1\
------------------------------------------------------------------------
                                                 $500               $500
                                                1,000              1,000
                                                2,000              2,000
                                                3,000              3,000
                                                4,000              4,000
                                                5,000              5,000
------------------------------------------------------------------------
\1\ Also applies to residential unit contents in other residential
  building or in multi-unit condominium building.


      Category Three--Other Residential and Nonresidential Policies
------------------------------------------------------------------------
                                                    Single coverage only
          Options              Policy combining        policy (either
                            building and contents  building or contents)
------------------------------------------------------------------------
                                        $500/$500                   $500
                                      1,000/1,000                  1,000
                                      2,000/2,000                  2,000
                                      3,000/3,000                  3,000
                                      4,000/4,000                  4,000
                                      5,000/5,000                  5,000
------------------------------------------------------------------------


        Category Four--Residential Condominium Building Policies
------------------------------------------------------------------------
                                                    Single coverage only
          Options              Policy combining        policy (either
                            building and contents  building or contents)
------------------------------------------------------------------------
                                  $10,000/$10,000                $10,000
                                    25,000/10,000                 25,000
------------------------------------------------------------------------

    Note: Any other combination may be submitted for rating to the NFIP.

    (e) The standard flood insurance policy is authorized only under 
terms and conditions established by Federal statute, the program's 
regulations, the Administrator's interpretations and the express terms 
of the policy itself. Accordingly, representations regarding the extent 
and scope of coverage which are not consistent with the National Flood 
Insurance Act of 1968, as amended, or the Program's regulations, are 
void, and the duly licensed property or casualty agent acts for the 
insured and does not act as agent for the Federal Government, the 
Federal Emergency Management Agency, or the servicing agent.

[43 FR 2570, Jan. 17, 1978. Redesignated at 44 FR 31177, May 31, 1979, 
as amended at 47 FR 19140, May 4, 1982; 48 FR 39068, Aug. 29, 1983; 49 
FR 33656, Aug. 23, 1984; 50 FR 36025, Sept. 4, 1985; 51 FR 30309, Aug. 
25, 1986; 53 FR 16277, May 6, 1988; 53 FR 27991, July 26, 1988; 57 FR 
19541, May 7, 1992; 58 FR 62424, Nov. 26, 1993]

[[Page 157]]



Sec. 61.6  Maximum amounts of coverage available.

    (a) Pursuant to section 1306 of the Act, the following are the 
limits of coverage available under the emergency program and under the 
regular program.

------------------------------------------------------------------------
                                              Regular program
                                  --------------------------------------
                                    Emergency                   Total
                                   program \1\     Second       amount
                                   first layer     layer      available
------------------------------------------------------------------------
    Single Family Residential
 
Except in Hawaii, Alaska, Guam,        $35,000     $215,000     $250,000
 U.S. Virgin Islands.............
In Hawaii, Alaska, Guam, U.S.           50,000      200,000      250,000
 Virgin Islands..................
 
        Other Residential
 
Except in Hawaii, Alaska, Guam,        100,000      150,000      250,000
 U.S. Virgin Islands.............
In Hawaii, Alaska, Guam, U.S.          150,000      100,000      250,000
 Virgin Islands..................
 
          Nonresidential
 
Small business...................      100,000      400,000      500,000
Churches and other properties....      100,000      400,000      500,000
 
           Contents \2\
 
Residential......................       10,000       90,000      100,000
Small business...................      100,000      400,000      500,000
Churches, other properties.......      100,000      400,000      500,000
------------------------------------------------------------------------
\1\ Only first layer available under emergency program.
\2\ Per unit.

    (b) In the insuring of a residential condominium building in a 
regular program community, the maximum limit of building coverage is 
$250,000 times the number of units in the building (not to exceed the 
building's replacement cost).

[60 FR 5585, Jan. 30, 1995]



Sec. 61.7  Risk premium rate determinations.

    (a) Pursuant to section 1307 of the Act, the Federal Insurance 
Administrator is authorized to undertake studies and investigations to 
enable him/her to estimate the risk premium rates necessary to provide 
flood insurance in accordance with accepted actuarial principles, 
including applicable operating costs and allowances. Such rates are also 
referred to in this subchapter as ``actuarial rates.''
    (b) The Federal Insurance Administrator is also authorized to 
prescribe by regulation the rates which can reasonably be charged to 
insureds in order to encourage them to purchase the flood insurance made 
available under the Program. Such rates are referred to in this 
subchapter as ``chargeable rates.'' For areas having special flood, 
mudslide (i.e., mudflow), and flood-related erosion hazards, chargeable 
rates are usually lower than actuarial rates.



Sec. 61.8  Applicability of risk premium rates.

    Risk premium rates are applicable to all flood insurance made 
available for:
    (a) Any structure, the construction or substantial improvement of 
which was started after December 31, 1974 or on or after the effective 
date of the initial FIRM, whichever is later.
    (b) Coverage which exceeds the following limits:
    (1) For dwelling properties in States other than Alaska, Hawaii, the 
Virgin Islands, and Guam (i) $35,000 aggregate liability for any 
property containing only one unit, (ii) $100,000 for any property 
containing more than one unit, and (iii) $10,000 liability per unit for 
any contents related to such unit.
    (2) For dwelling properties in Alaska, Hawaii, the Virgin Islands, 
and Guam (i) $50,000 aggregate liability for any property containing 
only one unit, (ii) $150,000 for property containing more than one unit, 
and (iii) $10,000 aggregate liability per unit for any contents related 
to such unit.
    (3) For churches and other properties (i) $100,000 for the structure 
and (ii) $100,000 for contents of any such unit.
    (c) Any structure or the contents thereof for which the chargeable 
rates prescribed by this part would exceed the risk premium rates.

[[Page 158]]



Sec. 61.9  Establishment of chargeable rates.

    (a) Under section 1308 of the Act, we are establishing annual 
chargeable rates for each $100 of flood insurance coverage as follows 
for Pre-FIRM, A zone properties, Pre-FIRM, V-zone properties, and 
emergency program properties.

----------------------------------------------------------------------------------------------------------------
                                                   A zone \1\ rates per year per   V zone \2\ rates per year per
                                                         $100 coverage on:               $100 coverage on:
                                                 ---------------------------------------------------------------
                                                       structure                       Structure
                Type of structure                ---------------------           ---------------------
                                                    RCBAP \3\                       RCBAP \3\
                                                 --------------  All    Contents --------------  All    Contents
                                                   High   Low   other              High   Low   other
                                                   rise   rise                     rise   rise
----------------------------------------------------------------------------------------------------------------
1. Residential:
    No Basement or Enclosure....................    .85    .70    .76        .96   1.08    .93    .99       1.23
    With Basement or Enclosure..................    .90    .75    .81        .96   1.15   1.00   1.06       1.23
2. All other including hotels and motels with
 normal occupancy of less than 6 months
 duration:
    No Basement or Enclosure....................    N/A    N/A    .83       1.62    N/A    N/A   1.10       2.14
    With Basement or Enclosure..................    N/A    N/A    .88       1.62    N/A    N/A   1.16      2.14
----------------------------------------------------------------------------------------------------------------
\1\ 1 A zones are zones A1-A30, AE, AO, AH, and unnumbered A zones.
\2\ V zones are zones V1-V30, VE, and unnumbered V zones.
\3\ Residential Condominium Building Association Policies (RCBAP) are distinguished between High Rise (those
  structures that have 3 or more floors and 5 or more units) and Low Rise (those structures that have either
  less than 3 floors or less than 5 units).

    (b) We will charge rates for contents in pre-FIRM buildings 
according to the use of the building.
    (c) A-zone rates for buildings without basements or enclosures apply 
uniformly to all buildings throughout emergency program communities.
    (d) Properties that meet the definition of Severe Repetitive Loss 
properties as defined in Sec. 79.2(g) of this subchapter, and who refuse 
an offer of mitigation pursuant to Sec. 79.7 of this subchapter are not 
eligible for the rates identified in paragraphs (a) through (c) of this 
section.
    (e) Properties leased from the Federal Government and located either 
on the river-facing side of a dike, levee, or other riverine flood 
control structure, or seaward of any seawall or other coastal flood 
control structure are not eligible for the rates identified in 
paragraphs (a) through (c) of this section.

[64 FR 13116, Mar. 17, 1999, as amended at 67 FR 8905, Feb. 27, 2002; 68 
FR 15668, Apr. 1, 2003; 72 FR 61737, Oct. 31, 2007]



Sec. 61.11  Effective date and time of coverage under the Standard Flood
Insurance Policy--New Business Applications and Endorsements.

    (a) During the 13-month period beginning on the effective date of a 
revised Flood Hazard Boundary Map or Flood Insurance Rate Map for a 
community, the effective date and time of any initial flood insurance 
coverage shall be 12:01 a.m. (local time) on the first calendar day 
after the application date and the presentment of payment of premium; 
for example, a flood insurance policy applied for with the payment of 
the premium on May 1 will become effective at 12:01 a.m. on May 2.
    (b) Where the initial purchase of flood insurance is in connection 
with the making, increasing, extension, or renewal of a loan, the 
coverage with respect to the property which is the subject of the loan 
shall be effective as of the time of the loan closing, provided the 
written request for the coverage is received by the NFIP and the flood 
insurance policy is applied for and the presentment of payment of 
premium is made at or prior to the loan closing.
    (c) Except as provided by paragraphs (a) and (b) of this section, 
the effective date and time of any new policy or added coverage or 
increase in the amount of coverage shall be 12:01 a.m. (local time) on 
the 30th calendar day after the application date and the presentment of 
payment of premium; for example, a flood insurance policy applied for 
with the payment of the premium on May 1 will become effective at 12:01 
a.m. on May 31.
    (d) Adding new coverage or increasing the amount of coverage in 
force is

[[Page 159]]

permitted during the term of any policy. The additional premium for any 
new coverage or increase in the amount of coverage shall be calculated 
pro rata in accordance with the rates currently in force.
    (e) With respect to any submission of an application in connection 
with new business, the payment by an insured to an agent or the issuance 
of premium payment by the agent, does not constitute payment to the 
NFIP, except where a WYO Company receives an application and premium 
payment from one of its agents and elects to refer the business to the 
NFIP Servicing Agent because the WYO Company does not wish to write the 
business, in which case any applicable waiting period under this section 
shall be calculated in accordance with the first sentence of paragraph 
(f) of this section. Therefore, it is important that an application for 
Flood Insurance and its premium be mailed to the NFIP promptly in order 
to have the effective date of the coverage based on the application date 
plus the waiting period. If the application and the premium payment are 
received at the office of the NFIP within ten (10) days from the date of 
application, the waiting period will be calculated from the date of 
application. Also, as an alternative, in those cases where the 
application and premium payment are mailed by certified mail within four 
(4) days from the date of application, the waiting period will be 
calculated from the date of application even though the application and 
premium payment are received at the office of the NFIP after ten (10) 
days following the date of application. Thus, if the application and 
premium payment are received after ten (10) days from the date of the 
application or are not mailed by certified mail within four (4) days 
from the date of application, the waiting period will be calculated from 
the date of receipt at the office of the NFIP. To determine the 
effective date of any coverage added by endorsement to a flood insurance 
policy already in effect, substitute the term endorsement for the term 
application in this paragraph (e).
    (f) With respect to the submission of an application in connection 
with new business, a renewal of a policy in effect and an endorsement to 
a policy in effect, the payment by an insured to an agent or the 
issuance of premium payment to a Write-Your-Own (WYO) Company by the 
agent, accompanied by a properly completed application, renewal or 
endorsement form, as appropriate, shall commence the calculation of any 
applicable waiting period under this section, provided that the agent is 
acting in the capacity of an agent of a Write-Your-Own (WYO) Company 
authorized by 44 CFR 62.23, is under written contract to or is an 
employee of such Company, and such WYO Company is, at the time of such 
submission of an application in connection with new business or a 
renewal of or endorsement to flood insurance coverage, engaged in WYO 
business under an arrangement entered into by the Federal Insurance 
Administrator and the WYO Company pursuant to Sec. 62.23.
    (g) Subject to the provisions of paragraph (f) of this section, the 
rules set forth in paragraphs (a), (b), (c), (d) and (e) of this section 
apply to WYO Companies, except that premium payments and accompanying 
applications and endorsements shall be mailed to and received by the WYO 
Company, rather than the NFIP.

[43 FR 50427, Oct. 30, 1978. Redesignated at 44 FR 31177, May 31, 1979, 
as amended at 46 FR 13514, Feb. 23, 1981; 48 FR 39069, Aug. 29, 1983; 48 
FR 44544, Sept. 29, 1983; 49 FR 33656, Aug. 24, 1984; 50 FR 16242, Apr. 
25, 1985; 50 FR 36026, Sept. 4, 1985; 51 FR 30309, Aug. 25, 1986; 53 FR 
15211, Apr. 28, 1988; 60 FR 5585, 5586, Jan. 30, 1995]



Sec. 61.12  Rates based on a flood protection system involving Federal
funds.

    (a) Where the Federal Insurance Administrator determines that a 
community has made adequate progress on the construction of a flood 
protection system involving Federal funds which will significantly limit 
the area of special flood hazards, the applicable risk premium rates for 
any property, located within a special flood hazard area intended to be 
protected directly by such system will be those risk premium rates which 
would be applicable when the system is complete.
    (b) Adequate progress in paragraph (a) of this section means that 
the community has provided information to

[[Page 160]]

the Federal Insurance Administrator sufficient to determine that 
substantial completion of the flood protection system has been effected 
because:
    (1) 100 percent of the total financial project cost of the completed 
flood protection system has been authorized;
    (2) At least 60 percent of the total financial project cost of the 
completed flood protection system has been appropriated;
    (3) At least 50 percent of the total financial project cost of the 
completed flood protection system has been expended;
    (4) All critical features of the flood protection system, as 
identified by the Federal Insurance Administrator, are under 
construction, and each critical feature is 50 percent completed as 
measured by the actual expenditure of the estimated construction budget 
funds; and
    (5) The community has not been responsible for any delay in the 
completion of the system.
    (c) Each request by a community for a determination must be 
submitted in writing to the Risk Analysis Division, Mitigation 
Directorate, Federal Emergency Management Agency, Washington DC, and 
contain a complete statement of all relevant facts relating to the flood 
protection system, including, but not limited to, supporting technical 
data (e.g., U.S. Army Corps of Engineers flood protection project data), 
cost schedules, budget appropriation data and the extent of Federal 
funding of the system's construction. Such facts shall include 
information sufficient to identify all persons affected by such flood 
protection system or by such request: A full and precise statement of 
intended purposes of the flood protection system; and a carefully 
detailed description of such project, including construction completion 
target dates. In addition, true copies of all contracts, agreements, 
leases, instruments, and other documents involved must be submitted with 
the request. Relevant facts reflected in documents, however, must be 
included in the statement and not merely incorporated by reference, and 
must be accompanied by an analysis of their bearing on the requirements 
of paragraph (b) of this section, specifying the pertinent provisions. 
The request must contain a statement whether, to the best of the 
knowledge of the person responsible for preparing the application for 
the community, the flood protection system is currently the subject 
matter of litigation before any Federal, State or local court or 
administrative agency, and the purpose of that litigation. The request 
must also contain a statement as to whether the community has previously 
requested a determination with respect to the same subject matter from 
the Federal Insurance Administrator, detailing the disposition of such 
previous request. As documents become part of the file and cannot be 
returned, the original documents should not be submitted.
    (d) The effective date for any risk premium rates established under 
this section shall be the date of final determination by the Federal 
Insurance Administrator that adequate progress toward completion of a 
flood protection system has been made in a community.
    (e) A responsible official of a community which received a 
determination that adequate progress has been made towards completion of 
a flood protection system shall certify to the Federal Insurance 
Administrator annually on the anniversary date of receipt of such 
determination that no present delay in completion of the system is 
attributable to local sponsors of the system, and that a good faith 
effort is being made to complete the project.
    (f) A community for which risk premium rates have been made 
available under section 1307(e) of the National Flood Insurance Act of 
1968, as amended, shall notify the Federal Insurance Administrator if, 
at any time, all progress on the completion of the flood protection 
system has been halted or if the project for the completion of the flood 
protection system has been canceled.

[43 FR 2570, Jan. 17, 1978, Redesignated at 44 FR 31177, May 31, 1979, 
as amended at 47 FR 43061 Sept. 30, 1982; 48 FR 39069, Aug. 29, 1983; 48 
FR 44552, Sept. 29, 1983; 49 FR 4751, Feb. 8, 1984; 51 FR 30310, Aug. 
25, 1986]



Sec. 61.13  Standard Flood Insurance Policy.

    (a) Incorporation of forms. Each of the Standard Flood Insurance 
Policy forms

[[Page 161]]

included in appendix ``A'' hereto (General Property, Dwelling, and 
Residential Condominium Building Association) and by reference 
incorporated herein shall be incorporated into the Standard Flood 
Insurance Policy.
    (b) Endorsements. All endorsements to the Standard Flood Insurance 
Policy shall be final upon publication in the Federal Register for 
inclusion in appendix A.
    (c) Applications. The application and renewal application forms 
utilized by the National Flood Insurance Program shall be the only 
application forms used in connection with the Standard Flood Insurance 
Policy.
    (d) Waivers. The Standard Flood Insurance Policy and required 
endorsements must be used in the Flood Insurance Program, and no 
provision of the said documents shall be altered, varied, or waived 
other than by the express written consent of the Federal Insurance 
Administrator through the issuance of an appropriate amendatory 
endorsement, approved by the Federal Insurance Administrator as to form 
and substance for uniform use.
    (e) Oral and written binders. No oral binder or contract shall be 
effective. No written binder shall be effective unless issued with 
express authorization of the Federal Insurance Administrator.
    (f) The Standard Flood Insurance Policy and endorsements may be 
issued by private sector ``Write-Your-Own'' (WYO) property insurance 
companies, based upon flood insurance applications and renewal forms, 
all of which instruments of flood insurance may bear the name, as 
Insurer, of the issuing WYO Company. In the case of any Standard Flood 
Insurance Policy, and its related forms, issued by a WYO Company, 
wherever the names ``Federal Emergency Management Agency'' and ``Federal 
Insurance Administration'' appear, the WYO Company is authorized to 
substitute its own name therefor. Standard Flood Insurance Policies 
issued by WYO Companies may be executed by the issuing WYO Company as 
Insurer, in the place and stead of the Federal Insurance Federal 
Insurance Administrator.

[43 FR 2570, Jan. 17, 1978. Redesignated at 44 FR 31177, May 31, 1979, 
as amended at 44 FR 62517, Oct. 31, 1979; 48 FR 46791, Oct. 14, 1983; 58 
FR 62424, Nov. 26, 1993]



Sec. 61.14  Standard Flood Insurance Policy Interpretations.

    (a) Definition. A Standard Flood Insurance Policy Interpretation is 
a written determination by the Federal Insurance Administrator 
construing the scope of the flood insurance coverage that has been and 
is provided under the policy.
    (b) Publication and requests for interpretation. The Federal 
Insurance Administrator shall, pursuant to these regulations from time 
to time, issue interpretative rulings regarding the provisions of the 
Standard Flood Insurance Policy. Such Interpretations shall be published 
in the Federal Register, made a part of appendix C to these regulations, 
and incorporated by reference as part of these regulations. Any 
policyholder or person in privity with a policyholder may file a request 
for an interpretation in writing with the Federal Insurance 
Administration, Federal Emergency Management Agency, Washington, DC 
20472.

[43 FR 2570, Jan. 17, 1978. Redesignated at 44 FR 31177, May 31, 1979, 
as amended at 48 FR 39072, Aug. 29, 1983]



Sec. 61.16  Probation additional premium.

    The additional premium charged pursuant to Sec. 59.24(b) on each 
policy sold or renewed within a community placed on probation prior to 
October 1, 1992, is $25.00. Where the community was placed on probation 
on or after October 1, 1992, the additional premium charge is $50.00.''

[50 FR 36026, Sept. 4, 1985, as amended at 57 FR 19541, May 7, 1992; 74 
FR 15340, Apr. 3, 2009]



Sec. 61.17  Group Flood Insurance Policy.

    (a) A Group Flood Insurance Policy (GFIP) is a policy covering all 
individuals named by a State as recipients under section 408 of the 
Stafford Act (42 U.S.C. 5174) of an Individuals and Households Program 
(IHP) award for

[[Page 162]]

flood damage as a result of major disaster declaration by the President.
    (b) The premium for the GFIP is a flat fee of $600 per insured. We 
may adjust the premium to reflect NFIP loss experience and any 
adjustment of benefits under the IHP program.
    (c) The amount of coverage is equivalent to the maximum grant amount 
established under section 408 of the Stafford Act (42 U.S.C. 5174).
    (d) The term of the GFIP is for 36 months and begins 60 days after 
the date of the disaster declaration.
    (e) Coverage for individual grantees begins on the thirtieth day 
after the NFIP receives the required data for individual grantees and 
their premium payments.
    (f) We will send a Certificate of Flood Insurance to each individual 
insured under the GFIP.
    (g) The GFIP is the Standard Flood Insurance Policy Dwelling Form (a 
copy of which is included in Appendix A(1) of this part), except that:
    (1) VI. DEDUCTIBLES does not apply to the GFIP. A special deductible 
of $200 (applicable separately to any building loss and any contents 
loss) applies to insured flood-damage losses sustained by the insured 
property in the course of any subsequent flooding event during the term 
of the GFIP. The deductible does not apply to:
    (i) III.C.2. Loss Avoidance Measures; or
    (ii) III. C.3. Condominium Loss Assessments coverage.
    (2) VII. GENERAL CONDITIONS, E. Cancellation of Policy by You, does 
not apply to the GFIP.
    (3) VII. GENERAL CONDITIONS, H. Policy Renewal, does not apply to 
the GFIP.
    (h) We will send a notice to the GFIP certificate holders 
approximately 60 days before the end of the thirty-six month term of the 
GFIP. The notice will encourage them to contact a local insurance agent 
or producer or a private insurance company selling NFIP policies under 
the Write Your Own program of the NFIP Standard Flood Insurance Policy, 
and advise them as to the amount of coverage they must maintain in order 
not to jeopardize their eligibility for future disaster assistance. The 
IHP program will provide the NFIP the amount of flood insurance coverage 
to be maintained by certificate holders.

[65 FR 60769, Oct. 12, 2000, as amended at 67 FR 61462, Sept. 30, 2002]



                      Sec. Appendix A(1) to Part 61

  Federal Emergency Management Agency, Federal Insurance Administration

                     Standard Flood Insurance Policy

                              DWELLING FORM

    Please read the policy carefully. The flood insurance provided is 
subject to limitations, restrictions, and exclusions. This policy covers 
only:
    1. A non-condominium residential building designed for principal use 
as a dwelling place of one to four families, or
    2. A single family dwelling unit in a condominium building.

                              I. Agreement

    The Federal Emergency Management Agency (FEMA) provides flood 
insurance under the terms of the National Flood Insurance Act of 1968 
and its Amendments, and Title 44 of the Code of Federal Regulations.
    We will pay you for direct physical loss by or from flood to your 
insured property if you:
    1. Have paid the correct premium;
    2. Comply with all terms and conditions of this policy; and
    3. Have furnished accurate information and statements.
    We have the right to review the information you give us at any time 
and to revise your policy based on our review.

                             II. Definitions

    A. In this policy, ``you'' and ``your'' refer to the insured(s) 
shown on the Declarations Page of this policy and your spouse, if a 
resident of the same household. Insured(s) includes: Any mortgagee and 
loss payee named in the Application and Declarations Page, as well as 
any other mortgagee or loss payee determined to exist at the time of 
loss in the order of precedence. ``We,'' ``us,'' and ``our'' refer to 
the insurer.
    Some definitions are complex because they are provided as they 
appear in the law or regulations, or result from court cases. The 
precise definitions are intended to protect you.
    Flood, as used in this flood insurance policy, means:
    1. A general and temporary condition of partial or complete 
inundation of two or more acres of normally dry land area or of two or 
more properties (one of which is your property) from:
    a. Overflow of inland or tidal waters,

[[Page 163]]

    b. Unusual and rapid accumulation or runoff of surface waters from 
any source,
    c. Mudflow.
    2. Collapse or subsidence of land along the shore of a lake or 
similar body of water as a result of erosion or undermining caused by 
waves or currents of water exceeding anticipated cyclical levels that 
result in a flood as defined in A.1.a. above.
    B. The following are the other key definitions we use in this 
policy:
    1. Act. The National Flood Insurance Act of 1968 and any amendments 
to it.
    2. Actual Cash Value. The cost to replace an insured item of 
property at the time of loss, less the value of its physical 
depreciation.
    3. Application. The statement made and signed by you or your agent 
in applying for this policy. The application gives information we use to 
determine the eligibility of the risk, the kind of policy to be issued, 
and the correct premium payment. The application is part of this flood 
insurance policy. For us to issue you a policy, the correct premium 
payment must accompany the application.
    4. Base Flood. A flood having a one percent chance of being equaled 
or exceeded in any given year.
    5. Basement. Any area of the building, including any sunken room or 
sunken portion of a room, having its floor below ground level (subgrade) 
on all sides.
    6. Building.
    a. A structure with two or more outside rigid walls and a fully 
secured roof, that is affixed to a permanent site;
    b. A manufactured home (a ``manufactured home,'' also known as a 
mobile home, is a structure: built on a permanent chassis, transported 
to its site in one or more sections, and affixed to a permanent 
foundation); or
    c. A travel trailer without wheels, built on a chassis and affixed 
to a permanent foundation, that is regulated under the community's 
floodplain management and building ordinances or laws.
    Building does not mean a gas or liquid storage tank or a 
recreational vehicle, park trailer or other similar vehicle, except as 
described in B.6.c. above.
    7. Cancellation. The ending of the insurance coverage provided by 
this policy before the expiration date.
    8. Condominium. That form of ownership of real property in which 
each unit owner has an undivided interest in common elements.
    9. Condominium Association. The entity made up of the unit owners 
responsible for the maintenance and operation of:
    a. Common elements owned in undivided shares by unit owners; and
    b. Other real property in which the unit owners have use rights; 
where membership in the entity is a required condition of unit 
ownership.
    10. Declarations Page. A computer-generated summary of information 
you provided in the application for insurance. The Declarations Page 
also describes the term of the policy, limits of coverage, and displays 
the premium and our name. The Declarations Page is a part of this flood 
insurance policy.
    11. Described Location. The location where the insured building(s) 
or personal property are found. The described location is shown on the 
Declarations Page.
    12. Direct Physical Loss By or From Flood. Loss or damage to insured 
property, directly caused by a flood. There must be evidence of physical 
changes to the property.
    13. Dwelling. A building designed for use as a residence for no more 
than four families or a single-family unit in a building under a 
condominium form of ownership.
    14. Elevated Building. A building that has no basement and that has 
its lowest elevated floor raised above ground level by foundation walls, 
shear walls, posts, piers, pilings, or columns.
    15. Emergency Program. The initial phase of a community's 
participation in the National Flood Insurance Program. During this 
phase, only limited amounts of insurance are available under the Act.
    16. Expense Constant. A flat charge you must pay on each new or 
renewal policy to defray the expenses of the Federal Government related 
to flood insurance.
    17. Federal Policy Fee. A flat charge you must pay on each new or 
renewal policy to defray certain administrative expenses incurred in 
carrying out the National Flood Insurance Program. This fee covers 
expenses not covered by the Expense Constant.
    18. Improvements. Fixtures, alterations, installations, or additions 
comprising a part of the insured dwelling or the apartment in which you 
reside.
    19. Mudflow. A river of liquid and flowing mud on the surface of 
normally dry land areas, as when earth is carried by a current of water. 
Other earth movements, such as landslide, slope failure, or a saturated 
soil mass moving by liquidity down a slope, are not mudflows.
    20. National Flood Insurance Program (NFIP). The program of flood 
insurance coverage and floodplain management administered under the Act 
and applicable Federal regulations in Title 44 of the Code of Federal 
Regulations, Subchapter B.
    21. Policy. The entire written contract between you and us. It 
includes:
    a. This printed form;
    b. The application and Declarations Page;
    c. Any endorsement(s) that may be issued; and
    d. Any renewal certificate indicating that coverage has been 
instituted for a new policy and new policy term.

[[Page 164]]

    Only one dwelling, which you specifically described in the 
application, may be insured under this policy.
    22. Pollutants. Substances that include, but are not limited to, any 
solid, liquid, gaseous, or thermal irritant or contaminant, including 
smoke, vapor, soot, fumes, acids, alkalis, chemicals, and waste. 
``Waste'' includes, but is not limited to, materials to be recycled, 
reconditioned, or reclaimed.
    23. Post-FIRM Building. A building for which construction or 
substantial improvement occurred after December 31, 1974, or on or after 
the effective date of an initial Flood Insurance Rate Map (FIRM), 
whichever is later.
    24. Probation Premium. A flat charge you must pay on each new or 
renewal policy issued covering property in a community the NFIP has 
placed on probation under the provisions of 44 CFR 59.24.
    25. Regular Program. The final phase of a community's participation 
in the National Flood Insurance Program. In this phase, a Flood 
Insurance Rate Map is in effect and full limits of coverage are 
available under the Act.
    26. Special Flood Hazard Area. An area having special flood or 
mudflow, and/or flood-related erosion hazards, and shown on a Flood 
Hazard Boundary Map or Flood Insurance Rate Map as Zone A, AO, A1-A30, 
AE, A99, AH, AR, AR/A, AR/AE, AR/AH, AR/AO, AR/A1-A30, V1-V30, VE, or V.
    27. Unit. A single-family unit you own in a condominium building.
    28. Valued Policy. A policy in which the insured and the insurer 
agree on the value of the property insured, that value being payable in 
the event of a total loss. The Standard Flood Insurance Policy is not a 
valued policy.

                          III. Property Covered

                    A. Coverage A--Building Property

    We insure against direct physical loss by or from flood to:
    1. The dwelling at the described location, or for a period of 45 
days at another location as set forth in III.C.2.b., Property Removed to 
Safety.
    2. Additions and extensions attached to and in contact with the 
dwelling by means of a rigid exterior wall, a solid load-bearing 
interior wall, a stairway, an elevated walkway, or a roof. At your 
option, additions and extensions connected by any of these methods may 
be separately insured. Additions and extensions attached to and in 
contact with the building by means of a common interior wall that is not 
a solid load-bearing wall are always considered part of the dwelling and 
cannot be separately insured.
    3. A detached garage at the described location. Coverage is limited 
to no more than 10% of the limit of liability on the dwelling. Use of 
this insurance is at your option but reduces the building limit of 
liability. We do not cover any detached garage used or held for use for 
residential (i.e., dwelling), business, or farming purposes.
    4. Materials and supplies to be used for construction, alteration, 
or repair of the dwelling or a detached garage while the materials and 
supplies are stored in a fully enclosed building at the described 
location or on an adjacent property.
    5. A building under construction, alteration, or repair at the 
described location.
    a. If the structure is not yet walled or roofed as described in the 
definition for building (see II.B.6.a.) then coverage applies:
    (1) Only while such work is in progress; or
    (2) If such work is halted, only for a period of up to 90 continuous 
days thereafter.
    b. However, coverage does not apply until the building is walled and 
roofed if the lowest floor, including the basement floor, of a non-
elevated building or the lowest elevated floor of an elevated building 
is:
    (1) Below the base flood elevation in Zones AH, AE, A1-A30, AR, AR/
AE, AR/AH, AR/A1-A30, AR/A, AR/AO; or
    (2) Below the base flood elevation adjusted to include the effect of 
wave action in Zones VE or V1-V30.
    The lowest floor levels are based on the bottom of the lowest 
horizontal structural member of the floor in Zones VE or V1-V30 and the 
top of the floor in Zones AH, AE, A1-A30, AR, AR/AE, AR/AH, AR/A1-A30, 
AR/A, AR/AO.
    6. A manufactured home or a travel trailer as described in the 
Definitions section (see II.B.6.b. and II.B.6.c.).
    If the manufactured home or travel trailer is in a special flood 
hazard area, it must be anchored in the following manner at the time of 
the loss:
    a. By over-the-top or frame ties to ground anchors; or
    b. In accordance with the manufacturer's specifications; or
    c. In compliance with the community's floodplain management 
requirements unless it has been continuously insured by the NFIP at the 
same described location since September 30, 1982.
    7. The following items of property which are covered under Coverage 
A only:
    a. Awnings and canopies;
    b. Blinds;
    c. Built-in dishwashers;
    d. Built-in microwave ovens;
    e. Carpet permanently installed over unfinished flooring;
    f. Central air conditioners;
    g. Elevator equipment;
    h. Fire sprinkler systems;
    i. Walk-in freezers;
    j. Furnaces and radiators;
    k. Garbage disposal units;

[[Page 165]]

    l. Hot water heaters, including solar water heaters;
    m. Light fixtures;
    n. Outdoor antennas and aerials fastened to buildings;
    o. Permanently installed cupboards, bookcases, cabinets, paneling, 
and wallpaper;
    p. Plumbing fixtures;
    q. Pumps and machinery for operating pumps;
    r. Ranges, cooking stoves, and ovens;
    s. Refrigerators; and
    t. Wall mirrors, permanently installed.
    8. Items of property in a building enclosure below the lowest 
elevated floor of an elevated post-FIRM building located in Zones A1-
A30, AE, AH, AR, AR/A, AR/AE, AR/AH, AR/A1-A30, V1-V30, or VE, or in a 
basement, regardless of the zone. Coverage is limited to the following:
    a. Any of the following items, if installed in their functioning 
locations and, if necessary for operation, connected to a power source:
    (1) Central air conditioners;
    (2) Cisterns and the water in them;
    (3) Drywall for walls and ceilings in a basement and the cost of 
labor to nail it, unfinished and unfloated and not taped, to the 
framing;
    (4) Electrical junction and circuit breaker boxes;
    (5) Electrical outlets and switches;
    (6) Elevators, dumbwaiters and related equipment, except for related 
equipment installed below the base flood elevation after September 30, 
1987;
    (7) Fuel tanks and the fuel in them;
    (8) Furnaces and hot water heaters;
    (9) Heat pumps;
    (10) Nonflammable insulation in a basement;
    (11) Pumps and tanks used in solar energy systems;
    (12) Stairways and staircases attached to the building, not 
separated from it by elevated walkways;
    (13) Sump pumps;
    (14) Water softeners and the chemicals in them, water filters, and 
faucets installed as an integral part of the plumbing system;
    (15) Well water tanks and pumps;
    (16) Required utility connections for any item in this list; and
    (17) Footings, foundations, posts, pilings, piers, or other 
foundation walls and anchorage systems required to support a building.
    b. Clean-up.

                    B. Coverage B--Personal Property

    1. If you have purchased personal property coverage, we insure 
against direct physical loss by or from flood to personal property 
inside a building at the described location, if:
    a. The property is owned by you or your household family members; 
and
    b. At your option, the property is owned by guests or servants.
    Personal property is also covered for a period of 45 days at another 
location as set forth in III.C.2.b., Property Removed to Safety.
    Personal property in a building that is not fully enclosed must be 
secured to prevent flotation out of the building. If the personal 
property does float out during a flood, it will be conclusively presumed 
that it was not reasonably secured. In that case there is no coverage 
for such property.
    2. Coverage for personal property includes the following property, 
subject to B.1. above, which is covered under Coverage B only:
    a. Air conditioning units, portable or window type;
    b. Carpets, not permanently installed, over unfinished flooring;
    c. Carpets over finished flooring;
    d. Clothes washers and dryers;
    e. ``Cook-out'' grills;
    f. Food freezers, other than walk-in, and food in any freezer; and
    g. Portable microwave ovens and portable dishwashers.
    3. Coverage for items of property in a building enclosure below the 
lowest elevated floor of an elevated post-FIRM building located in Zones 
A1-A30, AE, AH, AR, AR/A, AR/AE, AR/AH, AR/A1-A30, V1-V30, or VE, or in 
a basement, regardless of the zone, is limited to the following items, 
if installed in their functioning locations and, if necessary for 
operation, connected to a power source:
    a. Air conditioning units, portable or window type;
    b. Clothes washers and dryers; and
    c. Food freezers, other than walk-in, and food in any freezer.
    4. If you are a tenant and have insured personal property under 
Coverage B in this policy, we will cover such property, including your 
cooking stove or range and refrigerator. The policy will also cover 
improvements made or acquired solely at your expense in the dwelling or 
apartment in which you reside, but for not more than 10% of the limit of 
liability shown for personal property on the Declarations Page. Use of 
this insurance is at your option but reduces the personal property limit 
of liability.
    5. If you are the owner of a unit and have insured personal property 
under Coverage B in this policy, we will also cover your interior walls, 
floor, and ceiling (not otherwise covered under a flood insurance policy 
purchased by your condominium association) for not more than 10% of the 
limit of liability shown for personal property on the Declarations Page. 
Use of this insurance is at your option but reduces the personal 
property limit of liability.
    6. Special Limits. We will pay no more than $2,500 for any one loss 
to one or more of the following kinds of personal property:

[[Page 166]]

    a. Artwork, photographs, collectibles, or memorabilia, including but 
not limited to, porcelain or other figures, and sports cards;
    b. Rare books or autographed items;
    c. Jewelry, watches, precious and semi-precious stones, or articles 
of gold, silver, or platinum;
    d. Furs or any article containing fur which represents its principal 
value; or
    e. Personal property used in any business.
    7. We will pay only for the functional value of antiques.

                     C. Coverage C--Other Coverages

    1. Debris Removal.
    a. We will pay the expense to remove non-owned debris that is on or 
in insured property and debris of insured property anywhere.
    b. If you or a member of your household perform the removal work, 
the value of your work will be based on the Federal minimum wage.
    c. This coverage does not increase the Coverage A or Coverage B 
Limit of Liability.
    2. Loss Avoidance Measures
    a. Sandbags, Supplies, and Labor
    (1) We will pay up to $1,000 for costs you incur to protect the 
insured building from a flood or imminent danger of flood, for the 
following:
    (a) Your reasonable expenses to buy:
    (i) Sandbags, including sand to fill them;
    (ii) Fill for temporary levees;
    (iii) Pumps; and
    (iv) Plastic sheeting and lumber used in connection with these 
items.
    (b) The value of work, at the Federal minimum wage, that you or a 
member of your household perform.
    (2) This coverage for Sandbags, Supplies and Labor only applies if 
damage to insured property by or from flood is imminent and the threat 
of flood damage is apparent enough to lead a person of common prudence 
to anticipate flood damage. One of the following must also occur:
    (a) A general and temporary condition of flooding in the area near 
the described location must occur, even if the flood does not reach the 
building; or
    (b) A legally authorized official must issue an evacuation order or 
other civil order for the community in which the building is located 
calling for measures to preserve life and property from the peril of 
flood.
    This coverage does not increase the Coverage A or Coverage B Limit 
of Liability.
    b. Property Removed to Safety
    (1) We will pay up to $1,000 for the reasonable expenses you incur 
to move insured property to a place other than the described location 
that contains the property in order to protect it from flood or the 
imminent danger of flood.
    Reasonable expenses include the value of work, at the Federal 
minimum wage, you or a member of your household perform.
    (2) If you move insured property to a location other than the 
described location that contains the property, in order to protect it 
from flood or the imminent danger of flood, we will cover such property 
while at that location for a period of 45 consecutive days from the date 
you begin to move it there. The personal property that is moved must be 
placed in a fully enclosed building or otherwise reasonably protected 
from the elements.
    Any property removed, including a moveable home described in 
II.6.b.and c., must be placed above ground level or outside of the 
special flood hazard area.
    This coverage does not increase the Coverage A or Coverage B Limit 
of Liability.
    3. Condominium Loss Assessments.
    a. If this policy insures a unit, we will pay, up to the Coverage A 
limit of liability, your share of loss assessments charged against you 
by the condominium association in accordance with the condominium 
association's articles of association, declarations and your deed.
    The assessment must be made as a result of direct physical loss by 
or from flood during the policy term, to the building's common elements.
    b. We will not pay any loss assessment charged against you:
    (1) And the condominium association by any governmental body;
    (2) That results from a deductible under the insurance purchased by 
the condominium association insuring common elements;
    (3) That results from a loss to personal property, including 
contents of a condominium building;
    (4) That results from a loss sustained by the condominium 
association that was not reimbursed under a flood insurance policy 
written in the name of the association under the Act because the 
building was not, at the time of loss, insured for an amount equal to 
the lesser of:
    (a) 80% or more of its full replacement cost; or
    (b) The maximum amount of insurance permitted under the Act;
    (5) To the extent that payment under this policy for a condominium 
building loss, in combination with payments under any other NFIP 
policies for the same building loss, exceeds the maximum amount of 
insurance permitted under the Act for that kind of building; or
    (6) To the extent that payment under this policy for a condominium 
building loss, in combination with any recovery available to you as a 
tenant in common under any NFIP condominium association policies for the

[[Page 167]]

same building loss, exceeds the amount of insurance permitted under the 
Act for a single-family dwelling.
    Loss assessment coverage does not increase the Coverage A Limit of 
Liability.

