Grants to entities for establishment of STORM Fortified Roof revolving loan funds

(a) General authority (1) In general The Administrator may enter into agreements with eligible entities to make capitalization grants to such entities for the establishment of STORM FORTIFIED Roof revolving loan funds (referred to in this section as entity loan funds) for providing funding assistance to homeowners to carry out eligible projects under section 5 for the installation of mitigation measures for FORTIFIED Roof, FORTIFIED Home, or Wildfire Prepared Home designations. (2) Agreements Any agreement entered into under this section shall require the participating entity to— (A) comply with the requirements of this section; and (B) use accounting, audit, and fiscal procedures conforming to generally accepted accounting standards. (b) Application (1) In general To be eligible to receive a capitalization grant under this section, an eligible entity shall submit to the Administrator an application at such time, in such manner, and containing such information as the Administrator may require. (2) Technical assistance The Administrator shall provide technical assistance to eligible entities for applications under this section. (c) Entity loan fund (1) Establishment of fund An entity that receives a capitalization grant under this section shall establish an entity loan fund that complies with the requirements of this subsection. (2) Fund management Except as provided in paragraph (3), entity loan funds shall— (A) be administered by the State agency; and (B) include only— (i) funds provided by a capitalization grant under this section; (ii) repayments of loans under this section and section 5 to the entity loan fund; and (iii) interest earned on amounts in the entity loan fund. (3) Administration A participating entity may combine the financial administration of the entity loan fund of such entity with the financial administration of any other revolving fund established by such entity if the Administrator determines that— (A) the capitalization grant, entity share, repayments of loans, and interest earned on amounts in the entity loan fund are accounted for separately from other amounts in the revolving fund; and (B) the authority to establish assistance priorities and carry out oversight activities remains in the control of the entity agency responsible for homeowner mitigation grants. (4) Entity share of funds (A) In general On or before the date on which a participating entity receives a capitalization grant under this section, the entity shall deposit into the entity loan fund of such entity, an amount equal to not less than 35 percent of the amount of the capitalization grant. An entity's appropriations or deposits into another fund for an existing grant program that covers all or some of the mitigation measures in subsection (1)(a) shall count towards entity loan fund deposits. (B) Reduced grant If, with respect to a capitalization grant under this section, a participating entity deposits in the entity loan fund of the entity an amount that is less than 35 percent of the total amount of the capitalization grant that the participating entity would otherwise receive, the Administrator shall reduce the amount of the capitalization grant received by the entity so that the deposit is 35 percent of the new capitalization amount. (d) Apportionment (1) In general Except as otherwise provided by this subsection, the Administrator shall apportion funds made available to carry out this section to entities that have entered into an agreement under subsection (a)(2) in amounts as determined by the Administrator. (2) Reservation of funds The Administrator of the Federal Emergency Management Agency may set aside up to 3 percent of the funds made available to carry out this Act for technical assistance, guidance updates, data systems (including FEMA Go), and oversight to address gaps in clarity and consistency identified by the Comptroller General of the United States. (e) Use of funds Amounts deposited in an entity loan fund, including loan repayments and interest earned on such amounts, may be used— (1) to make loans to State agencies, on the condition that— (A) such loans are made at an interest rate of not more than 1 percent; (B) annual principal and interest payments will commence not later than 1 year after completion of any project and all loans made under this subparagraph will be fully amortized, except for the forgivable portion of any loan described in section 5— (i) not later than 20 years after the date on which the project is completed; or (ii) for projects in a low-income geographic area, not later than 30 years after the date on which the project is completed and not longer than the expected design life of the project; (C) the loan recipient of a loan under this subparagraph establishes a dedicated source of revenue for repayment of the loan; and (D) the entity loan fund will be credited with all payments of principal and interest on all loans made under this subparagraph; (2) for the reasonable costs of administering the fund and conducting activities under this section, except that such amounts shall not exceed $100,000 per year, 2 percent of the capitalization grants made to the participating entity in a fiscal year, or 1 percent of the value of the entity loan fund, whichever amount is greatest, plus the amount of any fees collected by the entity for such purpose regardless of the source; and (3) to earn interest on the entity loan fund. (f) Intended use plans (1) In general After providing for public comment and review, and consultation with appropriate government agencies of the State or Indian tribal government, Federal agencies, and interest groups, each participating entity shall annually prepare and submit to the Administrator a plan identifying the intended uses of the entity loan fund. (2) Contents of plans An entity intended use plan prepared under paragraph (1) shall include a list of proposed projects describing targeted geographies, expected numbers of grants made, income-based forgiveness volumes, and projected loan revolving schedules. (g) Audits, reports, publications, and oversight (1) Biennial entity audit and report Beginning not later than the last day of the second fiscal year after the receipt of payments under this section, and biennially thereafter, any participating entity shall— (A) conduct an audit of the entity loan fund established under subsection (c); and (B) provide to the Administrator a report including— (i) the result of any such audit; and (ii) a review of the effectiveness of the entity loan fund of the entity with respect to meeting the goals and intended benefits described in the intended use plan submitted by the entity under subsection (g). (2) Oversight (A) In general The Administrator shall, at least every 4 years, conduct reviews and audits as may be determined necessary or appropriate by the Administrator to carry out the objectives of this section and determine the effectiveness of the fund. (B) GAO requirements A participating entity shall conduct audits under paragraph (1) in accordance with the auditing procedures of the Government Accountability Office, including generally accepted government auditing standards. (C) Recommendations by Administrator The Administrator may at any time make recommendations for or require specific changes to an entity loan fund in order to improve the effectiveness of the fund. (D) Use of FEMA Go All applications, awards, and closeouts under a revolving loan fund established pursuant to this section shall use FEMA GO and conform to auditing and recordkeeping requirements applicable to revolving loan funds established pursuant to section 205 of the Robert T. Stafford Disaster Relief and Emergency Assistance Act (42 U.S.C. 5135). (h) Regulations or guidance Not later than 180 days after the date of enactment of this Act, the Administrator shall publish clarified guidance for the specialized use-case under this section addressing reporting, forgiveness accounting, and equity targeting, consistent with recommendations of the Comptroller General of the United States. (i) Waiver authority Until such time as the Administrator issues final regulations to implement this section, the Administrator may— (1) waive notice and comment rulemaking, if the Administrator determines the waiver is necessary to expeditiously implement this section; and (2) provide capitalization grants under this section as a pilot program. (j) Liability protections The Agency shall not be liable for any claim based on the exercise or performance of, or the failure to exercise or perform, a discretionary function or duty by the Agency, or an employee of the Agency in carrying out this section. (k) Insurance coordination The Administrator shall encourage State agencies establishing a revolving fund under this section to coordinate with insurers to recognize FORTIFIED Roof, FORTIFIED Home, or Wildfire Prepared Home certificates for actuarially justified premium discounts and to publicize State incentives where available, following the Eligibility Criteria model. (l) Compliance with environmental and building codes Projects carried out under this section shall comply with applicable building codes, environmental planning, and historic preservation requirements as outlined in the Notice of Funding Opportunities for projects carried out under section 205 of the Robert T. Stafford Disaster Relief and Emergency Assistance Act (42 U.S.C. 5135).