[Federal Register Volume 60, Number 25 (Tuesday, February 7, 1995)]
[Rules and Regulations]
[Pages 7130-7131]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 95-2960]
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FEDERAL EMERGENCY MANAGEMENT AGENCY
44 CFR Part 206
RIN 3067-AC28
Individual and Family Grant Program
AGENCY: Federal Emergency Management Agency (FEMA).
ACTION: Interim final rule.
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SUMMARY: This interim final rule changes flood insurance regulations
for recipients of Federal disaster assistance from the Individual and
Family Grant Program.
DATES: This interim final rule is retroactive to September 23, 1994. We
invite comments on this interim final rule, which should be received by
April 10, 1995.
ADDRESSES: Please send any comments to the Rules Docket Clerk, Office
of the General Counsel, Federal Emergency Management Agency, 500 C
Street SW., room 840, Washington, DC 20472, (facsimile) (202) 646-4536.
FOR FURTHER INFORMATION CONTACT: Laurence W. Zensinger, Response and
Recovery Directorate, Federal Emergency Management Agency, 500 C Street
SW., Washington, DC 20472, (202) 646-4262, (facsimile) (202) 646-2730.
SUPPLEMENTARY INFORMATION: On September 23, 1994, the President signed
Public Law 103-325, the National Flood Insurance Reform Act of 1994
(NFIRA). Section 582(c) of the NFIRA amends section 102(a) of the Flood
Disaster Protection Act of 1973 (42 U.S.C. 4012a(a)): ``(1) By striking
`* * * during the anticipated economic or useful life of the project,';
and (2) by adding at the end the following: The requirement of
maintaining flood insurance shall apply during the life of the
property, regardless of transfer of ownership of such property.''
FEMA interprets this section as a requirement that all Individual
and Family Grant (IFG) applicants who receive Federal disaster
assistance for flood damage to real or personal property, or to both,
must purchase and maintain flood insurance on the property until the
time they move to another address. If not, then no IFG grant under
section 411(a) for real or personal property damage or loss may be
awarded in any subsequent flood disasters. This maintenance provision
also applies to individuals who bought, or otherwise had transferred to
them, any real estate for which the flood insurance maintenance
requirement was previously (after September 23, 1994) levied.
The minimum amount of coverage required will be equivalent to the
maximum IFG grant amount each fiscal year. This amount is $12,600 in
Fiscal Year 1995 and is adjusted annually based on the Consumer Price
Index for All Urban Consumers. Renters must be covered for at least
$12,600 for personal property only, whereas homeowners must be covered
for at least $7,000 for real property and $5,600 for personal property.
Section 582 and amendments made by that section apply to disasters
declared after September 23, 1994, which include the following flood
disasters:
1. FEMA-1041-DR, Texas--declared October 18, 1994;
2. FEMA-1042-DR, Georgia--declared October 19, 1994;
3. FEMA-1043-DR, Florida--declared November 28, 1994; and
4. FEMA-1044-DR, California--declared January 10, 1995; and any
subsequent flood disasters declared by the President.
FEMA is publishing this interim final rule in order to implement
the mandate of the National Flood Insurance Reform Act of 1994 that the
flood insurance purchase requirement be in effect as of the date of
enactment, September 23, 1994. While the interim final rule is
retroactively effective from September 23, 1994, FEMA invites your
written comments on the rule and asks that you send them to the Rules
Docket Clerk at the ADDRESSES caption set out above.
National Environmental Policy Act
This rule is categorically excluded from the requirements of 44 CFR
part 10, Environmental Consideration. No environmental impact
assessment has been prepared.
Executive Order 12866, Regulatory Planning and Review
This interim rule is not a significant regulatory action within the
meaning of Sec. 2(f) of E.O. 12866 of September 30, 1993, 58 FR 51735,
and has not been reviewed by the Office of Management and Budget.
Nevertheless, this interim rule adheres to the regulatory principles
set forth in E.O. 12866.
Paperwork Reduction Act
This rule does not contain a collection of information requirement
as described in section 3504(h) of the Paperwork Reduction Act.
Executive Order 12612, Federalism
This rule involves no policies that have federalism implications
under E.O. 12612, Federalism, dated October 26, 1987.
Executive Order 12778, Civil Justice Reform
This rule meets the applicable standards of section 2(b)(2) of E.O.
12778.
List of Subjects in 44 CFR Part 206
Administrative practice and procedure, Disaster assistance, Grant
programs--housing and community development, Insurance. Accordingly, 44
CFR part 206 is amended as follows:
PART 206--[AMENDED]
Subpart E--Individual and Family Grant Programs
1. The authority citation for part 206 continues to read as
follows:
Authority: The Robert T. Stafford Disaster Relief and Emergency
Assistance Act, 42 U.S.C. 5121 et seq.; Reorganization Plan No. 3 of
1978, 5 U.S.C. App. 1; E.O. 12148, 3 CFR, 1979 Comp., p. 412; and
E.O. 12673, 3 CFR, 1989 Comp., p. 214.
2. Section 206.131(d)(1)(iii), paragraphs (C)(1) and (D), is
revised to read as follows:
Sec. 206.131 Individual and Family Grant Programs.
* * * * *
(d) * * *
(l) * * *
(iii) * * *
(C) (1) The State may not make a grant for acquisition or
construction purposes in a designated special flood hazard area in
which the sale of flood insurance is available under the NFIP unless
the individual or family agrees to purchase adequate flood insurance
and to maintain such insurance for as long as they live at that
property address. The coverage shall be for a full $12,600 (to be
adjusted annually based on the Consumer Price Index for all Urban
Consumers). If the grantee is a homeowner, flood insurance coverage
must be maintained on the residence at the flood-damaged property
address for as long as the structure exists if the grantee, or any
subsequent owner of that real estate, ever wishes to be assisted by the
Federal government with any subsequent flood losses to real or
[[Page 7131]] personal property, or both. If the grantee is a renter,
flood insurance coverage must be maintained on the contents for as long
as the renter resides at the flood-damaged property address. The
restriction is lifted once the renter moves from the rental unit.
* * * * *
(D) A State may not make a grant to any individual or family who
received Federal disaster assistance for flood damage occurring after
September 23, 1994, if the individual or family received flood disaster
assistance and was required, but failed, to purchase and maintain flood
insurance as a condition of receiving that Federal flood disaster
assistance.
* * * * *
Dated: January 31, 1995.
Richard W. Krimm,
Associate Director, Response and Recovery.
[FR Doc. 95-2960 Filed 2-6-95; 8:45 am]
BILLING CODE 6718-02-P