               D. Coverage D--Increased Cost of Compliance

    1. General.
    This policy pays you to comply with a State or local floodplain 
management law or ordinance affecting repair or reconstruction of a 
structure suffering flood damage. Compliance activities eligible for 
payment are: elevation, floodproofing, relocation, or demolition (or any 
combination of these activities) of your structure. Eligible 
floodproofing activities are limited to:
    a. Non-residential structures.
    b. Residential structures with basements that satisfy FEMA's 
standards published in the Code of Federal Regulations [44 CFR 60.6 (b) 
or (c)].
    2. Limit of Liability.
    We will pay you up to $30,000 under this Coverage D--Increased Cost 
of Compliance, which only applies to policies with building coverage 
(Coverage A). Our payment of claims under Coverage D is in addition to 
the amount of coverage which you selected on the application and which 
appears on the Declarations Page. But the maximum you can collect under 
this policy for both Coverage A--Building Property and Coverage D--
Increased Cost of Compliance cannot exceed the maximum permitted under 
the Act. We do not charge a separate deductible for a claim under 
Coverage D.
    3. Eligibility
    a. A structure covered under Coverage A--Building Property 
sustaining a loss caused by a flood as defined by this policy must:
    (1) Be a ``repetitive loss structure.'' A repetitive loss structure 
is one that meets the following conditions:
    (a) The structure is covered by a contract of flood insurance issued 
under the NFIP.
    (b) The structure has suffered flood damage on two occasions during 
a 10-year period which ends on the date of the second loss.
    (c) The cost to repair the flood damage, on average, equaled or 
exceeded 25% of the market value of the structure at the time of each 
flood loss.
    (d) In addition to the current claim, the NFIP must have paid the 
previous qualifying claim, and the State or community must have a 
cumulative, substantial damage provision or repetitive loss provision in 
its floodplain management law or ordinance being enforced against the 
structure; or
    (2) Be a structure that has had flood damage in which the cost to 
repair equals or exceeds 50% of the market value of the structure at the 
time of the flood. The State or community must have a substantial damage 
provision in its floodplain management law or ordinance being enforced 
against the structure.
    b. This Coverage D pays you to comply with State or local floodplain 
management laws or ordinances that meet the minimum standards of the 
National Flood Insurance Program found in the Code of Federal 
Regulations at 44 CFR 60.3. We pay for compliance activities that exceed 
those standards under these conditions:
    (1) 3.a.(1) above.
    (2) Elevation or floodproofing in any risk zone to preliminary or 
advisory base flood elevations provided by FEMA which the State or local 
government has adopted and is enforcing for flood-damaged structures in 
such areas. (This includes compliance activities in B, C, X, or D zones 
which are being changed to zones with base flood elevations. This also 
includes compliance activities in zones where base flood elevations are 
being increased, and a flood-damaged structure must comply with the 
higher advisory base flood elevation.) Increased Cost of Compliance 
coverage does not apply to situations in B, C, X, or D zones where the 
community has derived its own elevations and is enforcing elevation or 
floodproofing requirements for flood-damaged structures to elevations 
derived solely by the community.
    (3) Elevation or floodproofing above the base flood elevation to 
meet State or local ``freeboard'' requirements, i.e., that a structure 
must be elevated above the base flood elevation.
    c. Under the minimum NFIP criteria at 44 CFR 60.3(b)(4), States and 
communities must require the elevation or floodproofing of structures in 
unnumbered A zones to the base flood elevation where elevation data is 
obtained from a Federal, State, or other source. Such compliance 
activities are also eligible for Coverage D.
    d. This coverage will also pay for the incremental cost, after 
demolition or relocation, of elevating or floodproofing a structure 
during its rebuilding at the same or another site to meet State or local 
floodplain management laws or ordinances, subject to Exclusion D.5.g. 
below.
    e. This coverage will also pay to bring a flood-damaged structure 
into compliance with state or local floodplain management laws or 
ordinances even if the structure had received a variance before the 
present loss from the applicable floodplain management requirements.
    4. Conditions.
    a. When a structure covered under Coverage A--Building Property 
sustains a loss caused by a flood, our payment for the loss under this 
Coverage D will be for the increased cost to elevate, floodproof, 
relocate, or demolish (or any combination of these activities) caused by 
the enforcement of current State or local floodplain management 
ordinances or laws. Our payment for eligible

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demolition activities will be for the cost to demolish and clear the 
site of the building debris or a portion thereof caused by the 
enforcement of current State or local floodplain management ordinances 
or laws. Eligible activities for the cost of clearing the site will 
include those necessary to discontinue utility service to the site and 
ensure proper abandonment of on-site utilities.
    b. When the building is repaired or rebuilt, it must be intended for 
the same occupancy as the present building unless otherwise required by 
current floodplain management ordinances or laws.
    5. Exclusions.
    Under this Coverage D (Increased Cost of Compliance) we will not pay 
for:
    a. The cost to comply with any floodplain management law or 
ordinance in communities participating in the Emergency Program.
    b. The cost associated with enforcement of any ordinance or law that 
requires any insured or others to test for, monitor, clean up, remove, 
contain, treat, detoxify or neutralize, or in any way respond to, or 
assess the effects of pollutants.
    c. The loss in value to any insured building or other structure due 
to the requirements of any ordinance or law.
    d. The loss in residual value of the undamaged portion of a building 
demolished as a consequence of enforcement of any State or local 
floodplain management law or ordinance.
    e. Any Increased Cost of Compliance under this Coverage D:
    (1) Until the building is elevated, floodproofed, demolished, or 
relocated on the same or to another premises; and
    (2) Unless the building is elevated, floodproofed, demolished, or 
relocated as soon as reasonably possible after the loss, not to exceed 
two years.
    f. Any code upgrade requirements, e.g., plumbing or electrical 
wiring, not specifically related to the State or local floodplain 
management law or ordinance.
    g. Any compliance activities needed to bring additions or 
improvements made after the loss occurred into compliance with State or 
local floodplain management laws or ordinances.
    h. Loss due to any ordinance or law that you were required to comply 
with before the current loss.
    i. Any rebuilding activity to standards that do not meet the NFIP's 
minimum requirements. This includes any situation where the insured has 
received from the State or community a variance in connection with the 
current flood loss to rebuild the property to an elevation below the 
base flood elevation.
    j. Increased Cost of Compliance for a garage or carport.
    k. Any structure insured under an NFIP Group Flood Insurance Policy.
    l. Assessments made by a condominium association on individual 
condominium unit owners to pay increased costs of repairing commonly 
owned buildings after a flood in compliance with State or local 
floodplain management ordinances or laws.
    6. Other Provisions.
    a. Increased Cost of Compliance coverage will not be included in the 
calculation to determine whether coverage meets the 80% insurance-to-
value requirement for replacement cost coverage as set forth in VII. 
General Conditions, V. Loss Settlement.
    b. All other conditions and provisions of the policy apply.

                        IV. Property Not Covered

    We do not cover any of the following:
    1. Personal property not inside a building;
    2. A building, and personal property in it, located entirely in, on, 
or over water or seaward of mean high tide if it was constructed or 
substantially improved after September 30, 1982;
    3. Open structures, including a building used as a boathouse or any 
structure or building into which boats are floated, and personal 
property located in, on, or over water;
    4. Recreational vehicles other than travel trailers described in the 
Definitions section (see II.B.6.c.) whether affixed to a permanent 
foundation or on wheels;
    5. Self-propelled vehicles or machines, including their parts and 
equipment. However, we do cover self-propelled vehicles or machines not 
licensed for use on public roads that are:
    a. Used mainly to service the described location or
    b. Designed and used to assist handicapped persons, while the 
vehicles or machines are inside a building at the described location;
    6. Land, land values, lawns, trees, shrubs, plants, growing crops, 
or animals;
    7. Accounts, bills, coins, currency, deeds, evidences of debt, 
medals, money, scrip, stored value cards, postage stamps, securities, 
bullion, manuscripts, or other valuable papers;
    8. Underground structures and equipment, including wells, septic 
tanks, and septic systems;
    9. Those portions of walks, walkways, decks, driveways, patios and 
other surfaces, all whether protected by a roof or not, located outside 
the perimeter, exterior walls of the insured building or the building in 
which the insured unit is located;
    10. Containers, including related equipment, such as, but not 
limited to, tanks containing gases or liquids;
    11. Buildings or units and all their contents if more than 49% of 
the actual cash value of the building is below ground, unless

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the lowest level is at or above the base flood elevation and is below 
ground by reason of earth having been used as insulation material in 
conjunction with energy efficient building techniques;
    12. Fences, retaining walls, seawalls, bulkheads, wharves, piers, 
bridges, and docks;
    13. Aircraft or watercraft, or their furnishings and equipment;
    14. Hot tubs and spas that are not bathroom fixtures, and swimming 
pools, and their equipment, such as, but not limited to, heaters, 
filters, pumps, and pipes, wherever located;
    15. Property not eligible for flood insurance pursuant to the 
provisions of the Coastal Barrier Resources Act and the Coastal Barrier 
Improvement Act and amendments to these Acts;
    16. Personal property you own in common with other unit owners 
comprising the membership of a condominium association.

                              V. Exclusions

    A. We only pay for direct physical loss by or from flood, which 
means that we do not pay you for:
    1. Loss of revenue or profits;
    2. Loss of access to the insured property or described location;
    3. Loss of use of the insured property or described location;
    4. Loss from interruption of business or production;
    5. Any additional living expenses incurred while the insured 
building is being repaired or is unable to be occupied for any reason;
    6. The cost of complying with any ordinance or law requiring or 
regulating the construction, demolition, remodeling, renovation, or 
repair of property, including removal of any resulting debris. This 
exclusion does not apply to any eligible activities we describe in 
Coverage D--Increased Cost of Compliance; or
    7. Any other economic loss you suffer.
    B. We do not insure a loss directly or indirectly caused by a flood 
that is already in progress at the time and date:
    1. The policy term begins; or
    2. Coverage is added at your request.
    C. We do not insure for loss to property caused directly by earth 
movement even if the earth movement is caused by flood. Some examples of 
earth movement that we do not cover are:
    1. Earthquake;
    2. Landslide;
    3. Land subsidence;
    4. Sinkholes;
    5. Destabilization or movement of land that results from 
accumulation of water in subsurface land area; or
    6. Gradual erosion.
    We do, however, pay for losses from mudflow and land subsidence as a 
result of erosion that are specifically covered under our definition of 
flood (see II.A.1.c. and II.A.2.).
    D. We do not insure for direct physical loss caused directly or 
indirectly by any of the following:
    1. The pressure or weight of ice;
    2. Freezing or thawing;
    3. Rain, snow, sleet, hail, or water spray;
    4. Water, moisture, mildew, or mold damage that results primarily 
from any condition:
    a. Substantially confined to the dwelling; or
    b. That is within your control, including but not limited to:
    (1) Design, structural, or mechanical defects;
    (2) Failure, stoppage, or breakage of water or sewer lines, drains, 
pumps, fixtures, or equipment; or
    (3) Failure to inspect and maintain the property after a flood 
recedes;
    5. Water or water-borne material that:
    a. Backs up through sewers or drains;
    b. Discharges or overflows from a sump, sump pump or related 
equipment; or
    c. Seeps or leaks on or through the covered property;
unless there is a flood in the area and the flood is the proximate cause 
of the sewer or drain backup, sump pump discharge or overflow, or the 
seepage of water;
    6. The pressure or weight of water unless there is a flood in the 
area and the flood is the proximate cause of the damage from the 
pressure or weight of water;
    7. Power, heating, or cooling failure unless the failure results 
from direct physical loss by or from flood to power, heating, or cooling 
equipment on the described location;
    8. Theft, fire, explosion, wind, or windstorm;
    9. Anything you or any member of your household do or conspires to 
do to deliberately cause loss by flood; or
    10. Alteration of the insured property that significantly increases 
the risk of flooding.
    E. We do not insure for loss to any building or personal property 
located on land leased from the Federal Government, arising from or 
incident to the flooding of the land by the Federal Government, where 
the lease expressly holds the Federal Government harmless under flood 
insurance issued under any Federal Government program.
    F. We do not pay for the testing for or monitoring of pollutants 
unless required by law or ordinance.

                             VI. Deductibles

    A. When a loss is covered under this policy, we will pay only that 
part of the loss that exceeds your deductible amount, subject to the 
limit of liability that applies. The deductible amount is shown on the 
Declarations Page.

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    However, when a building under construction, alteration, or repair 
does not have at least two rigid exterior walls and a fully secured roof 
at the time of loss, your deductible amount will be two times the 
deductible that would otherwise apply to a completed building.
    B. In each loss from flood, separate deductibles apply to the 
building and personal property insured by this policy.
    C. The deductible does NOT apply to:
    1. III.C.2. Loss Avoidance Measures;
    2. III.C.3. Condominium Loss Assessments; or
    3. III.D. Increased Cost of Compliance.

                         VII. General Conditions

                         A. Pair and Set Clause

    In case of loss to an article that is part of a pair or set, we will 
have the option of paying you:
    1. An amount equal to the cost of replacing the lost, damaged, or 
destroyed article, minus its depreciation, or
    2. The amount that represents the fair proportion of the total value 
of the pair or set that the lost, damaged, or destroyed article bears to 
the pair or set.

               B. Concealment or Fraud and Policy Voidance

    1. With respect to all insureds under this policy, this policy:
    a. Is void;
    b. Has no legal force or effect;
    c. Cannot be renewed; and
    d. Cannot be replaced by a new NFIP policy, if, before or after a 
loss, you or any other insured or your agent have at any time:
    (1) Intentionally concealed or misrepresented any material fact or 
circumstance;
    (2) Engaged in fraudulent conduct; or
    (3) Made false statements; relating to this policy or any other NFIP 
insurance.
    2. This policy will be void as of the date wrongful acts described 
in B.1.above were committed.
    3. Fines, civil penalties, and imprisonment under applicable Federal 
laws may also apply to the acts of fraud or concealment described above.
    4. This policy is also void for reasons other than fraud, 
misrepresentation, or wrongful act. This policy is void from its 
inception and has no legal force under the following conditions:
    a. If the property is located in a community that was not 
participating in the NFIP on the policy's inception date and did not 
join or reenter the program during the policy term and before the loss 
occurred; or
    b. If the property listed on the application is otherwise not 
eligible for coverage under the NFIP.

                           C. Other Insurance

    1. If a loss covered by this policy is also covered by other 
insurance that includes flood coverage not issued under the Act, we will 
not pay more than the amount of insurance you are entitled to for lost, 
damaged, or destroyed property insured under this policy subject to the 
following:
    a. We will pay only the proportion of the loss that the amount of 
insurance that applies under this policy bears to the total amount of 
insurance covering the loss, unless C.1.b. or c. immediately below 
applies.
    b. If the other policy has a provision stating that it is excess 
insurance, this policy will be primary.
    c. This policy will be primary (but subject to its own deductible) 
up to the deductible in the other flood policy (except another policy as 
described in C.1.b. above). When the other deductible amount is reached, 
this policy will participate in the same proportion that the amount of 
insurance under this policy bears to the total amount of both policies, 
for the remainder of the loss.
    2. If there is other insurance in the name of your condominium 
association covering the same property covered by this policy, then this 
policy will be in excess over the other insurance.

                   D. Amendments, Waivers, Assignment

    This policy cannot be changed nor can any of its provisions be 
waived without the express written consent of the Federal Insurance 
Administrator. No action we take under the terms of this policy 
constitutes a waiver of any of our rights. You may assign this policy in 
writing when you transfer title of your property to someone else except 
under these conditions:
    1. When this policy covers only personal property; or
    2. When this policy covers a structure during the course of 
construction.

                  E. Cancellation of the Policy by You

    1. You may cancel this policy in accordance with the applicable 
rules and regulations of the NFIP.
    2. If you cancel this policy, you may be entitled to a full or 
partial refund of premium also under the applicable rules and 
regulations of the NFIP.

                   F. Non-Renewal of the Policy by Us

    Your policy will not be renewed:
    1. If the community where your covered property is located stops 
participating in the NFIP, or
    2. If your building has been declared ineligible under section 1316 
of the Act.

[[Page 171]]

                G. Reduction and Reformation of Coverage

    1. If the premium we received from you was not enough to buy the 
kind and amount of coverage you requested, we will provide only the 
amount of coverage that can be purchased for the premium payment we 
received.
    2. The policy can be reformed to increase the amount of coverage 
resulting from the reduction described in G.1. above to the amount you 
requested as follows:
    a. Discovery of Insufficient Premium or Incomplete Rating 
Information Before a Loss:
    (1) If we discover before you have a flood loss that your premium 
payment was not enough to buy the requested amount of coverage, we will 
send you and any mortgagee or trustee known to us a bill for the 
required additional premium for the current policy term (or that portion 
of the current policy term following any endorsement changing the amount 
of coverage). If you or the mortgagee or trustee pay the additional 
premium within 30 days from the date of our bill, we will reform the 
policy to increase the amount of coverage to the originally requested 
amount effective to the beginning of the current policy term (or 
subsequent date of any endorsement changing the amount of coverage).
    (2) If we determine before you have a flood loss that the rating 
information we have is incomplete and prevents us from calculating the 
additional premium, we will ask you to send the required information. 
You must submit the information within 60 days of our request. Once we 
determine the amount of additional premium for the current policy term, 
we will follow the procedure in G.2.a.(1) above.
    (3) If we do not receive the additional premium (or additional 
information) by the date it is due, the amount of coverage can only be 
increased by endorsement subject to any appropriate waiting period.
    b. Discovery of Insufficient Premium or Incomplete Rating 
Information After a Loss:
    (1) If we discover after you have a flood loss that your premium 
payment was not enough to buy the requested amount of coverage, we will 
send you and any mortgagee or trustee known to us a bill for the 
required additional premium for the current and the prior policy terms. 
If you or the mortgagee or trustee pay the additional premium within 30 
days of the date of our bill, we will reform the policy to increase the 
amount of coverage to the originally requested amount effective to the 
beginning of the prior policy term.
    (2) If we discover after you have a flood loss that the rating 
information we have is incomplete and prevents us from calculating the 
additional premium, we will ask you to send the required information. 
You must submit the information before your claim can be paid. Once we 
determine the amount of additional premium for the current and prior 
policy terms, we will follow the procedure in G.2.b.(1) above.
    (3) If we do not receive the additional premium by the date it is 
due, your flood insurance claim will be settled based on the reduced 
amount of coverage. The amount of coverage can only be increased by 
endorsement subject to any appropriate waiting period.
    3. However, if we find that you or your agent intentionally did not 
tell us, or falsified, any important fact or circumstance or did 
anything fraudulent relating to this insurance, the provisions of 
Condition B. Concealment or Fraud and Policy Voidance apply.

                            H. Policy Renewal

    1. This policy will expire at 12:01 a.m. on the last day of the 
policy term.
    2. We must receive the payment of the appropriate renewal premium 
within 30 days of the expiration date.
    3. If we find, however, that we did not place your renewal notice 
into the U.S. Postal Service, or if we did mail it, we made a mistake, 
e.g., we used an incorrect, incomplete, or illegible address, which 
delayed its delivery to you before the due date for the renewal premium, 
then we will follow these procedures:
    a. If you or your agent notified us, not later than one year after 
the date on which the payment of the renewal premium was due, of non-
receipt of a renewal notice before the due date for the renewal premium, 
and we determine that the circumstances in the preceding paragraph 
apply, we will mail a second bill providing a revised due date, which 
will be 30 days after the date on which the bill is mailed.
    b. If we do not receive the premium requested in the second bill by 
the revised due date, then we will not renew the policy. In that case, 
the policy will remain an expired policy as of the expiration date shown 
on the Declarations Page.
    4. In connection with the renewal of this policy, we may ask you 
during the policy term to recertify, on a Recertification Questionnaire 
we will provide to you, the rating information used to rate your most 
recent application for or renewal of insurance.

            I. Conditions Suspending or Restricting Insurance

    We are not liable for loss that occurs while there is a hazard that 
is increased by any means within your control or knowledge.

                     J. Requirements in Case of Loss

    In case of a flood loss to insured property, you must:
    1. Give prompt written notice to us;

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    2. As soon as reasonably possible, separate the damaged and 
undamaged property, putting it in the best possible order so that we may 
examine it;
    3. Prepare an inventory of damaged property showing the quantity, 
description, actual cash value, and amount of loss. Attach all bills, 
receipts, and related documents;
    4. Within 60 days after the loss, send us a proof of loss, which is 
your statement of the amount you are claiming under the policy signed 
and sworn to by you, and which furnishes us with the following 
information:
    a. The date and time of loss;
    b. A brief explanation of how the loss happened;
    c. Your interest (for example, ``owner'') and the interest, if any, 
of others in the damaged property;
    d. Details of any other insurance that may cover the loss;
    e. Changes in title or occupancy of the covered property during the 
term of the policy;
    f. Specifications of damaged buildings and detailed repair 
estimates;
    g. Names of mortgagees or anyone else having a lien, charge, or 
claim against the insured property;
    h. Details about who occupied any insured building at the time of 
loss and for what purpose; and
    i. The inventory of damaged personal property described in J.3. 
above.
    5. In completing the proof of loss, you must use your own judgment 
concerning the amount of loss and justify that amount.
    6. You must cooperate with the adjuster or representative in the 
investigation of the claim.
    7. The insurance adjuster whom we hire to investigate your claim may 
furnish you with a proof of loss form, and she or he may help you 
complete it. However, this is a matter of courtesy only, and you must 
still send us a proof of loss within 60 days after the loss even if the 
adjuster does not furnish the form or help you complete it.
    8. We have not authorized the adjuster to approve or disapprove 
claims or to tell you whether we will approve your claim.
    9. At our option, we may accept the adjuster's report of the loss 
instead of your proof of loss. The adjuster's report will include 
information about your loss and the damages you sustained. You must sign 
the adjuster's report. At our option, we may require you to swear to the 
report.

                       K. Our Options After a Loss

    Options we may, in our sole discretion, exercise after loss include 
the following:
    1. At such reasonable times and places that we may designate, you 
must:
    a. Show us or our representative the damaged property;
    b. Submit to examination under oath, while not in the presence of 
another insured, and sign the same; and
    c. Permit us to examine and make extracts and copies of:
    (1) Any policies of property insurance insuring you against loss and 
the deed establishing your ownership of the insured real property;
    (2) Condominium association documents including the Declarations of 
the condominium, its Articles of Association or Incorporation, Bylaws, 
rules and regulations, and other relevant documents if you are a unit 
owner in a condominium building; and
    (3) All books of accounts, bills, invoices and other vouchers, or 
certified copies pertaining to the damaged property if the originals are 
lost.
    2. We may request, in writing, that you furnish us with a complete 
inventory of the lost, damaged or destroyed property, including:
    a. Quantities and costs;
    b. Actual cash values or replacement cost (whichever is 
appropriate);
    c. Amounts of loss claimed;
    d. Any written plans and specifications for repair of the damaged 
property that you can reasonably make available to us; and
    e. Evidence that prior flood damage has been repaired.
    3. If we give you written notice within 30 days after we receive 
your signed, sworn proof of loss, we may:
    a. Repair, rebuild, or replace any part of the lost, damaged, or 
destroyed property with material or property of like kind and quality or 
its functional equivalent; and
    b. Take all or any part of the damaged property at the value that we 
agree upon or its appraised value.

                         L. No Benefit to Bailee

    No person or organization, other than you, having custody of covered 
property will benefit from this insurance.

                             M. Loss Payment

    1. We will adjust all losses with you. We will pay you unless some 
other person or entity is named in the policy or is legally entitled to 
receive payment. Loss will be payable 60 days after we receive your 
proof of loss (or within 90 days after the insurance adjuster files the 
adjuster's report signed and sworn to by you in lieu of a proof of loss) 
and:
    a. We reach an agreement with you;
    b. There is an entry of a final judgment; or
    c. There is a filing of an appraisal award with us, as provided in 
VII. P.
    2. If we reject your proof of loss in whole or in part you may:
    a. Accept our denial of your claim;
    b. Exercise your rights under this policy; or

[[Page 173]]

    c. File an amended proof of loss as long as it is filed within 60 
days of the date of the loss.

                             N. Abandonment

    You may not abandon to us damaged or undamaged property insured 
under this policy.

                               O. Salvage

    We may permit you to keep damaged property insured under this policy 
after a loss, and we will reduce the amount of the loss proceeds payable 
to you under the policy by the value of the salvage.

                              P. Appraisal

    If you and we fail to agree on the actual cash value or, if 
applicable, replacement cost of your damaged property to settle upon the 
amount of loss, then either may demand an appraisal of the loss. In this 
event, you and we will each choose a competent and impartial appraiser 
within 20 days after receiving a written request from the other. The two 
appraisers will choose an umpire. If they cannot agree upon an umpire 
within 15 days, you or we may request that the choice be made by a judge 
of a court of record in the state where the covered property is located. 
The appraisers will separately state the actual cash value, the 
replacement cost, and the amount of loss to each item. If the appraisers 
submit a written report of an agreement to us, the amount agreed upon 
will be the amount of loss. If they fail to agree, they will submit 
their differences to the umpire. A decision agreed to by any two will 
set the amount of actual cash value and loss, or if it applies, the 
replacement cost and loss.
    Each party will:
    1. Pay its own appraiser; and
    2. Bear the other expenses of the appraisal and umpire equally.

                           Q. Mortgage Clause

    The word ``mortgagee'' includes trustee.
    Any loss payable under Coverage A--Building Property will be paid to 
any mortgagee of whom we have actual notice, as well as any other 
mortgagee or loss payee determined to exist at the time of loss, and 
you, as interests appear. If more than one mortgagee is named, the order 
of payment will be the same as the order of precedence of the mortgages.
    If we deny your claim, that denial will not apply to a valid claim 
of the mortgagee, if the mortgagee:
    1. Notifies us of any change in the ownership or occupancy, or 
substantial change in risk of which the mortgagee is aware;
    2. Pays any premium due under this policy on demand if you have 
neglected to pay the premium; and
    3. Submits a signed, sworn proof of loss within 60 days after 
receiving notice from us of your failure to do so.
    All of the terms of this policy apply to the mortgagee.
    The mortgagee has the right to receive loss payment even if the 
mortgagee has started foreclosure or similar action on the building.
    If we decide to cancel or not renew this policy, it will continue in 
effect for the benefit of the mortgagee only for 30 days after we notify 
the mortgagee of the cancellation or non-renewal.
    If we pay the mortgagee for any loss and deny payment to you, we are 
subrogated to all the rights of the mortgagee granted under the mortgage 
on the property. Subrogation will not impair the right of the mortgagee 
to recover the full amount of the mortgagee's claim.

                           R. Suit Against Us

    You may not sue us to recover money under this policy unless you 
have complied with all the requirements of the policy. If you do sue, 
you must start the suit within one year after the date of the written 
denial of all or part of the claim, and you must file the suit in the 
United States District Court of the district in which the covered 
property was located at the time of loss. This requirement applies to 
any claim that you may have under this policy and to any dispute that 
you may have arising out of the handling of any claim under the policy.

                             S. Subrogation

    Whenever we make a payment for a loss under this policy, we are 
subrogated to your right to recover for that loss from any other person. 
That means that your right to recover for a loss that was partly or 
totally caused by someone else is automatically transferred to us, to 
the extent that we have paid you for the loss. We may require you to 
acknowledge this transfer in writing. After the loss, you may not give 
up our right to recover this money or do anything that would prevent us 
from recovering it. If you make any claim against any person who caused 
your loss and recover any money, you must pay us back first before you 
may keep any of that money.

                       T. Continuous Lake Flooding

    1. If an insured building has been flooded by rising lake waters 
continuously for 90 days or more and it appears reasonably certain that 
a continuation of this flooding will result in a covered loss to the 
insured building equal to or greater than the building policy limits 
plus the deductible or the maximum payable under the policy for any one 
building loss, we will pay you the lesser of these two amounts without 
waiting for the

[[Page 174]]

further damage to occur if you sign a release agreeing:
    a. To make no further claim under this policy;
    b. Not to seek renewal of this policy;
    c. Not to apply for any flood insurance under the Act for property 
at the described location; and
    d. Not to seek a premium refund for current or prior terms.
    If the policy term ends before the insured building has been flooded 
continuously for 90 days, the provisions of this paragraph T.1. will 
apply when the insured building suffers a covered loss before the policy 
term ends.
    2. If your insured building is subject to continuous lake flooding 
from a closed basin lake, you may elect to file a claim under either 
paragraph T.1. above or T.2. (A ``closed basin lake'' is a natural lake 
from which water leaves primarily through evaporation and whose surface 
area now exceeds or has exceeded one square mile at any time in the 
recorded past. Most of the nation's closed basin lakes are in the 
western half of the United States where annual evaporation exceeds 
annual precipitation and where lake levels and surface areas are subject 
to considerable fluctuation due to wide variations in the climate. These 
lakes may overtop their basins on rare occasions.) Under this paragraph 
T.2., we will pay your claim as if the building is a total loss even 
though it has not been continuously inundated for 90 days, subject to 
the following conditions:
    a. Lake flood waters must damage or imminently threaten to damage 
your building.
    b. Before approval of your claim, you must:
    (1) Agree to a claim payment that reflects your buying back the 
salvage on a negotiated basis; and
    (2) Grant the conservation easement described in FEMA's ``Policy 
Guidance for Closed Basin Lakes'' to be recorded in the office of the 
local recorder of deeds. FEMA, in consultation with the community in 
which the property is located, will identify on a map an area or areas 
of special consideration (ASC) in which there is a potential for flood 
damage from continuous lake flooding. FEMA will give the community the 
agreed-upon map showing the ASC. This easement will only apply to that 
portion of the property in the ASC. It will allow certain agricultural 
and recreational uses of the land. The only structures it will allow on 
any portion of the property within the ASC are certain simple 
agricultural and recreational structures. If any of these allowable 
structures are insurable buildings under the NFIP and are insured under 
the NFIP, they will not be eligible for the benefits of this paragraph 
T.2. If a U.S. Army Corps of Engineers certified flood control project 
or otherwise certified flood control project later protects the 
property, FEMA will, upon request, amend the ASC to remove areas 
protected by those projects. The restrictions of the easement will then 
no longer apply to any portion of the property removed from the ASC; and
    (3) Comply with paragraphs T.1.a. through T.1.d. above.
    c. Within 90 days of approval of your claim, you must move your 
building to a new location outside the ASC. FEMA will give you an 
additional 30 days to move if you show there is sufficient reason to 
extend the time.
    d. Before the final payment of your claim, you must acquire an 
elevation certificate and a floodplain development permit from the local 
floodplain administrator for the new location of your building.
    e. Before the approval of your claim, the community having 
jurisdiction over your building must:
    (1) Adopt a permanent land use ordinance, or a temporary moratorium 
for a period not to exceed 6 months to be followed immediately by a 
permanent land use ordinance, that is consistent with the provisions 
specified in the easement required in paragraph T.2.b. above.
    (2) Agree to declare and report any violations of this ordinance to 
FEMA so that under Section 1316 of the National Flood Insurance Act of 
1968, as amended, flood insurance to the building can be denied; and
    (3) Agree to maintain as deed-restricted, for purposes compatible 
with open space or agricultural or recreational use only, any affected 
property the community acquires an interest in. These deed restrictions 
must be consistent with the provisions of paragraph T.2.b. above, except 
that, even if a certified project protects the property, the land use 
restrictions continue to apply if the property was acquired under the 
Hazard Mitigation Grant Program or the Flood Mitigation Assistance 
Program. If a non-profit land trust organization receives the property 
as a donation, that organization must maintain the property as deed-
restricted, consistent with the provisions of paragraph T.2.b. above.
    f. Before the approval of your claim, the affected State must take 
all action set forth in FEMA's ``Policy Guidance for Closed Basin 
Lakes.''
    g. You must have NFIP flood insurance coverage continuously in 
effect from a date established by FEMA until you file a claim under 
paragraph T.2. If a subsequent owner buys NFIP insurance that goes into 
effect within 60 days of the date of transfer of title, any gap in 
coverage during that 60-day period will not be a violation of this 
continuous coverage requirement. For the purpose of honoring a claim 
under this paragraph T.2, we will not consider to be in effect any 
increased coverage that became effective after the date established by 
FEMA. The exception to this is any increased coverage in the amount 
suggested by your insurer as an inflation adjustment.

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    h. This paragraph T.2. will be in effect for a community when the 
FEMA Regional Administrator for the affected region provides to the 
community, in writing, the following:
    (1) Confirmation that the community and the State are in compliance 
with the conditions in paragraphs T.2.e. and T.2.f. above, and
    (2) The date by which you must have flood insurance in effect.

                    U. Duplicate Policies Not Allowed

    1. We will not insure your property under more than one NFIP policy.
    If we find that the duplication was not knowingly created, we will 
give you written notice. The notice will advise you that you may choose 
one of several options under the following procedures:
    a. If you choose to keep in effect the policy with the earlier 
effective date, you may also choose to add the coverage limits of the 
later policy to the limits of the earlier policy. The change will become 
effective as of the effective date of the later policy.
    b. If you choose to keep in effect the policy with the later 
effective date, you may also choose to add the coverage limits of the 
earlier policy to the limits of the later policy. The change will be 
effective as of the effective date of the later policy.
    In either case, you must pay the pro rata premium for the increased 
coverage limits within 30 days of the written notice. In no event will 
the resulting coverage limits exceed the permissible limits of coverage 
under the Act or your insurable interest, whichever is less. We will 
make a refund to you, according to applicable NFIP rules, of the premium 
for the policy not being kept in effect.
    2. Your option under Condition U. Duplicate Policies Not Allowed to 
elect which NFIP policy to keep in effect does not apply when duplicates 
have been knowingly created. Losses occurring under such circumstances 
will be adjusted according to the terms and conditions of the earlier 
policy. The policy with the later effective date must be canceled.

                           V. Loss Settlement

                             1. Introduction

    This policy provides three methods of settling losses: Replacement 
Cost, Special Loss Settlement, and Actual Cash Value. Each method is 
used for a different type of property, as explained in a-c. below.
    a. Replacement Cost Loss Settlement, described in V.2. below, 
applies to a single-family dwelling provided:
    (1) It is your principal residence, which means that, at the time of 
loss, you or your spouse lived there for 80% of:
    (a) The 365 days immediately preceding the loss; or
    (b) The period of your ownership, if you owned the dwelling for less 
than 365 days; and
    (2) At the time of loss, the amount of insurance in this policy that 
applies to the dwelling is 80% or more of its full replacement cost 
immediately before the loss, or is the maximum amount of insurance 
available under the NFIP.
    b. Special Loss Settlement, described in V.3. below, applies to a 
single-family dwelling that is a manufactured or mobile home or a travel 
trailer.
    c. Actual Cash Value loss settlement applies to a single-family 
dwelling not subject to replacement cost or special loss settlement, and 
to the property listed in V.4. below.

                   2. Replacement Cost Loss Settlement

    The following loss settlement conditions apply to a single-family 
dwelling described in V.1.a. above:
    a. We will pay to repair or replace the damaged dwelling after 
application of the deductible and without deduction for depreciation, 
but not more than the least of the following amounts:
    (1) The building limit of liability shown on your Declarations Page;
    (2) The replacement cost of that part of the dwelling damaged, with 
materials of like kind and quality and for like use; or
    (3) The necessary amount actually spent to repair or replace the 
damaged part of the dwelling for like use.
    b. If the dwelling is rebuilt at a new location, the cost described 
above is limited to the cost that would have been incurred if the 
dwelling had been rebuilt at its former location.
    c. When the full cost of repair or replacement is more than $1,000, 
or more than 5% of the whole amount of insurance that applies to the 
dwelling, we will not be liable for any loss under V.2.a. above or 
V.4.a.(2) below unless and until actual repair or replacement is 
completed.
    d. You may disregard the replacement cost conditions above and make 
claim under this policy for loss to dwellings on an actual cash value 
basis. You may then make claim for any additional liability according to 
V.2.a., b., and c. above, provided you notify us of your intent to do so 
within 180 days after the date of loss.
    e. If the community in which your dwelling is located has been 
converted from the Emergency Program to the Regular Program during the 
current policy term, then we will consider the maximum amount of 
available NFIP insurance to be the amount that was available at the 
beginning of the current policy term.

[[Page 176]]

                       3. Special Loss Settlement

    a. The following loss settlement conditions apply to a single-family 
dwelling that:
    (1) is a manufactured or mobile home or a travel trailer, as defined 
in II.B.6.b. and c.,
    (2) is at least 16 feet wide when fully assembled and has an area of 
at least 600 square feet within its perimeter walls when fully 
assembled, and
    (3) is your principal residence as specified in V.1.a.(1) above.
    b. If such a dwelling is totally destroyed or damaged to such an 
extent that, in our judgment, it is not economically feasible to repair, 
at least to its pre-damage condition, we will, at our discretion pay the 
least of the following amounts:
    (1) The lesser of the replacement cost of the dwelling or 1.5 times 
the actual cash value, or
    (2) The building limit of liability shown on your Declarations Page.
    c. If such a dwelling is partially damaged and, in our judgment, it 
is economically feasible to repair it to its pre-damage condition, we 
will settle the loss according to the Replacement Cost conditions in 
V.2.above.

                  4. Actual Cash Value Loss Settlement

    The types of property noted below are subject to actual cash value 
(or in the case of V.4.a.(2), below, proportional) loss settlement.
    a. A dwelling, at the time of loss, when the amount of insurance on 
the dwelling is both less than 80% of its full replacement cost 
immediately before the loss and less than the maximum amount of 
insurance available under the NFIP. In that case, we will pay the 
greater of the following amounts, but not more than the amount of 
insurance that applies to that dwelling:
    (1) The actual cash value, as defined in II.B.2., of the damaged 
part of the dwelling; or
    (2) A proportion of the cost to repair or replace the damaged part 
of the dwelling, without deduction for physical depreciation and after 
application of the deductible.
    This proportion is determined as follows: If 80% of the full 
replacement cost of the dwelling is less than the maximum amount of 
insurance available under the NFIP, then the proportion is determined by 
dividing the actual amount of insurance on the dwelling by the amount of 
insurance that represents 80% of its full replacement cost. But if 80% 
of the full replacement cost of the dwelling is greater than the maximum 
amount of insurance available under the NFIP, then the proportion is 
determined by dividing the actual amount of insurance on the dwelling by 
the maximum amount of insurance available under the NFIP.
    b. A two-, three-, or four-family dwelling.
    c. A unit that is not used exclusively for single-family dwelling 
purposes.
    d. Detached garages.
    e. Personal property.
    f. Appliances, carpets, and carpet pads.
    g. Outdoor awnings, outdoor antennas or aerials of any type, and 
other outdoor equipment.
    h. Any property covered under this policy that is abandoned after a 
loss and remains as debris anywhere on the described location.
    i. A dwelling that is not your principal residence.

                     5. Amount of Insurance Required

    To determine the amount of insurance required for a dwelling 
immediately before the loss, we do not include the value of:
    a. Footings, foundations, piers, or any other structures or devices 
that are below the undersurface of the lowest basement floor and support 
all or part of the dwelling;
    b. Those supports listed in V.5.a. above, that are below the surface 
of the ground inside the foundation walls if there is no basement; and
    c. Excavations and underground flues, pipes, wiring, and drains.

    Note: The Coverage D--Increased Cost of Compliance limit of 
liability is not included in the determination of the amount of 
insurance required.

                       VIII. Liberalization Clause

    If we make a change that broadens your coverage under this edition 
of our policy, but does not require any additional premium, then that 
change will automatically apply to your insurance as of the date we 
implement the change, provided that this implementation date falls 
within 60 days before or during the policy term stated on the 
Declarations Page.

                          IX. What Law Governs

    This policy and all disputes arising from the handling of any claim 
under the policy are governed exclusively by the flood insurance 
regulations issued by FEMA, the National Flood Insurance Act of 1968, as 
amended (42 U.S.C. 4001, et seq.), and Federal common law.
    In Witness Whereof, we have signed this policy below and hereby 
enter into this Insurance Agreement.
                        Administrator, Federal Insurance Administration.

[65 FR 60769, Oct. 12, 2000, as amended at 68 FR 9897, Mar. 3, 2003]

[[Page 177]]



                      Sec. Appendix A(2) to Part 61

  Federal Emergency Management Agency, Federal Insurance Administration

                     Standard Flood Insurance Policy

                          GENERAL PROPERTY FORM

    Please read the policy carefully. The flood insurance coverage 
provided is subject to limitations, restrictions, and exclusions.
    This policy provides no coverage:
    1. In a regular program community, for a residential condominium 
building, as defined in this policy; and
    2. Except for personal property coverage, for a unit in a 
condominium building.

                              I. Agreement

    The Federal Emergency Management Agency (FEMA) provides flood 
insurance under the terms of the National Flood Insurance Act of 1968 
and its Amendments, and Title 44 of the Code of Federal Regulations.
    We will pay you for direct physical loss by or from flood to your 
insured property if you:
    1. Have paid the correct premium;
    2. Comply with all terms and conditions of this policy; and
    3. Have furnished accurate information and statements.
    We have the right to review the information you give us at any time 
and to revise your policy based on our review.

                             II. Definitions

    A. In this policy, ``you'' and ``your'' refer to the insured(s) 
shown on the Declarations Page of this policy. Insured(s) includes: Any 
mortgagee and loss payee named in the Application and Declarations page, 
as well as any other mortgagee or loss payee determined to exist at the 
time of loss in the order of precedence. ``We,'' ``us,'' and ``our'' 
refer to the insurer.
    Some definitions are complex because they are provided as they 
appear in the law or regulations, or result from court cases. The 
precise definitions are intended to protect you.
    Flood, as used in this flood insurance policy, means:
    1. A general and temporary condition of partial or complete 
inundation of two or more acres of normally dry land area or of two or 
more properties (one of which is your property) from:
    a. Overflow of inland or tidal waters;
    b. Unusual and rapid accumulation or runoff of surface waters from 
any source;
    c. Mudflow.
    2. The collapse or subsidence of land along the shore of a lake or 
similar body of water as a result of erosion or undermining caused by 
waves or currents of water exceeding anticipated cyclical levels which 
result in a flood as defined in A.1.a. above.
    B. The following are the other key definitions we use in this 
policy:
    1. Act. The National Flood Insurance Act of 1968 and any amendments 
to it.
    2. Actual Cash Value. The cost to replace an insured item of 
property at the time of loss, less the value of its physical 
depreciation.
    3. Application. The statement made and signed by you or your agent 
in applying for this policy. The application gives information we use to 
determine the eligibility of the risk, the kind of policy to be issued, 
and the correct premium payment. The application is part of this flood 
insurance policy. For us to issue you a policy, the correct premium 
payment must accompany the application.
    4. Base Flood. A flood having a one percent chance of being equaled 
or exceeded in any given year.
    5. Basement. Any area of the building, including any sunken room or 
sunken portion of a room, having its floor below ground level (subgrade) 
on all sides.
    6. Building.
    a. A structure with two or more outside rigid walls and a fully 
secured roof, that is affixed to a permanent site;
    b. A manufactured home (``a manufactured home,'' also known as a 
mobile home, is a structure: built on a permanent chassis, transported 
to its site in one or more sections, and affixed to a permanent 
foundation); or
    c. A travel trailer without wheels, built on a chassis and affixed 
to a permanent foundation, that is regulated under the community's 
floodplain management and building ordinances or laws.
    Building does not mean a gas or liquid storage tank or a 
recreational vehicle, park trailer, or other similar vehicle, except as 
described in B.6.c., above.
    7. Cancellation. The ending of the insurance coverage provided by 
this policy before the expiration date.
    8. Condominium. That form of ownership of real property in which 
each unit owner has an undivided interest in common elements.
    9. Condominium Association. The entity, formed by the unit owners, 
responsible for the maintenance and operation of:
    a. Common elements owned in undivided shares by unit owners; and
    b. Other real property in which the unit owners have use rights 
where membership in the entity is a required condition of unit 
ownership.
    10. Declarations Page. A computer-generated summary of information 
you provided in the application for insurance. The Declarations Page 
also describes the term of the policy, limits of coverage, and displays 
the premium and our name. The Declarations Page is a part of this flood 
insurance policy.

