
From the U.S. Code Online via GPO Access
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[Laws in effect as of January 23, 2000]
[Document not affected by Public Laws enacted between
  January 23, 2000 and December 4, 2001]
[CITE: 42USC5154a]

 
                 TITLE 42--THE PUBLIC HEALTH AND WELFARE
 
                       CHAPTER 68--DISASTER RELIEF
 
 SUBCHAPTER III--MAJOR DISASTER AND EMERGENCY ASSISTANCE ADMINISTRATION
 
Sec. 5154a. Prohibited flood disaster assistance


(a) General prohibition

    Notwithstanding any other provision of law, no Federal disaster 
relief assistance made available in a flood disaster area may be used to 
make a payment (including any loan assistance payment) to a person for 
repair, replacement, or restoration for damage to any personal, 
residential, or commercial property if that person at any time has 
received flood disaster assistance that was conditional on the person 
first having obtained flood insurance under applicable Federal law and 
subsequently having failed to obtain and maintain flood insurance as 
required under applicable Federal law on such property.

(b) Transfer of property

                         (1) Duty to notify

        In the event of the transfer of any property described in 
    paragraph (3), the transferor shall, not later than the date on 
    which such transfer occurs, notify the transferee in writing of the 
    requirements to--
            (A) obtain flood insurance in accordance with applicable 
        Federal law with respect to such property, if the property is 
        not so insured as of the date on which the property is 
        transferred; and
            (B) maintain flood insurance in accordance with applicable 
        Federal law with respect to such property.

    Such written notification shall be contained in documents evidencing 
    the transfer of ownership of the property.

                        (2) Failure to notify

        If a transferor described in paragraph (1) fails to make a 
    notification in accordance with such paragraph and, subsequent to 
    the transfer of the property--
            (A) the transferee fails to obtain or maintain flood 
        insurance in accordance with applicable Federal law with respect 
        to the property,
            (B) the property is damaged by a flood disaster, and
            (C) Federal disaster relief assistance is provided for the 
        repair, replacement, or restoration of the property as a result 
        of such damage,

    the transferor shall be required to reimburse the Federal Government 
    in an amount equal to the amount of the Federal disaster relief 
    assistance provided with respect to the property.

                       (3) Property described

        For purposes of paragraph (1), a property is described in this 
    paragraph if it is personal, commercial, or residential property for 
    which Federal disaster relief assistance made available in a flood 
    disaster area has been provided, prior to the date on which the 
    property is transferred, for repair, replacement, or restoration of 
    the property, if such assistance was conditioned upon obtaining 
    flood insurance in accordance with applicable Federal law with 
    respect to such property.

(c) Omitted

(d) ``Flood disaster area'' defined

    For purposes of this section, the term ``flood disaster area'' means 
an area with respect to which--
        (1) the Secretary of Agriculture finds, or has found, to have 
    been substantially affected by a natural disaster in the United 
    States pursuant to section 1961(a) of title 7; or
        (2) the President declares, or has declared, the existence of a 
    major disaster or emergency pursuant to the Robert T. Stafford 
    Disaster Relief and Emergency Assistance Act (42 U.S.C. 5121 et 
    seq.), as a result of flood conditions existing in or affecting that 
    area.

(e) Effective date

    This section and the amendments made by this section shall apply to 
disasters declared after September 23, 1994.

(Pub. L. 103-325, title V, Sec. 582, Sept. 23, 1994, 108 Stat. 2286.)

                       References in Text

    The Robert T. Stafford Disaster Relief and Emergency Assistance Act, 
referred to in subsec. (d)(2), is Pub. L. 93-288, May 22, 1974, 88 Stat. 
143, as amended, which is classified principally to this chapter. For 
complete classification of this Act to the Code, see Short Title note 
set out under section 5121 of this title and Tables.
    The amendments made by this section, referred to in subsec. (e), 
means the amendments made by section 582(c) of Pub. L. 103-325, which 
amended section 4012a of this title. See Codification note below.

                          Codification

    Section is comprised of section 582 of Pub. L. 103-325. Subsec. (c) 
of section 582 of Pub. L. 103-325 amended section 4012a of this title.
    Section was enacted as part of the National Flood Insurance Reform 
Act of 1994 and as part of the Riegle Community Development and 
Regulatory Improvement Act of 1994, and not as part of the Robert T. 
Stafford Disaster Relief and Emergency Assistance Act which comprises 
this chapter.
