Refusal of mitigation assistance

Section 1366 of the National Flood Insurance Act of 1968 (42 U.S.C. 4104c) is amended— (1) in subsection (a), in the matter preceding paragraph (1), in the first sentence, by inserting and, with respect to financial assistance described in paragraph (2), using amounts made available from the Disaster Relief Fund in accordance with section 203(n) of the Robert T. Stafford Disaster Relief and Emergency Assistance Act (42 U.S.C. 5133(n)) after section 1367; (2) by redesignating subsection (h) as subsection (i); and (3) by inserting after subsection (g) the following: (h) Refusal of assistance (1) Definition In this subsection, the term bona fide offer of assistance means an offer of assistance made by the Administrator to a policyholder under the national flood insurance program that— (A) relates to mitigation activities with respect to the structure insured under that program; (B) covers 100 percent of the cost of the mitigation activities described in subparagraph (A); (C) permits the policyholder to continue to live in the structure to which the policy relates; and (D) is carried out under a mitigation plan. (2) Penalty If, after the date of enactment of the National Flood Insurance Program Reauthorization and Reform Act of 2025, a policyholder under the national flood insurance program refuses a bona fide offer of assistance with respect to the property so insured, the Administrator shall, notwithstanding any other provision of this title, increase the chargeable risk premium rate for flood insurance under this title for the property by 25 percent each year until— (A) the policyholder accepts the bona fide offer of assistance; or (B) that chargeable risk premium rate is actuarially sound..