[[Page 178]]

    11. Described Location. The location where the insured building or 
personal property is found. The described location is shown on the 
Declarations Page.
    12. Direct Physical Loss By or From Flood. Loss or damage to insured 
property, directly caused by a flood. There must be evidence of physical 
changes to the property.
    13. Elevated Building. A building that has no basement and that has 
its lowest elevated floor raised above ground level by foundation walls, 
shear walls, posts, piers, pilings, or columns.
    14. Emergency Program. The initial phase of a community's 
participation in the National Flood Insurance Program. During this 
phase, only limited amounts of insurance are available under the Act.
    15. Expense Constant. A flat charge you must pay on each new or 
renewal policy to defray the expenses of the Federal Government related 
to flood insurance.
    16. Federal Policy Fee. A flat charge you must pay on each new or 
renewal policy to defray certain administrative expenses incurred in 
carrying out the National Flood Insurance Program. This fee covers 
expenses not covered by the expense constant.
    17. Improvements. Fixtures, alterations, installations, or additions 
comprising a part of the insured building.
    18. Mudflow. A river of liquid and flowing mud on the surfaces of 
normally dry land areas, as when earth is carried by a current of water. 
Other earth movements, such as landslide, slope failure, or a saturated 
soil mass moving by liquidity down a slope, are not mudflows.
    19. National Flood Insurance Program (NFIP). The program of flood 
insurance coverage and floodplain management administered under the Act 
and applicable Federal regulations in Title 44 of the Code of Federal 
Regulations, Subchapter B.
    20. Policy. The entire written contract between you and us. It 
includes:
    a. This printed form;
    b. The application and Declarations Page;
    c. Any endorsement(s) that may be issued; and,
    d. Any renewal certificate indicating that coverage has been 
instituted for a new policy and new policy term.
    Only one building, which you specifically described in the 
application, may be insured under this policy.
    21. Pollutants. Substances that include, but that are not limited 
to, any solid, liquid, gaseous or thermal irritant or contaminant, 
including smoke, vapor, soot, fumes, acids, alkalis, chemicals, and 
waste. ``Waste'' includes, but is not limited to, materials to be 
recycled, reconditioned, or reclaimed.
    22. Post-FIRM Building. A building for which construction or 
substantial improvement occurred after December 31, 1974, or on or after 
the effective date of an initial Flood Insurance Rate Map (FIRM), 
whichever is later.
    23. Probation Premium. A flat charge you must pay on each new or 
renewal policy issued covering property in a community that has been 
placed on probation under the provisions of 44 CFR 59.24.
    24. Regular Program. The final phase of a community's participation 
in the National Flood Insurance Program. In this phase, a Flood 
Insurance Rate Map is in effect and full limits of coverage are 
available under the Act.
    25. Residential Condominium Building. A building, owned and 
administered as a condominium, containing one or more family units and 
in which at least 75% of the floor area is residential.
    26. Special Flood Hazard Area. An area having special flood or 
mudflow, and/or flood-related erosion hazards, and shown on a Flood 
Hazard Boundary Map or Flood Insurance Rate Map as Zone A, AO, A1-A30, 
AE, A99, AH, AR, AR/A, AR/AE, AR/AH, AR/AO, AR/A1-A30, V1-V30, VE, V.
    27. Stock means merchandise held in storage or for sale, raw 
materials, and in-process or finished goods, including supplies used in 
their packing or shipping.
    Stock does not include any property not covered under Section IV. 
Property Not
    Covered, except the following:
    a. Parts and equipment for self-propelled vehicles;
    b. Furnishings and equipment for watercraft;
    c. Spas and hot-tubs, including their equipment; and
    d. Swimming pool equipment.
    28. Unit. A unit in a condominium building.
    29. Valued Policy. A policy in which the insured and the insurer 
agree on the value of the property insured, that value being payable in 
the event of a total loss. The Standard Flood Insurance Policy is not a 
valued policy.

                          III. Property Covered

                    A. Coverage A--Building Property

    We insure against direct physical loss by or from flood to:
    1. The building described on the Declarations Page at the described 
location. If the building is a condominium building and the named 
insured is the condominium association, Coverage A includes all units 
within the building and the improvements within the units, provided the 
units are owned in common by all unit owners.
    2. We also insure building property for a period of 45 days at 
another location, as set forth in III.C.2.b., Property Removed to 
Safety.
    3. Additions and extensions attached to and in contact with the 
building by means of

[[Page 179]]

a rigid exterior wall, a solid load-bearing interior wall, a stairway, 
an elevated walkway, or a roof. At your option, additions and extensions 
connected by any of these methods may be separately insured. Additions 
and extensions attached to and in contact with the building by means of 
a common interior wall that is not a solid load-bearing wall are always 
considered part of the building and cannot be separately insured.
    4. The following fixtures, machinery, and equipment, which are 
covered under Coverage A only:
    a. Awnings and canopies;
    b. Blinds;
    c. Carpet permanently installed over unfinished flooring;
    d. Central air conditioners;
    e. Elevator equipment;
    f. Fire extinguishing apparatus;
    g. Fire sprinkler systems;
    h. Walk-in freezers;
    i. Furnaces;
    j. Light fixtures;
    k. Outdoor antennas and aerials attached to buildings;
    l. Permanently installed cupboards, bookcases, paneling, and 
wallpaper;
    m. Pumps and machinery for operating pumps;
    n. Ventilating equipment; and
    o. Wall mirrors, permanently installed;
    p. In the units within the building, installed:
    (1) Built-in dishwashers;
    (2) Built-in microwave ovens;
    (3) Garbage disposal units;
    (4) Hot water heaters, including solar water heaters;
    (5) Kitchen cabinets;
    (6) Plumbing fixtures;
    (7) Radiators;
    (8) Ranges;
    (9) Refrigerators; and
    (10) Stoves.
    5. Materials and supplies to be used for construction, alteration, 
or repair of the insured building while the materials and supplies are 
stored in a fully enclosed building at the described location or on an 
adjacent property.
    6. A building under construction, alteration, or repair at the 
described location.
    a. If the structure is not yet walled or roofed as described in the 
definition for building (see II. 6.a.), then coverage applies:
    (1) Only while such work is in progress; or
    (2) If such work is halted, only for a period of up to 90 continuous 
days thereafter.
    b. However, coverage does not apply until the building is walled and 
roofed if the lowest floor, including the basement floor, of a non-
elevated building or the lowest elevated floor of an elevated building 
is:
    (1) Below the base flood elevation in Zones AH, AE, A1-A30, AR, AR/
AE, AR/AH, AR/A1-A30, AR/A, AR/AO; or
    (2) Below the base flood elevation adjusted to include the effect of 
wave action in Zones VE or V1-V30.
    The lowest floor levels are based on the bottom of the lowest 
horizontal structural member of the floor in Zones VE or V1-V30 and the 
top of the floor in Zones AH, AE, A1-A30, AR, AR/AE, AR/AH, AR/A1-A30, 
AR/A, AR/AO.
    7. A manufactured home or a travel trailer as described in the 
Definitions
    Section (see II.B.6.b.and II.B.6.c.).
    If the manufactured home or travel trailer is in a special flood 
hazard area, it must be anchored in the following manner at the time of 
the loss:
    a. By over-the-top or frame ties to ground anchors; or
    b. In accordance with the manufacturer's specifications; or
    c. In compliance with the community's floodplain management 
requirements unless it has been continuously insured by the NFIP at the 
same described location since September 30, 1982.
    8. Items of property in a building enclosure below the lowest 
elevated floor of an elevated post-FIRM building located in zones A1-
A30, AE, AH, AR, AR/A, AR/AE, AR/AH, AR/A1-A30, V1-V30, or VE, or in a 
basement, regardless of the zone. Coverage is limited to the following:
    a. Any of the following items, if installed in their functioning 
locations and, if necessary for operation, connected to a power source:
    (1) Central air conditioners;
    (2) Cisterns and the water in them;
    (3) Drywall for walls and ceilings in a basement and the cost of 
labor to nail it, unfinished and unfloated and not taped, to the 
framing;
    (4) Electrical junction and circuit breaker boxes;
    (5) Electrical outlets and switches;
    (6) Elevators, dumbwaiters, and related equipment, except for 
related equipment installed below the base flood elevation after 
September 30, 1987;
    (7) Fuel tanks and the fuel in them;
    (8) Furnaces and hot water heaters;
    (9) Heat pumps;
    (10) Nonflammable insulation in a basement;
    (11) Pumps and tanks used in solar energy systems;
    (12) Stairways and staircases attached to the building, not 
separated from it by elevated walkways;
    (13) Sump pumps;
    (14) Water softeners and the chemicals in them, water filters, and 
faucets installed as an integral part of the plumbing system;
    (15) Well water tanks and pumps;
    (16) Required utility connections for any item in this list; and

[[Page 180]]

    (17) Footings, foundations, posts, pilings, piers, or other 
foundation walls and anchorage systems required to support a building.
    b. Clean-up.

                    B. Coverage B--Personal Property

    1. If you have purchased personal property coverage, we insure, 
subject to B. 2., 3., and 4. below, against direct physical loss by or 
from flood to personal property inside the fully enclosed insured 
building:
    a. Owned solely by you, or in the case of a condominium, owned 
solely by the condominium association and used exclusively in the 
conduct of the business affairs of the condominium association; or
    b. Owned in common by the unit owners of the condominium 
association.
    We also insure such personal property for 45 days while stored at a 
temporary location, as set forth in III.C.2.b., Property Removed to 
Safety.
    2. When this policy covers personal property, coverage will be 
either for household personal property or other than household personal 
property, while within the insured building, but not both.
    a. If this policy covers household personal property, it will insure 
household personal property usual to a living quarters, that:
    (1) Belongs to you, or a member of your household, or at your 
option:
    (a) Your domestic worker;
    (b) Your guest; or
    (2) You may be legally liable for.
    b. If this policy covers other than household personal property, it 
will insure your:
    (1) Furniture and fixtures;
    (2) Machinery and equipment;
    (3) Stock; and
    (4) Other personal property owned by you and used in your business, 
subject to IV. Property Not Covered.
    3. Coverage for personal property includes the following property, 
subject to B.1.a. and B.1.b. above, which is covered under Coverage B. 
only:
    a. Air conditioning units installed in the building;
    b. Carpet, not permanently installed, over unfinished flooring;
    c. Carpets over finished flooring;
    d. Clothes washers and dryers;
    e. ``Cook-out'' grills;
    f. Food freezers, other than walk-in, and the food in any freezer;
    g. Outdoor equipment and furniture stored inside the insured 
building;
    h. Ovens and the like; and
    i. Portable microwave ovens and portable dishwashers.
    4. Coverage for items of property in a building enclosure below the 
lowest elevated floor of an elevated post-FIRM building located in zones 
A1-A30, AE, AH, AR, AR/A, AR/AE, AR/AH, AR/A1-A30, V1-V30, or VE, or in 
a basement, regardless of the zone, is limited to the following items, 
if installed in their functioning locations and, if necessary for 
operation, connected to a power source:
    a. Air conditioning units--portable or window type;
    b. Clothes washers and dryers; and
    c. Food freezers, other than walk-in, and food in any freezer.
    5. Special Limits. We will pay no more than $2,500 for any loss to 
one or more of the following kinds of personal property:
    a. Artwork, photographs, collectibles, or memorabilia, including but 
not limited to, porcelain or other figures, and sports cards;
    b. Rare books or autographed items;
    c. Jewelry, watches, precious and semi-precious stones, articles of 
gold, silver, or platinum;
    d. Furs or any article containing fur which represents its principal 
value; or
    6. We will pay only for the functional value of antiques.
    7. If you are a tenant, you may apply up to 10% of the Coverage B 
limit to improvements:
    a. Made a part of the building you occupy; and
    b. You acquired, or made at your expense, even though you cannot 
legally remove.
    This coverage does not increase the amount of insurance that applies 
to insured personal property.
    8. If you are a condominium unit owner, you may apply up to 10% of 
the Coverage B limit to cover loss to interior:
    a. walls,
    b. floors, and
    c. ceilings,
that are not covered under a policy issued to the condominium 
association insuring the condominium building.
    This coverage does not increase the amount of insurance that applies 
to insured personal property.
    9. If you are a tenant, personal property must be inside the fully 
enclosed building.

                     C. Coverage C--Other Coverages

    1. Debris Removal.
    a. We will pay the expense to remove non-owned debris that is on or 
in insured property and debris of insured property anywhere.
    b. If you or a member of your household perform the removal work, 
the value of your work will be based on the Federal minimum wage.
    c. This coverage does not increase the Coverage A or Coverage B 
limit of liability.
    2. Loss Avoidance Measures.
    a. Sandbags, Supplies, and Labor
    (1) We will pay up to $1,000 for the costs you incur to protect the 
insured building from a flood or imminent danger of flood, for the 
following:
    (a) Your reasonable expenses to buy:
    (i) Sandbags, including sand to fill them;

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    (ii) Fill for temporary levees;
    (iii) Pumps; and
    (iv) Plastic sheeting and lumber used in connection with these 
items; and
    (b) The value of work, at the Federal minimum wage, that you 
perform.
    (2) This coverage for Sandbags, Supplies, and Labor only applies if 
damage to insured property by or from flood is imminent and the threat 
of flood damage is apparent enough to lead a person of common prudence 
to anticipate flood damage. One of the following must also occur:
    (a) A general and temporary condition of flooding in the area near 
the described location must occur, even if the flood does not reach the 
insured building; or
    (b) A legally authorized official must issue an evacuation order or 
other civil order for the community in which the insured building is 
located calling for measures to preserve life and property from the 
peril of flood.
    This coverage does not increase the Coverage A or Coverage B limit 
of liability.
    b. Property Removed to Safety
    (1) We will pay up to $1,000 for the reasonable expenses you incur 
to move insured property to a place other than the described location 
that contains the property in order to protect it from flood or the 
imminent danger of flood.
    Reasonable expenses include the value of work, at the Federal 
minimum wage, that you perform.
    (2) If you move insured property to a place other than the described 
location that contains the property, in order to protect it from flood 
or the imminent danger of flood, we will cover such property while at 
that location for a period of 45 consecutive days from the date you 
begin to move it there. The personal property that is moved must be 
placed in a fully enclosed building, or otherwise reasonably protected 
from the elements.
    Any property removed, including a moveable home described in II.6.b. 
and c., must be placed above ground level or outside of the special 
flood hazard area.
    This coverage does not increase the Coverage A or Coverage B limit 
of liability.
    3. Pollution Damage.
    We will pay for damage caused by pollutants to covered property if 
the discharge, seepage, migration, release, or escape of the pollutants 
is caused by or results from flood. The most we will pay under this 
coverage is $10,000. This coverage does not increase the Coverage A or 
Coverage B limits of liability. Any payment under this provision when 
combined with all other payments for the same loss cannot exceed the 
replacement cost or actual cash value, as appropriate, of the covered 
property. This coverage does not include the testing for or monitoring 
of pollutants unless required by law or ordinance.

               D. Coverage D--Increased Cost of Compliance

    1. General.
    This policy pays you to comply with a State or local floodplain 
management law or ordinance affecting repair or reconstruction of a 
structure suffering flood damage. Compliance activities eligible for 
payment are: elevation, floodproofing, relocation, or demolition (or any 
combination of these activities) of your structure. Eligible 
floodproofing activities are limited to:
    a. Non-residential structures. b. Residential structures with 
basements that satisfy FEMA's standards published in the Code of Federal 
Regulations [44 CFR 60.6 (b) or (c)].
    2. Limit of Liability.
    We will pay you up to $30,000 under this Coverage D--Increased Cost 
of Compliance, which only applies to policies with building coverage 
(Coverage A). Our payment of claims under Coverage D is in addition to 
the amount of coverage which you selected on the application and which 
appears on the Declarations Page. But the maximum you can collect under 
this policy for both Coverage A (Building Property) and Coverage D 
(Increased Cost of Compliance) cannot exceed the maximum permitted under 
the Act. We do NOT charge a separate deductible for a claim under 
Coverage D.
    3. Eligibility.
    a. A structure covered under Coverage A--Building Property 
sustaining a loss caused by a flood as defined by this policy must:
    (1) Be a ``repetitive loss structure.'' A ``repetitive loss 
structure'' is one that meets the following conditions:
    (a) The structure is covered by a contract of flood insurance issued 
under the NFIP.
    (b) The structure has suffered flood damage on 2 occasions during a 
10-year period which ends on the date of the second loss.
    (c) The cost to repair the flood damage, on average, equaled or 
exceeded 25% of the market value of the structure at the time of each 
flood loss.
    (d) In addition to the current claim, the NFIP must have paid the 
previous qualifying claim, and the State or community must have a 
cumulative, substantial damage provision or repetitive loss provision in 
its floodplain management law or ordinance being enforced against the 
structure; or
    (2) Be a structure that has had flood damage in which the cost to 
repair equals or exceeds 50% of the market value of the structure at the 
time of the flood. The State or community must have a substantial damage 
provision in its floodplain management law or ordinance being enforced 
against the structure.
    b. This Coverage D pays you to comply with State or local floodplain 
management laws or ordinances that meet the minimum standards of the 
National Flood Insurance

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Program found in the Code of Federal Regulations at 44 CFR 60.3. We pay 
for compliance activities that exceed those standards under these 
conditions:
    (1) 3.a.(1) above.
    (2) Elevation or floodproofing in any risk zone to preliminary or 
advisory base flood elevations provided by FEMA which the State or local 
government has adopted and is enforcing for flood-damaged structures in 
such areas. (This includes compliance activities in B, C, X, or D zones 
which are being changed to zones with base flood elevations. This also 
includes compliance activities in zones where base flood elevations are 
being increased, and a flood-damaged structure must comply with the 
higher advisory base flood elevation.) Increased Cost of Compliance 
coverage does not apply to situations in B, C, X, or D zones where the 
community has derived its own elevations and is enforcing elevation or 
floodproofing requirements for flood-damaged structures to elevations 
derived solely by the community.
    (3) Elevation or floodproofing above the base flood elevation to 
meet State or local ``freeboard'' requirements, i.e., that a structure 
must be elevated above the base flood elevation.
    c. Under the minimum NFIP criteria at 44 CFR 60.3(b)(4), States and 
communities must require the elevation or floodproofing of structures in 
unnumbered A zones to the base flood elevation where elevation data is 
obtained from a Federal, State, or other source. Such compliance 
activities are also eligible for Coverage D.
    d. This coverage will also pay for the incremental cost, after 
demolition or relocation, of elevating or floodproofing a structure 
during its rebuilding at the same or another site to meet State or local 
floodplain management laws or ordinances, subject to Exclusion D.5.g. 
below.
    e. This coverage will also pay to bring a flood-damaged structure 
into compliance with State or local floodplain management laws or 
ordinances even if the structure had received a variance before the 
present loss from the applicable floodplain management requirements.
    4. Conditions.
    a. When a structure covered under Coverage A--Building Property 
sustains a loss caused by a flood, our payment for the loss under this 
Coverage D will be for the increased cost to elevate, floodproof, 
relocate, or demolish (or any combination of these activities) caused by 
the enforcement of current State or local floodplain management 
ordinances or laws. Our payment for eligible demolition activities will 
be for the cost to demolish and clear the site of the building debris or 
a portion thereof caused by the enforcement of current State or local 
floodplain management ordinances or laws. Eligible activities for the 
cost of clearing the site will include those necessary to discontinue 
utility service to the site and ensure proper abandonment of on-site 
utilities.
    b. When the building is repaired or rebuilt, it must be intended for 
the same occupancy as the present building unless otherwise required by 
current floodplain management ordinances or laws.
    5. Exclusions.
    Under this Coverage D--Increased Cost of Compliance, we will not pay 
for:
    a. The cost to comply with any floodplain management law or 
ordinance in communities participating in the Emergency Program.
    b. The cost associated with enforcement of any ordinance or law that 
requires any insured or others to test for, monitor, clean up, remove, 
contain, treat, detoxify or neutralize, or in any way respond to, or 
assess the effects of pollutants.
    c. The loss in value to any insured building or other structure due 
to the requirements of any ordinance or law.
    d. The loss in residual value of the undamaged portion of a building 
demolished as a consequence of enforcement of any State or local 
floodplain management law or ordinance.
    e. Any Increased Cost of Compliance under this Coverage D:
    (1) Until the building is elevated, floodproofed, demolished, or 
relocated on the same or to another premises; and
    (2) Unless the building is elevated, floodproofed, demolished, or 
relocated as soon as reasonably possible after the loss, not to exceed 
two years.
    f. Any code upgrade requirements, e.g., plumbing or electrical 
wiring, not specifically related to the State or local floodplain 
management law or ordinance.
    g. Any compliance activities needed to bring additions or 
improvements made after the loss occurred into compliance with State or 
local floodplain management laws or ordinances.
    h. Loss due to any ordinance or law that you were required to comply 
with before the current loss.
    i. Any rebuilding activity to standards that do not meet the NFIP's 
minimum requirements. This includes any situation where the insured has 
received from the State or community a variance in connection with the 
current flood loss to rebuild the property to an elevation below the 
base flood elevation.
    j. Increased Cost of Compliance for a garage or carport.
    k. Any structure insured under an NFIP Group Flood Insurance Policy.
    l. Assessments made by a condominium association on individual 
condominium unit owners to pay increased costs of repairing commonly 
owned buildings after a flood in

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compliance with State or local floodplain management ordinances or laws.
    6. Other Provisions.
    All other conditions and provisions of the policy apply.

                        IV. Property Not Covered

    A. We do not cover any of the following property:
    1. Personal property not inside the fully enclosed building;
    2. A building, and personal property in it, located entirely in, on, 
or over water or seaward of mean high tide, if it was constructed or 
substantially improved after September 30, 1982;
    3. Open structures, including a building used as a boathouse or any 
structure or building into which boats are floated, and personal 
property located in, on, or over water;
    4. Recreational vehicles other than travel trailers described in the 
II.B.6.c., whether affixed to a permanent foundation or on wheels;
    5. Self-propelled vehicles or machines, including their parts and 
equipment. However, we do cover self-propelled vehicles or machines, 
provided they are not licensed for use on public roads and are:
    a. Used mainly to service the described location; or
    b. Designed and used to assist handicapped persons, while the 
vehicles or machines are inside a building at the described location;
    6. Land, land values, lawns, trees, shrubs, plants, growing crops, 
or animals;
    7. Accounts, bills, coins, currency, deeds, evidences of debt, 
medals, money, scrip, stored value cards, postage stamps, securities, 
bullion, manuscripts, or other valuable papers;
    8. Underground structures and equipment, including wells, septic 
tanks, and septic systems;
    9. Those portions of walks, walkways, decks, driveways, patios, and 
other surfaces, all whether protected by a roof or not, located outside 
the perimeter, exterior walls of the insured building;
    10. Containers including related equipment, such as, but not limited 
to, tanks containing gases or liquids;
    11. Buildings or units and all their contents if more than 49% of 
the actual cash value of the building or unit is below ground, unless 
the lowest level is at or above the base flood elevation and is below 
ground by reason of earth having been used as insulation material in 
conjunction with energy efficient building techniques;
    12. Fences, retaining walls, seawalls, bulkheads, wharves, piers, 
bridges, and docks;
    13. Aircraft or watercraft, or their furnishings and equipment;
    14. Hot tubs and spas that are not bathroom fixtures, and swimming 
pools, and their equipment such as, but not limited to, heaters, 
filters, pumps, and pipes, wherever located;
    15. Property not eligible for flood insurance pursuant to the 
provisions of the Coastal Barrier Resources Act and the Coastal Barrier 
Improvement Act of 1990 and amendments to these Acts;
    16. Personal property owned by or in the care, custody or control of 
a unit owner, except for property of the type and under the 
circumstances set forth under III. Coverage B--Personal Property of this 
policy;
    17. A residential condominium building located in a Regular Program 
community.

                              V. Exclusions

    A. We only provide coverage for direct physical loss by or from 
flood, which means that we do not pay you for:
    1. Loss of revenue or profits;
    2. Loss of access to the insured property or described location;
    3. Loss of use of the insured property or described location;
    4. Loss from interruption of business or production;
    5. Any additional expenses incurred while the insured building is 
being repaired or is unable to be occupied for any reason;
    6. The cost of complying with any ordinance or law requiring or 
regulating the construction, demolition, remodeling, renovation or 
repair of property, including removal of any resulting debris. This 
exclusion does not apply to any eligible activities that we describe in 
Coverage D--Increased Cost of Compliance; or
    7. Any other economic loss you suffer.
    B. We do not insure a loss directly or indirectly caused by a flood 
that is already in progress at the time and date:
    1. The policy term begins; or
    2. Coverage is added at your request.
    C. We do not insure for loss to property caused directly by earth 
movement even if the earth movement is caused by flood. Some examples of 
earth movement that we do not cover are:
    1. Earthquake;
    2. Landslide;
    3. Land subsidence;
    4. Sinkholes;
    5. Destabilization or movement of land that results from 
accumulation of water in subsurface land areas; or
    6. Gradual erosion.
    We do, however, pay for losses from mudflow and land subsidence as a 
result of erosion that are specifically covered under our definition of 
flood (see A.1.c. and II.A.2.).
    D. We do not insure for direct physical loss caused directly or 
indirectly by:
    1. The pressure or weight of ice;
    2. Freezing or thawing;
    3. Rain, snow, sleet, hail, or water spray;

[[Page 184]]

    4. Water, moisture, mildew, or mold damage that results primarily 
from any condition:
    a. Substantially confined to the insured building; or
    b. That is within your control including, but not limited to:
    (1) Design, structural, or mechanical defects;
    (2) Failures, stoppages, or breakage of water or sewer lines, 
drains, pumps, fixtures, or equipment; or
    (3) Failure to inspect and maintain the property after a flood 
recedes;
    5. Water or water-borne material that:
    a. Backs up through sewers or drains;
    b. Discharges or overflows from a sump, sump pump, or related 
equipment; or
    c. Seeps or leaks on or through the covered property;
unless there is a flood in the area and the flood is the proximate cause 
of the sewer or drain backup, sump pump discharge or overflow, or the 
seepage of water;
    6. The pressure or weight of water unless there is a flood in the 
area and the flood is the proximate cause of the damage from the 
pressure or weight of water;
    7. Power, heating, or cooling failure unless the failure results 
from direct physical loss by or from flood to power, heating, or cooling 
equipment situated on the described location;
    8. Theft, fire, explosion, wind, or windstorm;
    9. Anything that you or your agents do or conspire to do to cause 
loss by flood deliberately; or
    10. Alteration of the insured property that significantly increases 
the risk of flooding.
    E. We do not insure for loss to any building or personal property 
located on land leased from the Federal Government, arising from or 
incident to the flooding of the land by the Federal Government, where 
the lease expressly holds the Federal Government harmless under flood 
insurance issued under any Federal Government program.

                             VI. Deductibles

    A. When a loss is covered under this policy, we will pay only that 
part of the loss that exceeds the applicable deductible amount, subject 
to the limit of liability that applies. The deductible amount is shown 
on the Declarations Page.
    However, when a building under construction, alteration, or repair 
does not have at least two rigid exterior walls and a fully secured roof 
at the time of loss, your deductible amount will be two times the 
deductible that would otherwise apply to a completed building.
    B. In each loss from flood, separate deductibles apply to the 
building and personal property insured by this policy.
    C. No deductible applies to:
    1. III.C.2. Loss Avoidance Measures; or
    2. III.D. Increased Cost of Compliance.

                         VII. General Conditions

                         A. Pair and Set Clause

    In case of loss to an article that is part of a pair or set, we will 
have the option of paying you:
    1. An amount equal to the cost of replacing the lost, damaged, or 
destroyed article, less depreciation, or
    2. An amount which represents the fair proportion of the total value 
of the pair or set that the lost, damaged, or destroyed article bears to 
the pair or set.

               B. Concealment or Fraud and Policy Voidance

    1. With respect to all insureds under this policy, this policy:
    a. Is void,
    b. Has no legal force or effect,
    c. Cannot be renewed, and
    d. Cannot be replaced by a new NFIP policy, if, before or after a 
loss, you or any other insured or your agent have at any time:
    (1) Intentionally concealed or misrepresented any material fact or 
circumstance,
    (2) Engaged in fraudulent conduct, or
    (3) Made false statements relating to this policy or any other NFIP 
insurance.
    2. This policy will be void as of the date wrongful acts described 
in B.1. above were committed.
    3. Fines, civil penalties, and imprisonment under applicable Federal 
laws may also apply to the acts of fraud or concealment described above.
    4. This policy is also void for reasons other than fraud, 
misrepresentation, or wrongful act. This policy is void from its 
inception and has no legal force under the following conditions:
    a. If the property is located in a community that was not 
participating in the NFIP on the policy's inception date and did not 
join or re-enter the program during the policy term and before the loss 
occurred; or
    b. If the property listed on the application is otherwise not 
eligible for coverage under the NFIP.

                           C. Other Insurance

    1. If a loss covered by this policy is also covered by other 
insurance that includes flood coverage not issued under the Act, we will 
not pay more than the amount of insurance that you are entitled to for 
lost, damaged, or destroyed property insured under this policy subject 
to the following:
    a. We will pay only the proportion of the loss that the amount of 
insurance that applies under this policy bears to the total amount of 
insurance covering the loss, unless C.1.b. or c. below applies.

[[Page 185]]

    b. If the other policy has a provision stating that it is excess 
insurance, this policy will be primary.
    c. This policy will be primary (but subject to its own deductible) 
up to the deductible in the other flood policy (except another policy as 
described in C.1.b. above). When the other deductible amount is reached, 
this policy will participate in the same proportion that the amount of 
insurance under this policy bears to the total amount of both policies, 
for the remainder of the loss.
    2. Where this policy covers a condominium association and there is a 
flood insurance policy in the name of a unit owner that covers the same 
loss as this policy, then this policy will be primary.

                   D. Amendments, Waivers, Assignment

    This policy cannot be changed nor can any of its provisions be 
waived without the express written consent of the Federal Insurance 
Administrator. No action that we take under the terms of this policy can 
constitute a waiver of any of our rights. You may assign this policy in 
writing when you transfer title of your property to someone else except 
under these conditions:
    1. When this policy covers only personal property; or
    2. When this policy covers a structure during the course of 
construction.

                    E. Cancellation of Policy by You

    1. You may cancel this policy in accordance with the applicable 
rules and regulations of the NFIP.
    2. If you cancel this policy, you may be entitled to a full or 
partial refund of premium also under the applicable rules and 
regulations of the NFIP.

                   F. Non-Renewal of the Policy by Us

    Your policy will not be renewed:
    1. If the community where your covered property is located stops 
participating in the NFIP; or
    2. If your building has been declared ineligible under section 1316 
of the Act.

                G. Reduction and Reformation of Coverage

    1. If the premium we received from you was not enough to buy the 
kind and amount of coverage that you requested, we will provide only the 
amount of coverage that can be purchased for the premium payment we 
received.
    2. The policy can be reformed to increase the amount of coverage 
resulting from the reduction described in G.1. above to the amount you 
requested as follows:
    a. Discovery of Insufficient Premium or Incomplete Rating 
Information Before a Loss.
    (1) If we discover before you have a flood loss that your premium 
payment was not enough to buy the requested amount of coverage, we will 
send you and any mortgagee or trustee known to us a bill for the 
required additional premium for the current policy term (or that portion 
of the current policy term following any endorsement changing the amount 
of coverage). If you or the mortgagee or trustee pay the additional 
premium within 30 days from the date of our bill, we will reform the 
policy to increase the amount of coverage to the originally requested 
amount effective to the beginning of the current policy term (or 
subsequent date of any endorsement changing the amount of coverage).
    (2) If we determine before you have a flood loss that the rating 
information we have is incomplete and prevents us from calculating the 
additional premium, we will ask you to send the required information. 
You must submit the information within 60 days of our request. Once we 
determine the amount of additional premium for the current policy term, 
we will follow the procedure in G.2.a.(1) above.
    (3) If we do not receive the additional premium (or additional 
information) by the date it is due, the amount of coverage can only be 
increased by endorsement subject to any appropriate waiting period.
    b. Discovery of Insufficient Premium or Incomplete Rating 
Information After a Loss.
    (1) If we discover after you have a flood loss that your premium 
payment was not enough to buy the requested amount of coverage, we will 
send you and any mortgagee or trustee known to us a bill for the 
required additional premium for the current and the prior policy terms. 
If you or the mortgagee or trustee pay the additional premium within 30 
days of the date of our bill, we will reform the policy to increase the 
amount of coverage to the originally requested amount effective to the 
beginning of the prior policy term.
    (2) If we discover after you have a flood loss that the rating 
information we have is incomplete and prevents us from calculating the 
additional premium, we will ask you to send the required information. 
You must submit the information before your claim can be paid. Once we 
determine the amount of additional premium for the current and prior 
policy terms, we will follow the procedure in G.2.b.(1) above.
    (3) If we do not receive the additional premium by the date it is 
due, your flood insurance claim will be settled based on the reduced 
amount of coverage. The amount of coverage can only be increased by 
endorsement subject to any appropriate waiting period.
    3. However, if we find that you or your agent intentionally did not 
tell us, or falsified, any important fact or circumstance or did 
anything fraudulent relating to this insurance, the provisions of 
Condition B. above apply.

[[Page 186]]

                            H. Policy Renewal

    1. This policy will expire at 12:01 a.m. on the last day of the 
policy term.
    2. We must receive the payment of the appropriate renewal premium 
within 30 days of the expiration date.
    3. If we find, however, that we did not place your renewal notice 
into the U.S. Postal Service, or if we did mail it, we made a mistake, 
e.g., we used an incorrect, incomplete, or illegible address, which 
delayed its delivery to you before the due date for the renewal premium, 
then we will follow these procedures:
    a. If you or your agent notified us, not later than one year after 
the date on which the payment of the renewal premium was due, of 
nonreceipt of a renewal notice before the due date for the renewal 
premium, and we determine that the circumstances in the preceding 
paragraph apply, we will mail a second bill providing a revised due 
date, which will be 30 days after the date on which the bill is mailed.
    b. If we do not receive the premium requested in the second bill by 
the revised due date, then we will not renew the policy. In that case, 
the policy will remain as an expired policy as of the expiration date 
shown on the Declarations Page.
    4. In connection with the renewal of this policy, we may ask you 
during the policy term to re-certify, on a Recertification Questionnaire 
that we will provide to you, the rating information used to rate your 
most recent application for or renewal of insurance.

            I. Conditions Suspending or Restricting Insurance

    We are not liable for loss that occurs while there is a hazard that 
is increased by any means within your control or knowledge.

                     J. Requirements in Case of Loss

    In case of a flood loss to insured property, you must:
    1. Give prompt written notice to us;
    2. As soon as reasonably possible, separate the damaged and 
undamaged property, putting it in the best possible order so that we may 
examine it;
    3. Prepare an inventory of damaged property showing the quantity, 
description, actual cash value, and amount of loss. Attach all bills, 
receipts, and related documents;
    4. Within 60 days after the loss, send us a proof of loss, which is 
your statement of the amount you are claiming under the policy signed 
and sworn to by you, and which furnishes us with the following 
information:
    a. The date and time of loss;
    b. A brief explanation of how the loss happened;
    c. Your interest (for example, ``owner'') and the interest, if any, 
of others in the damaged property;
    d. Details of any other insurance that may cover the loss;
    e. Changes in title or occupancy of the insured property during the 
term of the policy;
    f. Specifications of damaged buildings and detailed repair 
estimates;
    g. Names of mortgagees or anyone else having a lien, charge, or 
claim against the insured property;
    h. Details about who occupied any insured building at the time of 
loss and for what purpose; and
    i. The inventory of damaged property described in J.3. above.
    5. In completing the proof of loss, you must use your own judgment 
concerning the amount of loss and justify that amount.
    6. You must cooperate with the adjuster or representative in the 
investigation of the claim.
    7. The insurance adjuster whom we hire to investigate your claim may 
furnish you with a proof of loss form, and she or he may help you 
complete it. However, this is a matter of courtesy only, and you must 
still send us a proof of loss within sixty days after the loss even if 
the adjuster does not furnish the form or help you complete it.
    8. We have not authorized the adjuster to approve or disapprove 
claims or to tell you whether we will approve your claim.
    9. At our option, we may accept the adjuster's report of the loss 
instead of your proof of loss. The adjuster's report will include 
information about your loss and the damages you sustained. You must sign 
the adjuster's report. At our option, we may require you to swear to the 
report.

                       K. Our Options After a Loss

    Options we may, in our sole discretion, exercise after loss include 
the following:
    1. At such reasonable times and places that we may designate, you 
must:
    a. Show us or our representative the damaged property;
    b. Submit to examination under oath, while not in the presence of 
another insured, and sign the same; and
    c. Permit us to examine and make extracts and copies of:
    (1) Any policies of property insurance insuring you against loss and 
the deed establishing your ownership of the insured real property;
    (2) Condominium association documents including the Declarations of 
the condominium, its Articles of Association or Incorporation, Bylaws, 
and rules and regulations; and
    (3) All books of accounts, bills, invoices, and other vouchers, or 
certified copies pertaining to the damaged property if the originals are 
lost.

[[Page 187]]

    2. We may request, in writing, that you furnish us with a complete 
inventory of the lost, damaged, or destroyed property, including:
    a. Quantities and costs;
    b. Actual cash values;
    c. Amounts of loss claimed;
    d. Any written plans and specifications for repair of the damaged 
property that you can reasonably make available to us; and
    e. Evidence that prior flood damage has been repaired.
    3. If we give you written notice within 30 days after we receive 
your signed, sworn proof of loss, we may:
    a. Repair, rebuild, or replace any part of the lost, damaged, or 
destroyed property with material or property of like kind and quality or 
its functional equivalent; and
    b. Take all or any part of the damaged property at the value that we 
agree upon or its appraised value.

                         L. No Benefit to Bailee

    No person or organization, other than you, having custody of covered 
property will benefit from this insurance.

                             M. Loss Payment

    1. We will adjust all losses with you. We will pay you unless some 
other person or entity is named in the policy or is legally entitled to 
receive payment. Loss will be payable 60 days after we receive your 
proof of loss (or within 90 days after the insurance adjuster files an 
adjuster's report signed and sworn to by you in lieu of a proof of loss) 
and:
    a. We reach an agreement with you;
    b. There is an entry of a final judgment; or
    c. There is a filing of an appraisal award with us, as provided in 
VII. P.
    2. If we reject your proof of loss in whole or in part you may:
    a. Accept such denial of your claim;
    b. Exercise your rights under this policy; or
    c. File an amended proof of loss as long as it is filed within 60 
days of the date of the loss.

                             N. Abandonment

    You may not abandon damaged or undamaged insured property to us.

                               O. Salvage

    We may permit you to keep damaged insured property after a loss, and 
we will reduce the amount of the loss proceeds payable to you under the 
policy by the value of the salvage.

                              P. Appraisal

    If you and we fail to agree on the actual cash value of the damaged 
property so as to determine the amount of loss, either may demand an 
appraisal of the loss. In this event, you and we will each choose a 
competent and impartial appraiser within 20 days after receiving a 
written request from the other. The two appraisers will choose an 
umpire. If they cannot agree upon an umpire within 15 days, you or we 
may request that the choice be made by a judge of a court of record in 
the state where the insured property is located. The appraisers will 
separately state the actual cash value and the amount of loss to each 
item. If the appraisers submit a written report of an agreement to us, 
the amount agreed upon will be the amount of loss. If they fail to 
agree, they will submit their differences to the umpire. A decision 
agreed to by any two will set the amount of actual cash value and loss.
    Each party will:
    1. Pay its own appraiser; and
    2. Bear the other expenses of the appraisal and umpire equally.

                           Q. Mortgage Clause

    The word ``mortgagee'' includes trustee.
    Any loss payable under Coverage A--Building Property will be paid to 
any mortgagee of whom we have actual notice, as well as any other 
mortgagee or loss payee determined to exist at the time of loss, and 
you, as interests appear. If more than one mortgagee is named, the order 
of payment will be the same as the order of precedence of the mortgages. 
If we deny your claim, that denial will not apply to a valid claim of 
the mortgagee, if the mortgagee:
    1. Notifies us of any change in the ownership or occupancy, or 
substantial change in risk of which the mortgagee is aware;
    2. Pays any premium due under this policy on demand if you have 
neglected to pay the premium; and
    3. Submits a signed, sworn proof of loss within 60 days after 
receiving notice from us of your failure to do so.
    All terms of this policy apply to the mortgagee.
    The mortgagee has the right to receive loss payment even if the 
mortgagee has started foreclosure or similar action on the building.
    If we decide to cancel or not renew this policy, it will continue in 
effect for the benefit of the mortgagee only for 30 days after we notify 
the mortgagee of the cancellation or non-renewal.
    If we pay the mortgagee for any loss and deny payment to you, we are 
subrogated to all the rights of the mortgagee granted under the mortgage 
on the property. Subrogation will not impair the right of the mortgagee 
to recover the full amount of the mortgagee's claim.

                           R. Suit Against Us

    You may not sue us to recover money under this policy unless you 
have complied with all the requirements of the policy. If

[[Page 188]]

you do sue, you must start the suit within one year of the date of the 
written denial of all or part of the claim, and you must file the suit 
in the United States District Court of the district in which the insured 
property was located at the time of loss. This requirement applies to 
any claim that you may have under this policy and to any dispute that 
you may have arising out of the handling of any claim under the policy.

                             S. Subrogation

    Whenever we make a payment for a loss under this policy, we are 
subrogated to your right to recover for that loss from any other person. 
That means that your right to recover for a loss that was partly or 
totally caused by someone else is automatically transferred to us, to 
the extent that we have paid you for the loss. We may require you to 
acknowledge this transfer in writing. After the loss, you may not give 
up our right to recover this money or do anything that would prevent us 
from recovering it. If you make any claim against any person who caused 
your loss and recover any money, you must pay us back first before you 
may keep any of that money.

