Mitigation loan program

(a) Definition In this section, the term mitigation measure means, with respect to a structure, a measure undertaken to reduce the risk of flood damage to the structure. (b) Establishment The Administrator may establish a pilot program through which the Administrator may provide low-interest loans to policyholders under the National Flood Insurance Program for the purposes described in subsection (c). (c) Purposes of loans A loan provided to a policyholder under the pilot program established under subsection (b) shall be used to undertake mitigation measures with respect to the insured property that cost less than the cost of the estimated amount of premiums that would be paid with respect to the property during the 50-year period beginning in the year in which the loan is made and if those mitigation measures were not undertaken. (d) Sale of property If a property with respect to which a loan has been made under this section is sold, upon that sale, the outstanding loan balance shall— (1) be repaid using the proceeds of the sale; or (2) carry over to the purchaser of the property if the purchaser so consents before the execution of the sale.