Sending Office: Honorable Charlie Crist
The State Flood Mitigation Revolving Fund Act (H.R.7037)
Organizations endorsing the legislation: Pew Charitable Trusts, Union of Concerned Scientists, Association of State Floodplain Managers, Association of State Wetland Managers, Enterprise Community Partners, Mortgage Coalition, International
Association of Structural Movers
Current Cosponsors: Crist, Williams
Flooding is the costliest and most common natural disaster in the United States. Unfortunately, current federal programs designed to reduce flood losses have been insufficient to meet the nation’s needs. In addition, the vast majority of federal mitigation
dollars are spent after a disaster occurs – when costs are higher and families and communities are grappling with the emotional toll wrought by the destruction. A recent study from the National Institute of Building Sciences shows that for every
$1 spent on mitigation, $6 is saved in post-disaster costs.[i] Given this, there is clear need for a robust and stable federal program to support flood mitigation activities.
Enter H.R.7037, the State Flood Mitigation Revolving Fund Act. Modeled after the successful Clean Water and Drinking Water State Revolving Loan Funds, this bill would establish a state revolving loan program to fund flood mitigation projects for
homeowners, businesses, nonprofits, and communities. Over time, this program would yield returns in avoided federal post-disaster spending, as well as avoided heartache for American families. Specifically, the bill would:
- Authorize FEMA to enter into agreements with states (including Washington, DC and Puerto Rico) to establish a flood mitigation revolving loan fund to provide assistance to decrease flood risk. A set-aside is included for tribal and insular areas.
- States must provide a small cost-share and can use their funds to offer low-interest loans to homeowners, businesses, non-profits, and communities that participate in the National Flood Insurance Program (NFIP) to fund flood mitigation activities.
- Fifty-percent (50%) of the federal funds is allocated proportionately based on the number of NFIP policies held in each eligible state. The other fifty-percent (50%) is allocated based on the relative average premium paid in each eligible state. Any state
that receives less than $4 million in funding is not required to establish a revolving loan fund, but can instead use their funding as grants for flood mitigation projects.
- States must use their funds for flood mitigation projects, as defined by FEMA, produce intended use plans, and prioritize mitigating severe repetitive loss, repetitive loss, and pre-FIRM buildings, as well as low-income homeowners and communities.
- Low-interest loans are available to middle and low-income homeowners and communities. At their discretion, states can offer additional subsidies for individuals who do not have the wherewithal to assume additional debt.
- FEMA must provide appropriate NFIP premium reductions to account for mitigation activities undertaken through this program.
Flooding is not solely a coastal issue. It can occur anywhere, and at any time. Please join us in supporting American families and communities by cosponsoring H.R.7037, the
State Flood Mitigation Revolving Fund Act. If you have any questions or would like to cosponsor the bill, please contact Sarah Hanson in Rep. Crist’s office (Sarah.Hanson1@mail.house.gov) or Pat Arlantico
in Rep. William’s office (Patrick.Arlantico@mail.house.gov).
Charlie Crist Roger Williams
Member of Congress Member of Congress
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