                       T. Continuous Lake Flooding

    1. If an insured building has been flooded by rising lake waters 
continuously for 90 days or more and it appears reasonably certain that 
a continuation of this flooding will result in a covered loss to the 
insured building equal to or greater than the building policy limits 
plus the deductible or the maximum payable under the policy for any one 
building loss, we will pay you the lesser of these two amounts without 
waiting for the further damage to occur if you sign a release agreeing:
    a. To make no further claim under this policy;
    b. Not to seek renewal of this policy;
    c. Not to apply for any flood insurance under the Act for property 
at the described location; and
    d. Not to seek a premium refund for current or prior terms.
    If the policy term ends before the insured building has been flooded 
continuously for 90 days, the provisions of this paragraph T.1. will 
apply when as the insured building suffers a covered loss before the 
policy term ends.
    2. If your insured building is subject to continuous lake flooding 
from a closed basin lake, you may elect to file a claim under either 
paragraph T.1. above or this paragraph T.2. (A ``closed basin lake'' is 
a natural lake from which water leaves primarily through evaporation and 
whose surface area now exceeds or has exceeded one square mile at any 
time in the recorded past. Most of the nation's closed basin lakes are 
in the western half of the United States, where annual evaporation 
exceeds annual precipitation and where lake levels and surface areas are 
subject to considerable fluctuation due to wide variations in the 
climate. These lakes may overtop their basins on rare occasions.) Under 
this paragraph T.2 we will pay your claim as if the building is a total 
loss even though it has not been continuously inundated for 90 days, 
subject to the following conditions:
    a. Lake flood waters must damage or imminently threaten to damage 
your building.
    b. Before approval of your claim, you must:
    (1) Agree to a claim payment that reflects your buying back the 
salvage on a negotiated basis; and
    (2) Grant the conservation easement described in FEMA's ``Policy 
Guidance for Closed Basin Lakes,'' to be recorded in the office of the 
local recorder of deeds. FEMA, in consultation with the community in 
which the property is located, will identify on a map an area or areas 
of special consideration (ASC) in which there is a potential for flood 
damage from continuous lake flooding. FEMA will give the community the 
agreed-upon map showing the ASC. This easement will only apply to that 
portion of the property in the ASC. It will allow certain agricultural 
and recreational uses of the land. The only structures that it will 
allow on any portion of the property within the ASC are certain, simple 
agricultural and recreational structures. If any of these allowable 
structures are insurable buildings under the NFIP and are insured under 
the NFIP, they will not be eligible for the benefits of this paragraph 
T.2. If a U.S. Army Corps of Engineers certified flood control project 
or otherwise certified flood control project later protects the 
property, FEMA will, upon request, amend the ASC to remove areas 
protected by those projects. The restrictions of the easement will then 
no longer apply to any portion of the property removed from the ASC; and
    (3) Comply with paragraphs T.1.a. through T.1.d. above.
    c. Within 90 days of approval of your claim, you must move your 
building to a new location outside the ASC. FEMA will give you an 
additional 30 days to move if you show that there is sufficient reason 
to extend the time.
    d. Before the final payment of your claim, you must acquire an 
elevation certificate and a floodplain development permit from the local 
floodplain administrator for the new location of your building.
    e. Before the approval of your claim, the community having 
jurisdiction over your building must:
    (1) Adopt a permanent land use ordinance, or a temporary moratorium 
for a period not to exceed 6 months to be followed immediately by a 
permanent land use ordinance,

[[Page 189]]

that is consistent with the provisions specified in the easement 
required in paragraph T.2.b. above.
    (2) Agree to declare and report any violations of this ordinance to 
FEMA so that under Sec. 1316 of the National Flood Insurance Act of 
1968, as amended, flood insurance to the building can be denied; and
    (3) Agree to maintain as deed-restricted, for purposes compatible 
with open space or agricultural or recreational use only, any affected 
property the community acquires an interest in. These deed restrictions 
must be consistent with the provisions of paragraph T.2.b. above except 
that even if a certified project protects the property, the land use 
restrictions continue to apply if the property was acquired under the 
Hazard Mitigation Grant Program or the Flood Mitigation Assistance 
Program. If a non-profit land trust organization receives the property 
as a donation, that organization must maintain the property as deed-
restricted, consistent with the provisions of paragraph T.2.b. above.
    f. Before the approval of your claim, the affected State must take 
all action set forth in FEMA's ``Policy Guidance for Closed Basin 
Lakes.''
    g. You must have NFIP flood insurance coverage continuously in 
effect from a date established by FEMA until you file a claim under this 
paragraph T.2. If a subsequent owner buys NFIP insurance that goes into 
effect within 60 days of the date of transfer of title, any gap in 
coverage during that 60-day period will not be a violation of this 
continuous coverage requirement. For the purpose of honoring a claim 
under this paragraph T.2, we will not consider to be in effect any 
increased coverage that became effective after the date established by 
FEMA. The exception to this is any increased coverage in the amount 
suggested by your insurer as an inflation adjustment.
    h. This paragraph T.2. will be in effect for a community when the 
FEMA Regional Administrator for the affected region provides to the 
community, in writing, the following:
    (1) Confirmation that the community and the State are in compliance 
with the conditions in paragraphs T.2.e. and T.2.f. above, and
    (2) The date by which you must have flood insurance in effect.

                    U. Duplicate Policies Not Allowed

    1. Property may not be insured under more than one NFIP policy.
    If we find that the duplication was not knowingly created, we will 
give you written notice. The notice will advise you that you may choose 
one of several options under the following procedures:
    a. If you choose to keep in effect the policy with the earlier 
effective date, you may also choose to add the coverage limits of the 
later policy to the limits of the earlier policy. The change will become 
effective as of the effective date of the later policy.
    b. If you choose to keep in effect the policy with the later 
effective date, you may also choose to add the coverage limits of the 
earlier policy to the limits of the later policy. The change will be 
effective as of the effective date of the later policy.
    In either case, you must pay the pro rata premium for the increased 
coverage limits within 30 days of the written notice. In no event will 
the resulting coverage limits exceed the permissible limits of coverage 
under the Act or your insurable interest, whichever is less. We will 
make a refund to you, according to applicable NFIP rules, of the premium 
for the policy not being kept in effect.
    2. Your option under this Condition U. Duplicate Policies Not 
Allowed to elect which NFIP policy to keep in effect does not apply when 
duplicates have been knowingly created. Losses occurring under such 
circumstances will be adjusted according to the terms and conditions of 
the earlier policy. The policy with the later effective date must be 
canceled.

                           V. Loss Settlement

    We will pay the least of the following amounts after application of 
the deductible:
    1. The applicable amount of insurance under this policy;
    2. The actual cash value; or
    3. The amount it would cost to repair or replace the property with 
material of like kind and quality within a reasonable time after the 
loss.

                       VIII. Liberalization Clause

    If we make a change that broadens your coverage under this edition 
of our policy, but does not require any additional premium, then that 
change will automatically apply to your insurance as of the date we 
implement the change, provided that this implementation date falls 
within 60 days before or during the policy term stated on the 
Declarations Page.

                          IX. What Law Governs

    This policy and all disputes arising from the handling of any claim 
under the policy are governed exclusively by the flood insurance 
regulations issued by FEMA, the National Flood Insurance Act of 1968, as 
amended (42 U.S.C. 4001, et seq.), and Federal common law.
    In Witness Whereof, we have signed this policy below and hereby 
enter into this Insurance Agreement.
                        Administrator, Federal Insurance Administration.

[65 FR 60778, Oct. 12, 2000, as amended at 68 FR 9897, Mar. 3, 2003; 76 
FR 7510, Feb. 10, 2011]

[[Page 190]]



                      Sec. Appendix A(3) to Part 61

  Federal Emergency Management Agency Federal Insurance Administration

                     Standard Flood Insurance Policy

           RESIDENTIAL CONDOMINIUM BUILDING ASSOCIATION POLICY

                              I. Agreement

    Please read the policy carefully. The flood insurance provided is 
subject to limitations, restrictions, and exclusions.
    This policy covers only a residential condominium building in a 
regular program community. If the community reverts to emergency program 
status during the policy term and remains as an emergency program 
community at time of renewal, this policy cannot be renewed.
    The Federal Emergency Management Agency (FEMA) provides flood 
insurance under the terms of the National Flood Insurance Act of 1968 
and its Amendments, and Title 44 of the Code of Federal Regulations.
    We will pay you for direct physical loss by or from flood to your 
insured property if you:
    1. Have paid the correct premium;
    2. Comply with all terms and conditions of this policy; and
    3. Have furnished accurate information and statements.
    We have the right to review the information you give us at any time 
and to revise your policy based on our review.

                             II. Definitions

    A. In this policy, ``you'' and ``your'' refer to the insured(s) 
shown on the Declarations Page of this policy. Insured(s) includes: any 
mortgagee and loss payee named in the Application and Declarations Page, 
as well as any other mortgagee or loss payee determined to exist at the 
time of loss in the order of precedence. ``We,'' ``us,'' and ``our'' 
refer to the insurer.
    Some definitions are complex because they are provided as they 
appear in the law or regulations, or result from court cases. The 
precise definitions are intended to protect you.
    ``Flood'', as used in this flood insurance policy, means:
    1. A general and temporary condition of partial or complete 
inundation of two or more acres of normally dry land area or of two or 
more properties (one of which is your property) from:
    a. Overflow of inland or tidal waters;
    b. Unusual and rapid accumulation or runoff of surface waters from 
any source;
    c. Mudflow.
    2. Collapse or subsidence of land along the shore of a lake or 
similar body of water as a result of erosion or undermining caused by 
waves or currents of water exceeding anticipated cyclical levels which 
result in a flood as defined in A.1.a above.
    B. The following are the other key definitions we use in this 
policy:
    1. Act. The National Flood Insurance Act of 1968 and any amendments 
to it.
    2. Actual Cash Value. The cost to replace an insured item of 
property at the time of loss, less the value of its physical 
depreciation.
    3. Application. The statement made and signed by you or your agent 
in applying for this policy. The application gives information we use to 
determine the eligibility of the risk, the kind of policy to be issued, 
and the correct premium payment. The application is part of this flood 
insurance policy. For us to issue you a policy, the correct premium 
payment must accompany the application.
    4. Base Flood. A flood having a one percent chance of being equaled 
or exceeded in any given year.
    5. Basement. Any area of the building, including any sunken room or 
sunken portion of a room, having its floor below ground level (subgrade) 
on all sides.
    6. Building.
    a. A structure with two or more outside rigid walls and a fully 
secured roof, that is affixed to a permanent site;
    b. A manufactured home (``a manufactured home,'' also known as a 
mobile home, is a structure: built on a permanent chassis, transported 
to its site in one or more sections, and affixed to a permanent 
foundation); or
    c. A travel trailer without wheels, built on a chassis and affixed 
to a permanent foundation, that is regulated under the community's 
floodplain management and building ordinances or laws.
    Building does not mean a gas or liquid storage tank or a 
recreational vehicle, park trailer or other similar vehicle, except as 
described in B.6.c., above.
    7. Cancellation. The ending of the insurance coverage provided by 
this policy before the expiration date.
    8. Condominium. That form of ownership of real property in which 
each unit owner has an undivided interest in common elements.
    9. Condominium Association. The entity, formed by the unit owners, 
responsible for the maintenance and operation of:
    a. Common elements owned in undivided shares by unit owners; and
    b. Other real property in which the unit owners have use rights; 
where membership in the entity is a required condition of unit 
ownership.
    10. Declarations Page. A computer-generated summary of information 
you provided in the application for insurance. The Declarations Page 
also describes the term of the policy, limits of coverage, and displays 
the

[[Page 191]]

premium and our name. The Declarations Page is a part of this flood 
insurance policy.
    11. Described Location. The location where the insured building or 
personal property is found. The described location is shown on the 
Declarations Page.
    12. Direct Physical Loss By or From Flood. Loss or damage to insured 
property, directly caused by a flood. There must be evidence of physical 
changes to the property.
    13. Elevated Building. A building that has no basement and that has 
its lowest elevated floor raised above ground level by foundation walls, 
shear walls, posts, piers, pilings, or columns.
    14. Emergency Program. The initial phase of a community's 
participation in the National Flood Insurance Program. During this 
phase, only limited amounts of insurance are available under the Act.
    15. Expense Constant. A flat charge you must pay on each new or 
renewal policy to defray the expenses of the Federal Government related 
to flood insurance.
    16. Federal Policy Fee. A flat charge you must pay on each new or 
renewal policy to defray certain administrative expenses incurred in 
carrying out the National Flood Insurance Program. This fee covers 
expenses not covered by the expense constant.
    17. Improvements. Fixtures, alterations, installations, or additions 
comprising a part of the residential condominium building, including 
improvements in the units.
    18. Mudflow. A river of liquid and flowing mud on the surfaces of 
normally dry land areas, as when earth is carried by a current of water. 
Other earth movements, such as landslide, slope failure, or a saturated 
soil mass moving by liquidity down a slope, are not mudflows.
    19. National Flood Insurance Program (NFIP). The program of flood 
insurance coverage and floodplain management administered under the Act 
and applicable Federal regulations in Title 44 of the Code of Federal 
Regulations, Subchapter B.
    20. Policy. The entire written contract between you and us. It 
includes:
    a. This printed form;
    b. The application and Declarations Page;
    c. Any endorsement(s) that may be issued; and
    d. Any renewal certificate indicating that coverage has been 
instituted for a new policy and new policy term.
    Only one building, which you specifically described in the 
application, may be insured under this policy.
    21. Pollutants. Substances that include, but are not limited to, any 
solid, liquid, gaseous, or thermal irritant or contaminant, including 
smoke, vapor, soot, fumes, acids, alkalis, chemicals, and waste. Waste 
includes, but is not limited to, materials to be recycled, 
reconditioned, or reclaimed.
    22. Post-FIRM Building. A building for which construction or 
substantial improvement occurred after December 31, 1974, or on or after 
the effective date of an initial Flood Insurance Rate Map (FIRM), 
whichever is later.
    23. Probation Premium. A flat charge you must pay on each new or 
renewal policy issued covering property in a community that the NFIP has 
placed on probation under the provisions of 44 CFR 59.24.
    24. Regular Program. The final phase of a community's participation 
in the National Flood Insurance Program. In this phase, a Flood 
Insurance Rate Map is in effect and full limits of coverage are 
available under the Act.
    25. Residential Condominium Building. A building, owned and 
administered as a condominium, containing one or more family units and 
in which at least 75% of the floor area is residential.
    26. Special Flood Hazard Area. An area having special flood or 
mudflow, and/or flood-related erosion hazards, and shown on a Flood 
Hazard Boundary Map or Flood Insurance Rate Map as Zone A, AO, A1-A30, 
AE, A99, AH, AR, AR/A, AR/AE, AR/AH, AR/AO, AR/A1-A30, V1-V30, VE, or V.
    27. Unit. A single-family unit in a residential condominium 
building.
    28. Valued Policy. A policy in which the insured and the insurer 
agree on the value of the property insured, that value being payable in 
the event of a total loss. The Standard Flood Insurance Policy is not a 
valued policy.

                          III. Property Covered

                    A. Coverage A--Building Property

    We insure against direct physical loss by or from flood to:
    1. The residential condominium building described on the 
Declarations Page at the described location, including all units within 
the building and the improvements within the units.
    2. We also insure such building property for a period of 45 days at 
another location, as set forth in III.C.2.b., Property Removed to 
Safety.
    3. Additions and extensions attached to and in contact with the 
building by means of a rigid exterior wall, a solid load-bearing 
interior wall, a stairway, an elevated walkway, or a roof. At your 
option, additions and extensions connected by any of these methods may 
be separately insured. Additions and extensions attached to and in 
contact with the building by means of a common interior wall that is not 
a solid load-bearing wall are always considered part of the building and 
cannot be separately insured.
    4. The following fixtures, machinery and equipment, including its 
units, which are covered under Coverage A only:

[[Page 192]]

    a. Awnings and canopies;
    b. Blinds;
    c. Carpet permanently installed over unfinished flooring;
    d. Central air conditioners;
    e. Elevator equipment;
    f. Fire extinguishing apparatus;
    g. Fire sprinkler systems;
    h. Walk-in freezers;
    i. Furnaces;
    j. Light fixtures;
    k. Outdoor antennas and aerials fastened to buildings;
    l. Permanently installed cupboards, bookcases, paneling, and 
wallpaper;
    m. Pumps and machinery for operating pumps;
    n. Ventilating equipment;
    o. Wall mirrors, permanently installed; and
    p. In the units within the building, installed:
    (1) Built-in dishwashers;
    (2) Built-in microwave ovens;
    (3) Garbage disposal units;
    (4) Hot water heaters, including solar water heaters;
    (5) Kitchen cabinets;
    (6) Plumbing fixtures;
    (7) Radiators;
    (8) Ranges;
    (9) Refrigerators; and
    (10) Stoves.
    5. Materials and supplies to be used for construction, alteration or 
repair of the insured building while the materials and supplies are 
stored in a fully enclosed building at the described location or on an 
adjacent property.
    6. A building under construction, alteration or repair at the 
described location.
    a. If the structure is not yet walled or roofed as described in the 
definition for building (see II.B.6.a.), then coverage applies:
    (1) Only while such work is in progress; or
    (2) If such work is halted, only for a period of up to 90 continuous 
days thereafter.
    b. However, coverage does not apply until the building is walled and 
roofed if the lowest floor, including the basement floor, of a non-
elevated building or the lowest elevated floor of an elevated building 
is:
    (1) Below the base flood elevation in Zones AH, AE, A1-30, AR, AR/
AE, AR/AH, AR/A1-30, AR/A, AR/AO; or
    (2) Below the base flood elevation adjusted to include the effect of 
wave action in Zones VE or V1-30.
    The lowest floor levels are based on the bottom of the lowest 
horizontal structural member of the floor in Zones VE or V1-V30 and the 
top of the floor in Zones AH, AE, A1-A30, AR, AR/AE, AR/AH, AR/A1-A30, 
AR/A, AR/AO.
    7. A manufactured home or a travel trailer as described in the 
Definitions Section (See II.B.b. and c.).
    If the manufactured home is in a special flood hazard area, it must 
be anchored in the following manner at the time of the loss:
    a. By over-the-top or frame ties to ground anchors; or
    b. In accordance with the manufacturer's specifications; or
    c. In compliance with the community's floodplain management 
requirements unless it has been continuously insured by the NFIP at the 
same described location since September 30, 1982.
    8. Items of property in a building enclosure below the lowest 
elevated floor of an elevated post-FIRM building located in zones A1-
A30, AE, AH, AR, AR/A, AR/AE, AR/AH, AR/A1-A30, V1-V30, or VE, or in a 
basement, regardless of the zone. Coverage is limited to the following:
    a. Any of the following items, if installed in their functioning 
locations and, if necessary for operation, connected to a power source:
    (1) Central air conditioners;
    (2) Cisterns and the water in them;
    (3) Drywall for walls and ceilings in a basement and the cost of 
labor to nail it, unfinished and unfloated and not taped, to the 
framing;
    (4) Electrical junction and circuit breaker boxes;
    (5) Electrical outlets and switches;
    (6) Elevators, dumbwaiters, and related equipment, except for 
related equipment installed below the base flood elevation after 
September 30, 1987;
    (7) Fuel tanks and the fuel in them;
    (8) Furnaces and hot water heaters;
    (9) Heat pumps;
    (10) Nonflammable insulation in a basement;
    (11) Pumps and tanks used in solar energy systems;
    (12) Stairways and staircases attached to the building, not 
separated from it by elevated walkways;
    (13) Sump pumps;
    (14) Water softeners and the chemicals in them, water filters and 
faucets installed as an integral part of the plumbing system;
    (15) Well water tanks and pumps;
    (16) Required utility connections for any item in this list; and
    (17) Footings, foundations, posts, pilings, piers, or other 
foundation walls and anchorage systems required to support a building.
    b. Clean-up.

                    B. Coverage B--Personal Property

    1. If you have purchased personal property coverage, we insure, 
subject to B.2. and B.3. below, against direct physical loss by or from 
flood to personal property that is inside the fully enclosed insured 
building and is:
    a. Owned by the unit owners of the condominium association in 
common, meaning

[[Page 193]]

property in which each unit owner has an undivided ownership interest; 
or
    b. Owned solely by the condominium association and used exclusively 
in the conduct of the business affairs of the condominium association.
    We also insure such personal property for 45 days while stored at a 
temporary location, as set forth in III.C.2.b., Property Removed to 
Safety.
    2. Coverage for personal property includes the following property, 
subject to B.1. above, which is covered under Coverage B only:
    a. Air conditioning units--portable or window type;
    b. Carpet, not permanently installed, over unfinished flooring;
    c. Carpets over finished flooring;
    d. Clothes washers and dryers;
    e. ``Cook-out'' grills;
    f. Food freezers, other than walk-in, and the food in any freezer;
    g. Outdoor equipment and furniture stored inside the insured 
building;
    h. Ovens and the like; and
    i. Portable microwave ovens and portable dishwashers.
    3. Coverage for items of property in a building enclosure below the 
lowest elevated floor of an elevated post-FIRM building located in zones 
A1-A30, AE, AH, AR, AR/A, AR/AE, AR/AH, AR/A1-A30, V1-V30, or VE, or in 
a basement, regardless of the zone, is limited to the following items, 
if installed in their functioning locations and, if necessary for 
operation, connected to a power source:
    a. Air conditioning units--portable or window type;
    b. Clothes washers and dryers; and
    c. Food freezers, other than walk-in, and food in any freezer.
    4. Special Limits. We will pay no more than $2,500 for any one loss 
to one or more of the following kinds of personal property:
    a. Artwork, photographs, collectibles, or memorabilia, including but 
not limited to, porcelain or other figures, and sports cards;
    b. Rare books or autographed items;
    c. Jewelry, watches, precious and semi-precious stones, or articles 
of gold, silver, or platinum;
    d. Furs or any article containing fur which represents its principal 
value.
    5. We will pay only for the functional value of antiques.

                     C. Coverage C--Other Coverages

    1. Debris Removal
    a. We will pay the expense to remove non-owned debris that is on or 
in insured property and debris of insured property anywhere.
    b. If you or a member of your household perform the removal work, 
the value of your work will be based on the Federal minimum wage.
    c. This coverage does not increase the Coverage A or Coverage B 
limit of liability.
    2. Loss Avoidance Measures
    a. Sandbags, Supplies, and Labor
    (1) We will pay up to $1,000 for the costs you incur to protect the 
insured building from a flood or imminent danger of flood, for the 
following:
    (a) Your reasonable expenses to buy:
    (i) Sandbags, including sand to fill them;
    (ii) Fill for temporary levees;
    (iii) Pumps; and
    (iv) Plastic sheeting and lumber used in connection with these 
items; and
    (b) The value of work, at the Federal minimum wage, that you 
perform.
    (2) This coverage for Sandbags, Supplies, and Labor applies only if 
damage to insured property by or from flood is imminent and the threat 
of flood damage is apparent enough to lead a person of common prudence 
to anticipate flood damage. One of the following must also occur:
    (a) A general and temporary condition of flooding in the area near 
the described location must occur, even if the flood does not reach the 
insured building; or
    (b) A legally authorized official must issue an evacuation order or 
other civil order for the community in which the insured building is 
located calling for measures to preserve life and property from the 
peril of flood. This coverage does not increase the Coverage A or 
Coverage B limit of liability.
    b. Property Removed to Safety
    (1) We will pay up to $1,000 for the reasonable expenses you incur 
to move insured property to a place other than the described location 
that contains the property in order to protect it from flood or the 
imminent danger of flood.
    Reasonable expenses include the value of work, at the Federal 
minimum wage, that you perform.
    (2) If you move insured property to a location other than the 
described location that contains the property, in order to protect it 
from flood or the imminent danger of flood, we will cover such property 
while at that location for a period of 45 consecutive days from the date 
you begin to move it there. The personal property that is moved must be 
placed in a fully enclosed building, or otherwise reasonably protected 
from the elements.
    Any property removed, including a moveable home described in II.6.b. 
and c., must be placed above ground level or outside of the special 
flood hazard area.
    This coverage does not increase the Coverage A or Coverage B limit 
of liability.

               D. Coverage D--Increased Cost of Compliance

    1. General.
    This policy pays you to comply with a State or local floodplain 
management law or ordinance affecting repair or reconstruction

[[Page 194]]

of a structure suffering flood damage. Compliance activities eligible 
for payment are: elevation, floodproofing, relocation, or demolition (or 
any combination of these activities) of your structure. Eligible 
floodproofing activities are limited to:
    a. Non-residential structures.
    b. Residential structures with basements that satisfy FEMA's 
standards published in the Code of Federal Regulations [44 CFR 60.6 (b) 
or (c)].
    2. Limit of Liability.
    We will pay you up to $30,000 under this Coverage D--Increased Cost 
of Compliance, which only applies to policies with building coverage 
(Coverage A). Our payment of claims under Coverage D is in addition to 
the amount of coverage which you selected on the application and which 
appears on the Declarations Page. But the maximum you can collect under 
this policy for both Coverage A--Building Property and Coverage D--
Increased Cost of Compliance cannot exceed the maximum permitted under 
the Act. We do not charge a separate deductible for a claim under 
Coverage D.
    3. Eligibility.
    a. A structure covered under Coverage A--Building Property 
sustaining a loss caused by a flood as defined by this policy must:
    (1) Be a ``repetitive loss structure.'' A ``repetitive loss 
structure'' is one that meets the following conditions:
    (a) The structure is covered by a contract of flood insurance issued 
under the NFIP.
    (b) The structure has suffered flood damage on 2 occasions during a 
10-year period which ends on the date of the second loss.
    (c) The cost to repair the flood damage, on average, equaled or 
exceeded 25% of the market value of the structure at the time of each 
flood loss.
    (d) In addition to the current claim, the NFIP must have paid the 
previous qualifying claim, and the State or community must have a 
cumulative, substantial damage provision or repetitive loss provision in 
its floodplain management law or ordinance being enforced against the 
structure; or
    (2) Be a structure that has had flood damage in which the cost to 
repair equals or exceeds 50% of the market value of the structure at the 
time of the flood. The State or community must have a substantial damage 
provision in its floodplain management law or ordinance being enforced 
against the structure.
    b. This Coverage D pays you to comply with State or local floodplain 
management laws or ordinances that meet the minimum standards of the 
National Flood Insurance Program found in the Code of Federal 
Regulations at 44 CFR 60.3. We pay for compliance activities that exceed 
those standards under these conditions:
    (1) 3.a.(1) above.
    (2) Elevation or floodproofing in any risk zone to preliminary or 
advisory base flood elevations provided by FEMA which the State or local 
government has adopted and is enforcing for flood-damaged structures in 
such areas. (This includes compliance activities in B, C, X, or D zones 
which are being changed to zones with base flood elevations. This also 
includes compliance activities in zones where base flood elevations are 
being increased, and a flood-damaged structure must comply with the 
higher advisory base flood elevation.) Increased Cost of Compliance 
coverage does not apply to situations in B, C, X, or D zones where the 
community has derived its own elevations and is enforcing elevation or 
floodproofing requirements for flood-damaged structures to elevations 
derived solely by the community.
    (3) Elevation or floodproofing above the base flood elevation to 
meet State or local ``freeboard'' requirements, i.e., that a structure 
must be elevated above the base flood elevation.
    c. Under the minimum NFIP criteria at 44 CFR 60.3(b)(4), States and 
communities must require the elevation or floodproofing of structures in 
unnumbered A zones to the base flood elevation where elevation data is 
obtained from a Federal, State, or other source. Such compliance 
activities are also eligible for Coverage D.
    d. This coverage will also pay for the incremental cost, after 
demolition or relocation, of elevating or floodproofing a structure 
during its rebuilding at the same or another site to meet State or local 
floodplain management laws or ordinances, subject to Exclusion 
D.5.g.below relating to improvements.
    e. This coverage will also pay to bring a flood-damaged structure 
into compliance with State or local floodplain management laws or 
ordinances even if the structure had received a variance before the 
present loss from the applicable floodplain management requirements.
    4. Conditions.
    a. When a structure covered under Coverage A--Building Property 
sustains a loss caused by a flood, our payment for the loss under this 
Coverage D will be for the increased cost to elevate, floodproof, 
relocate, or demolish (or any combination of these activities) caused by 
the enforcement of current State or local floodplain management 
ordinances or laws. Our payment for eligible demolition activities will 
be for the cost to demolish and clear the site of the building debris or 
a portion thereof caused by the enforcement of current State or local 
floodplain management ordinances or laws. Eligible activities for the 
cost of clearing the site will include those necessary to discontinue 
utility service to the site and ensure proper abandonment of on-site 
utilities.
    b. When the building is repaired or rebuilt, it must be intended for 
the same occupancy

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as the present building unless otherwise required by current floodplain 
management ordinances or laws.
    5. Exclusions.
    Under this Coverage D--Increased Cost of Compliance, we will not pay 
for:
    a. The cost to comply with any floodplain management law or 
ordinance in communities participating in the Emergency Program.
    b. The cost associated with enforcement of any ordinance or law that 
requires any insured or others to test for, monitor, clean up, remove, 
contain, treat, detoxify or neutralize, or in any way respond to, or 
assess the effects of pollutants.
    c. The loss in value to any insured building or other structure due 
to the requirements of any ordinance or law.
    d. The loss in residual value of the undamaged portion of a building 
demolished as a consequence of enforcement of any State or local 
floodplain management law or ordinance.
    e. Any Increased Cost of Compliance under this Coverage D:
    (1) Until the building is elevated, floodproofed, demolished, or 
relocated on the same or to another premises; and
    (2) Unless the building is elevated, floodproofed, demolished, or 
relocated as soon as reasonably possible after the loss, not to exceed 
two years.
    f. Any code upgrade requirements, e.g., plumbing or electrical 
wiring, not specifically related to the State or local floodplain 
management law or ordinance.
    g. Any compliance activities needed to bring additions or 
improvements made after the loss occurred into compliance with State or 
local floodplain management laws or ordinances.
    h. Loss due to any ordinance or law that you were required to comply 
with before the current loss.
    i. Any rebuilding activity to standards that do not meet the NFIP's 
minimum requirements. This includes any situation where the insured has 
received from the State or community a variance in connection with the 
current flood loss to rebuild the property to an elevation below the 
base flood elevation.
    j. Increased Cost of Compliance for a garage or carport.
    k. Any structure insured under an NFIP Group Flood Insurance Policy.
    l. Assessments made by a condominium association on individual 
condominium unit owners to pay increased costs of repairing commonly 
owned buildings after a flood in compliance with State or local 
floodplain management ordinances or laws.
    6. Other Provisions.
    a. Increased Cost of Compliance coverage will not be included in the 
calculation to determine whether coverage meets the coinsurance 
requirement for replacement cost coverage under VIII. General 
Conditions, V. Loss Settlement.
    b. All other conditions and provisions of this policy apply.

                        IV. Property Not Covered

    We do not cover any of the following:
    1. Personal property not inside the fully enclosed building;
    2. A building, and personal property in it, located entirely in, on, 
or over water or seaward of mean high tide, if constructed or 
substantially improved after September 30, 1982;
    3. Open structures, including a building used as a boathouse or any 
structure or building into which boats are floated, and personal 
property located in, on, or over water;
    4. Recreational vehicles other than travel trailers described in the 
Definitions Section (see II.B.6.c.) whether affixed to a permanent 
foundation or on wheels;
    5. Self-propelled vehicles or machines, including their parts and 
equipment.
    However, we do cover self-propelled vehicles or machines, provided 
they are not licensed for use on public roads and are:
    a. Used mainly to service the described location, or
    b. Designed and used to assist handicapped persons, while the 
vehicles or machines are inside a building at the described location;
    6. Land, land values, lawns, trees, shrubs, plants, growing crops, 
or animals;
    7. Accounts, bills, coins, currency, deeds, evidences of debt, 
medals, money, scrip, stored value cards, postage stamps, securities, 
bullion, manuscripts, or other valuable papers;
    8. Underground structures and equipment, including wells, septic 
tanks, and septic systems;
    9. Those portions of walks, walkways, decks, driveways, patios, and 
other surfaces, all whether protected by a roof or not, located outside 
the perimeter, exterior walls of the insured building;
    10. Containers, including related equipment, such as, but not 
limited to, tanks containing gases or liquids;
    11. Buildings and all their contents if more than 49% of the actual 
cash value of the building is below ground, unless the lowest level is 
at or above the base flood elevation and is below ground by reason of 
earth having been used as insulation material in conjunction with energy 
efficient building techniques;
    12. Fences, retaining walls, seawalls, bulkheads, wharves, piers, 
bridges, and docks;
    13. Aircraft or watercraft, or their furnishings and equipment;
    14. Hot tubs and spas that are not bathroom fixtures, and swimming 
pools, and their equipment such as, but not limited to,

[[Page 196]]

heaters, filters, pumps, and pipes, wherever located;
    15. Property not eligible for flood insurance pursuant to the 
provisions of the Coastal Barrier Resources Act and the Coastal Barrier 
Improvements Act of 1990 and amendments to these Acts;
    16. Personal property used in connection with any incidental 
commercial occupancy or use of the building.

                              V. Exclusions

    A. We only pay for direct physical loss by or from flood, which 
means that we do not pay you for:
    1. Loss of revenue or profits;
    2. Loss of access to the insured property or described location;
    3. Loss of use of the insured property or described location;
    4. Loss from interruption of business or production;
    5. Any additional living expenses incurred while the insured 
building is being repaired or is unable to be occupied for any reason;
    6. The cost of complying with any ordinance or law requiring or 
regulating the construction, demolition, remodeling, renovation, or 
repair of property, including removal of any resulting debris. This 
exclusion does not apply to any eligible activities that we describe in 
Coverage D--Increased Cost of Compliance; or
    7. Any other economic loss.
    B. We do not insure a loss directly or indirectly caused by a flood 
that is already in progress at the time and date:
    1. The policy term begins; or
    2. Coverage is added at your request.
    C. We do not insure for loss to property caused directly by earth 
movement even if the earth movement is caused by flood. Some examples of 
earth movement that we do not cover are:
    1. Earthquake;
    2. Landslide;
    3. Land subsidence;
    4. Sinkholes;
    5. Destabilization or movement of land that results from 
accumulation of water in subsurface land areas; or
    6. Gradual erosion.
    We do, however, pay for losses from mudflow and land subsidence as a 
result of erosion that are specifically covered under our definition of 
flood (see II.A.1.c. and II.A.2.).
    D. We do not insure for direct physical loss caused directly or 
indirectly by:
    1. The pressure or weight of ice;
    2. Freezing or thawing;
    3. Rain, snow, sleet, hail, or water spray;
    4. Water, moisture, mildew, or mold damage that results primarily 
from any condition:
    a. Substantially confined to the insured building; or
    b. That is within your control including, but not limited to:
    (1) Design, structural, or mechanical defects;
    (2) Failures, stoppages, or breakage of water or sewer lines, 
drains, pumps, fixtures, or equipment; or
    (3) Failure to inspect and maintain the property after a flood 
recedes;
    5. Water or water-borne material that:
    a. Backs up through sewers or drains;
    b. Discharges or overflows from a sump, sump pump, or related 
equipment; or
    c. Seeps or leaks on or through insured property;
unless there is a flood in the area and the flood is the proximate cause 
of the sewer, drain, or sump pump discharge or overflow, or the seepage 
of water;
    6. The pressure or weight of water unless there is a flood in the 
area and the flood is the proximate cause of the damage from the 
pressure or weight of water.
    7. Power, heating, or cooling failure unless the failure results 
from direct physical loss by or from flood to power, heating or cooling 
equipment situated on the described location;
    8. Theft, fire, explosion, wind, or windstorm;
    9. Anything you or your agents do or conspire to do to cause loss by 
flood deliberately; or
    10. Alteration of the insured property that significantly increases 
the risk of flooding.
    E. We do not insure for loss to any building or personal property 
located on land leased from the Federal Government, arising from or 
incident to the flooding of the land by the Federal Government, where 
the lease expressly holds the Federal Government harmless under flood 
insurance issued under any Federal Government program.
    F. We do not pay for the testing for or monitoring of pollutants 
unless required by law or ordinance.

                             VI. Deductibles

    A. When a loss is covered under this policy, we will pay only that 
part of the loss that exceeds the applicable deductible amount, subject 
to the limit of insurance that applies. The deductible amount is shown 
on the Declarations Page.
    However, when a building under construction, alteration, or repair 
does not have at least two rigid exterior walls and a fully secured roof 
at the time of loss, your deductible amount will be two times the 
deductible that would otherwise apply to a completed building.
    B. In each loss from flood, separate deductibles apply to the 
building and personal property insured by this policy.
    C. No deductible applies to:
    1. III.C.2. Loss Avoidance Measures; or
    2. III.D. Increased Cost of Compliance.

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                            VII. Coinsurance

    A. This Coinsurance Section applies only to coverage on the 
building.
    B. We will impose a penalty on loss payment unless the amount of 
insurance applicable to the damaged building is:
    1. At least 80% of its replacement cost; or
    2. The maximum amount of insurance available for that building under 
the NFIP, whichever is less.
    C. If the actual amount of insurance on the building is less than 
the required amount in accordance with the terms of VII. B. above, then 
loss payment is determined as follows (subject to all other relevant 
conditions in this policy, including those pertaining to valuation, 
adjustment, settlement, and payment of loss):
    1. Divide the actual amount of insurance carried on the building by 
the required amount of insurance.
    2. Multiply the amount of loss, before application of the 
deductible, by the figure determined in C.1. above.
    3. Subtract the deductible from the figure determined in C.2. above.
    We will pay the amount determined in C.3. above, or the amount of 
insurance carried, whichever is less. The amount of insurance carried, 
if in excess of the applicable maximum amount of insurance available 
under the NFIP, is reduced accordingly.

                                Examples

                    Example #1 (Inadequate Insurance)

Replacement value of the building--$250,000
Required amount of insurance--$200,000
  (80% of replacement value of $250,000)
Actual amount of insurance carried--$180,000
Amount of the loss--$150,000
Deductible--$500
Step 1:180,000  200,000 = .90
  (90% of what should be carried.)
Step 2: 150,000  .90 = 135,000
Step 3: 135,000 ^ 500 = 134,500

    We will pay no more than $134,500. The remaining $15,500 is not 
covered due to the coinsurance penalty ($15,000) and application of the 
deductible ($500).

                     Example #2 (Adequate Insurance)

Replacement value of the building--$500,000
Required amount of insurance--$400,000
  (80% of replacement value of $500,000)
Actual amount of insurance carried--$400,000
Amount of the loss--$200,000
Deductible--$500

    In this example there is no coinsurance penalty, because the actual 
amount of insurance carried meets the required amount. We will pay no 
more than $199,500 ($200,000 amount of loss minus the $500 deductible).
    D. In calculating the full replacement cost of a building:
    1. The replacement cost value of any covered building property will 
be included;
    2. The replacement cost value of any building property not covered 
under this policy will not be included; and
    3. Only the replacement cost value of improvements installed by the 
condominium association will be included.

                        VIII. General Conditions

    A. Pair and Set Clause.
    In case of loss to an article that is part of a pair or set, we will 
have the option of paying you:
    1. An amount equal to the cost of replacing the lost, damaged, or 
destroyed article, less depreciation; or
    2. An amount which represents the fair proportion of the total value 
of the pair or set that the lost, damaged, or destroyed article bears to 
the pair or set.
    B. Concealment or Fraud and Policy Voidance.
    1. With respect to all insureds under this policy, this policy:
    a. Is void,
    b. Has no legal force or effect,
    c. Cannot be renewed, and
    d. Cannot be replaced by a new NFIP policy, if, before or after a 
loss, you or any other insured or your agent have at any time:
    (1) Intentionally concealed or misrepresented any material fact or 
circumstance,
    (2) Engaged in fraudulent conduct, or
    (3) Made false statements,
relating to this policy or any other NFIP insurance.
    2. This policy will be void as of the date the wrongful acts 
described in B.1. above were committed.
    3. Fines, civil penalties, and imprisonment under applicable Federal 
laws may also apply to the acts of fraud or concealment described above.
    4. This policy is also void for reasons other than fraud, 
misrepresentation, or wrongful act. This policy is void from its 
inception and has no legal force under the following conditions:
    a. If the property is located in a community that was not 
participating in the NFIP on the policy's inception date and did not 
join or re-enter the program during the policy term and before the loss 
occurred; or
    b. If the property listed on the application is not otherwise 
eligible for coverage under the NFIP.
    C. Other Insurance.
    1. If a loss covered by this policy is also covered by other 
insurance that includes flood coverage not issued under the Act, we will 
not pay more than the amount of insurance that you are entitled to for 
lost, damaged or destroyed property insured under this policy subject to 
the following:

[[Page 198]]

    a. We will pay only the proportion of the loss that the amount of 
insurance that applies under this policy bears to the total amount of 
insurance covering the loss, unless C.1.b. or c. immediately below 
applies.
    b. If the other policy has a provision stating that it is excess 
insurance, this policy will be primary.
    c. This policy will be primary (but subject to its own deductible) 
up to the deductible in the other flood policy (except another policy as 
described in C.1.b. above). When the other deductible amount is reached, 
this policy will participate in the same proportion that the amount of 
insurance under this policy bears to the total amount of both policies, 
for the remainder of the loss.
    2. If there is a flood insurance policy in the name of a unit owner 
that covers the same loss as this policy, then this policy will be 
primary.
    D. Amendments, Waivers, Assignment.
    This policy cannot be changed nor can any of its provisions be 
waived without the express written consent of the Federal Insurance 
Administrator. No action that we take under the terms of this policy 
constitutes a waiver of any of our rights. You may assign this policy in 
writing when you transfer title of your property to someone else except 
under these conditions:
    1. When this policy covers only personal property; or
    2. When this policy covers a structure during the course of 
construction.
    E. Cancellation of Policy by You.
    1. You may cancel this policy in accordance with the applicable 
rules and regulations of the NFIP.
    2. If you cancel this policy, you may be entitled to a full or 
partial refund of premium also under the applicable rules and 
regulations of the NFIP.
    F. Non-Renewal of the Policy by Us.
    Your policy will not be renewed:
    1. If the community where your covered property is located stops 
participating in the NFIP, or
    2. Your building has been declared ineligible under section 1316 of 
the Act.
    G. Reduction and Reformation of Coverage.
    1. If the premium we received from you was not enough to buy the 
kind and amount of coverage you requested, we will provide only the 
amount of coverage that can be purchased for the premium payment we 
received.
    2. The policy can be reformed to increase the amount of coverage 
resulting from the reduction described in G.1. above the amount that you 
requested as follows:
    a. Discovery of Insufficient Premium or Incomplete Rating 
Information Before a Loss.
    (1) If we discover before you have a flood loss that your premium 
payment was not enough to buy the requested amount of coverage, we will 
send you and any mortgagee or trustee known to us a bill for the 
required additional premium for the current policy term (or that portion 
of the current policy term following any endorsement changing the amount 
of coverage). If you or the mortgagee or trustee pay the additional 
premium within 30 days from the date of our bill, we will reform the 
policy to increase the amount of coverage to the originally requested 
amount effective to the beginning of the current policy term (or 
subsequent date of any endorsement changing the amount of coverage).
    (2) If we determine before you have a flood loss that the rating 
information we have is incomplete and prevents us from calculating the 
additional premium, we will ask you to send the required information. 
You must submit the information within 60 days of our request. Once we 
determine the amount of additional premium for the current policy term, 
we will follow the procedure in G.2.a.(1) above.
    (3) If we do not receive the additional premium (or additional 
information) by the date it is due, the amount of coverage can only be 
increased by endorsement subject to any appropriate waiting period.
    b. Discovery of Insufficient Premium or Incomplete Rating 
Information After a Loss.
    (1) If we discover after you have a flood loss that your premium 
payment was not enough to buy the requested amount of coverage, we will 
send you and any mortgagee or trustee known to us a bill for the 
required additional premium for the current and the prior policy terms. 
If you or the mortgagee or trustee pay the additional premium within 30 
days of the date of our bill, we will reform the policy to increase the 
amount of coverage to the originally requested amount effective to the 
beginning of the prior policy term.
    (2) If we discover after you have a flood loss that the rating 
information we have is incomplete and prevents us from calculating the 
additional premium, we will ask you to send the required information. 
You must submit the information before your claim can be paid. Once we 
determine the amount of additional premium for the current and prior 
policy terms, we will follow the procedure in G.2.b.(1) above.
    (3) If we do not receive the additional premium by the date it is 
due, your flood insurance claim will be settled based on the reduced 
amount of coverage. The amount of coverage can only be increased by 
endorsement subject to any appropriate waiting period.
    3. However, if we find that you or your agent intentionally did not 
tell us, or falsified, any important fact or circumstance or did 
anything fraudulent relating to this insurance, the provisions of 
Condition B. Concealment or Fraud and Policy Voidance above apply.

[[Page 199]]

    H. Policy Renewal.
    1. This policy will expire at 12:01 a.m. on the last day of the 
policy term.
    2. We must receive the payment of the appropriate renewal premium 
within 30 days of the expiration date.
    3. If we find, however, that we did not place your renewal notice 
into the U.S. Postal Service, or if we did mail it, we made a mistake, 
e.g., we used an incorrect, incomplete, or illegible address, which 
delayed its delivery to you before the due date for the renewal premium, 
then we will follow these procedures:
    a. If you or your agent notified us, not later than one year after 
the date on which the payment of the renewal premium was due, of 
nonreceipt of a renewal notice before the due date for the renewal 
premium, and we determine that the circumstances in the preceding 
paragraph apply, we will mail a second bill providing a revised due 
date, which will be 30 days after the date on which the bill is mailed.
    b. If we do not receive the premium requested in the second bill by 
the revised due date, then we will not renew the policy. In that case, 
the policy will remain as an expired policy as of the expiration date 
shown on the Declarations Page.
    4. In connection with the renewal of this policy, we may ask you 
during the policy term to re-certify, on a Recertification Questionnaire 
that we will provide you, the rating information used to rate your most 
recent application for or renewal of insurance.
    I. Conditions Suspending or Restricting Insurance.
    We are not liable for loss that occurs while there is a hazard that 
is increased by any means within your control or knowledge.
    J. Requirements in Case of Loss.
    In case of a flood loss to insured property, you must:
    1. Give prompt written notice to us;
    2. As soon as reasonably possible, separate the damaged and 
undamaged property, putting it in the best possible order so that we may 
examine it;
    3. Prepare an inventory of damaged personal property showing the 
quantity, description, actual cash value, and amount of loss. Attach all 
bills, receipts and related documents;
    4. Within 60 days after the loss, send us a proof of loss, which is 
your statement of the amount you are claiming under the policy signed 
and sworn to by you, and which furnishes us with the following 
information:
    a. The date and time of loss;
    b. A brief explanation of how the loss happened;
    c. Your interest (for example, ``owner'') and the interest, if any, 
of others in the damaged property;
    d. Details of any other insurance that may cover the loss;
    e. Changes in title or occupancy of the insured property during the 
term of the policy;
    f. Specifications of damaged insured buildings and detailed repair 
estimates;
    g. Names of mortgagees or anyone else having a lien, charge, or 
claim against the insured property;
    h. Details about who occupied any insured building at the time of 
loss and for what purpose; and
    i. The inventory of damaged personal property described in J.3. 
above.
    5. In completing the proof of loss, you must use your own judgment 
concerning the amount of loss and justify that amount.
    6. You must cooperate with the adjuster or representative in the 
investigation of the claim.
    7. The insurance adjuster whom we hire to investigate your claim may 
furnish you with a proof of loss form, and she or he may help you 
complete it. However, this is a matter of courtesy only, and you must 
still send us a proof of loss within sixty days after the loss even if 
the adjuster does not furnish the form or help you complete it.
    8. We have not authorized the adjuster to approve or disapprove 
claims or to tell you whether we will approve your claim.
    9. At our option, we may accept the adjuster's report of the loss 
instead of your proof of loss. The adjuster's report will include 
information about your loss and the damages you sustained. You must sign 
the adjuster's report. At our option, we may require you to swear to the 
report.
    K. Our Options After a Loss.
    Options that we may, in our sole discretion, exercise after loss 
include the following:
    1. At such reasonable times and places that we may designate, you 
must:
    a. Show us or our representative the damaged property;
    b. Submit to examination under oath, while not in the presence of 
another insured, and sign the same; and
    c. Permit us to examine and make extracts and copies of:
    (1) Any policies of property insurance insuring you against loss and 
the deed establishing your ownership of the insured real property;
    (2) Condominium association documents including the Declarations of 
the condominium, its Articles of Association or Incorporation, Bylaws, 
and rules and regulations; and
    (3) All books of accounts, bills, invoices and other vouchers, or 
certified copies pertaining to the damaged property if the originals are 
lost.
    2. We may request, in writing, that you furnish us with a complete 
inventory of the lost, damaged, or destroyed property, including:
    a. Quantities and costs;

[[Page 200]]

    b. Actual cash values or replacement cost (whichever is 
appropriate);
    c. Amounts of loss claimed;
    d. Any written plans and specifications for repair of the damaged 
property that you can make reasonably available to us; and
    e. Evidence that prior flood damage has been repaired.
    3. If we give you written notice within 30 days after we receive 
your signed, sworn proof of loss, we may:
    a. Repair, rebuild, or replace any part of the lost, damaged, or 
destroyed property with material or property of like kind and quality or 
its functional equivalent; and
    b. Take all or any part of the damaged property at the value we 
agree upon or its appraised value.
    L. No Benefit to Bailee.
    No person or organization, other than you, having custody of covered 
property will benefit from this insurance.
    M. Loss Payment.
    1. We will adjust all losses with you. We will pay you unless some 
other person or entity is named in the policy or is legally entitled to 
receive payment. Loss will be payable 60 days after we receive your 
proof of loss (or within 90 days after the insurance adjuster files an 
adjuster's report signed and sworn to by you in lieu of a proof of loss) 
and:
    a. We reach an agreement with you;
    b. There is an entry of a final judgment; or
    c. There is a filing of an appraisal award with us, as provided in 
VIII. P.
    2. If we reject your proof of loss in whole or in part you may:
    a. Accept such denial of your claim;
    b. Exercise your rights under this policy; or
    c. File an amended proof of loss as long as it is filed within 60 
days of the date of the loss.
    N. Abandonment.
    You may not abandon damaged or undamaged insured property to us.
    O. Salvage.
    We may permit you to keep damaged insured property after a loss, and 
we will reduce the amount of the loss proceeds payable to you under the 
policy by the value of the salvage.
    P. Appraisal.
    If you and we fail to agree on the actual cash value or, if 
applicable, replacement cost of the damaged property so as to determine 
the amount of loss, then either may demand an appraisal of the loss. In 
this event, you and we will each choose a competent and impartial 
appraiser within 20 days after receiving a written request from the 
other. The two appraisers will choose an umpire. If they cannot agree 
upon an umpire within 15 days, you or we may request that the choice be 
made by a judge of a court of record in the state where the insured 
property is located. The appraisers will separately state the actual 
cash value, the replacement cost, and the amount of loss to each item. 
If the appraisers submit a written report of an agreement to us, the 
amount agreed upon will be the amount of loss. If they fail to agree, 
they will submit their differences to the umpire. A decision agreed to 
by any two will set the amount of actual cash value and loss, or if it 
applies, the replacement cost and loss.
    Each party will:
    1. Pay its own appraiser; and
    2. Bear the other expenses of the appraisal and umpire equally.
    Q. Mortgage Clause.
    The word ``mortgagee'' includes trustee.
    Any loss payable under Coverage A--Building will be paid to any 
mortgagee of whom we have actual notice, as well as any other mortgagee 
or loss payee determined to exist at the time of loss, and you, as 
interests appear. If more than one mortgagee is named, the order of 
payment will be the same as the order of precedence of the mortgages.
    If we deny your claim, that denial will not apply to a valid claim 
of the mortgagee, if the mortgagee:
    1. Notifies us of any change in the ownership or occupancy, or 
substantial change in risk, of which the mortgagee is aware;
    2. Pays any premium due under this policy on demand if you have 
neglected to pay the premium; and
    3. Submits a signed, sworn proof of loss within 60 days after 
receiving notice from us of your failure to do so.
    All of the terms of this policy apply to the mortgagee.
    The mortgagee has the right to receive loss payment even if the 
mortgagee has started foreclosure or similar action on the building.
    If we decide to cancel or not renew this policy, it will continue in 
effect for the benefit of the mortgagee only for 30 days after we notify 
the mortgagee of the cancellation or non-renewal.
    If we pay the mortgagee for any loss and deny payment to you, we are 
subrogated to all the rights of the mortgagee granted under the mortgage 
on the property. Subrogation will not impair the right of the mortgagee 
to recover the full amount of the mortgagee's claim.
    R. Suit Against Us.
    You may not sue us to recover money under this policy unless you 
have complied with all the requirements of the policy. If you do sue, 
you must start the suit within one year of the date of the written 
denial of all or part of the claim and you must file the suit in the 
United States District Court of the district in which the insured 
property was located at the time of loss. This requirement applies to 
any claim that you may have under this policy and to any dispute that 
you may have arising out of the handling of any claim under the policy.
    S. Subrogation.

[[Page 201]]

    Whenever we make a payment for a loss under this policy, we are 
subrogated to your right to recover for that loss from any other person. 
That means that your right to recover for a loss that was partly or 
totally caused by someone else is automatically transferred to us, to 
the extent that we have paid you for the loss. We may require you to 
acknowledge this transfer in writing. After the loss, you may not give 
up our right to recover this money or do anything that would prevent us 
from recovering it. If you make any claim against any person who caused 
your loss and recover any money, you must pay us back first before you 
may keep any of that money.
    T. Continuous Lake Flooding.
    1. If an insured building has been flooded by rising lake waters 
continuously for 90 days or more and it appears reasonably certain that 
a continuation of this flooding will result in a covered loss to the 
insured building equal to or greater than the building policy limits 
plus the deductible or the maximum payable under the policy for any one 
building loss, we will pay you the lesser of these two amounts without 
waiting for the further damage to occur if you sign a release agreeing:
    a. To make no further claim under this policy;
    b. Not to seek renewal of this policy;
    c. Not to apply for any flood insurance under the Act for property 
at the described location; and
    d. Not to seek a premium refund for current or prior terms.
    If the policy term ends before the insured building has been flooded 
continuously for 90 days, the provisions of this paragraph T.1. will 
apply as long as the insured building suffers a covered loss before the 
policy term ends.
    2. If your insured building is subject to continuous lake flooding 
from a closed basin lake, you may elect to file a claim under either 
paragraph T.1. above or this paragraph T.2. (A ``closed basin lake'' is 
a natural lake from which water leaves primarily through evaporation and 
whose surface area now exceeds or has exceeded one square mile at any 
time in the recorded past. Most of the nation's closed basin lakes are 
in the western half of the United States where annual evaporation 
exceeds annual precipitation and where lake levels and surface areas are 
subject to considerable fluctuation due to wide variations in the 
climate. These lakes may overtop their basins on rare occasions.) Under 
this paragraph T.2, we will pay your claim as if the building is a total 
loss even though it has not been continuously inundated for 90 days, 
subject to the following conditions:
    a. Lake flood waters must damage or imminently threaten to damage 
your building.
    b. Before approval of your claim, you must:
    (1) Agree to a claim payment that reflects your buying back the 
salvage on a negotiated basis; and
    (2) Grant the conservation easement contained in FEMA's ``Policy 
Guidance for Closed Basin Lakes,'' to be recorded in the office of the 
local recorder of deeds. FEMA, in consultation with the community in 
which the property is located, will identify on a map an area or areas 
of special consideration (ASC) in which there is a potential for flood 
damage from continuous lake flooding. FEMA will give the community the 
agreed-upon map showing the ASC. This easement will only apply to that 
portion of the property in the ASC. It will allow certain agricultural 
and recreational uses of the land. The only structures that it will 
allow on any portion of the property within the ASC are certain simple 
agricultural and recreational structures. If any of these allowable 
structures are insurable buildings under the NFIP and are insured under 
the NFIP, they will not be eligible for the benefits of this paragraph 
T.2. If a U.S. Army Corps of Engineers certified flood control project 
or otherwise certified flood control project later protects the 
property, FEMA will, upon request, amend the ASC to remove areas 
protected by those projects. The restrictions of the easement will then 
no longer apply to any portion of the property removed from the ASC; and
    (3) Comply with paragraphs T.1.a. through T.1.d. above.
    c. Within 90 days of approval of your claim, you must move your 
building to a new location outside the ASC. FEMA will give you an 
additional 30 days to move if you show there is sufficient reason to 
extend the time.
    d. Before the final payment of your claim, you must acquire an 
elevation certificate and a floodplain development permit from the local 
floodplain administrator for the new location of your building.
    e. Before the approval of your claim, the community having 
jurisdiction over your building must:
    (1) Adopt a permanent land use ordinance, or a temporary moratorium 
for a period not to exceed 6 months to be followed immediately by a 
permanent land use ordinance, that is consistent with the provisions 
specified in the easement required in paragraph T.2.b. above;
    (2) Agree to declare and report any violations of this ordinance to 
FEMA so that under Sec. 1316 of the National Flood Insurance Act of 
1968, as amended, flood insurance to the building can be denied; and
    (3) Agree to maintain as deed-restricted, for purposes compatible 
with open space or agricultural or recreational use only, any affected 
property the community acquires an interest in. These deed restrictions 
must be consistent with the provisions of paragraph T.2.b. above, except 
that even if a certified

[[Page 202]]

project protects the property, the land use restrictions continue to 
apply if the property was acquired under the Hazard Mitigation Grant 
Program or the Flood Mitigation Assistance Program. If a non-profit land 
trust organization receives the property as a donation, that 
organization must maintain the property as deed-restricted, consistent 
with the provisions of paragraph T.2.b. above.
    f. Before the approval of your claim, the affected State must take 
all action set forth in FEMA's ``Policy Guidance for Closed Basin 
Lakes.''
    g. You must have NFIP flood insurance coverage continuously in 
effect from a date established by FEMA until you file a claim under this 
paragraph T.2. If a subsequent owner buys NFIP insurance that goes into 
effect within 60 days of the date of transfer of title, any gap in 
coverage during that 60-day period will not be a violation of this 
continuous coverage requirement. For the purpose of honoring a claim 
under this paragraph T.2., we will not consider to be in effect any 
increased coverage that became effective after the date established by 
FEMA. The exception to this is any increased coverage in the amount 
suggested by your insurer as an inflation adjustment.
    h. This paragraph T.2. will be in effect for a community when the 
FEMA Regional Director for the affected region provides to the 
community, in writing, the following:
    (1) Confirmation that the community and the State are in compliance 
with the conditions in paragraphs T.2.e. and T.2.f. above, and
    (2) The date by which you must have flood insurance in effect.
    U. Duplicate Policies Not Allowed.
    1. We will not insure your property under more than one NFIP policy.
    If we find that the duplication was not knowingly created, we will 
give you written notice. The notice will advise you that you may choose 
one of several options under the following procedures:
    a. If you choose to keep in effect the policy with the earlier 
effective date, you may also choose to add the coverage limits of the 
later policy to the limits of the earlier policy. The change will become 
effective as of the effective date of the later policy.
    b. If you choose to keep in effect the policy with the later 
effective date, you may also choose to add the coverage limits of the 
earlier policy to the limits of the later policy. The change will be 
effective as of the effective date of the later policy.
    In either case, you must pay the pro rata premium for the increased 
coverage limits within 30 days of the written notice. In no event will 
the resulting coverage limits exceed the permissible limits of coverage 
under the Act or your insurable interest, whichever is less. We will 
make a refund to you, according to applicable NFIP rules, of the premium 
for the policy not being kept in effect.
    2. The insured's option under this condition U. Duplicate Policies 
Not Allowed to elect which NFIP policy to keep in effect does not apply 
when duplicates have been knowingly created. Losses occurring under such 
circumstances will be adjusted according to the terms and conditions of 
the earlier policy. The policy with the later effective date must be 
canceled.
    V. Loss Settlement.

                             1. Introduction

    This policy provides three methods of settling losses: Replacement 
Cost, Special Loss Settlement, and Actual Cash Value. Each method is 
used for a different type of property, as explained in a.-c. below.
    a. Replacement Cost Loss Settlement described in V.2. below applies 
to buildings other than manufactured homes or travel trailers.
    b. Special Loss Settlement described in V.3. below applies to a 
residential condominium building that is a travel trailer or a 
manufactured home.
    c. Actual Cash Value loss settlement applies to all other property 
covered under this policy, as outlined in V.4. below.

                   2. Replacement Cost Loss Settlement

    a. We will pay to repair or replace a damaged or destroyed building, 
after application of the deductible and without deduction for 
depreciation, but not more than the least of the following amounts:
    (1) The amount of insurance in this policy that applies to the 
building;
    (2) The replacement cost of that part of the building damaged, with 
materials of like kind and quality, and for like occupancy and use; or
    (3) The necessary amount actually spent to repair or replace the 
damaged part of the building for like occupancy and use.
    b. We will not be liable for any loss on a Replacement Cost Coverage 
basis unless and until actual repair or replacement of the damaged 
building or parts thereof, is completed.
    c. If a building is rebuilt at a location other than the described 
location, we will pay no more than it would have cost to repair or 
rebuild at the described location, subject to all other terms of 
Replacement Cost Loss Settlement.

                       3. Special Loss Settlement

    a. The following loss settlement conditions apply to a residential 
condominium building that is: (1) a manufactured home or travel trailer, 
as defined in II.B.6.b. and c., and (2) at least 16 feet wide when fully 
assembled and has at least 600 square feet within its perimeter walls 
when fully assembled.

[[Page 203]]

    b. If such a building is totally destroyed or damaged to such an 
extent that, in our judgment, it is not economically feasible to repair, 
at least to its pre-damaged condition, we will, at our discretion, pay 
the least of the following amounts:
    (1) The lesser of the replacement cost of the manufactured home or 
travel trailer or 1.5 times the actual cash value; or
    (2) The Building Limit of liability shown on your Declarations Page.
    c. If such a manufactured home or travel trailer is partially 
damaged and, in our judgment, it is economically feasible to repair it 
to its pre-damaged condition, we will settle the loss according to the 
Replacement Cost Loss Settlement conditions in V.2. above.

                  4. Actual Cash Value Loss Settlement

    a. The types of property noted below are subject to actual cash 
value loss settlement:
    (1) Personal property;
    (2) Insured property abandoned after a loss and that remains as 
debris at the described location;
    (3) Outside antennas and aerials, awning, and other outdoor 
equipment;
    (4) Carpeting and pads;
    (5) Appliances; and
    (6) A manufactured home or mobile home or a travel trailer as 
defined in II.B.6.b. or c. that does not meet the conditions for special 
loss settlement in V.3. above.
    b. We will pay the least of the following amounts:
    (1) The applicable amount of insurance under this policy;
    (2) The actual cash value (as defined in II.B.2.); or
    (3) The amount it would cost to repair or replace the property with 
material of like kind and quality within a reasonable time after the 
loss.

                        IX. Liberalization Clause

    If we make a change that broadens your coverage under this edition 
of our policy, but does not require any additional premium, then that 
change will automatically apply to your insurance as of the date we 
implement the change, provided that this implementation date falls 
within 60 days before or during the policy term stated on the 
Declarations Page.

                           X. What Law Governs

    This policy and all disputes arising from the handling of any claim 
under the policy are governed exclusively by the flood insurance 
regulations issued by FEMA, the National Flood Insurance Act of 1968, as 
amended (42 U.S.C. 4001, et seq.), and Federal common law.
    In Witness Whereof, we have signed this policy below and hereby 
enter into this Insurance Agreement.
                        Administrator, Federal Insurance Administration.

[65 FR 60785, Oct. 12, 2000, as amended at 68 FR 9897, Mar. 3, 2003]



                      Sec. Appendix A(4) to Part 61

  Federal Emergency Management Agency, Federal Insurance Administration

      Standard Flood Insurance Policy Endorsement to Dwelling Form

    This endorsement replaces the provisions of VII.B.4 and VII.H.2, and 
also adds a new paragraph, VII.H.5. This endorsement applies in Monroe 
County and the Village of Islamorada, Florida, This endorsement also 
applies to communities within Monroe County, Florida that incorporate on 
or after January 1, 1999, agree to participate in the inspection 
procedure, and become eligible for the sale of flood insurance.
    VII.B.4. This policy is also void for reasons other than fraud, 
misrepresentation, or wrongful act. This policy is void from its 
inception and has no legal force under the following conditions:
    a. If the property is located in a community that was not 
participating in the NFIP on the policy's inception date and did not 
join or re-enter the program during the policy term and before the loss 
occurred.
    b. If you have not submitted a community inspection report, referred 
to in ``H. Policy Renewal'' below, that was required in a notice sent to 
you in conjunction with the community inspection procedure established 
under 44 CFR 59.30.
    c. If the property listed on the application is not otherwise 
eligible for coverage under the NFIP
    VII.H.2. We must receive the payment of the appropriate renewal 
premium and when applicable, the community inspection report referred to 
in H.5 below within 30 days of the expiration date.
    VII.H.5. Your community has been approved by the Federal Emergency 
Management Agency to participate in an inspection procedure set forth in 
National Flood Insurance Program Regulations (44 CFR 59.30). During the 
several years that this inspection procedure will be in place, you may 
be required to obtain and submit an inspection report from your 
community certifying whether or not your insured property is in 
compliance with the community's floodplain management ordinance before 
you can renew your policy. You will be notified in writing of this 
requirement approximately 6 months

[[Page 204]]

before a renewal date and again at the time your renewal bill is sent.

[65 FR 60793, Oct. 12, 2000, as amended at 67 FR 10634, Mar. 8, 2002]



                      Sec. Appendix A(5) to Part 61

  Federal Emergency Management Agency, Federal Insurance Administration

  Standard Flood Insurance Policy Endorsement to General Property Form

    This endorsement replaces the provisions of VII.B.4 and VII.H.2, and 
also adds a new paragraph, VII.H.5. This endorsement applies in Monroe 
County and the Village of Islamorada, Florida. This endorsement also 
applies to communities within Monroe County, Florida that incorporate on 
or after January 1, 1999, agree to participate in the inspection 
procedure, and become eligible for the sale of flood insurance.
    VII.B.4. This policy is also void for reasons other than fraud, 
misrepresentation, or wrongful act. This policy is void from its 
inception and has no legal force under the following conditions:
    a. If the property is located in a community that was not 
participating in the NFIP on the policy's inception date and did not 
join or re-enter the program during the policy term and before the loss 
occurred.
    b. If you have not submitted a community inspection report, referred 
to in ``H. Policy Renewal'' below, that was required in a notice sent to 
you in conjunction with the community inspection procedure established 
under 44 CFR 59.30.
    c. If the property listed on the application is not otherwise 
eligible for coverage under the NFIP
    VII.H.2. We must receive the payment of the appropriate renewal 
premium and when applicable, the community inspection report referred to 
in H.5 below within 30 days of the expiration date.
    VII.H.5. Your community has been approved by the Federal Emergency 
Management Agency to participate in an inspection procedure set forth in 
National Flood Insurance Program Regulations (44 CFR 59.30). During the 
several years that this inspection procedure will be in place, you may 
be required to obtain and submit an inspection report from your 
community certifying whether or not your insured property is in 
compliance with the community's floodplain management ordinance before 
you can renew your policy. You will be notified in writing of this 
requirement approximately 6 months before a renewal date and again at 
the time your renewal bill is sent.

[65 FR 60793, Oct. 12, 2000, as amended at 67 FR 10634, Mar. 8, 2002]



                      Sec. Appendix A(6) to Part 61

  Federal Emergency Management Agency, Federal Insurance Administration

 Standard Flood Insurance Policy Endorsement to Residential Condominium 
                       Building Association Policy

    This endorsement replaces the provisions of VIII.B.4 and VIII.H.2, 
and also adds a new paragraph, VIII.H.5. This endorsement applies in 
Monroe County and the Village of Islamorada, Florida. This endorsement 
also applies to communities within Monroe County, Florida and 
incorporate on or after January 1, 1999, agree to participate in the 
inspection procedure, and become eligible for the sale of flood 
insurance.
    VIII.B.4. This policy is also void for reasons other than fraud, 
misrepresentation, or wrongful act. This policy is void from its 
inception and has no legal force under the following conditions:
    a. If the property is located in a community that was not 
participating in the NFIP on the policy's inception date and did not 
join or re-enter the program during the policy term and before the loss 
occurred.
    b. If you have not submitted a community inspection report, referred 
to in ``H. Policy Renewal'' below, that was required in a notice sent to 
you in conjunction with the community inspection procedure established 
under 44 CFR 59.30.
    c. If the property listed on the application is not otherwise 
eligible for coverage under the NFIP
    VIII.H.2. We must receive the payment of the appropriate renewal 
premium and when applicable, the community inspection report referred to 
in H.5 below within 30 days of the expiration date.
    VIII.H.5. Your community has been approved by the Federal Emergency 
Management Agency to participate in an inspection procedure set forth in 
National Flood Insurance Program Regulations (44 CFR 59.30). During the 
several years that this inspection procedure will be in place, you may 
be required to obtain and submit an inspection report from your 
community certifying whether or not your insured property is in 
compliance with the community's floodplain management ordinance before 
you can renew your policy. You will be notified in writing of this 
requirement approximately 6 months before a renewal date and again at 
the time your renewal bill is sent.

[65 FR 60794, Oct. 12, 2000, as amended at 67 FR 10634, Mar. 8, 2002]

[[Page 205]]



PART 62_SALE OF INSURANCE AND ADJUSTMENT OF CLAIMS--Table of Contents



                     Subpart A_Issuance of Policies

Sec.
62.1  Purpose of part.
62.2  Definitions.
62.3  Servicing agent.
62.4  Limitations on sale of policies.
62.5  Premium refund.
62.6  Minimum commissions.

    Subpart B_Claims Adjustment, Claims Appeals, and Judicial Review

62.20  Claims appeals.
62.21  Claims adjustment.
62.22  Judicial review.

                Subpart C_Write-Your-Own (WYO) Companies

62.23  WYO Companies authorized.
62.24  WYO participation criteria.

    Authority: 42 U.S.C. 4001 et seq.; Reorganization Plan No. 3 of 
1978, 43 FR 41943, 3 CFR, 1978 Comp., p. 329; E.O. 12127 of Mar. 31, 
1979, 44 FR 19367, 3 CFR, 1979 Comp., p. 376.

    Source: 43 FR 2573, Jan. 17, 1978, unless otherwise noted. 
Redesignated at 44 FR 31177, May 31, 1979.



                     Subpart A_Issuance of Policies



Sec. 62.1  Purpose of part.

    The purpose of this part is to set forth the manner in which flood 
insurance under the Program is made available to the general public in 
those communities designated as eligible for the sale of insurance under 
part 64 of this subchapter, and to prescribe the general method by which 
the Federal Insurance Administrator exercises his/her responsibility 
regarding the manner in which claims for losses are paid.



Sec. 62.2  Definitions.

    The definitions set forth in part 59 of this subchapter are 
applicable to this part.



Sec. 62.3  Servicing agent.

    (a) Pursuant to sections 1345 and 1346 of the Act, the Federal 
Insurance Administrator has entered into the Agreement with a servicing 
agent to authorize it to assist in issuing flood insurance policies 
under the Program in communities designated by the Federal Insurance 
Administrator and to accept responsibility for delivery of policies and 
payment of claims for losses as prescribed by and at the discretion of 
the Federal Insurance Administrator.
    (b) National Con-Serv, Inc., whose offices are located in Rockville, 
Maryland, is the servicing agent for the Federal Insurance 
Administration.
    (c) The servicing agent will arrange for the issuance of flood 
insurance to any person qualifying for such coverage under parts 61 and 
64 of this subchapter who submits an application to the servicing agent 
in accordance with the terms and conditions of the contract between the 
Agency and the servicing agent.

[43 FR 2573, Jan. 17, 1978. Redesignated at 44 FR 31177, May 31, 1979, 
as amended at 48 FR 44544, Sept. 29, 1983; 49 FR 4751, Feb. 8, 1984; 58 
FR 62447, Nov. 26, 1993]



Sec. 62.4  Limitations on sale of policies.

    (a) The servicing agent shall be deemed to have agreed, as a 
condition of its contract that it shall not offer flood insurance under 
any authority or auspices in any amount within the maximum limits of 
coverage specified in Sec. 61.6 of this subchapter, in any area the 
Federal Insurance Administrator designates in part 64 of this subchapter 
as eligible for the sale of flood insurance under the Program, other 
than in accordance with this part, and the Standard Flood Insurance 
Policy.
    (b) The agreement and all activities thereunder are subject to title 
VI of the Civil Rights Act of 1964, 42 U.S.C. 2000d, and to the 
applicable Federal regulations and requirements issued from time to time 
pursuant thereto. No person shall be excluded from participation in, 
denied the benefits of, or subjected to discrimination under the 
Program, on the ground of race, color, sex, creed or national origin. 
Any complaint or information concerning the existence of any such 
unlawful discrimination in any matter within the purview of this part 
should be referred to the Federal Insurance Administrator.

[43 FR 2573, Jan. 17, 1978. Redesignated at 44 FR 31177, May 31, 1979, 
as amended at 48 FR 44544, Sept. 29, 1983; 49 FR 4751, Feb. 8, 1984]

[[Page 206]]



Sec. 62.5  Premium refund.

    A Standard Flood Insurance Policyholder whose property has been 
determined not to be in a special hazard area after the map revision or 
a Letter of Map Amendment under part 70 of this subchapter may cancel 
the policy within the current policy year provided (a) he was required 
to purchase or to maintain flood insurance coverage, or both, as a 
condition for financial assistance, and (b) his property was located in 
an identified special hazard area as represented on an effective FHBM or 
FIRM when the financial assistance was provided. If no claim under the 
policy has been paid or is pending, the full premium shall be refunded 
for the current policy year, and for an additional policy year where the 
insured had been required to renew the policy during the period when a 
revised map was being reprinted. A Standard Flood Insurance Policyholder 
may cancel a policy having a term of three (3) years, on an anniversary 
date, where the reason for the cancellation is that a policy of flood 
insurance has been obtained or is being obtained in substitution for the 
NFIP policy and the NFIP obtains a written concurrence in the 
cancellation from any mortgage of which the NFIP has actual notice; or 
the policyholder has extinguishing the insured mortgage debt and is no 
longer required by the mortgagee to maintain the coverage. In such 
event, the premium refund shall be pro rata but with retention of the 
expense constant.

[43 FR 2573, Jan. 17, 1978. Redesignated at 44 FR 31177, May 31, 1979, 
as amended at 49 FR 33658, Aug. 24, 1984; 53 FR 16279, May 6, 1988]



Sec. 62.6  Minimum commissions.

    (a) The earned commission which shall be paid to any property or 
casualty insurance agent or broker duly licensed by a state insurance 
regulatory authority, with respect to each policy or renewal the agent 
duly procures on behalf of the insured, in connection with policies of 
flood insurance placed with the NFIP at the offices of its servicing 
agent, but not with respect to policies of flood insurance issued 
pursuant to Subpart C of this part, shall not be less than $10 and is 
computed as follows:
    (1) In the case of a new or renewal policy, the following 
commissions shall apply based on the total premiums paid for the policy 
term:

------------------------------------------------------------------------
                 Premium amount                   Commissions (percent)
------------------------------------------------------------------------
First $2,000 of Premium........................                       15
Excess of $2,000...............................                        5
------------------------------------------------------------------------

    (2) In the case of mid-term increases in amounts of insurance added 
by endorsements, the following commissions shall apply based on the 
total premiums paid for the increased amounts of insurance:

------------------------------------------------------------------------
                 Premium amount                   Commissions (percent)
------------------------------------------------------------------------
First $2,000 of Premium........................                       15
Excess of $2,000...............................                        5
------------------------------------------------------------------------

    (b) Any refunds of premiums authorized under this subchapter shall 
not affect a previously earned commission; and no agent shall be 
required to return that earned commission, unless the refund is made to 
establish a common policy term anniversary date with other insurance 
providing coverage against loss by other perils in which case a return 
of commission will be required by the agent on a pro rata basis. In such 
cases, the policy shall be immediately rewritten for a new term with the 
same amount(s) of coverage and with premium calculated at the then 
current rate and, as to return premium, returned, pro rata, to the 
insured based on the former policy's premium rate.

[46 FR 13515, Feb. 23, 1981, as amended at 53 FR 15221, Apr. 28, 1988; 
57 FR 19541, May 7, 1992]



    Subpart B_Claims Adjustment, Claims Appeals, and Judicial Review



Sec. 62.20  Claims appeals.

    (a) Definitions.
    Appeal decision means the disposition of the appeal by the Federal 
Insurance Administrator.
    Decision means the insurer's final claim determination, which is the 
insurer's written denial, in whole or in part, of the insured's claim.
    (b) Appeal. A National Flood Insurance Program (NFIP) policyholder, 
whether insured by a participating

[[Page 207]]

Write-Your-Own (WYO) Company or directly by the Federal Emergency 
Management Agency (FEMA), may appeal a decision, including a 
determination of any insurance agent, adjuster, insurance company, or 
any FEMA employee or contractor with respect to a claim, proof of loss, 
and loss estimate. In order to file an appeal, the insured must comply 
with all requirements set out in the Standard Flood Insurance Policy 
(SFIP). This appeals process is available after the issuance of the 
insurer's final claim determination, which is the insurer's written 
denial, in whole or in part, of the insured's claim. Once the final 
claim determination is issued, an insured may appeal any action taken by 
the insurer, FEMA employee, FEMA contractor, insurance adjuster, or 
insurance agent.
    (c) Limitations on Appeals. The appeals process is intended to 
resolve claim issues and is not intended to grant coverage or limits 
that are not provided by the SFIP. Filing an appeal does not waive any 
of the requirements for perfecting a claim under the SFIP or extend any 
of the time limitations set forth in the SFIP.
    (1) Disputes that are or have been subject to appraisal as provided 
for in the SFIP cannot be appealed under this section.
    (2) When a policyholder files an appeal on any issue, that issue is 
no longer subject to resolution by appraisal or other pre-litigation 
remedies.
    (d) Litigation preclusion. An insured who files suit against an 
insurer on the flood insurance claim issue is prohibited from filing an 
appeal under this section. All appeals submitted for decision but not 
yet resolved shall be terminated upon notice of the commencement of 
litigation regarding the claim.
    (e) Procedures. To pursue an appeal under this section a 
policyholder must:
    (1) Submit a written appeal to FEMA within 60 days from the date of 
the decision.
    (2) Provide a copy of the insurer's written denial, in whole or in 
part, of the claim;
    (3) Identify relevant policy and claim information and state the 
basis for the appeal; and
    (4) Submit relevant documentation to support the appeal. The 
policyholder should submit only the documentation that pertains to his 
or her claim. The following are examples of the kinds of documentation 
which FEMA will require to adjudicate the appeal: A copy of the proof of 
loss submitted to the insurer as required in the policy; room by room 
itemized estimates from the adjuster (includes contractors' estimates), 
detailing unit cost and quantities for the items needing repair or 
replacement; replacement cost proofs of loss; Preliminary Report; Final 
Report; detailed damaged personal property inventories that include the 
approximate age of the items; completed Mobile Home Worksheet; Mobile 
Home Title, including Salvage Titles; real estate appraisals that 
exclude land values; advance payment information; clear photographs 
(exterior and interior) confirming damage resulted from direct physical 
loss by or from flood; proof of prior repair; evidence of insurance and 
policy information , i.e. declarations page; Elevation Certificate, if 
the risk is an elevated building; the community's determination made 
concerning substantial damage; information regarding substantial 
improvement; zone determinations; pre-loss and post-loss inventories; 
financial statements; tax records, lease agreements, sales contracts, 
settlement papers, deed, etc.; emergency (911) address change 
information; salvage information (proceeds and sales); condominium 
association by-laws; proof of other insurance, including homeowners or 
wind policies and any claim information submitted to the other 
companies; Waiver, Letter of Map Revision (LOMR) or Letter of Map 
Amendment (LOMA) information; paid receipts and invoices including 
cancelled checks that support an insured's out-of-pocket expenses 
pertaining to the claim; underwriting decisions; architectural plans and 
drawings; death certificates; a copy of the will; divorce decree, power 
of attorney; current lienholder

[[Page 208]]

information; current loss payee information; paid receipts and invoices 
documenting damaged stock; detailed engineering reports specifically 
addressing flood-related damage and pre-existing damage; engineering 
surveys; market values; documentation of Flood Insurance Rate Maps 
(FIRM) dates; documentation reflecting date(s) of construction and 
substantial improvement; loan documents including closings; evidence of 
insurability as a Residential Condominium Association; Franchise 
Agreements; letters of representation, i.e. attorneys and public 
adjusters; any assignment of interest in a claim; and, any other 
pertinent information which FEMA may request in processing a claim.
    (f) Appeal resolution. (1) FEMA will acknowledge, in writing, 
receipt of a policyholder's appeal and include in the acknowledgement 
contact information for a FEMA point of contact who can advise the 
policyholder as to the status of his or her claim.
    (2) The Federal Insurance Administrator will review the appeal 
documents and may notify the policyholder in writing of the need for 
additional information. A request for the additional information will 
include the date by which the information must be provided, and shall in 
no case be less than 14 calendar days. Failure to provide the requested 
information in full, or to request an extension by the due date, may 
result in a dismissal of the appeal. A re-inspection of the 
policyholder's property may be conducted at the discretion of the 
Federal Insurance Administrator to gather more information. The Federal 
Insurance Administrator will ensure that all information necessary to 
rule on the appeal has been provided prior to making an appeal decision.
    (3) The Federal Insurance Administrator will review the appeal 
documents, including any reinspection report, if appropriate. The 
Federal Insurance Administrator will provide specific information on 
what grounds the claim was denied initially. The Federal Insurance 
Administrator will provide an appeal decision in writing to the 
policyholder and insurer within 90 days from the date that all 
information has been submitted by the policyholder and include specific 
information for the resolution of the appeal. No further administrative 
review will be provided to the insured.
    (4) A policyholder who does not agree with FEMA's appeal decision 
should refer to the SFIP, for options for further action (see Part 61, 
App. A(1) VII.R., Part 61, App. A(2) VII.R., and Part 61, App. A(3) 
VIII.R.). The one-year period to file suit commences with the written 
denial from the insurer and is not extended by the appeals process.

[71 FR 30298, May 26, 2006, as amended at 71 FR 60438, Oct. 13, 2006; 74 
FR 56123, Oct. 30, 2009; 81 FR 20258, Apr. 7, 2016]



Sec. 62.21  Claims adjustment.

    (a) In accordance with the Agreement, the servicing agent shall 
arrange for the prompt adjustment and settlement and payment of all 
claims arising from policies of insurance issued under the program. 
Investigation of such claims may be made through the facilities of its 
subcontractors or insurance adjustment organizations, to the extent 
required and appropriate for the expeditious processing of such claims.
    (b) All adjustment of losses and settlements of claims shall be made 
in accordance with the terms and conditions of the policy and parts 61 
and 62 of this subchapter.



Sec. 62.22  Judicial review.

    (a) Upon the disallowance by the Federal Insurance Administration, a 
participating Write-Your-Own Company, or the servicing agent of any 
claim on grounds other than failure to file a proof of loss, or upon the 
refusal of the claimant to accept the amount allowed upon any claim 
after appraisal pursuant to policy provisions, the claimant within one 
year after the date of mailing by the Federal Insurance Administration, 
the participating Write-Your-Own Company, or the servicing agent of the 
notice of disallowance or partial disallowance of the claim may, 
pursuant to 42 U.S.C. 4072, institute an action on such claim against 
the insurer only in the U.S. District Court for the district in which 
the insured property or the major portion thereof shall have been 
situated, without regard to the amount in controversy.

[[Page 209]]

    (b) Service of process for all judicial proceedings where a claimant 
is suing the Administrator of FEMA pursuant to 42 U.S.C. 4071 shall be 
made upon the appropriate United States Attorney, the Attorney General 
of the United States, and the Federal Insurance Administrator of the 
Federal Emergency Management Agency.

[43 FR 2573, Jan. 17, 1978. Redesignated at 44 FR 31177, May 31, 1979, 
as amended at 47 FR 43061 Sept. 30, 1982; 49 FR 33879, Aug. 27, 1984; 69 
FR 45610, July 30, 2004]



                Subpart C_Write-Your-Own (WYO) Companies



Sec. 62.23  WYO Companies authorized.

    (a) Pursuant to section 1345 of the Act, the Federal Insurance 
Administrator may enter into arrangements with individual private sector 
property insurance companies or other insurers, such as public entity 
risk sharing organizations. Under these arrangements, such companies or 
other insurers may offer flood insurance coverage under the program to 
eligible applicants. Such WYO companies may offer flood coverage to 
policyholders insured by them under their own property business lines of 
insurance, pursuant to their customary business practices, including 
their usual arrangements with agents and producers. WYO companies may 
sell flood insurance coverage in any State in which the WYO company is 
authorized to engage in the business of property insurance. Other WYO 
insurers may offer flood insurance coverage to their pool members 
insured by them under their own property business lines of coverage, 
pursuant to their customary business practices. These other WYO insurers 
may provide flood coverage in any State that has authorized the other 
insurer to provide property coverage to its members. Arrangements 
entered into by WYO companies or other insurers under this subpart must 
be in the form and substance of the standard arrangement, titled 
``Financial Assistance/Subsidy Arrangement.'' Each year, at least six 
months before the effective date of the ``Financial Assistance/Subsidy 
Arrangement,'' FEMA must publish in the Federal Register and make 
available to the WYO companies the terms for subscription or re-
subscription to the ``Financial Assistance/Subsidy Arrangement.''
    (b) Any duly authorized insurer so engaged in the Program shall be a 
WYO Company. (The term ``WYO Company'' shall include the following kinds 
of insurers: Public entity risk-sharing organizations, an association of 
local governments, a State association of political subdivisions, a 
State-sponsored municipal league, and other intergovernmental risk-
sharing pool for covering public entity structures.)
    (c) A WYO Company is authorized to arrange for the issuance of flood 
insurance in any amount within the maximum limits of coverage specified 
in Sec. 61.6 of this subchapter, as Insurer, to any person qualifying 
for such coverage under parts 61 and 64 of this subchapter who submits 
an application to the WYO Company; coverage shall be issued under the 
Standard Flood Insurance Policy.
    (d) A WYO Company issuing flood insurance coverage shall arrange for 
the adjustment, settlement, payment and defense of all claims arising 
from policies of flood insurance it issues under the Program, based upon 
the terms and conditions of the Standard Flood Insurance Policy.
    (e) In carrying out its functions under this subpart, a WYO Company 
shall use its own customary standards, staff and independent contractor 
resources, as it would in the ordinary and necessary conduct of its own 
business affairs, subject to the Act and regulations prescribed by the 
Federal Insurance Administrator under the Act.
    (f) To facilitate the marketing of flood insurance coverage under 
the Program to policyholders of WYO Companies, the Federal Insurance 
Administrator will enter into arrangements with such companies whereby 
the Federal Government will be a guarantor in which the primary 
relationship between the WYO Company and the Federal Government will be 
one of a fiduciary nature, i.e., to assure that any taxpayer funds are 
accounted for and appropriately expended. In furtherance of this end, 
the Federal Insurance Administrator has established ``A Plan to

[[Page 210]]

Maintain Financial Control for Business Written Under the Write Your Own 
Program.''
    (g) A WYO Company shall act as a fiscal agent of the Federal 
Government, but not as its general agent. WYO Companies are solely 
responsible for their obligations to their insured under any flood 
insurance policies issued under agreements entered into with the Federal 
Insurance Administrator, such that the Federal Government is not a 
proper party defendant in any lawsuit arising out of such policies.
    (h) To facilitate the underwriting of flood insurance coverage by 
WYO Companies, the following procedures will be used by WYO Companies:
    (1) To expedite business growth, the WYO Company will encourage its 
present property insurance policyholders to purchase flood insurance 
through the NFIP WYO Program.
    (2) To conform its underwriting practices to the underwriting rules 
and rates in effect as to the NFIP, the WYO Company will establish 
procedures to carry out the NFIP rating system and provide its 
policyholders with the same coverage as is afforded under the NFIP.
    (3) The WYO Company may follow its customary billing practices to 
meet the Federal rules on the presentment of premium and net premium 
deposits to a Letter of Credit bank account authorized by the Federal 
Insurance Administrator and reduction of coverage when an underpayment 
is discovered.
    (4) The WYO Company is expected to meet the recording and reporting 
requirements of the WYO Transaction Record Reporting and Processing 
Plan. Transactions reported by the WYO Company under the WYO Transaction 
Record Reporting and Processing Plan will be analyzed by the NFIP Bureau 
& Statistical Agent. A monthly report will be submitted to the WYO 
Company and the FIA. The analysis will cover the timeliness of WYO 
Company submissions, the disposition of transactions that have not 
passed systems edits and the reconciliation of the totals generated from 
transaction reports with those submitted on the WYO Company's 
reconciliation reports.
    (5) If a WYO Company rejects an application from an agent or a 
producer, the agent or producer shall be notified so that the business 
can be placed through the NFIP Servicing Agent, or another WYO Company.
    (6) Flood insurance coverage will be issued by the WYO Company on a 
separate policy form and will not be added, by endorsement, to the 
Company's other property insurance forms.
    (7) Premium payment plans can be offered by the WYO Company so long 
as the net premium depository requirements specified under the NFIP/WYO 
Program accounting procedures are met. A cancellation by the WYO Company 
for non-payment of premium will not produce a pro rata return of the net 
premium deposit to the WYO Company.
    (8) NFIP business will not be assumed by the WYO Companies at any 
time other than at renewal time, at which time the insurance producer 
may submit the business to the WYO Company as new business. However, it 
is permissible to cancel and rewrite flood policies to obtain concurrent 
expiration dates with other policies covering the property.
    (i) To facilitate the adjustment of flood insurance claims by WYO 
Companies, the following procedures will be used by WYO Companies.
    (1) WYO companies will adjust claims in accordance with general 
company standards, guided by NFIP Claims manuals. The Arrangement 
provides that claim adjustments shall be binding upon the FIA.
    (2) The WYO Company may use its staff adjusters, independent 
adjusters, or both. It is important that the Company's Claims Department 
verifies the correctness of the coverage interpretations and 
reasonableness of the payments recommended by the adjusters.
    (3) An established loss adjustment Fee Schedule is part of the 
Arrangement and cannot be changed during an Arrangement year. This is 
the expense allowance to cover costs of independent or WYO Company 
adjusters.
    (4) The normal catastrophe claims procedure currently operated by a 
WYO Company should be implemented in the event of a claim catastrophe 
situation. Flood claims will be handled along with other catastrophe 
claims.
    (5) It will be the WYO Company's responsibility to try to detect 
fraud (as it

[[Page 211]]

does in the case of property insurance) and coordinate its findings with 
FIA.
    (6) Pursuant to the Arrangement, the responsibility for defending 
claims will be upon the Write Your Own Company and defense costs will be 
part of the unallocated or allocated claim expense allowance, depending 
on whether a staff counsel or an outside attorney handles the defense of 
the matter. Claims in litigation will be reported by WYO Companies to 
FIA upon joinder of issue and FIA may inquire and be advised of the 
disposition of such litigation.
    (7) The claim reserving procedures of the individual WYO Company can 
be used.
    (8) Regarding the handling of subrogation, if a WYO Company prefers 
to forego pursuit of subrogation recovery, it may do so by referring the 
matter, with a complete copy of the claim file, to FIA. Subrogation 
initiatives may be truncated at any time before suit is commenced (after 
commencing an action, special arrangement must bemade). FIA, after 
consultation with FEMA's Office of the Chief Counsel (OCC), will forward 
the cause of action to OCC or to the NFIP Bureau and Statistical Agent 
for prosecution. Any funds received will be deposited, less expenses, in 
the National Flood Insurance Fund.
    (9) Special allocated loss adjustment expenses will include such 
items as: nonstaff attorney fees, engineering fees and special 
investigation fees over and above normal adjustment practices.
    (10) The customary content of claim files will include coverage 
verification, normal adjuster investigations, including statements where 
necessary, police reports, building reports and investigations, damage 
verification and other documentation relevant to the adjustment of 
claims under the NFIP's and the WYO Company's traditional claim 
adjustment practices and procedures. The WYO Company's claim examiners 
and managers will supervise the adjustment of flood insurance claims by 
staff and independent claims adjusters.
    (11) The WYO Company will extend reasonable cooperation to FEMA's 
Office of the Chief Counsel on matters pertaining to litigation and 
subrogation, under paragraph (i)(8) of this section.
    (j) To facilitate establishment of financial controls under the WYO 
Program, the WYO Company will:
    (1) Have a biennial audit of the flood insurance financial 
statements conducted by an independent Certified Public Accountant (CPA) 
firm at the Company's expense to ensure that the financial data reported 
to us accurately represents the flood insurance activities of the 
Company. The CPA firm must conduct its audits in accordance with the 
generally accepted auditing standards (GAAS) and Government Auditing 
Standards issued by the Comptroller General of the United States 
(commonly known as ``yellow book'' requirements). The Company must file 
with us (the Federal Insurance Administration) a report of the CPA 
firm's detailed biennial audit, and, after our review of the audit 
report, we will convey our determination to the Standards Committee.
    (2) Participate in a WYO Company/FIA Operation review. We will 
conduct a review of the WYO Company's flood insurance claims, 
underwriting, customer service, marketing, and litigation activities at 
least once every three (3) years. As part of these reviews, we will 
reconcile specific files with a listing of transactions submitted by the 
Company under the Transaction Record Reporting and Processing (TRPP) 
Plan (Part 5). We will file a report of the Operation Review with the 
Standards Committee.
    (3) Meet the recording and reporting requirements of the WYO 
Transaction Record Reporting and Processing Plan and the WYO Accounting 
Procedures Manual. Transactions reported to the National Flood Insurance 
Program's (NFIP's) Bureau and Statistical Agent by the WYO Company under 
the WYO Transaction Record Reporting and Processing Plan and the WYO 
Accounting Procedures Manual will be analyzed by the Bureau and 
Statistical Agent and a monthly report will be submitted to the WYO 
Company and the FIA. The analysis will cover the timeliness of the WYO 
Company submissions, the disposition of transactions which do not pass 
systems edits and the reconciliation of the totals generated

[[Page 212]]

from transaction reports with those submitted on WYO Company 
reconciliation reports.
    (4) Cooperate with FEMA's Chief Financial Officer on Letter of 
Credit matters.
    (5) Cooperate with FIA in the implementation of a claims 
reinspection program.
    (6) Cooperate with FIA in the verification of risk rating 
information.
    (7) Cooperate with DHS's Office of the Inspector General on matters 
pertaining to fraud.
    (k) To facilitate the operation of the WYO Program and in order that 
a WYO Company can use its own customary standards, staff and independent 
contractor resources, as it would in the ordinary and necessary conduct 
of its own business affairs, subject to the Act, the Federal Insurance 
Administrator, for good cause shown, may grant exceptions to and waivers 
of the regulations contained in this title relative to the 
administration of the NFIP.
    (l)(1) WYO Companies may, on a voluntary basis, elect to participate 
in the Mortgage Portfolio Protection Program (MPPP), under which they 
can offer, as a last resort, flood insurance at special high rates, 
sufficient to recover the full cost of this program in recognition of 
the uncertainty as to the degree of risk a given building presents due 
to the limited underwriting data required, to properties in a lending 
institution's mortgage portfolio to achieve compliance with the flood 
insurance purchase requirements of the Flood Disaster Protection Act of 
1973. Flood insurance policies under the MPPP may only be issued for 
those properties that:
    (i) Are determined to be located within special flood hazard areas 
of communities that are participating in the NFIP, and
    (ii) Are not covered by a flood insurance policy even after a 
required series of notices have been given to the property owner 
(mortgagor) by the lending institution of the requirement for obtaining 
and maintaining such coverage, but the mortgagor has failed to respond.
    (2) WYO Companies participating in the MPPP must provide a detailed 
implementation package to any lending institution that, on a voluntary 
basis, chooses to participate in the MPPP to ensure the lending 
institution has full knowledge of the criteria in that program and must 
obtain a signed receipt for that package from the lending institution. 
Participating WYO companies must also maintain evidence of compliance 
with paragraph (l)(3) of this section for review during the audits and 
reviews required by the WYO Financial Control Plan.
    (3) The mortgagor must be protected against the lending 
institution's arbitrary placing of flood insurance for which the 
mortgagor will be billed by being sent three notification letters as 
described in paragraphs (l)(4) through (6) of this section.
    (4) The initial notification letter must:
    (i) State the requirements of the Flood Disaster Protection Act of 
1973, as amended;
    (ii) Announce the determination that the mortgagor's property is in 
an identified special flood hazard area as delineated on the appropriate 
FEMA map, necessitating flood insurance coverage for the duration of the 
loan;
    (iii) Describe the procedure to follow should the mortgagor wish to 
challenge the determination;
    (iv) Request evidence of a valid flood insurance policy or, if there 
is none, encourage the mortgagor to obtain a Standard Flood Insurance 
Policy (SFIP) promptly from a local insurance agent (or WYO Company);
    (v) Advise that the premium for a MPPP policy is significantly 
higher than a conventional SFIP policy and advise as to the option for 
obtaining less costly flood insurance; and
    (vi) Advise that a MPPP policy will be purchased by the lender if 
evidence of flood insurance coverage is not received by a date certain.
    (5) The second notification letter must remind the mortgagor of the 
previous notice and provide essentially the same information.
    (6) The final notification letter must:
    (i) Enclose a copy of the flood insurance policy purchased under the 
MPPP on the mortgagor's (insured's) behalf, together with the 
Declarations Page,

[[Page 213]]

    (ii) Advise that the policy was purchased because of the failure to 
respond to the previous notices, and
    (iii) Remind the insured that similar coverage may be available at 
significantly lower cost and advise that the policy can be cancelled at 
any time during the policy year and a pro rata refund provided for the 
unearned portion of the premium in the event the insured purchases 
another policy that is acceptable to satisfy the requirements of the 
1973 Act.

[61 FR 51219, Oct. 1, 1996, as amended at 64 FR 56176, Oct. 18, 1999; 67 
FR 13549, Mar. 22, 2002; 69 FR 45610, July 30, 2004; 74 FR 15341, Apr. 
3, 2009; 81 FR 84490, Nov. 23, 2016]



Sec. 62.24  WYO participation criteria.

    New companies or organizations eligible for the pilot project we 
describe in paragraph (b) of this section that seek to participate in 
the WYO program, as well as former WYO companies seeking to return to 
the WYO program, must meet standards for financial capability and 
stability for statistical and financial reporting and for commitment to 
program objectives.
    (a) To demonstrate the ability to meet the financial requirements, a 
private insurance company wishing to enter or reenter the WYO program 
must:
    (1) Be a licensed property insurance company;
    (2) Have a five (5) year history of writing property insurance;
    (3) Disclose any legal proceedings, suspensions, judgments, 
settlements, or agreements reached with any State insurance department, 
State attorney general, State corporation commission, or the Federal 
Government during the immediately prior five (5) years regarding the 
company's business practices;
    (4) Submit its most recent National Association of Insurance 
Commissioners (NAIC) annual statement;
    (5) Submit information, as data become available, to indicate that 
the company meets or exceeds NAIC standards for risk-based capital and 
surplus; and
    (6) Submit its last State or regional audit, which should contain no 
material negative findings.
    (b) To demonstrate the ability to meet the financial requirements, a 
public entity risk-sharing organization, an association of local 
governments, a State association of political subdivisions, a State-
sponsored municipal league, and any other intergovernmental risk-sharing 
pool for covering public entity structures, wishing to enter the WYO 
program, which will end September 30, 2004, must:
    (1) Have authority by a State to provide property coverage to its 
members;
    (2) Have a five (5) year history of writing property coverage;
    (3) Disclose any legal proceedings, suspensions, judgments, 
settlements, or agreements reached with any State insurance department, 
State attorney general, State corporation commission, or the Federal 
Government during the immediately prior five (5) years regarding the 
other insurer's business practices; and
    (4) Submit its most recent two annual audits from an independent 
accounting firm performed in compliance with generally accepted 
accounting principles that show no material negative findings; and 
submit, as data become available, information to indicate that the other 
insurer meets or exceeds standards comparable to those of the NAIC for 
risk-based capital and surplus.
    (c) An applicant for entry or reentry in the WYO program must also 
pass a test to determine the applicant's ability to process flood 
insurance and meet the Transaction Record Reporting and Processing 
(TRRP) Plan requirements of the WYO Financial Control Plan. Unless the 
test requirement is waived, e.g., where an already qualified performer 
will fulfill the applicant's reporting requirements, the applicant must 
prepare and submit test output monthly tape(s) and monthly financial 
statements and reconciliations for processing by the NFIP Bureau and 
Statistical Agent contractor. For test purposes, no error tolerance will 
be allowed. If the applicant fails the initial test, a second test will 
be run, which the applicant must pass to participate in the Program.
    (d) To satisfy the requirement for commitment to Program goals, 
including marketing of flood insurance policies, the applicant will 
submit information concerning its plans for the

[[Page 214]]

WYO Program including plans for the training and support of producers 
and staff, marketing plans and sales targets, and claims handling and 
disaster response plans. Applicants must also identify those aspects of 
their planned flood insurance operations to be performed by another 
organization, managing agent, another WYO Company, a WYO vendor, a 
service bureau or related organization. Applicants will also name, in 
addition to a Principal Coordinator, a corporate officer point of 
contact--an individual, e.g., at the level of Senior Executive Vice 
President, who reports directly to the Chief Executive Officer or the 
Chief Operating Officer. Each applicant shall furnish the latest 
available information regarding the number of its fire, allied lines, 
farm-owners multiple peril, homeowners multiple peril, and commercial 
multiple peril policies or coverage documents in force, by line. A 
private insurance company applying for participation in the WYO program 
shall also furnish its Best's Financial Size Category for the purpose of 
setting marketing goals.

[67 FR 13550, Mar. 22, 2002]



PART 63_IMPLEMENTATION OF SECTION 1306(c) OF THE NATIONAL FLOOD 
INSURANCE ACT OF 1968--Table of Contents



                            Subpart A_General

Sec.
63.1  Purpose of part.
63.2  Condemnation in lieu of certification.
63.3  Requirement to be covered by a contract for flood insurance by 
          June 1, 1988.
63.4  Property not covered.
63.5  Coverage for contents removal.
63.6  Reimbursable relocation costs.
63.7  Amount of coverage and deductible on effective date of 
          condemnation or certification.
63.8  Limitation on amount of benefits.
63.9  Sale while claim pending.
63.10  Demolition or relocation contractor to be joint payee.
63.11  Requirement for a commitment before October 1, 1989.
63.12  Setback and community flood plain management requirements.

Subpart B_State Certification of Structures Subject to Imminent Collapse

63.13  Purpose of subpart.
63.14  Criteria for State qualification to perform imminent collapse 
          certifications.
63.15  State application for eligibility to certify structures subject 
          to imminent collapse.
63.16  Review of State application by the Federal Insurance 
          Administrator.
63.17  Procedures and data requirements for imminent collapse 
          certifications by States.
63.18  Review of State certification by the Federal Insurance 
          Administrator.

    Authority: 42 U.S.C. 4001 et seq.; Reorganization Plan No. 3 of 
1978; E.O. 12127.

    Source: 53 FR 36975, Sept. 23, 1988, unless otherwise noted.



                            Subpart A_General



Sec. 63.1  Purpose of part.

    The purpose of this part is to implement section 1306(c) of the 
National Flood Insurance Act of 1968, as amended (the Act). Section 544 
of the Housing and Community Development Act of 1987 (Pub. L. 100-242) 
amended the Act by adding subsection (c) to section 1306 of the Act. 
Under this amendment, effective February 5, 1988, section 1306(c) of the 
Act provides for benefit payments under the Standard Flood Insurance 
Policy (SFIP) for demolition or relocation of a structure insured under 
the Act that is located along the shore of a lake or other body of water 
and that is certified by an appropriate State or local land use 
authority to be subject to imminent collapse or subsidence as a result 
of erosion or undermining caused by waves or currents of water exceeding 
anticipated cyclical levels. This part establishes criteria by which 
States can obtain the approval of the Federal Insurance Administrator to 
make these certifications and sets forth the procedures and data 
requirements to be used by those States in making these certifications. 
This part also contains provisions regarding other aspects of section 
1306(c) of the Act. For example, there are provisions regarding section 
1306(c)(6)(B) of the Act (which provides for condemnation

[[Page 215]]

in lieu of certification), including clarification as to the form of 
condemnation issued under a State or local law that is required.



Sec. 63.2  Condemnation in lieu of certification.

    (a) The condemnation required by section 1306(c)(6)(B) of the Act in 
lieu of certification need not be grounded in a finding that the 
structure is subject to imminent collapse or subsidence as a result of 
erosion, but may be issued for other reasons deemed sufficient by the 
State or local authority.
    (b) The condemnation may be in the form of a court order or other 
instrument authorized by State or local law, e.g., a notification to the 
property owner of an unsafe condition, or unsanitary condition, or other 
deficiency at the property address, coupled with a statement that the 
property owner must vacate the property if the condition giving rise to 
the condemnation notice is not cured by repair, removal, or demolition 
of the building by a date certain.
    (c) In addition to a condemnation in accordance with paragraphs (a) 
and (b) of this section, a structure must be found by the Federal 
Insurance Administrator to be subject to imminent collapse or subsidence 
as a result of erosion or undermining caused by waves or currents of 
water exceeding anticipated cyclical levels to be eligible for benefits 
under section 1306(c) of the Act.



Sec. 63.3  Requirement to be covered by a contract for flood insurance
by June 1, 1988.

    The requirement in section 1306(c)(4)(C)(i) of the Act that a 
structure be ``covered by a contract for flood insurance under this 
title--(i) on or before June 1, 1988'' was met if presentation of the 
appropriate premium and a properly completed flood insurance application 
form was made to the National Flood Insurance Program or a Write Your 
Own (WYO) Company on or before June 1, 1988.



Sec. 63.4  Property not covered.

    Benefits under section 1306(c) of the Act do not include 
compensation for items excluded under the provisions of the Standard 
Flood Insurance Policy (SFIP).



Sec. 63.5  Coverage for contents removal.

    Whenever a structure is subject to imminent collapse or subsidence 
as a result of erosion or undermining caused by waves or currents of 
water exceeding anticipated cyclical levels and otherwise meets the 
requirements of section 1306(c) of the Act so that benefits are payable 
under those provisions, the coverage in the definition of ``Direct 
Physical Loss by or from Flood'' in the SFIP for the expense of removing 
contents, up to the minimum deductible of $500.00, to protect and 
preserve them from flood or from the imminent danger of flood, applies 
if contents coverage is in effect.



Sec. 63.6  Reimbursable relocation costs.

    In addition to the coverage described in Sec. 63.5 of this part, 
relocation costs for which benefits are payable under section 1306(c) of 
the Act include the costs of:
    (a) Removing the structure from the site,
    (b) Site cleanup,
    (c) Debris removal,
    (d) Moving the structure to a new site, and
    (e) At the new site, a new foundation and related grading, including 
elevating the structure as required by local flood plain management 
ordinances, and sewer, septic, electric, gas, telephone, and water 
connections at the building.



Sec. 63.7  Amount of coverage and deductible on effective date of
condemnation or certification.

    The amount of building coverage and the deductible applicable to a 
claim for benefits under section 1306(c) of the Act are what was in 
effect on the date of condemnation or the date of application for 
certification.

[53 FR 36975, Sept. 23, 1988, as amended at 53 FR 44193, Nov. 2, 1988]



Sec. 63.8  Limitation on amount of benefits.

    (a) In section 1306(c)(3)(C) of the Act, the phrase under the flood 
insurance contract issued pursuant to this title means the value of the 
structure under

[[Page 216]]

section 1306(c)(3)(C) of the Act is limited to the amount of building 
coverage provided by the insured's policy.
    (b) Where the amount payable under section 1306(c)(1)(A)(ii) of the 
Act for the cost of demolition, together with the amount payable under 
section 1306(c)(1)(A) of the Act for the value of the structure under 
the demolition option, exceeds the amount of building coverage provided 
by the insured's policy, such amounts will be paid beyond the amount of 
that building coverage, even if this payment exceeds the limits of 
coverage otherwise authorized by section 1306(a) of the Act for the 
particular class of property.



Sec. 63.9  Sale while claim pending.

    If a claimant sells a structure prior to its demolition or 
relocation, no benefits are payable to that claimant under section 
1306(c) of the Act, and any payments which may have been made under 
those provisions shall be reimbursed to the insurer making them.



Sec. 63.10  Demolition or relocation contractor to be joint payee.

    If a demolition or relocation contractor is used, the instrument of 
payment for benefits under section 1306(c) of the Act for the fee of 
that contractor, shall include that contractor as a joint payee, unless 
that contractor has already been paid when the instrument of payment is 
issued.



Sec. 63.11  Requirement for a commitment before October 1, 1989.

    The requirement in section 1306(c)(7) of the Act that a commitment 
be made on or before September 30, 1989 as a necessary condition to 
making any payments after September 30, 1989, is met if before October 
1, 1989,
    (a) There is either a condemnation in accordance with Sec. 63.2 of 
this part or a certification in accordance with subpart B of this part, 
and
    (b) A policyholder's notice of claim for benefits under section 
1306(c) of the Act is received by the insurer.



Sec. 63.12  Setback and community flood plain management requirements.

    (a) Where benefits have been paid under section 1306(c) of the Act, 
the setback requirements in section 1306(c)(5) of the Act, which if not 
met result in a prohibition against subsequently providing flood 
insurance or assistance under the Disaster Relief Act of 1974, shall 
apply:
    (1) To the structure involved wherever it is located, and
    (2) To any other structure subsequently constructed on or moved to 
the parcel of land on which the structure involved was located when the 
claim under section 1306(c) of the Act arose.
    (b) In addition, any structures relocated under section 1306 of the 
Act must comply with the flood plain management criteria set forth in 
Sec. 60.3 of this chapter.



Subpart B_State Certification of Structures Subject to Imminent Collapse



Sec. 63.13  Purpose of subpart.

    The purpose of this subpart is to establish criteria under the 
provisions of section 1306(c) of the National Flood Insurance Act of 
1968, as amended, by which States can obtain approval from the Federal 
Insurance Administrator to certify that structures are subject to 
imminent collapse or subsidence as a result of erosion or undermining 
caused by waves or currents of water exceeding anticipated cyclical 
levels. The subpart also sets forth the procedures and data requirements 
to be utilized by those States in certifying structures as subject to 
imminent collapse. The State certification procedure represents an 
option to the use of the procedure whereby a structure is condemned by a 
State or local authority as a prerequisite to consideration for imminent 
collapse insurance benefits.



Sec. 63.14  Criteria for State qualification to perform imminent 
collapse certifications.

    In order to qualify under this subpart, the State must be 
administering a coastal zone management program which includes the 
following components, as a minimum:
    (a) A state-wide requirement that prohibits new construction and the 
relocation of structures seaward of an adopted erosion setback. Such 
setback

[[Page 217]]

must be based in whole or in part on some multiple of the local mean 
annual erosion (recession) rate; and
    (b) An established, complete and functional data base of mean annual 
erosion rates for all reaches of coastal shorelines subject to erosion 
in the State, which is used as the basis to enforce these setback 
requirements.



Sec. 63.15  State application for eligibility to certify structures
subject to imminent collapse.

    (a) Application pursuant to this part shall be made by the Governor 
or other duly authorized official of the State.
    (b) The application must be submitted to the Federal Emergency 
Management Agency, Federal Insurance Administration, 500 C Street SW., 
Washington, DC 20472.
    (c) Documents to be included in the application are as follows:
    (1) Copies of all applicable State statutes and regulations 
verifying the existence of a coastal zone management program including 
setback requirements for new and relocated construction which are based 
in whole or in part on mean annual erosion rates established for the 
State's shorelines.
    (2) A copy of the State's mean annual erosion rate data base, if not 
already provided, showing such rates for all reaches of coastal 
shorelines subject to erosion within the State.
    (3) The title, address and phone number of a contact person within 
the State agency having authority for administering the coastal zone 
management program.
    (4) A statement that adequate resources are available to carry out 
the certification services, and that certifications will be performed in 
accordance with the procedures described in Sec. 63.17.



Sec. 63.16  Review of State application by the Federal Insurance
Administrator.

    (a) The Federal Insurance Administrator may return the application 
for eligibility upon finding it incomplete or upon finding that 
additional information is required in order to make a determination as 
to the adequacy of the coastal zone management program and erosion rate 
data base.
    (b) Upon determining that the State's program and/or data base does 
not meet the criteria set forth in Sec. 63.14, the Federal Insurance 
Administrator shall in writing reject the application for eligibility 
and indicate in what respects the State program and/or data base fails 
to comply with the criteria.
    (c) Upon determining that the State program and data base meets the 
criteria set forth in Sec. 63.14, the Federal Insurance Administrator 
shall approve the State as eligible to certify structures subject to 
imminent collapse. Such approval, however, is in all cases provisional. 
The Federal Insurance Administrator shall review the State program and 
data base for continued compliance with the criteria set forth in this 
part and may request updated documentation for the purpose of such 
review. If the program and/or data base is found to be inadequate and is 
not corrected within ninety days from the date that such inadequacies 
were identified, the Federal Insurance Administrator may revoke his 
approval.



Sec. 63.17  Procedures and data requirements for imminent collapse
certifications by States.

    Any State that has been determined to be eligible by the Federal 
Insurance Administrator may certify that a coastal structure is subject 
to imminent collapse. Such certification requires that the State collect 
scientific or technical information relative to the structure and its 
site and provide such information to the insured to be filed with a 
claim for insurance benefits under Section 1306 of the National Flood 
Insurance Act of 1968, as amended. The information which is provided to 
the insured shall include, but is not limited to, the following:
    (a) Certification from the State agency that the structure is 
subject to imminent collapse. The certification shall cite the property 
address, legal description (e.g., lot, block), the date of application 
for certification, and the date of and basis for the certification, and
    (b) Supporting scientific and technical data to substantiate the 
certification consisting of the following:

[[Page 218]]

    (1) Photographs of the structure in relation to the obvious peril. 
All photographs should be labeled with the location, direction, date and 
time from which they were taken. The collection of photographs should 
adequately display the following:
    (i) Any evidence of existing damage. The damage can include loss or 
erosion of soil near or around the foundation, or structural damage to 
the foundation components.
    (ii) Structure and waterbody. These photographs shall show both the 
structure and the waterbody that presents the peril. If the structure is 
on a high bluff or dune and not accessible from the water side, the top 
edge of the bluff or dune will be sufficient. These will usually be 
taken from one or both sides of the structure.
    (iii) Physical reference features used in the measurements discussed 
below. The reference feature shall be in or near the area affected by 
normal tides, when applicable. If a reference is not clearly 
distinguishable on the photograph, it should be annotated to identify 
the feature. If possible, all reference features described below should 
be photographed showing their relationship to the site of the threatened 
structure.
    (2) Identification and selection of reference features. The 
following reference features are presented according to priority. If the 
first feature is not present, the next feature shall be located and 
photographed, and so forth.
    (i) Top edge of bluff (cliff top).
    (ii) Top edge of escarpment on an eroding dune (i.e., a nearly 
vertical erosional cut at the seaward face of the dune). The normal high 
tide should be near the toe of the dune and there should be indications 
that the dune is actively eroding.
    (iii) The normal high tide limit may be indicated by one of the 
following:
    (A) Vegetation line (the seaward most edge of permanent vegetation).
    (B) Beach scarp (erosion line on beach, usually a sharp, nearly 
vertical drop of 0.5 to 3.0 feet at the upper limit of high tide).
    (C) Debris line deposited by the normal high tide, not by a recent 
storm.
    (D) Upper limit of wet sand.
    (3) Distance measurements from the threatened structure to the 
nearest points on the reference features. These measurements should be 
taken from all photographed reference features to the closest point on 
the supporting foundation. For purposes of making this measurement, 
decks, stairs, and other exterior attachments that do not contribute to 
the structural support of the building are not considered part of the 
structure. The measurements shall be taken horizontally with a tape and 
recorded to the nearest foot. The date and time of the measurement shall 
be noted. The location of the measurements (i.e., reference feature and 
closest structural member) shall be identified on the appropriate 
photograph or sketch of the site. If some or all of the reference 
features coincide, this shall also be noted and identified on the 
photographs. Reference features landward of the structure need not be 
measured, but shall be noted on the photographs.
    (4) A determination of the average annual erosion rate at the site 
and a copy of the pertinent section of the reference document used to 
obtain the annual erosion rate at the site.
    (5) Copy of the effective Flood Insurance Rate Map panel annotated 
with the location of the threatened structure.
    (6) In the event that a structure is not situated within a ``zone of 
imminent collapse'' using the criteria and procedures in paragraphs (b) 
(1) through (5) of this section, then the State may submit other 
scientific and technical data, in addition to the information described 
in paragraphs (b) (1) through (5) of this section, that would reveal 
unusual erosive or stability conditions at the site. Such data must 
include engineering analyses or reports performed on the structure or 
site which evaluates local rates of erosion, or the condition or 
stability of the structure's foundation including supporting soil.
    (c) In the case of structures planned to be relocated, a 
certification as to whether the proposed relocation site is outside the 
30-year setback for 1-4 family residential structures, or outside

[[Page 219]]

the 60-year setback for all other structures, must also be submitted by 
the State.

[53 FR 36975, Sept. 23, 1988, as amended at 53 FR 44193, Nov. 2, 1988]



Sec. 63.18  Review of State certification by the Federal Insurance
Administrator.

    The Federal Insurance Administrator, after a claim has been filed by 
the property owner, will review the certification and data prepared by 
the State. Upon completion of the review, the State will be notified 
that:
    (a) The structure has been determined to be subject to imminent 
collapse, or
    (b) The structure has not been determined to be subject to imminent 
collapse and the basis for such determination, or
    (c) Additional data are needed to verify that the procedures and 
criteria for imminent collapse certification have been met.



PART 64_COMMUNITIES ELIGIBLE FOR THE SALE OF INSURANCE--Table of Contents



Sec.
64.1  Purpose of part.
64.2  Definitions.
64.3  Flood Insurance Maps.
64.4  Effect on community eligibility resulting from boundary changes, 
          governmental reorganization, etc.
64.5  Relationship of rates to zone designations.
64.6  List of eligible communities.

    Authority: 42 U.S.C. 4001 et seq., Reorganization Plan No. 3 of 
1978, 3 CFR, 1978 Comp.; p. 329; E.O. 12127, 44 FR 19367, 3 CFR, 1979 
Comp.; p. 376.



Sec. 64.1  Purpose of part.

    (a) 42 U.S.C. 4012(c), 4022 and 4102 require that flood insurance in 
the maximum limits of coverage under the regular program shall be 
offered in communities only after the Federal Insurance Administrator 
has: (1) Identified the areas of special flood, mudslide (i.e., mudflow) 
or flood-related erosion hazards within the community; and/or (2) 
completed a risk study for the applicant community. The priorities for 
conducting such risk studies are set forth in Secs. 59.23 and 60.25 of 
this subchapter. The purpose of this part is to define the types of 
zones which the Agency will use for identifying the hazard areas on 
maps.
    (b) 42 U.S.C. 4056 authorizes an emergency implementation of the 
National Flood Insurance Program whereby the Federal Insurance 
Administrator may make subsidized coverage available to eligible 
communities prior to the completion of detailed risk studies for such 
areas. This part also describes procedures under the emergency program 
and lists communities which become eligible under the NFIP.

[48 FR 28278, June 21, 1983, as amended at 49 FR 4751, Feb. 8, 1984; 49 
FR 33879, Aug. 27, 1984]



Sec. 64.2  Definitions.

    The definitions set forth in part 59 of this subchapter are 
applicable to this part.

[41 FR 46986, Oct. 26, 1976. Redesignated at 44 FR 31177, May 31, 1979]



Sec. 64.3  Flood Insurance Maps.

    (a) The following maps may be prepared by the Federal Insurance 
Administrator for use in connection with the sale of flood insurance:
    (1) Flood Insurance Rate Map: This map is prepared after the flood 
hazard study for the community has been completed and the risk premium 
rates have been established. The FIRM indicates the risk premium rate 
zones applicable in the community and when those rates are effective. 
The FIRM also may indicate, at the request of the community, zones to 
identify areas of future-conditions flood hazards. The symbols used to 
designate the risk premium rate zones and future-conditions zones are as 
follows:

------------------------------------------------------------------------
              Zone symbol
------------------------------------------------------------------------
A.....................................  Area of special flood hazard
                                         without water surface
                                         elevations determined
A1-30, AE.............................  Area of special flood hazard
                                         with water surface elevations
                                         determined
A0....................................  Area of special flood hazards
                                         having shallow water depths and/
                                         or unpredictable flow paths
                                         between (1) and (3) ft
A99...................................  Area of special flood hazard
                                         where enough progress has been
                                         made on a protective system,
                                         such as dikes, dams, and
                                         levees, to consider it complete
                                         for insurance rating purposes

[[Page 220]]

 
AH....................................  Areas of special flood hazards
                                         having shallow water depths and/
                                         or unpredictable flow paths
                                         between (1) and (3) feet, and
                                         with water surface elevations
                                         determined
AR....................................  Area of special flood hazard
                                         that results from the
                                         decertification of a previously
                                         accredited flood protection
                                         system that is determined to be
                                         in the process of being
                                         restored to provide base flood
                                         protection
V.....................................  Area of special flood hazards
                                         without water surface
                                         elevations determined, and with
                                         velocity, that is inundated by
                                         tidal floods (coastal high
                                         hazard area)
V1-30, VE.............................  Area of special flood hazards,
                                         with water surface elevations
                                         determined and with velocity,
                                         that is inundated by tidal
                                         floods (coastal high hazard
                                         area)
V0....................................  Area of special flood hazards
                                         having shallow water depths and/
                                         or unpredictable flow paths
                                         between (1) and (3) ft. and
                                         with velocity
B, X..................................  Areas of moderate flood hazards
                                         or areas of future-conditions
                                         flood hazard.
C, X..................................  Area of minimal hazards
D.....................................  Area of undetermined but
                                         possible, flood hazards
M.....................................  Area of special mudslide (i.e.,
                                         mudflow) hazards
N.....................................  Area of moderate mudslide (i.e.,
                                         mudflow) hazards
P.....................................  Area of undetermined, but
                                         possible, mudslide hazards
E.....................................  Area of special flood-related
                                         erosion hazards.
------------------------------------------------------------------------


Areas identified as subject to more than one hazard (flood, mudslide 
(i.e., mudflow), flood-related erosion) or potential hazard (i.e., 
future-conditions flooding) will be designated on the FIRM by use of the 
proper zone symbols in combination.
    (2) Flood Hazard Boundary Map (FHBM). This map is issued by the 
Administrator delineating Zones A, M, and E within a community.
    (b) Notice of the issuance of new or revised FHBMs or FIRMs is given 
in Part 65 of this subchapter. The mandatory purchase of insurance is 
required within designated Zones A, A1-30, AE, A99, AO, AH, AR, AR/A1-
30, AR/AE, AR/AO, AR/AH, AR/A, V1-30, VE, V, VO, M, and E.
    (c) The FHBM or FIRM shall be maintained for public inspection at 
the following locations:
    (1) The information office of the State agency or agencies 
designated by statute or the respective Governors to cooperate with the 
Federal Insurance Administrator in implementing the Program whenever a 
community becomes eligible for Program participation and the sale of 
insurance pursuant to this section or is identified as flood prone.
    (2) One or more official locations within the community in which 
flood insurance is offered.
    (3) [Reserved]
    (4) The official record copy of each official map shall be 
maintained in FEMA files in Washington, DC.

[41 FR 46986, Oct. 26, 1976. Redesignated at 44 FR 31177, May 31, 1979, 
as amended at 46 FR 1274, Jan. 6, 1981; 48 FR 28278, June 21, 1983; 48 
FR 44544 and 44552, Sept. 29, 1983; 49 FR 4751, Feb. 8, 1984; 50 FR 
36028, Sept. 4, 1985; 59 FR 53599, Oct. 25, 1994; 62 FR 55716, Oct. 27, 
1997; 66 FR 59170, Nov. 27, 2001]



Sec. 64.4  Effect on community eligibility resulting from boundary 
changes, governmental reorganization, etc.

    (a) When a community not participating in the Program acquires by 
means of annexation, incorporation, or otherwise, an area within another 
community participating in the Program, no new flood insurance shall be 
made available as of the effective date of annexation until the newly 
acquiring community participates in the Program. Until the effective 
date of participation, existing flood insurance policies remain in 
effect until the policy's date of expiration, but shall not be renewed.
    (b) When a community participating in the Program acquires by means 
of annexation, incorporation, or otherwise, another area which was 
previously located in a community either participating or not 
participating in the Program, the community shall have six months from 
the date of acquisition to formally amend its flood plain management 
regulations in order to include all flood-prone areas within the newly 
acquired area. The amended regulations shall satisfy the applicable 
requirements in Sec. 60.3 of this subchapter based on the data 
previously provided by the Administrator. In the event that the newly 
acquired area was previously located in a community participating in the 
Program, the provisions of this section shall only apply if the 
community, upon acquisition, and pending formal adoption of the 
amendment to its flood plain management regulations, certifies in 
writing over the signature of a community official that within the newly 
acquired area

[[Page 221]]

the flood plain management requirements previously applicable in the 
area remain in force. In the event that the newly-acquired area was 
previously located in a community not participating in the Program, the 
provisions of the section shall only apply if the community, upon 
acquisition, and pending formal adoption of the amendments to its flood 
plain management regulations, certifies in writing over the signature of 
a community official that it shall enforce within the newly-acquired 
area the requirements of Sec. 60.3(b) of this subchapter. During the six 
month period, existing flood insurance policies shall remain in effect 
until their date of expiration may be renewed, and new policies may be 
issued. Failure to satisfy the applicable requirements in Sec. 60.3 
shall result in the community's suspension from Program participation 
pursuant to Sec. 59.24 of this subchapter.
    (c) When an area previously a part of a community participating in 
the Program becomes autonomous or becomes a portion of a newly 
autonomous community resulting from boundary changes, governmental 
reorganization, changes in state statutes or constitution, or otherwise, 
such new community shall be given six months from the date of its 
independence, to adopt flood plain management regulations within the 
special hazard areas subject to its jurisdiction and to submit its 
application for participation as a separate community in order to retain 
eligibility for the sale of flood insurance. The regulations adopted by 
such new community shall satisfy the applicable requirements in 
Sec. 60.3 of this subchapter based on the data previously provided by 
the Federal Insurance Administrator. The provisions of this section 
shall only apply where the new community upon the date of its 
independence certifies in writing over the signature of a community 
official that, pending formal adoption of flood plain management 
regulations, the flood plain management requirements previously 
applicable in that area remain in effect. During the six month period, 
existing flood insurance policies shall remain in effect until their 
dates of expiration may be renewed, and new policies may be issued. 
Failure to satisfy the applicable requirements in Sec. 60.3 of this 
subchapter shall result in the community's suspension from Program 
participation pursuant to Sec. 59.24 of this subchapter.
    (d) Where any community or any area within a community had in effect 
a FHBM or FIRM, but all or a portion of that community has been acquired 
by another community, or becomes autonomous, that map shall remain in 
effect until it is superseded by the Federal Insurance Administrator, 
whether by republication as part of the map of the acquiring community, 
or otherwise.
    (e) When a community described in paragraph (a), (b), (c), or (d) of 
this section has flood elevations in effect, no new appeal period under 
parts 66, 67, and 68 of this subchapter will begin except as new 
scientific and technical data are available.

[41 FR 46986, Oct. 26, 1976. Redesignated at 44 FR 31177, May 31, 1979, 
as amended at 48 FR 44552, Sept. 29, 1983; 49 FR 4751, Feb. 8, 1984]



Sec. 64.5  Relationship of rates to zone designations.

    (a) In order to expedite a community's qualification for flood 
insurance under the emergency program, the Administrator may authorize 
the sale of such insurance without designating any Zones A, M, or E 
within a community, provided the community has previously adopted flood 
plain management regulations meeting the requirements of Sec. 60.3(a), 
Sec. 60.4(a) or Sec. 60.5(a) of this subchapter. When the Administrator 
has obtained sufficient technical information to delineate Zones A, M, 
or E, he/she shall delineate the tentative boundaries on a FHBM.
    (b) Upon the effective date of the FIRM, flood insurance will 
continue to be available throughout the entire community at chargeable 
rates (i.e., subsidized) for first layer coverage of existing 
structures, but will be only available at risk premium rates for all new 
construction and substantial improvements. Upon the effective date of a 
FIRM, second layer coverage is available only at risk premium rates for 
all structures.
    (c) Detailed insurance information may be obtained from the 
servicing

[[Page 222]]

companies. See part 62 of this subchapter.

[41 FR 46986, Oct. 26, 1976. Redesignated at 44 FR 31177, May 31, 1979, 
as amended at 48 FR 44552, Sept. 29, 1983; 49 FR 4751, Feb. 8, 1984]



Sec. 64.6  List of eligible communities.

    The sale of flood insurance pursuant to the National Flood Insurance 
Program (42 U.S.C. 4001-4128) is authorized for the communities set 
forth under this section. Previous listings under this part continue in 
effect until revised.

[41 FR 46986, Oct. 25, 1976]

    Editorial Note: For references to FR pages showing lists of eligible 
communities, see the List of CFR Sections Affected, which appears in the 
Finding Aids section of the printed volume and at www.fdsys.gov.



PART 65_IDENTIFICATION AND MAPPING OF SPECIAL HAZARD AREAS
--Table of Contents



Sec.
65.1  Purpose of part.
65.2  Definitions.
65.3  Requirement to submit new technical data.
65.4  Right to submit new technical data.
65.5  Revision to special hazard area boundaries with no change to base 
          flood elevation determinations.
65.6  Revision of base flood elevation determinations.
65.7  Floodway revisions.
65.8  Review of proposed projects.
65.9  Review and response by the Administrator.
65.10  Mapping of areas protected by levee systems.
65.11  Evaluation of sand dunes in mapping coastal flood hazard areas.
65.12  Revision of flood insurance rate maps to reflect base flood 
          elevations caused by proposed encroachments.
65.13  Mapping and map revisions for areas subject to alluvial fan 
          flooding.
65.14  Remapping of areas for which local flood protection systems no 
          longer provide base flood protection.
65.15  List of communities submitting new technical data.
65.16  Standard Flood Hazard Determination Form and Instructions.
65.17  Review of determinations.

    Authority: 42 U.S.C. 4001 et seq.; Reorganization Plan No. 3 of 
1978, 43 FR 41943, 3 CFR, 1978 Comp., p. 329; E.O. 12127 of Mar. 31, 
1979, 44 FR 19367, 3 CFR, 1979 Comp., p. 376.



Sec. 65.1  Purpose of part.

    42 U.S.C. 4104 authorizes the Administrator to identify and publish 
information with respect to all areas within the United States having 
special flood, mudslide (i.e., mudflow) and flood-related erosion 
hazards. The purpose of this part is to outline the steps a community 
needs to take in order to assist the Agency's effort in providing up-to-
date identification and publication, in the form of the maps described 
in part 64, on special flood, mudslide (i.e., mudflow) and flood-related 
erosion hazards.

[48 FR 28278, June 21, 1983]



Sec. 65.2  Definitions.

    (a) Except as otherwise provided in this part, the definitions set 
forth in part 59 of this subchapter are applicable to this part.
    (b) For the purpose of this part, a certification by a registered 
professional engineer or other party does not constitute a warranty or 
guarantee of performance, expressed or implied. Certification of data is 
a statement that the data is accurate to the best of the certifier's 
knowledge. Certification of analyses is a statement that the analyses 
have been performed correctly and in accordance with sound engineering 
practices. Certification of structural works is a statement that the 
works are designed in accordance with sound engineering practices to 
provide protection from the base flood. Certification of ``as built'' 
conditions is a statement that the structure(s) has been built according 
to the plans being certified, is in place, and is fully functioning.
    (c) For the purposes of this part, ``reasonably safe from flooding'' 
means base flood waters will not inundate the land or damage structures 
to be removed from the SFHA and that any subsurface waters related to 
the base flood will not damage existing or proposed buildings.

[51 FR 30313, Aug. 25, 1986, as amended at 66 FR 22442, May 4, 2001]



Sec. 65.3  Requirement to submit new technical data.

    A community's base flood elevations may increase or decrease 
resulting

[[Page 223]]

from physical changes affecting flooding conditions. As soon as 
practicable, but not later than six months after the date such 
information becomes available, a community shall notify the 
Administrator of the changes by submitting technical or scientific data 
in accordance with this part. Such a submission is necessary so that 
upon confirmation of those physical changes affecting flooding 
conditions, risk premium rates and flood plain management requirements 
will be based upon current data.

[51 FR 30313, Aug. 25, 1986]



Sec. 65.4  Right to submit new technical data.

    (a) A community has a right to request changes to any of the 
information shown on an effective map that does not impact flood plain 
or floodway delineations or base flood elevations, such as community 
boundary changes, labeling, or planimetric details. Such a submission 
shall include appropriate supporting documentation in accordance with 
this part and may be submitted at any time.
    (b) All requests for changes to effective maps, other than those 
initiatedby FEMA, must be made in writing by the Chief Executive Officer 
of the community (CEO) or an official designated by the CEO. Should the 
CEO refuse to submit such a request on behalf of another party, FEMA 
will agree to review it only if written evidence is provided indicating 
the CEO or designee has been requested to do so.
    (c) Requests for changes to effective Flood Insurance Rate Maps 
(FIRMs) and Flood Boundary and Floodway Maps (FBFMs) are subject to the 
cost recovery procedures described in 44 CFR part 72. As indicated in 
part 72, revisions requested to correct mapping errors or errors in the 
Flood Insurance Study analysis are not to be subject to the cost-
recovery procedures.

[51 FR 30313, Aug. 25, 1986, as amended at 57 FR 29038, June 30, 1992; 
61 FR 46331, Aug. 30, 1996; 62 FR 5736, Feb. 6, 1997]

    Editorial Note: For references to FR pages showing lists of eligible 
communities, see the List of CFR Sections Affected, which appears in the 
Finding Aids section of the printed volume and at www.fdsys.gov.



Sec. 65.5  Revision to special hazard area boundaries with no change to
base flood elevation determinations.

    (a) Data requirements for topographic changes. In many areas of 
special flood hazard (excluding V zones and floodways) it may be 
feasible to elevate areas with engineered earthen fill above the base 
flood elevation. Scientific and technical information to support a 
request to gain exclusion from an area of special flood hazard of a 
structure or parcel of land that has been elevated by the placement of 
engineered earthen fill will include the following:
    (1) A copy of the recorded deed indicating the legal description of 
the property and the official recordation information (deed book volume 
and page number) and bearing the seal of the appropriate recordation 
official (e.g., County Clerk or Recorder of Deeds).
    (2) If the property is recorded on a plat map, a copy of the 
recorded plat indicating both the location of the property and the 
official recordation information (plat book volume and page number) and 
bearing the seal of the appropriate recordation official. If the 
property is not recorded on a plat map, FEMA requires copies of the tax 
map or other suitable maps to help in locating the property accurately.
    (3) A topographic map or other information indicating existing 
ground elevations and the date of fill. FEMA's determination to exclude 
a legally defined parcel of land or a structure from the area of special 
flood hazard will be based upon a comparison of the base flood 
elevations to the lowest ground elevation of the parcel or the lowest 
adjacent grade to the structure. If the lowest ground elevation of the 
entire legally defined parcel of land or the lowest adjacent grade to 
the structure are at or above the elevations of the base flood, FEMA 
will exclude the parcel and/or structure from the area of special flood 
hazard.
    (4) Written assurance by the participating community that they have 
complied with the appropriate minimum floodplain management requirements 
under Sec. 60.3. This includes the requirements that:

[[Page 224]]

    (i) Existing residential structures built in the SFHA have their 
lowest floor elevated to or above the base flood;
    (ii) The participating community has determined that the land and 
any existing or proposed structures to be removed from the SFHA are 
``reasonably safe from flooding'', and that they have on file, available 
upon request by FEMA, all supporting analyses and documentation used to 
make that determination;
    (iii) The participating community has issued permits for all 
existing and proposed construction or other development; and
    (iv) All necessary permits have been received from those 
governmental agencies where approval is required by Federal, State, or 
local law.
    (5) If the community cannot assure that it has complied with the 
appropriate minimum floodplain management requirements under Sec. 60.3, 
of this chapter, the map revision request will be deferred until the 
community remedies all violations to the maximum extent possible through 
coordination with FEMA. Once the remedies are in place, and the 
community assures that the land and structures are ``reasonably safe 
from flooding,'' we will process a revision to the SFHA using the 
criteria set forth in Sec. 65.5(a). The community must maintain on file, 
and make available upon request by FEMA, all supporting analyses and 
documentation used in determining that the land or structures are 
``reasonably safe from flooding.''
    (6) Data to substantiate the base flood elevation. If we complete a 
Flood Insurance Study (FIS), we will use those data to substantiate the 
base flood elevation. Otherwise, the community may submit data provided 
by an authoritative source, such as the U.S. Army Corps of Engineers, 
U.S. Geological Survey, Natural Resources Conservation Service, State 
and local water resource departments, or technical data prepared and 
certified by a registered professional engineer. If base flood 
elevations have not previously been established, we may also request 
hydrologic and hydraulic calculations.
    (7) A revision of floodplain delineations based on fill must 
demonstrate that any such fill does not result in a floodway 
encroachment.
    (b) New topographic data. A community may also follow the procedures 
described in paragraphs (a)(1) through (6) of this section to request a 
map revision when no physical changes have occurred in the area of 
special flood hazard, when no fill has been placed, and when the natural 
ground elevations are at or above the elevations of the base flood, 
where new topographic maps are more detailed or more accurate than the 
current map.
    (c) Certification requirements. A registered professional engineer 
or licensed land surveyor must certify the items required in paragraphs 
(a)(3) and (6) and (b) of this section. Such certifications are subject 
to the provisions under Sec. 65.2.
    (d) Submission procedures. Submit all requests to the appropriate 
address serving the community's geographic area or to the FEMA 
Headquarters Office in Washington, DC.

[66 FR 22442, May 4, 2001]



Sec. 65.6  Revision of base flood elevation determinations.

    (a) General conditions and data requirements. (1) The supporting 
data must include all the information FEMA needs to review and evaluate 
the request. This may involve the requestor's performing new hydrologic 
and hydraulic analysis and delineation of new flood plain boundaries and 
floodways, as necessary.
    (2) To avoid discontinuities between the revised and unrevised flood 
data, the necessary hydrologic and hydraulic analyses submitted by the 
map revision requestor must be extensive enough to ensure that a logical 
transition can be shown between the revised flood elevations, flood 
plain boundaries, and floodways and those developed previously for areas 
not affected by the revision. Unless it is demonstrated that it would 
not be appropriate, the revised and unrevised base flood elevations must 
match within one-half foot where such transitions occur.
    (3) Revisions cannot be made based on the effects of proposed 
projects or

[[Page 225]]

future conditions. Section 65.8 of this subchapter contains provisions 
for obtaining conditional approval of proposed projects that may effect 
map changes when they are completed.
    (4) The datum and date of releveling of benchmarks, if any, to which 
the elevations are referenced must be indicated.
    (5) Maps will not be revised when discharges change as a result of 
the use of an alternative methodology or data for computing flood 
discharges unless the change is statistically significant as measured by 
a confidence limits analysis of the new discharge estimates.
    (6) Any computer program used to perform hydrologic or hydraulic 
analyses in support of a flood insurance map revision must meet all of 
the following criteria:
    (i) It must have been reviewed and accepted by a governmental agency 
responsible for the implementation of programs for flood control and/or 
the regulation of flood plain lands. For computer programs adopted by 
non-Federal agencies, certification by a responsible agency official 
must be provided which states that the program has been reviewed, 
tested, and accepted by that agency for purposes of design of flood 
control structures or flood plain land use regulation.
    (ii) It must be well-documented including source codes and user's 
manuals.
    (iii) It must be available to FEMA and all present and future 
parties impacted by flood insurance mapping developed or amended through 
the use of the program. For programs not generally available from a 
Federal agency, the source code and user's manuals must be sent to FEMA 
free of charge, with fully-documented permission from the owner that 
FEMA may release the code and user's manuals to such impacted parties.
    (7) A revised hydrologic analysis for flooding sources with 
established base flood elevations must include evaluation of the same 
recurrence interval(s) studied in the effective FIS, such as the 10-, 
50-, 100-, and 500-year flood discharges.
    (8) A revised hydraulic analysis for a flooding source with 
established base flood elevations must include evaluation of the same 
recurrence interval(s) studied in the effective FIS, such as the 10-, 
50-, 100-, and 500-year flood elevations, and of the floodway. Unless 
the basis of the request is the use of an alternative hydraulic 
methodology or the requestor can demonstrate that the data of the 
original hydraulic computer model is unavailable or its use is 
inappropriate, the analysis shall be made using the same hydraulic 
computer model used to develop the base flood elevations shown on the 
effective Flood Insurance Rate Map and updated to show present 
conditions in the flood plain. Copies of the input and output data from 
the original and revised hydraulic analyses shall be submitted.
    (9) A hydrologic or hydraulic analysis for a flooding source without 
established base flood elevations may be performed for only the 100-year 
flood.
    (10) A revision of flood plain delineations based on topographic 
changes must demonstrate that any topographic changes have not resulted 
in a floodway encroachment.
    (11) Delineations of flood plain boundaries for a flooding source 
with established base flood elevations must provide both the 100- and 
500-year flood plain boundaries. For flooding sources without 
established base flood elevations, only 100-year flood plain boundaries 
need be submitted. These boundaries should be shown on a topographic map 
of suitable scale and contour interval.
    (12) If a community or other party seeks recognition from FEMA, on 
its FHBM or FIRM, that an altered or relocated portion of a watercourse 
provides protection from, or mitigates potential hazards of, the base 
flood, the Federal Insurance Administrator may request specific 
documentation from the community certifying that, and describing how, 
the provisions of Sec. 60.3(b)(7) of this subchapter will be met for the 
particular watercourse involved. This documentation, which may be in the 
form of a written statement from the Community Chief Executive Officer, 
an ordinance, or other legislative action, shall describe the nature of 
the maintenance activities to be performed, the frequency with which 
they will be performed, and the title of the local community official 
who will

[[Page 226]]

be responsible for assuring that the maintenance activities are 
accomplished.
    (13) Notwithstanding any other provisions of Sec. 65.6, a community 
may submit, in lieu of the documentation specified in Sec. 65.6(a)(12), 
certification by a registered professional engineer that the project has 
been designed to retain its flood carrying capacity without periodic 
maintenance.
    (14) The participating community must provide written assurance that 
they have complied with the appropriate minimum floodplain management 
requirements under Sec. 60.3 of this chapter. This includes the 
requirements that:
    (i) Existing residential structures built in the SFHA have their 
lowest floor elevated to or above the base flood;
    (ii) The participating community has determined that the land and 
any existing or proposed structures to be removed from the SFHA are 
``reasonably safe from flooding,'' and that they have on file, available 
upon request by FEMA, all supporting analyses and documentation used to 
make that determination;
    (iii) The participating community has issued permits for all 
existing and proposed construction or other development; and
    (iv) All necessary permits have been received from those 
governmental agencies where approval is required by Federal, State, or 
local law.
    (15) If the community cannot assure that it has complied with the 
appropriate minimum floodplain management requirements under Sec. 60.3, 
of this chapter the map revision request will be deferred until the 
community remedies all violations to the maximum extent possible through 
coordination with FEMA. Once the remedies are in place, and the 
community assures that the land and structures are ``reasonably safe 
from flooding,'' we will process a revision to the SFHA using the 
criteria set forth under Sec. 65.6. The community must maintain on file, 
and make available upon request by FEMA, all supporting analyses and 
documentation used in determining that the land or structures are 
``reasonably safe from flooding.''
    (b) Data requirements for correcting map errors. To correct errors 
in the original flood analysis, technical data submissions shall include 
the following:
    (1) Data identifying mathematical errors.
    (2) Data identifying measurement errors and providing correct 
measurements.
    (c) Data requirements for changed physical conditions. Revisions 
based on the effects of physical changes that have occurred in the flood 
plain shall include:
    (1) Changes affecting hydrologic conditions. The following data must 
be submitted:
    (i) General description of the changes (e.g., dam, diversion 
channel, or detention basin).
    (ii) Construction plans for as-built conditions, if applicable.
    (iii) New hydrologic analysis accounting for the effects of the 
changes.
    (iv) New hydraulic analysis and profiles using the new flood 
discharge values resulting from the hydrologic analysis.
    (v) Revised delineations of the flood plain boundaries and floodway.
    (2) Changes affecting hydraulic conditions. The following data shall 
be submitted:
    (i) General description of the changes (e.g., channelization or new 
bridge, culvert, or levee).
    (ii) Construction plans for as-built conditions.
    (iii) New hydraulic analysis and flood elevation profiles accounting 
for the effects of the changes and using the original flood discharge 
values upon which the original map is based.
    (iv) Revised delineations of the flood plain boundaries and 
floodway.
    (3) Changes involving topographic conditions. The following data 
shall be submitted:
    (i) General description of the changes (e.g., grading or filling).
    (ii) New topographic information, such as spot elevations, cross 
sections grading plans, or contour maps.
    (iii) Revised delineations of the flood plain boundaries and, if 
necessary, floodway.
    (d) Data requirements for incorporating improved data. Requests for 
revisions

[[Page 227]]

based on the use of improved hydrologic, hydraulic, or topographic data 
shall include the following data:
    (1) Data that are believed to be better than those used in the 
original analysis (such as additional years of stream gage data).
    (2) Documentation of the source of the data.
    (3) Explanation as to why the use of the new data will improve the 
results of the original analysis.
    (4) Revised hydrologic analysis where hydrologic data are being 
incorporated.
    (5) Revised hydraulic analysis and flood elevation profiles where 
new hydrologic or hydraulic data are being incorporated.
    (6) Revised delineations of the flood plain boundaries and floodway 
where new hydrologic, hydraulic, or topographic data are being 
incorporated.
    (e) Data requirements for incorporating improved methods. Requests 
for revisions based on the use of improved hydrologic or hydraulic 
methodology shall include the following data:
    (1) New hydrologic analysis when an alternative hydrologic 
methodology is being proposed.
    (2) New hydraulic analysis and flood elevation profiles when an 
alternative hyrologic or hydraulic methodology is being proposed.
    (3) Explanation as to why the alternative methodologies are superior 
to the original methodologies.
    (4) Revised delineations of the flood plain boundaries and floodway 
based on the new analysis(es).
    (f) Certification requirements. All analysis and data submitted by 
the requester shall be certified by a registered professional engineer 
or licensed land surveyor, as appropriate, subject to the definition of 
``certification'' given at Sec. 65.2 of this subchapter.
    (g) Submission procedures. All requests shall be submitted to the 
FEMA Regional Office servicing the community's geographic area or to the 
FEMA Headquarters Office in Washington, DC, and shall be accompanied by 
the appropriate payment, in accordance with 44 CFR part 72.

[51 FR 30314, Aug. 25, 1986, as amended at 53 FR 16279, May 6, 1988; 54 
FR 33550, Aug. 15, 1989; 61 FR 46331, Aug. 30, 1996; 62 FR 5736, Feb. 6, 
1997; 66 FR 22442, May 4, 2001]



Sec. 65.7  Floodway revisions.

    (a) General. Floodway data is developed as part of FEMA Flood 
Insurance Studies and is utilized by communities to select and adopt 
floodways as part of the flood plain management program required by 
Sec. 60.3 of this subchapter. When it has been determined by a community 
that no practicable alternatives exist to revising the boundaries of its 
previously adopted floodway, the procedures below shall be followed.
    (b) Data requirements when base flood elevation changes are 
requested. When a floodway revision is requested in association with a 
change to base flood elevations, the data requirements of Sec. 65.6 
shall also be applicable. In addition, the following documentation shall 
be submitted:
    (1) Copy of a public notice distributed by the community stating the 
community's intent to revise the floodway or a statement by the 
community that it has notified all affected property owners and affected 
adjacent jurisdictions.
    (2) Copy of a letter notifying the appropriate State agency of the 
floodway revision when the State has jurisdiction over the floodway or 
its adoption by communities participating in the NFIP.
    (3) Documentation of the approval of the revised floodway by the 
appropriate State agency (for communities where the State has 
jurisdiction over the floodway or its adoption by communities 
participating in the NFIP).
    (4) Engineering analysis for the revised floodway, as described 
below:
    (i) The floodway analysis must be performed using the hydraulic 
computer model used to determine the proposed base flood elevations.
    (ii) The floodway limits must be set so that neither the effective 
base flood elevations nor the proposed base flood elevations if less 
than the effective base flood elevations, are increased by more than the 
amount specified under

[[Page 228]]

Sec. 60.3 (d)(2). Copies of the input and output data from the original 
and modified computer models must be submitted.
    (5) Delineation of the revised floodway on the same topographic map 
used for the delineation of the revised flood boundaries.
    (c) Data requirements for changes not associated with base flood 
elevation changes. The following data shall be submitted:
    (1) Items described in paragraphs (b) (1) through (3) of this 
section must be submitted.
    (2) Engineering analysis for the revised floodway, as described 
below:
    (i) The original hydraulic computer model used to develop the 
established base flood elevations must be modified to include all 
encroachments that have occurred in the flood plain since the existing 
floodway was developed. If the original hydraulic computer model is not 
available, an alternate hydraulic computer model may be used provided 
the alternate model has been calibrated so as to reproduce the original 
water surface profile of the original hydraulic computer model. The 
alternate model must be then modified to include all encroachments that 
have occurred since the existing floodway was developed.
    (ii) The floodway analysis must be performed with the modified 
computer model using the desired floodway limits.
    (iii) The floodway limits must be set so that combined effects of 
the past encroachments and the new floodway limits do not increase the 
effective base flood elevations by more than the amount specified in 
Sec. 60.3(d)(2). Copies of the input and output data from the original 
and modified computer models must be submitted.
    (3) Delineation of the revised floodway on a copy of the effective 
NFIP map and a suitable topographic map.
    (d) Certification requirements. All analyses submitted shall be 
certified by a registered professional engineer. All topographic data 
shall be certified by a registered professional engineer or licensed 
land surveyor. Certifications are subject to the definition given at 
Sec. 65.2 of this subchapter.
    (e) Submission procedures. All requests that involve changes to 
floodways shall be submitted to the appropriate FEMA Regional Office 
servicing the community's geographic area.

[51 FR 30315, Aug. 25, 1986]



Sec. 65.8  Review of proposed projects.

    A community, or an individual through the community, may request 
FEMA's comments on whether a proposed project, if built as proposed, 
would justify a map revision. FEMA's comments will be issued in the form 
of a letter, termed a Conditional Letter of Map Revision, in accordance 
with 44 CFR part 72. The data required to support such requests are the 
same as those required for final revisions under Secs. 65.5, 65.6, and 
65.7, except as-built certification is not required. All such requests 
shall be submitted to the FEMA Headquarters Office in Washington, DC, 
and shall be accompanied by the appropriate payment, in accordance with 
44 CFR part 72.

[62 FR 5736, Feb. 6, 1997]



Sec. 65.9  Review and response by the Administrator.

    If any questions or problems arise during review, FEMA will consult 
the Chief Executive Officer of the community (CEO), the community 
official designated by the CEO, and/or the requester for resolution. 
Upon receipt of a revision request, the Federal Insurance Administrator 
shall mail an acknowledgment of receipt of such request to the CEO. 
Within 90 days of receiving the request with all necessary information, 
the Federal Insurance Administrator shall notify the CEO of one or more 
of the following:
    (a) The effective map(s) shall not be modified;
    (b) The base flood elevations on the effective FIRM shall be 
modified and new base flood elevations shall be established under the 
provisions of part 67 of this subchapter;
    (c) The changes requested are approved and the map(s) amended by 
Letter of Map Revision (LOMR);
    (d) The changes requested are approved and a revised map(s) will be 
printed and distributed;

[[Page 229]]

    (e) The changes requested are not of such a significant nature as to 
warrant a reissuance or revision of the flood insurance study or maps 
and will be deferred until such time as a significant change occurs;
    (f) An additional 90 days is required to evaluate the scientific or 
technical data submitted; or
    (g) Additional data are required to support the revision request.
    (h) The required payment has not been submitted in accordance with 
44 CFR part 72, no review will be conducted and no determination will be 
issued until payment is received.

[51 FR 30315, Aug. 25, 1986; 61 FR 46331, Aug. 30, 1996, as amended at 
62 FR 5736, Feb. 6, 1997]



Sec. 65.10  Mapping of areas protected by levee systems.

    (a) General. For purposes of the NFIP, FEMA will only recognize in 
its flood hazard and risk mapping effort those levee systems that meet, 
and continue to meet, minimum design, operation, and maintenance 
standards that are consistent with the level of protection sought 
through the comprehensive flood plain management criteria established by 
Sec. 60.3 of this subchapter. Accordingly, this section describes the 
types of information FEMA needs to recognize, on NFIP maps, that a levee 
system provides protection from the base flood. This information must be 
supplied to FEMA by the community or other party seeking recognition of 
such a levee system at the time a flood risk study or restudy is 
conducted, when a map revision under the provisions of part 65 of this 
subchapter is sought based on a levee system, and upon request by the 
Federal Insurance Administrator during the review of previously 
recognized structures. The FEMA review will be for the sole purpose of 
establishing appropriate risk zone determinations for NFIP maps and 
shall not constitute a determination by FEMA as to how a structure or 
system will perform in a flood event.
    (b) Design criteria. For levees to be recognized by FEMA, evidence 
that adequate design and operation and maintenance systems are in place 
to provide reasonable assurance that protection from the base flood 
exists must be provided. The following requirements must be met:
    (1) Freeboard. (i) Riverine levees must provide a minimum freeboard 
of three feet above the water-surface level of the base flood. An 
additional one foot above the minimum is required within 100 feet in 
either side of structures (such as bridges) riverward of the levee or 
wherever the flow is constricted. An additional one-half foot above the 
minimum at the upstream end of the levee, tapering to not less than the 
minimum at the downstream end of the levee, is also required.
    (ii) Occasionally, exceptions to the minimum riverine freeboard 
requirement described in paragraph (b)(1)(i) of this section, may be 
approved. Appropriate engineering analyses demonstrating adequate 
protection with a lesser freeboard must be submitted to support a 
request for such an exception. The material presented must evaluate the 
uncertainty in the estimated base flood elevation profile and include, 
but not necessarily be limited to an assessment of statistical 
confidence limits of the 100-year discharge; changes in stage-discharge 
relationships; and the sources, potential, and magnitude of debris, 
sediment, and ice accumulation. It must be also shown that the levee 
will remain structurally stable during the base flood when such 
additional loading considerations are imposed. Under no circumstances 
will freeboard of less than two feet be accepted.
    (iii) For coastal levees, the freeboard must be established at one 
foot above the height of the one percent wave or the maximum wave runup 
(whichever is greater) associated with the 100-year stillwater surge 
elevation at the site.
    (iv) Occasionally, exceptions to the minimum coastal levee freeboard 
requirement described in paragraph (b)(1)(iii) of this section, may be 
approved. Appropriate engineering analyses demonstrating adequate 
protection with a lesser freeboard must be submitted to support a 
request for such an exception. The material presented must evaluate the 
uncertainty in the estimated base flood loading conditions. Particular 
emphasis must be placed on the effects of wave attack and overtopping on 
the stability of the

[[Page 230]]

levee. Under no circumstances, however, will a freeboard of less than 
two feet above the 100-year stillwater surge elevation be accepted.
    (2) Closures. All openings must be provided with closure devices 
that are structural parts of the system during operation and design 
according to sound engineering practice.
    (3) Embankment protection. Engineering analyses must be submitted 
that demonstrate that no appreciable erosion of the levee embankment can 
be expected during the base flood, as a result of either currents or 
waves, and that anticipated erosion will not result in failure of the 
levee embankment or foundation directly or indirectly through reduction 
of the seepage path and subsequent instability. The factors to be 
addressed in such analyses include, but are not limited to: Expected 
flow velocities (especially in constricted areas); expected wind and 
wave action; ice loading; impact of debris; slope protection techniques; 
duration of flooding at various stages and velocities; embankment and 
foundation materials; levee alignment, bends, and transitions; and levee 
side slopes.
    (4) Embankment and foundation stability. Engineering analyses that 
evaluate levee embankment stability must be submitted. The analyses 
provided shall evaluate expected seepage during loading conditions 
associated with the base flood and shall demonstrate that seepage into 
or through the levee foundation and embankment will not jeopardize 
embankment or foundation stability. An alternative analysis 
demonstrating that the levee is designed and constructed for stability 
against loading conditions for Case IV as defined in the U.S. Army Corps 
of Engineers (COE) manual, ``Design and Construction of Levees'' (EM 
1110-2-1913, Chapter 6, Section II), may be used. The factors that shall 
be addressed in the analyses include: Depth of flooding, duration of 
flooding, embankment geometry and length of seepage path at critical 
locations, embankment and foundation materials, embankment compaction, 
penetrations, other design factors affecting seepage (such as drainage 
layers), and other design factors affecting embankment and foundation 
stability (such as berms).
    (5) Settlement. Engineering analyses must be submitted that assess 
the potential and magnitude of future losses of freeboard as a result of 
levee settlement and demonstrate that freeboard will be maintained 
within the minimum standards set forth in paragraph (b)(1) of this 
section. This analysis must address embankment loads, compressibility of 
embankment soils, compressibility of foundation soils, age of the levee 
system, and construction compaction methods. In addition, detailed 
settlement analysis using procedures such as those described in the COE 
manual, ``Soil Mechanics Design--Settlement Analysis'' (EM 1100-2-1904) 
must be submitted.
    (6) Interior drainage. An analysis must be submitted that identifies 
the source(s) of such flooding, the extent of the flooded area, and, if 
the average depth is greater than one foot, the water-surface 
elevation(s) of the base flood. This analysis must be based on the joint 
probability of interior and exterior flooding and the capacity of 
facilities (such as drainage lines and pumps) for evacuating interior 
floodwaters.
    (7) Other design criteria. In unique situations, such as those where 
the levee system has relatively high vulnerability, FEMA may require 
that other design criteria and analyses be submitted to show that the 
levees provide adequate protection. In such situations, sound 
engineering practice will be the standard on which FEMA will base its 
determinations. FEMA will also provide the rationale for requiring this 
additional information.
    (c) Operation plans and criteria. For a levee system to be 
recognized, the operational criteria must be as described below. All 
closure devices or mechanical systems for internal drainage, whether 
manual or automatic, must be operated in accordance with an officially 
adopted operation manual, a copy of which must be provided to FEMA by 
the operator when levee or drainage system recognition is being sought 
or when the manual for a previously recognized system is revised in any 
manner. All operations must be under the jurisdiction of a Federal or 
State agency, an agency created by

[[Page 231]]

Federal or State law, or an agency of a community participating in the 
NFIP.
    (1) Closures. Operation plans for closures must include the 
following:
    (i) Documentation of the flood warning system, under the 
jurisdiction of Federal, State, or community officials, that will be 
used to trigger emergency operation activities and demonstration that 
sufficient flood warning time exists for the completed operation of all 
closure structures, including necessary sealing, before floodwaters 
reach the base of the closure.
    (ii) A formal plan of operation including specific actions and 
assignments of responsibility by individual name or title.
    (iii) Provisions for periodic operation, at not less than one-year 
intervals, of the closure structure for testing and training purposes.
    (2) Interior drainage systems. Interior drainage systems associated 
with levee systems usually include storage areas, gravity outlets, 
pumping stations, or a combination thereof. These drainage systems will 
be recognized by FEMA on NFIP maps for flood protection purposes only if 
the following minimum criteria are included in the operation plan:
    (i) Documentation of the flood warning system, under the 
jurisdiction of Federal, State, or community officials, that will be 
used to trigger emergency operation activities and demonstration that 
sufficient flood warning time exists to permit activation of mechanized 
portions of the drainage system.
    (ii) A formal plan of operation including specific actions and 
assignments of responsibility by individual name or title.
    (iii) Provision for manual backup for the activation of automatic 
systems.
    (iv) Provisions for periodic inspection of interior drainage systems 
and periodic operation of any mechanized portions for testing and 
training purposes. No more than one year shall elapse between either the 
inspections or the operations.
    (3) Other operation plans and criteria. Other operating plans and 
criteria may be required by FEMA to ensure that adequate protection is 
provided in specific situations. In such cases, sound emergency 
management practice will be the standard upon which FEMA determinations 
will be based.
    (d) Maintenance plans and criteria. For levee systems to be 
recognized as providing protection from the base flood, the maintenance 
criteria must be as described herein. Levee systems must be maintained 
in accordance with an officially adopted maintenance plan, and a copy of 
this plan must be provided to FEMA by the owner of the levee system when 
recognition is being sought or when the plan for a previously recognized 
system is revised in any manner. All maintenance activities must be 
under the jurisdiction of a Federal or State agency, an agency created 
by Federal or State law, or an agency of a community participating in 
the NFIP that must assume ultimate responsibility for maintenance. This 
plan must document the formal procedure that ensures that the stability, 
height, and overall integrity of the levee and its associated structures 
and systems are maintained. At a minimum, maintenance plans shall 
specify the maintenance activities to be performed, the frequency of 
their performance, and the person by name or title responsible for their 
performance.
    (e) Certification requirements. Data submitted to support that a 
given levee system complies with the structural requirements set forth 
in paragraphs (b)(1) through (7) of this section must be certified by a 
registered professional engineer. Also, certified as-built plans of the 
levee must be submitted. Certifications are subject to the definition 
given at Sec. 65.2 of this subchapter. In lieu of these structural 
requirements, a Federal agency with responsibility for levee design may 
certify that the levee has been adequately designed and constructed to 
provide protection against the base flood.

[51 FR 30316, Aug. 25, 1986]



Sec. 65.11  Evaluation of sand dunes in mapping coastal flood hazard areas.

    (a) General conditions. For purposes of the NFIP, FEMA will consider 
storm-induced dune erosion potential in its determination of coastal 
flood hazards and risk mapping efforts. The criterion to be used in the 
evaluation of dune erosion will apply to primary frontal dunes as 
defined in Sec. 59.1, but does not

[[Page 232]]

apply to artificially designed and constructed dunes that are not well-
established with long-standing vegetative cover, such as the placement 
of sand materials in a dune-like formation.
    (b) Evaluation criterion. Primary frontal dunes will not be 
considered as effective barriers to base flood storm surges and 
associated wave action where the cross-sectional area of the primary 
frontal dune, as measured perpendicular to the shoreline and above the 
100-year stillwater flood elevation and seaward of the dune crest, is 
equal to, or less than, 540 square feet.
    (c) Exceptions. Exceptions to the evaluation criterion may be 
granted where it can be demonstrated through authoritative historical 
documentation that the primary frontal dunes at a specific site 
withstood previous base flood storm surges and associated wave action.

[53 FR 16279, May 6, 1988]



Sec. 65.12  Revision of flood insurance rate maps to reflect base flood
elevations caused by proposed encroachments.

    (a) When a community proposes to permit encroachments upon the flood 
plain when a regulatory floodway has not been adopted or to permit 
encroachments upon an adopted regulatory floodway which will cause base 
flood elevation increases in excess of those permitted under paragraphs 
(c)(10) or (d)(3) of Sec. 60.3 of this subchapter, the community shall 
apply to the Federal Insurance Administrator for conditional approval of 
such action prior to permitting the encroachments to occur and shall 
submit the following as part of its application:
    (1) A request for conditional approval of map change and the 
appropriate initial fee as specified by Sec. 72.3 of this subchapter or 
a request for exemption from fees as specified by Sec. 72.5 of this 
subchapter, whichever is appropriate;
    (2) An evaluation of alternatives which would not result in a base 
flood elevation increase above that permitted under paragraphs (c)(10) 
or (d)(3) of Sec. 60.3 of this subchapter demonstrating why these 
alternatives are not feasible;
    (3) Documentation of individual legal notice to all impacted 
property owners within and outside of the community, explaining the 
impact of the proposed action on their property.
    (4) Concurrence of the Chief Executive Officer of any other 
communities impacted by the proposed actions;
    (5) Certification that no structures are located in areas which 
would be impacted by the increased base flood elevation;
    (6) A request for revision of base flood elevation determination 
according to the provisions of Sec. 65.6 of this part;
    (7) A request for floodway revision in accordance with the 
provisions of Sec. 65.7 of this part;
    (b) Upon receipt of the Federal Insurance Administrator's 
conditional approval of map change and prior to approving the proposed 
encroachments, a community shall provide evidence to the Federal 
Insurance Administrator of the adoption of flood plain management 
ordinances incorporating the increased base flood elevations and/or 
revised floodway reflecting the post-project condition.
    (c) Upon completion of the proposed encroachments, a community shall 
provide as-built certifications in accordance with the provisions of 
Sec. 65.3 of this part. The Federal Insurance Administrator will 
initiate a final map revision upon receipt of such certifications in 
accordance with part 67 of this subchapter.

[53 FR 16279, May 6, 1988]



Sec. 65.13  Mapping and map revisions for areas subject to alluvial
fan flooding.

    This section describes the procedures to be followed and the types 
of information FEMA needs to recognize on a NFIP map that a structural 
flood control measure provides protection from the base flood in an area 
subject to alluvial fan flooding. This information must be supplied to 
FEMA by the community or other party seeking recognition of such a flood 
control measure at the time a flood risk study or restudy is conducted, 
when a map revision under the provisions of part 65 of this subchapter 
is sought, and upon request by the Federal Insurance Administrator 
during the review of previously recognized flood control measures. The

[[Page 233]]

FEMA review will be for the sole purpose of establishing appropriate 
risk zone determinations for NFIP maps and shall not constitute a 
determination by FEMA as to how the flood control measure will perform 
in a flood event.
    (a) The applicable provisions of Secs. 65.2, 65.3, 65.4, 65.6, 65.8 
and 65.10 shall also apply to FIRM revisions involving alluvial fan 
flooding.
    (b) The provisions of Sec. 65.5 regarding map revisions based on 
fill and the provisions of part 70 of this chapter shall not apply to 
FIRM revisions involving alluvial fan flooding. In general, elevations 
of a parcel of land or a structure by fill or other means, will not 
serve as a basis for removing areas subject to alluvial fan flooding 
from an area of special food hazards.
    (c) FEMA will credit on NFIP maps only major structural flood 
control measures whose design and construction are supported by sound 
engineering analyses which demonstrate that the measures will 
effectively eliminate alluvial fan flood hazards from the area protected 
by such measures. The provided analyses must include, but are not 
necessarily limited to, the following:
    (1) Engineering analyses that quantify the discharges and volumes of 
water, debris, and sediment movement associated with the flood that has 
a one-percent probability of being exceeded in any year at the apex 
under current watershed conditions and under potential adverse 
conditions (e.g., deforestation of the watershed by fire). The potential 
for debris flow and sediment movement must be assessed using an 
engineering method acceptable to FEMA. The assessment should consider 
the characteristics and availability of sediment in the drainage basin 
above the apex and on the alluvial fan.
    (2) Engineering analyses showing that the measures will accommodate 
the estimated peak discharges and volumes of water, debris, and 
sediment, as determined in accordance with paragraph (c)(1) of this 
section, and will withstand the associated hydrodynamic and hydrostatic 
forces.
    (3) Engineering analyses showing that the measures have been 
designed to withstand the potential erosion and scour associated with 
estimated discharges.
    (4) Engineering analyses or evidence showing that the measures will 
provide protection from hazards associated with the possible relocation 
of flow paths from other parts of the fan.
    (5) Engineering analyses that assess the effect of the project on 
flood hazards, including depth and velocity of floodwaters and scour and 
sediment deposition, on other areas of the fan.
    (6) Engineering analyses demonstrating that flooding from sources 
other than the fan apex, including local runoff, is either insignificant 
or has been accounted for in the design.
    (d) Coordination. FEMA will recognize measures that are adequately 
designed and constructed, provided that: evidence is submitted to show 
that the impact of the measures on flood hazards in all areas of the fan 
(including those not protected by the flood control measures), and the 
design and maintenance requirements of the measures, were reviewed and 
approved by the impacted communities, and also by State and local 
agencies that have jurisdiction over flood control activities.
    (e) Operation and maintenance plans and criteria. The requirements 
for operation and maintenance of flood control measures on areas subject 
to alluvial fan flooding shall be those specified under Sec. 65.10, 
paragraphs (c) and (d), when applicable.
    (f) Certification requirements. Data submitted to support that a 
given flood control measure complies with the requirements set forth in 
paragraphs (c) (1) through (6) of this section must be certified by a 
registered professional engineer. Also, certified as-built plans of the 
flood control measures must be submitted. Certifications are subject to 
the definition given at Sec. 65.2.

[54 FR 33551, Aug. 15, 1989, as amended at 74 FR 15342, Apr. 3, 2009]



Sec. 65.14  Remapping of areas for which local flood protection systems
no longer provide base flood protection.

    (a) General. (1) This section describes the procedures to follow and 
the types

[[Page 234]]

of information FEMA requires to designate flood control restoration 
zones. A community may be eligible to apply for this zone designation if 
the Federal Insurance Administrator determines that it is engaged in the 
process of restoring a flood protection system that was:
    (i) Constructed using Federal funds;
    (ii) Recognized as providing base flood protection on the 
community's effective FIRM; and
    (iii) Decertified by a Federal agency responsible for flood 
protection design or construction.
    (2) Where the Federal Insurance Administrator determines that a 
community is in the process of restoring its flood protection system to 
provide base flood protection, a FIRM will be prepared that designates 
the temporary flood hazard areas as a flood control restoration zone 
(Zone AR). Existing special flood hazard areas shown on the community's 
effective FIRM that are further inundated by Zone AR flooding shall be 
designated as a ``dual'' flood insurance rate zone, Zone AR/AE or AR/AH 
with Zone AR base flood elevations, and AE or AH with base flood 
elevations and Zone AR/AO with Zone AR base flood elevations and Zone AO 
with flood depths, or Zone AR/A with Zone AR base flood elevations and 
Zone A without base flood elevations.
    (b) Limitations. A community may have a flood control restoration 
zone designation only once while restoring a flood protection system. 
This limitation does not preclude future flood control restoration zone 
designations should a fully restored, certified, and accredited system 
become decertified for a second or subsequent time.
    (1) A community that receives Federal funds for the purpose of 
designing or constructing, or both, the restoration project must 
complete restoration or meet the requirements of 44 CFR 61.12 within a 
specified period, not to exceed a maximum of 10 years from the date of 
submittal of the community's application for designation of a flood 
control restoration zone.
    (2) A community that does not receive Federal funds for the purpose 
of constructing the restoration project must complete restoration within 
a specified period, not to exceed a maximum of 5 years from the date of 
submittal of the community's application for designation of a flood 
control restoration zone. Such a community is not eligible for the 
provisions of Sec. 61.12. The designated restoration period may not be 
extended beyond the maximum allowable under this limitation.
    (c) Exclusions. The provisions of these regulations do not apply in 
a coastal high hazard area as defined in 44 CFR 59.1, including areas 
that would be subject to coastal high hazards as a result of the 
decertification of a flood protection system shown on the community's 
effective FIRM as providing base flood protection.
    (d) Effective date for risk premium rates. The effective date for 
any risk premium rates established for Zone AR shall be the effective 
date of the revised FIRM showing Zone AR designations.
    (e) Application and submittal requirements for designation of a 
flood control restoration zone. A community must submit a written 
request to the Federal Insurance Administrator, signed by the 
community's Chief Executive Officer, for a flood plain designation as a 
flood control restoration zone. The request must include a legislative 
action by the community requesting the designation. The Federal 
Insurance Administrator will not initiate any action to designate flood 
control restoration zones without receipt of the formal request from the 
community that complies with all requirements of this section. The 
Federal Insurance Administrator reserves the right to request additional 
information from the community to support or further document the 
community's formal request for designation of a flood control 
restoration zone, if deemed necessary.
    (1) At a minimum, the request from a community that receives Federal 
funds for the purpose of designing, constructing, or both, the 
restoration project must include:
    (i) A statement whether, to the best of the knowledge of the 
community's Chief Executive Officer, the flood protection system is 
currently the subject matter of litigation before any Federal, State or 
local court or administrative agency, and if so, the purpose of that 
litigation;

[[Page 235]]

    (ii) A statement whether the community has previously requested a 
determination with respect to the same subject matter from the Federal 
Insurance Administrator, and if so, a statement that details the 
disposition of such previous request;
    (iii) A statement from the community and certification by a Federal 
agency responsible for flood protection design or construction that the 
existing flood control system shown on the effective FIRM was originally 
built using Federal funds, that it no longer provides base flood 
protection, but that it continues to provide protection from the flood 
having at least a 3-percent chance of occurrence during any given year;
    (iv) An official map of the community or legal description, with 
supporting documentation, that the community will adopt as part of its 
flood plain management measures, which designates developed areas as 
defined in Sec. 59.1 and as further defined in Sec. 60.3(f).
    (v) A restoration plan to return the system to a level of base flood 
protection. At a minimum, this plan must:
    (A) List all important project elements, such as acquisition of 
permits, approvals, and contracts and construction schedules of planned 
features;
    (B) Identify anticipated start and completion dates for each 
element, as well as significant milestones and dates;
    (C) Identify the date on which ``as built'' drawings and 
certification for the completed restoration project will be submitted. 
This date must provide for a restoration period not to exceed the 
maximum allowable restoration period for the flood protection system, 
or;
    (D) Identify the date on which the community will submit a request 
for a finding of adequate progress that meets all requirements of 
Sec. 61.12. This date may not exceed the maximum allowable restoration 
period for the flood protection system;
    (vi) A statement identifying the local project sponsor responsible 
for restoration of the flood protection system;
    (vii) A copy of a study, performed by a Federal agency responsible 
for flood protection design or construction in consultation with the 
local project sponsor, which demonstrates a Federal interest in 
restoration of the system and which deems that the flood protection 
system is restorable to a level of base flood protection.
    (viii) A joint statement from the Federal agency responsible for 
flood protection design or construction involved in restoration of the 
flood protection system and the local project sponsor certifying that 
the design and construction of the flood control system involves Federal 
funds, and that the restoration of the flood protection system will 
provide base flood protection;
    (2) At a minimum, the request from a community that receives no 
Federal funds for the purpose of constructing the restoration project 
must:
    (i) Meet the requirements of Sec. 65.14(e)(1)(i) through (iv);
    (ii) Include a restoration plan to return the system to a level of 
base flood protection. At a minimum, this plan must:
    (A) List all important project elements, such as acquisition of 
permits, approvals, and contracts and construction schedules of planned 
features;
    (B) Identify anticipated start and completion dates for each 
element, as well as significant milestones and dates; and
    (C) Identify the date on which ``as built'' drawings and 
certification for the completed restoration project will be submitted. 
This date must provide for a restoration period not to exceed the 
maximum allowable restoration period for the flood protection system;
    (iii) Include a statement identifying the local agency responsible 
for restoration of the flood protection system;
    (iv) Include a copy of a study, certified by registered Professional 
Engineer, that demonstrates that the flood protection system is 
restorable to provide protection from the base flood;
    (v) Include a statement from the local agency responsible for 
restoration of the flood protection system certifying that the restored 
flood protection system will meet the applicable requirements of Part 
65; and

[[Page 236]]

    (vi) Include a statement from the local agency responsible for 
restoration of the flood protection system that identifies the source of 
funds for the purpose of constructing the restoration project and a 
percentage of the total funds contributed by each source. The statement 
must demonstrate, at a minimum, that 100 percent of the total financial 
project cost of the completed flood protection system has been 
appropriated.
    (f) Review and response by the Federal Insurance Administrator. The 
review and response by the Federal Insurance Administrator shall be in 
accordance with procedures specified in Sec. 65.9.
    (g) Requirements for maintaining designation of a flood control 
restoration zone. During the restoration period, the community and the 
cost-sharing Federal agency, if any, must certify annually to the FEMA 
Regional Office having jurisdiction that the restoration will be 
completed in accordance with the restoration plan within the time period 
specified by the plan. In addition, the community and the cost-sharing 
Federal agency, if any, will update the restoration plan and will 
identify any permitting or construction problems that will delay the 
project completion from the restoration plan previously submitted to the 
Federal Insurance Administrator. The FEMA Regional Office having 
jurisdiction will make an annual assessment and recommendation to the 
Federal Insurance Administrator as to the viability of the restoration 
plan and will conduct periodic on-site inspections of the flood 
protection system under restoration.
    (h) Procedures for removing flood control restoration zone 
designation due to adequate progress or complete restoration of the 
flood protection system. At any time during the restoration period:
    (1) A community that receives Federal funds for the purpose of 
designing, constructing, or both, the restoration project shall provide 
written evidence of certification from a Federal agency having flood 
protection design or construction responsibility that the necessary 
improvements have been completed and that the system has been restored 
to provide protection from the base flood, or submit a request for a 
finding of adequate progress that meets all requirements of Sec. 61.12. 
If the Administrator determines that adequate progress has been made, 
FEMA will revise the zone designation from a flood control restoration 
zone designation to Zone A99.
    (2) After the improvements have been completed, certified by a 
Federal agency as providing base flood protection, and reviewed by FEMA, 
FEMA will revise the FIRM to reflect the completed flood control system.
    (3) A community that receives no Federal funds for the purpose of 
constructing the restoration project must provide written evidence that 
the restored flood protection system meets the requirements of Part 65. 
A community that receives no Federal funds for the purpose of 
constructing the restoration project is not eligible for a finding of 
adequate progress under Sec. 61.12.
    (4) After the improvements have been completed and reviewed by FEMA, 
FEMA will revise the FIRM to reflect the completed flood protection 
system.
    (i) Procedures for removing flood control restoration zone 
designation due to non-compliance with the restoration schedule or as a 
result of a finding that satisfactory progress is not being made to 
complete the restoration. At any time during the restoration period, 
should the Federal Insurance Administrator determine that the 
restoration will not be completed in accordance with the time frame 
specified in the restoration plan, or that satisfactory progress is not 
being made to restore the flood protection system to provide complete 
flood protection in accordance with the restoration plan, the Federal 
Insurance Administrator shall notify the community and the responsible 
Federal agency, in writing, of the determination, the reasons for that 
determination, and that the FIRM will be revised to remove the flood 
control restoration zone designation. Within thirty (30) days of such 
notice, the community may submit written information that provides 
assurance that the restoration will be completed in accordance with the 
time frame specified in the restoration plan, or that satisfactory 
progress is being made to restore complete protection in accordance with 
the restoration plan, or that, with reasonable certainty, the

[[Page 237]]

restoration will be completed within the maximum allowable restoration 
period. On the basis of this information the Federal Insurance 
Administrator may suspend the decision to revise the FIRM to remove the 
flood control restoration zone designation. If the community does not 
submit any information, or if, based on a review of the information 
submitted, there is sufficient cause to find that the restoration will 
not be completed as provided for in the restoration plan, the Federal 
Insurance Administrator shall revise the FIRM, in accordance with 44 CFR 
Part 67, and shall remove the flood control restoration zone 
designations and shall redesignate those areas as Zone A1-30, AE, AH, 
AO, or A.

[62 FR 55717, Oct. 27, 1997]



Sec. 65.15  List of communities submitting new technical data.

    This section provides a cumulative list of communities where 
modifications of the base flood elevation determinations have been made 
because of submission of new scientific or technical data. Due to the 
need for expediting the modifications, the revised map is already in 
effect and the appeal period commences on or about the effective date of 
the modified map. An interim rule, followed by a final rule, will list 
the revised map effective date, local repository and the name and 
address of the Chief Executive Officer of the community. The map(s) is 
(are) effective for both flood plain management and insurance purposes.

[51 FR 30317, Aug. 25, 1986. Redesignated at 53 FR 16279, May 6, 1988, 
and further redesignated at 54 FR 33551, Aug. 15, 1989. Redesignated at 
59 FR 53599, Oct. 25, 1994]

    Editorial Note: For references to FR pages showing lists of eligible 
communities, see the List of CFR Sections Affected, which appears in the 
Finding Aids section of the printed volume and at www.fdsys.gov.



Sec. 65.16  Standard Flood Hazard Determination Form and Instructions.

    (a) Section 528 of the National Flood Insurance Reform Act of 1994 
(42 U.S.C. 1365(a)) directs FEMA to develop a standard form for 
determining, in the case of a loan secured by improved real estate or a 
mobile home, whether the building or mobile home is located in an area 
identified by the Director as an area having special flood hazards and 
in which flood insurance under this title is available. The purpose of 
the form is to determine whether a building or mobile home is located 
within an identified Special Flood Hazard Area (SFHA), whether flood 
insurance is required, and whether federal flood insurance is available. 
Use of this form will ensure that required flood insurance coverage is 
purchased for structures located in an SFHA, and will assist federal 
entities for lending regulation in assuring compliance with these 
purchase requirements.
    (b) The form is available by written request to Federal Emergency 
Management Agency, PO Box 2012, Jessup, MD 20794; ask for the Standard 
Flood Hazard Determination form. It is also available by fax-on-demand; 
call (202) 646-3362, form #23103. Finally, the form is available through 
the Internet at http://www.fema.gov/nfip/mpurfi.htm.

[63 FR 27857, May 21, 1998]



Sec. 65.17  Review of determinations.

    This section describes the procedures that shall be followed and the 
types of information required by FEMA to review a determination of 
whether a building or manufactured home is located within an identified 
Special Flood Hazard Area (SFHA).
    (a) General conditions. The borrower and lender of a loan secured by 
improved real estate or a manufactured home may jointly request that 
FEMA review a determination that the building or manufactured home is 
located in an identified SFHA. Such a request must be submitted within 
45 days of the lender's notification to the borrower that the building 
or manufactured home is in the SFHA and that flood insurance is 
required. Such a request must be submitted jointly by the lender and the 
borrower and shall include the required fee and technical information 
related to the building or manufactured home. Elevation data will not be 
considered under the procedures described in this section.
    (b) Data and other requirements. Items required for FEMA's review of 
a determination shall include the following:
    (1) Payment of the required fee by check or money order, in U.S. 
funds,

[[Page 238]]

payable to the National Flood Insurance Program;
    (2) A request for FEMA's review of the determination, signed by both 
the borrower and the lender;
    (3) A copy of the lender's notification to the borrower that the 
building or manufactured home is in an SFHA and that flood insurance is 
required (the request for review of the determination must be postmarked 
within 45 days of borrower notification);
    (4) A completed Standard Flood Hazard Determination Form for the 
building or manufactured home, together with a legible hard copy of all 
technical data used in making the determination; and
    (5) A copy of the effective NFIP map (Flood Hazard Boundary Map 
(FHBM) or Flood Insurance Rate Map (FIRM)) panel for the community in 
which the building or manufactured home is located, with the building or 
manufactured home location indicated. Portions of the map panel may be 
submitted but shall include the area of the building or manufactured 
home in question together with the map panel title block, including 
effective date, bar scale, and north arrow.
    (c) Review and response by FEMA. Within 45 days after receipt of a 
request to review a determination, FEMA will notify the applicants in 
writing of one of the following:
    (1) Request submitted more than 45 days after borrower notification; 
no review will be performed and all materials are being returned;
    (2) Insufficient information was received to review the 
determination; therefore, the determination stands until a complete 
submittal is received; or
    (3) The results of FEMA's review of the determination, which shall 
include the following:
    (i) The name of the NFIP community in which the building or 
manufactured home is located;
    (ii) The property address or other identification of the building or 
manufactured home to which the determination applies;
    (iii) The NFIP map panel number and effective date upon which the 
determination is based;
    (iv) A statement indicating whether the building or manufactured 
home is within the Special Flood Hazard Area;
    (v) The time frame during which the determination is effective.

[60 FR 62218, Dec. 5, 1995]



PART 66_CONSULTATION WITH LOCAL OFFICIALS--Table of Contents



Sec.
66.1  Purpose of part.
66.2  Definitions.
66.3  Establishment of community case file and flood elevation study 
          docket.
66.4  Appointment of consultation coordination officer.
66.5  Responsibilities for consultation and coordination.

    Authority: 42 U.S.C. 4001 et seq.; Reorganization Plan No. 3 of 
1978; E.O. 12127.



Sec. 66.1  Purpose of part.

    (a) The purpose of this part is to comply with section 206 of the 
Flood Disaster Protection Act of 1973 (42 U.S.C. 4107) by establishing 
procedures for flood elevation determinations of Zones A1-30, AE, AH, AO 
and V1-30, and VE within the community so that adequate consultation 
with the community officials shall be assured.
    (b) The procedures in this part shall apply when base flood 
elevations are to be determined or modified.
    (c) The Federal Insurance Administrator or his delegate shall:
    (1) Specifically request that the community submit pertinent data 
concerning flood hazards, flooding experience, plans to avoid potential 
hazards, estimate of historical and prospective economic impact on the 
community, and such other appropriate data (particularly if such data 
will necessitate a modification of a base flood elevation).
    (2) Notify local officials of the progress of surveys, studies, 
investigations, and of prospective findings, along with data and methods 
employed in reaching such conclusions; and
    (3) Encourage local dissemination of surveys, studies, and 
investigations so that interested persons will have an opportunity to 
bring relevant data to the attention of the community and to the Federal 
Insurance Administrator.

[[Page 239]]

    (4) Carry out the responsibilities for consultation and coordination 
set forth in Sec. 66.5 of this part.

[41 FR 46988, Oct. 26, 1976. Redesignated at 44 FR 31177, May 31, 1979, 
as amended at 47 FR 771, Jan. 7, 1982; 48 FR 44553, Sept. 29, 1983; 49 
FR 4751, Feb. 8, 1984; 50 FR 36028, Sept. 4, 1985]



Sec. 66.2  Definitions.

    The definitions set forth in part 59 of this subchapter are 
applicable to this part.

[41 FR 46988, Oct. 26, 1976. Redesignated at 44 FR 31177, May 31, 1979]



Sec. 66.3  Establishment of community case file and flood elevation
study docket.

    (a) A file shall be established for each community at the time 
initial consideration is given to studying that community in order to 
establish whether or not it contains flood-prone areas. Thereafter, the 
file shall include copies of all correspondence with officials in that 
community. As the community is tentatively identified, provided with 
base flood elevations, or suspended and reinstated, documentation of 
such actions by the Federal Insurance Administrator shall be placed in 
the community file. Even if a map is administratively rescinded or 
withdrawn after notice under part 65 of this subchapter or the community 
successfully rebuts its flood-prone designation, the file will be 
maintained indefinitely.
    (b) A portion of the community file shall be designated a flood 
elevation study consultation docket and shall be established for each 
community at the time the contract is awarded for a flood elevation 
study. The docket shall include copies of (1) all correspondence between 
the Federal Insurance Administrator and the community concerning the 
study, reports of any meetings among the Agency representatives, 
property owners of the community, the state coordinating agency, study 
contractors or other interested persons, (2) relevant publications, (3) 
a copy of the completed flood elevation study, and (4) a copy of the 
Federal Insurance Administrator's final determination.
    (c) A flood elevation determination docket shall be established and 
maintained in accordance with part 67 of this subchapter.

[41 FR 46988, Oct. 26, 1976. Redesignated at 44 FR 31177, May 31, 1979, 
as amended at 48 FR 44544 and 44553, Sept. 29, 1983; 49 FR 4751, Feb. 8, 
1984]



Sec. 66.4  Appointment of consultation coordination officer.

    The Federal Insurance Administrator may appoint an employee of the 
Federal Emergency Management Agency, or other designated Federal 
employee, as the Consultation Coordination Officer, for each community 
when an analysis is undertaken to establish or to modify flood 
elevations pursuant to a new study or a restudy. When a CCO is appointed 
by the Federal Insurance Administrator, the responsibilities for 
consultation and coordination as set forth in Sec. 66.5 shall be carried 
out by the CCO. The Federal Insurance Administrator shall advise the 
community and the state coordinating agency, in writing, of this 
appointment.

[47 FR 771, Jan. 7, 1982, as amended at 49 FR 4751, Feb. 8, 1984]



Sec. 66.5  Responsibilities for consultation and coordination.

    (a) Contact shall be made with appropriate officials of a community 
in which a proposed investigation is undertaken, and with the state 
coordinating agency.
    (b) Local dissemination of the intent and nature of the 
investigation shall be encouraged so that interested parties will have 
an opportunity to bring relevant data to the attention of the community 
and to the Federal Insurance Administrator.
    (c) Submission of information from the community concerning the 
study shall be encouraged.
    (d) Appropriate officials of the community shall be fully informed 
of (1) The responsibilities placed on them by the Program, (2) the 
administrative procedures followed by the Federal Emergency Management 
Agency, (3) the community's role in establishing elevations, and (4) the 
responsibilities of the community if it participates or continues to 
participate in the Program.
    (e) Before the commencement of an initial Flood Insurance Study, the 
CCO

[[Page 240]]

or other FEMA representative, together with a representative of the 
organization undertaking the study, shall meet with officials of the 
community. The state coordinating agency shall be notified of this 
meeting and may attend. At this meeting, the local officials shall be 
informed of (1) The date when the study will commence, (2) the nature 
and purpose of the study, (3) areas involved, (4) the manner in which 
the study shall be undertaken, (5) the general principles to be applied, 
and (6) the intended use of the data obtained. The community shall be 
informed in writing if any of the six preceding items are or will be 
changed after this initial meeting and during the course of the ongoing 
study.
    (f) The community shall be informed in writing of any intended 
modification to the community's final flood elevation determinations or 
the development of new elevations in additional areas of the community 
as a result of a new study or restudy. Such information to the community 
will include the data set forth in paragraph (e) of this section. At the 
discretion of the Regional Administrator in each FEMA Regional Office, a 
meeting may be held to accomplish this requirement.

[47 FR 771, Jan. 7, 1982, as amended at 49 FR 4751, Feb. 8, 1984]



PART 67_APPEALS FROM PROPOSED FLOOD ELEVATION DETERMINATIONS
--Table of Contents



Sec.
67.1  Purpose of part.
67.2  Definitions.
67.3  Establishment and maintenance of a flood elevation determination 
          docket (FEDD).
67.4  Proposed flood elevation determination.
67.5  Right of appeal.
67.6  Basis of appeal.
67.7  Collection of appeal data.
67.8  Appeal procedure.
67.9  Final determination in the absence of an appeal by the community.
67.10  Rates during pendency of final determination.
67.11  Notice of final determination.
67.12  Appeal to District Court.

    Authority: 42 U.S.C. 4001 et seq.; Reorganization Plan No. 3 of 
1978, 3 CFR, 1978 Comp., p. 329; E.O. 12127, 44 FR 19367, 3 CFR, 1979 
Comp., p. 376.

    Source: 41 FR 46989, Oct. 26, 1976, unless otherwise noted. 
Redesignated at 44 FR 31177, May 31, 1979.



Sec. 67.1  Purpose of part.

    The purpose of this part is to establish procedures implementing the 
provisions of section 110 of Flood Disaster Protection Act of 1973.



Sec. 67.2  Definitions.

    The definitions set forth in part 59 of this subchapter are 
applicable to this part.



Sec. 67.3  Establishment and maintenance of a flood elevation
determination docket (FEDD).

    The Federal Insurance Administrator shall establish a docket of all 
matters pertaining to flood elevation determinations. The docket files 
shall contain the following information:
    (a) The name of the community subject to the flood elevation 
determination;
    (b) A copy of the notice of the proposed flood elevation 
determination to the Chief Executive Officer (CEO) of the Community;
    (c) A copy of the notice of the proposed flood elevation 
determination published in a prominent local newspaper of the community;
    (d) A copy of the notice of the proposed flood elevation 
determination published in the Federal Register;
    (e) Copies of all appeals by private persons received by the Federal 
Insurance Administrator from the CEO;
    (f) Copies of all comments received by the Federal Insurance 
Administrator on the notice of the proposed flood elevation 
determination published in the Federal Register.
    (g) A copy of the community's appeal or a copy of its decision not 
to appeal the proposed flood elevation determination;
    (h) A copy of the flood insurance study for the community;
    (i) A copy of the FIRM for the community;
    (j) Copies of all materials maintained in the flood elevation study 
consultation docket; and

[[Page 241]]

    (k) A copy of the final determination with supporting documents.

[41 FR 46989, Oct. 26, 1976. Redesignated at 44 FR 31177, May 31, 1979, 
as amended at 48 FR 44553, Sept. 29, 1983; 49 FR 4751, Feb. 8, 1984]



Sec. 67.4  Proposed flood elevation determination.

    The Federal Insurance Administrator shall propose flood elevation 
determinations in the following manner:
    (a) Publication of the proposed flood elevation determination for 
comment in the Federal Register;
    (b) Notification by certified mail, return receipt requested, of the 
proposed flood elevation determination to the CEO; and
    (c) Publication of the proposed flood elevation determination in a 
prominent local newspaper at least twice during the ten day period 
immediately following the notification of the CEO.

[41 FR 46989, Oct. 26, 1976. Redesignated at 44 FR 31177, May 31, 1979, 
as amended at 48 FR 44553, Sept. 29, 1983; 49 FR 4751, Feb. 8, 1984]

    Editorial Note: For references to FR pages showing lists of flood 
elevation determinations, see the List of CFR Sections Affected, which 
appears in the Finding Aids section of the printed volume and at 
www.fdsys.gov.



Sec. 67.5  Right of appeal.

    (a) Any owner or lessee of real property, within a community where a 
proposed flood elevation determination has been made pursuant to section 
1363 of the National Flood Insurance Act of 1968, as amended, who 
believes his property rights to be adversely affected by the Federal 
Insurance Administrator's proposed determination, may file a written 
appeal of such determination with the CEO, or such agency as he shall 
publicly designate, within ninety days of the second newspaper 
publication of the Federal Insurance Administrator's proposed 
determination.
    (b) [Reserved]

[41 FR 46989, Oct. 26, 1976. Redesignated at 44 FR 31177, May 31, 1979, 
as amended at 48 FR 44553, Sept. 29, 1983; 49 FR 4751, Feb. 8, 1984]



Sec. 67.6  Basis of appeal.

    (a) The sole basis of appeal under this part shall be the possession 
of knowledge or information indicating that the elevations proposed by 
FEMA are scientifically or technically incorrect. Because scientific and 
technical correctness is often a matter of degree rather than absolute 
(except where mathematical or measurement error or changed physical 
conditions can be demonstrated), appellants are required to demonstrate 
that alternative methods or applications result in more correct 
estimates of base flood elevations, thus demonstrating that FEMA's 
estimates are incorrect.
    (b) Data requirements. (1) If an appellant believes the proposed 
base flood elevations are technically incorrect due to a mathematical or 
measurement error or changed physical conditions, then the specific 
source of the error must be identified. Supporting data must be 
furnished to FEMA including certifications by a registered professional 
engineer or licensed land surveyor, of the new data necessary for FEMA 
to conduct a reanalysis.
    (2) If an appellant believes that the proposed base flood elevations 
are technically incorrect due to error in application of hydrologic, 
hydraulic or other methods or use of inferior data in applying such 
methods, the appeal must demonstrate technical incorrectness by:
    (i) Identifying the purported error in the application or the 
inferior data.
    (ii) Supporting why the application is incorrect or data is 
inferior.
    (iii) Providing an application of the same basic methods utilized by 
FEMA but with the changes itemized.
    (iv) Providing background technical support for the changes 
indicating why the appellant's application should be accepted as more 
correct.
    (v) Providing certification of correctness of any alternate data 
utilized or measurements made (such as topographic information) by a 
registered professional engineer or licensed land surveyor, and
    (vi) Providing documentation of all locations where the appellant's 
base flood elevations are different from FEMA's.
    (3) If any appellant believes the proposed base flood elevations are 
scientifically incorrect, the appeal must demonstrate scientific 
incorrectness by:

[[Page 242]]

    (i) Identifying the methods, or assumptions purported to be 
scientifically incorrect.
    (ii) Supporting why the methods, or assumptions are scientifically 
incorrect.
    (iii) Providing an alternative analysis utilizing methods, or 
assumptions purported to be correct.
    (iv) Providing technical support indicating why the appellant's 
methods should be accepted as more correct and
    (v) Providing documentation of all locations where the appellant's 
base flood elevations are different from FEMA's.

[48 FR 31644, July 1, 1983]



Sec. 67.7  Collection of appeal data.

    (a) Appeals by private persons to the CEO shall be submitted within 
ninety (90) days following the second newspaper publication of the 
Federal Insurance Administrator's proposed flood elevation determination 
to the CEO or to such agency as he may publicly designate and shall set 
forth scientific or technical data that tend to negate or contradict the 
Federal Insurance Administrator's findings.
    (b) Copies of all individual appeals received by the CEO shall be 
forwarded, as soon as they are received, to the Federal Insurance 
Administrator for information and placement in the Flood Elevation 
Determination Docket.
    (c) The CEO shall review and consolidate all appeals by private 
persons 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.
    (d) The decision issued by the CEO on the basis of his review, on 
whether an appeal by the community in its own name shall be made, shall 
be filed with the Federal Insurance Administrator not later than ninety 
days after the date of the second newspaper publication of the Federal 
Insurance Administrator's proposed flood elevation determination and 
shall be placed in the FEDD.

[41 FR 46989, Oct. 26, 1976. Redesignated at 44 FR 31177, May 31, 1979, 
as amended at 48 FR 44553, Sept. 29, 1983; 49 FR 4751, Feb. 8, 1984]



Sec. 67.8  Appeal procedure.

    (a) If a community appeals the proposed flood elevation 
determination, the Federal Insurance Administrator 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/her proposed determination is based.
    (b) The Federal Insurance Administrator shall resolve such appeal by 
consultation with officials of the local government, or by 
administrative hearings under the procedures set forth in part 68 of 
this subchapter, or by submission of the conflicting data to an 
independent scientific body or appropriate Federal agency for advice.
    (c) The final determination by the Federal Insurance Administrator 
where an appeal is filed shall be made within a reasonable time.
    (d) Nothing in this section shall be considered to compromise an 
appellant's rights granted under Sec. 67.12.
    (e) The Federal Insurance Administrator shall make available for 
public inspection the reports and other information used in making the 
final determination. This material shall be admissible in a court of law 
in the event the community seeks judicial review in accordance with 
Sec. 67.12.

[41 FR 46989, Oct. 26, 1976. Redesignated at 44 FR 31177, May 31, 1979, 
as amended at 48 FR 44553, Sept. 29, 1983; 49 FR 4751, Feb. 8, 1984]



Sec. 67.9  Final determination in the absence of an appeal by the
community.

    (a) If the Federal Insurance Administrator does not receive an 
appeal from the community within the ninety days provided, he shall 
consolidate and review on their own merits the individual appeals which, 
in accordance with Sec. 67.7 are filed within the community and 
forwarded by the CEO.
    (b) The final determination shall be made pursuant to the procedures 
in Sec. 67.8 and, modifications shall be made of his proposed 
determination as may be appropriate, taking into account the written 
opinion, if any, issued by the

[[Page 243]]

community in not supporting such appeals.

[41 FR 46989, Oct. 26, 1976. Redesignated at 44 FR 31177, May 31, 1979, 
as amended at 48 FR 44553, Sept. 29, 1983; 49 FR 4751, Feb. 8, 1984]



Sec. 67.10  Rates during pendency of final determination.

    (a) Until such time as a final determination is made and proper 
notice is given, no person within a participating community shall be 
denied the right to purchase flood insurance at the subsidized rate.
    (b) After the final determination and upon the effective date of a 
FIRM, risk premium rates will be charged for new construction and 
substantial improvements. The effective date of a FIRM shall begin not 
later than six months after the final flood elevation determination.



Sec. 67.11  Notice of final determination.

    The Federal Insurance Administrator's notice of the final flood 
elevation determination for a community shall be in written form and 
published in the Federal Register, and copies shall be sent to the CEO, 
all individual appellants and the State Coordinating Agency.

[41 FR 46989, Oct. 26, 1976. Redesignated at 44 FR 31177, May 31, 1979, 
as amended at 48 FR 44553, Sept. 29, 1983; 49 FR 4751, Feb. 8, 1984]

    Editorial Note: For the list of communities issued under this 
section, and not carried in the CFR, see the List of CFR Sections 
Affected, which appears in the Finding Aids section of the printed 
volume and at www.fdsys.gov.



Sec. 67.12  Appeal to District Court.

    (a) An appellant aggrieved by the final determination of the Federal 
Insurance Administrator may appeal such determination only to the United 
States District Court for the District within which the community is 
located within sixty days after receipt of notice of determination.
    (b) During the pendency of any such litigation, all final 
determinations of the Federal Insurance Administrator shall be effective 
for the purposes of this title unless stayed by the court for good cause 
shown.
    (c) The scope of review of the appellate court shall be in 
accordance with the provisions of 5 U.S.C. 706, as modified by 42 U.S.C. 
4104(b).

[41 FR 46989, Oct. 26, 1976. Redesignated at 44 FR 31177, May 31, 1979, 
as amended at 48 FR 44544 and 44553, Sept. 29, 1983; 49 FR 4751, Feb. 8, 
1984; 49 FR 33879, Aug. 27, 1984]



PART 68_ADMINISTRATIVE HEARING PROCEDURES--Table of Contents



Sec.
68.1  Purpose of part.
68.2  Definitions.
68.3  Right to administrative hearings.
68.4  Hearing board.
68.5  Establishment of a docket.
68.6  Time and place of hearing.
68.7  Conduct of hearings.
68.8  Scope of review.
68.9  Admissible evidence.
68.10  Burden of proof.
68.11  Determination.
68.12  Relief.

    Authority: 42 U.S.C. 4001 et seq.; Reorganization Plan No. 3 of 
1978; E.O. 12127.

    Source: 47 FR 23449, May 29, 1982, unless otherwise noted.



Sec. 68.1  Purpose of part.

    The purpose of this part is to establish procedures for appeals of 
the Federal Insurance Administrator's base flood elevation 
determinations, whether proposed pursuant to section 1363(e) of the Act 
(42 U.S.C. 4104) or modified because of changed conditions or newly 
acquired scientific and technical information.

[47 FR 23449, May 29, 1982, as amended at 49 FR 33879, Aug. 27, 1984]



Sec. 68.2  Definitions.

    The definitions set forth in part 59 of this subchapter are 
applicable to this part.

[47 FR 23449, May 29, 1982, as amended at 49 FR 33879, Aug. 27, 1984]



Sec. 68.3  Right to administrative hearings.

    If a community appeals the Federal Insurance Administrator's flood 
elevation determination established pursuant to Sec. 67.8 of this 
subchapter, and the Federal Insurance Administrator has determined that 
such appeal cannot be resolved by consultation with

[[Page 244]]

officials of the community or by submitting the conflicting data to an 
independent scientific body or appropriate Federal agency for advice, 
the Federal Insurance Administrator shall hold an administrative hearing 
to resolve the appeal.

[47 FR 23449, May 29, 1982, as amended at 49 FR 33879, Aug. 27, 1984]



Sec. 68.4  Hearing board.

    (a) Each hearing shall be conducted by a three member hearing board 
(hereinafter ``board''). The board shall consist of a hearing officer 
(hereinafter ``Judge'') appointed by the Administrator based upon a 
recommendation by the Office of Personnel Management and two members 
selected by the Judge who are qualified in the technical field of flood 
elevation determinations. The Judge shall consult with anyone he deems 
appropriate to determine the technical qualifications of individuals 
being considered for appointment to the board. The board members shall 
not be FEMA employees.
    (b) The Judge shall be responsible for conducting the hearing, and 
shall make all procedural rulings during the course of the hearing. Any 
formal orders and the final decision on the merits of the hearing shall 
be made by a majority of the board. A dissenting member may submit a 
separate opinion for the record.
    (c) A technically qualified alternate will be appointed by the Judge 
as a member of the board when a technically qualified appointed member 
becomes unavailable. The Administrator will appoint an alternate Judge 
if the appointed Judge becomes unavailable.



Sec. 68.5  Establishment of a docket.

    The Chief Counsel shall establish a docket for appeals referred to 
him/her by the Federal Insurance Administrator for administrative 
hearings. This docket shall include, for each appeal, copies of all 
materials contained in the flood elevation determination docket (FEDD) 
file on the matter, copies of all correspondence in connection with the 
appeal, all motions, orders, statements, and other legal documents, a 
transcript of the hearing, and the board's final determination.

[47 FR 23449, May 29, 1982, as amended at 49 FR 33879, Aug. 27, 1984]



Sec. 68.6  Time and place of hearing.

    (a) The time and place of each hearing shall be designated by the 
Judge for that hearing. The Federal Insurance Administrator and the 
Chief Counsel shall be promptly advised of such designations.
    (b) The board's notice of the time and place of hearing shall be 
sent by the Flood Insurance Docket Clerk by registered or certified 
mail, return receipt requested, to all appellants. Such notice shall 
include a statement indicating the nature of the proceedings and their 
purpose and all appellants' entitlement to counsel. Notice of the 
hearing shall be sent no later than 30 days before the date of hearing 
unless such period is waived by all appellants.

[47 FR 23449, May 29, 1982, as amended at 49 FR 33879, Aug. 27, 1984]



Sec. 68.7  Conduct of hearings.

    (a) The Judge shall be responsible for the fair and expeditious 
conduct of proceedings.
    (b) The Federal Insurance Administrator shall be represented by the 
Chief Counsel or his/her designee.
    (c) One administrative hearing shall be held for any one community 
unless the Federal Insurance Administrator for good cause shown grants a 
separate hearing or hearings.
    (d) The Chief Executive Officer (CEO) of the community or his/her 
designee shall represent all appellants from that community; Provided, 
That any appellant may petition the board to allow such appellant to 
make an appearance on his/her own behalf. Such a petition shall be 
granted only upon a showing of good cause.
    (e) Hearings shall be open to the public.
    (f) A verbatim transcript will be made of the hearing. An appellant 
may order copies of the transcribed verbatim record directly from the 
reporter and will be responsible for payments.

[47 FR 23449, May 29, 1982, as amended at 49 FR 33879, Aug. 27, 1984]

[[Page 245]]



Sec. 68.8  Scope of review.

    Review at administrative hearings shall be limited to: An 
examination of any information presented by each appellant within the 90 
day appeal period indicating that elevations proposed by the Federal 
Insurance Administrator are scientifically or technically incorrect; the 
FIRM; the flood insurance study; its backup data and the references used 
in development of the flood insurance study; and responses by FEMA to 
the issues raised by the appellant(s).

[47 FR 23449, May 29, 1982, as amended at 49 FR 33879, Aug. 27, 1984]



Sec. 68.9  Admissible evidence.

    (a) Legal rules of evidence shall not be in effect at adminstrative 
hearings. However, only evidence relevant to issues within the scope of 
review under Sec. 68.8 shall be admissible.
    (b) Documentary and oral evidence shall be admissible.
    (c) Admissibility of non-expert testimony shall be within the 
discretion of the board.
    (d) All testimony shall be under oath.
    (e) Res judicata/ collateral estoppel. Where there has been a 
previous determination, decision or finding of fact by the Director, one 
of his delegees, an administrative law judge, hearing officer, or 
hearing board regarding the base flood elevations of any other 
community, such determination, decision, or finding of fact shall not be 
binding on the board and may only be admissible into evidence if 
relevant.



Sec. 68.10  Burden of proof.

    The burden shall be on appellant(s) to prove that the flood 
elevation determination is not scientifically or technically correct.



Sec. 68.11  Determination.

    The board shall render its written decision within 45 days after the 
conclusion of the hearing. The entire record of the hearing including 
the board's decision will be sent to the Administrator for review and 
approval. The Administrator shall make the final base flood elevation 
determination by accepting in whole or in part or by rejecting the 
board's decision.



Sec. 68.12  Relief.

    The final determination may be appealed by the appellant(s) to the 
United States district court as provided in section 1363(f) of the Act 
(42 U.S.C. 4104).

                           PART 69 [RESERVED]



PART 70_PROCEDURE FOR MAP CORRECTION--Table of Contents



       Mapping Deficiencies Unrelated to Community-Wide Elevation 
                             Determinations

Sec.
70.1  Purpose of part.
70.2  Definitions.
70.3  Right to submit technical information.
70.4  Review by the Administrator.
70.5  Letter of Map Amendment.
70.6  Distribution of Letter of Map Amendment.
70.7  Notice of Letter of Map Amendment.
70.8  Premium refund after Letter of Map Amendment.
70.9  Review of proposed projects.

    Authority: 42 U.S.C. 4001 et seq.; Reorganization Plan No. 3 of 
1978, 43 FR 41943, 3 CFR, 1978 Comp., p. 329; E.O. 12127 of Mar. 31, 
1979, 44 FR 19367, 3 CFR, 1979 Comp., p. 376.

       Mapping Deficiencies Unrelated to Community-Wide Elevation 
                             Determinations



Sec. 70.1  Purpose of part.

    The purpose of this part is to provide an administrative procedure 
whereby the Federal Insurance Administrator will review the scientific 
or technical submissions of an owner or lessee of property who believes 
his property has been inadvertently included in designated A, AO, A1-30, 
AE, AH, A99, AR, AR/A1-30, AR/AE, AR/AO, AR/AH, AR/A, VO, V1-30, VE, and 
V Zones, as a result of the transposition of the curvilinear line to 
either street or to other readily identifiable features. The necessity 
for this part is due in part to the technical difficulty of accurately 
delineating the curvilinear line on either an FHBM or FIRM. These 
procedures shall not apply when there has been any alteration of 
topography since the effective date of the first

[[Page 246]]

NFIP map (i.e., FHBM or FIRM) showing the property within an area of 
special flood hazard. Appeals in such circumstances are subject to the 
provisions of part 65 of this subchapter.

[62 FR 55718, Oct. 27, 1997]



Sec. 70.2  Definitions.

    The definitions set forth in part 59 of this subchapter are 
applicable to this part.

[41 FR 46991, Oct. 26, 1976. Redesignated at 44 FR 31177, May 31, 1979]



Sec. 70.3  Right to submit technical information.

    (a) Any owner or lessee of property (applicant) who believes his 
property has been inadvertently included in a designated A, AO, A1-30, 
AE, AH, A99, AR, AR/A1-30, AR/AE, AR/AO, AR/AH, AR/A, VO, V1-30, VE, and 
V Zones on a FHBM or a FIRM, may submit scientific or technical 
information to the Federal Insurance Administrator for the Federal 
Insurance Administrator's review.
    (b) Scientific and technical information for the purpose of this 
part may include, but is not limited to the following:
    (1) An actual copy of the recorded plat map bearing the seal of the 
appropriate recordation official (e.g. County Clerk, or Recorder of 
Deeds) indicating the official recordation and proper citation (Deed or 
Plat Book Volume and Page Numbers), or an equivalent identification 
where annotation of the deed or plat book is not the practice.
    (2) A topographical map showing (i) ground elevation contours in 
relation to the National Geodetic Vertical Datum (NVGD) of 1929, (ii) 
the total area of the property in question, (iii) the location of the 
structure or structures located on the property in question, (iv) the 
elevation of the lowest adjacent grade to a structure or structures and 
(v) an indication of the curvilinear line which represents the area 
subject to inundation by a base flood. The curvilinear line should be 
based upon information provided by any appropriate authoritative source, 
such as a Federal Agency, the appropriate state agency (e.g. Department 
of Water Resources), a County Water Control District, a County or City 
Engineer, a Federal Emergency Management Agency Flood Insurance Study, 
or a determination by a Registered Professional Engineer;
    (3) A copy of the FHBM or FIRM indicating the location of the 
property in question;
    (4) A certification by a Registered Professional Engineer or 
Licensed Land Surveyor that the lowest grade adjacent to the structure 
is above the base flood elevation.

[41 FR 46991, Oct. 26, 1976. Redesignated at 44 FR 31177, May 31, 1979, 
as amended at 48 FR 44544 and 44553, Sept. 29, 1983; 49 FR 4751, Feb. 8, 
1984; 50 FR 36028, Sept. 4, 1985; 51 FR 30317, Aug. 25, 1986; 53 FR 
16280, May 6, 1988; 59 FR 53601, Oct. 25, 1994; 62 FR 55719, Oct. 27, 
1997]



Sec. 70.4  Review by the Administrator.

    The Administrator, after reviewing the scientific or technical 
information submitted under the provisions of Sec. 70.3, shall notify 
the applicant in writing of his/her determination within 60 days after 
we receive the applicant's scientific or technical information that we 
have compared either the ground elevations of an entire legally defined 
parcel of land or the elevation of the lowest adjacent grade to a 
structure with the elevation of the base flood and that:
    (a) The property is within a designated A, A0, A1-30, AE, AH, A99, 
AR, AR/A1-30, AR/AE, AR/AO, AR/AH, AR/A, V0, V1-30, VE, or V Zone, and 
will state the basis of such determination; or
    (b) The property should not be within a designated A, A0, A1-30, AE, 
AH, A99, AR, AR/A1-30, AR/AE, AR/AO, AR/AH, AR/A,V0, V1-30, VE, or V 
Zone and that we will modify the FHBM or FIRM accordingly; or
    (c) The property is not within a designated A, A0, A1-30, AE, AH, 
A99, AR, AR/A1-30, AR/AE, AR/AO, AR/AH, AR/A,V0, V1-30, VE, or V Zone as 
shown on the FHBM or FIRM and no modification of the FHBM or FIRM is 
necessary; or
    (d) We need an additional 60 days to make a determination.

[66 FR 33900, June 26, 2001]

[[Page 247]]



Sec. 70.5  Letter of Map Amendment.

    Upon determining from available scientific or technical information 
that a FHBM or a FIRM requires modification under the provisions of 
Sec. 70.4(b), the Administrator shall issue a Letter of Map Amendment 
which shall state:
    (a) The name of the Community to which