Title 42 — The Public Health and WelfareRelease 119-73
§4106 Nonparticipation in flood insurance program
Title 42 › Chapter CHAPTER 50— - NATIONAL FLOOD INSURANCE › Subchapter SUBCHAPTER III— - COORDINATION OF FLOOD INSURANCE WITH LAND-MANAGEMENT PROGRAMS IN FLOOD-PRONE AREAS › § 4106
Summary
Federal agencies cannot approve federal funds for buying or building on land in places labeled as special flood hazards after July 1, 1975 unless the local community takes part in the National Flood Insurance Program. In addition to the rules in section 4104a, agencies that set rules for lenders must make banks and federal lenders tell a buyer or renter—when they make, increase, extend, or renew a loan that uses that property as security—whether federal disaster flood relief would be available for that property.
Full Legal Text
Title 42, §4106
The Public Health and Welfare — Source: USLM XML via OLRC
(a)No Federal officer or agency shall approve any financial assistance for acquisition or construction purposes on and after July 1, 1975, for use in any area that has been identified by the Administrator as an area having special flood hazards unless the community in which such area is situated is then participating in the national flood insurance program.
(b)In addition to the requirements of section 4104a of this title, each Federal entity for lending regulation shall by regulation require the regulated lending institutions described in such section, and each Federal agency lender shall issue regulations requiring the Federal agency lender, described in such section to notify (as a condition of making, increasing, extending, or renewing any loan secured by property described in such section) the purchaser or lessee of such property of whether, in the event of a disaster caused by flood to such property, Federal disaster relief assistance will be available to such property.
Legislative History
Notes & Related Subsidiaries
Editorial Notes
Codification Section was enacted as part of the Flood Disaster Protection Act of 1973, and not as part of the National Flood Insurance Act of 1968 which comprises this chapter.
Amendments
2012—Subsec. (a). Pub. L. 112–141 substituted “Administrator” for “Director”. 1994—Subsec. (b). Pub. L. 103–325 substituted “Federal entity for lending regulation shall by regulation require the regulated lending institutions described in such section, and each Federal agency lender shall issue
Regulations
requiring the Federal agency lender,” for “Federal instrumentality described in such section shall by regulation require the institutions”. 1983—Subsec. (a). Pub. L. 98–181 substituted “Director” for “Secretary”. 1977—Subsec. (b). Pub. L. 95–128 substituted provisions respecting notification of purchaser or lessee of property in flood hazards area of availability of Federal disaster relief assistance in the event of a flood disaster for
Prior Provisions
relating to: Federal
Regulations
against loans by financial institutions, unaffected pre-
March 1, 1976, residences, small business concerns, improvements under $5,000 and nonresidential farm improvement. 1976—Subsec. (b). Pub. L. 94–375 incorporated provision regarding any loan made prior to
March 1, 1976, to finance the acquisition of a previously occupied residential dwelling into cl. (1) as so designated, added remainder of cl. (1), and cls. (2) to (4). 1975—Subsec. (b). Pub. L. 94–198 substituted “
March 1, 1976” for “
January 1, 1976”. Pub. L. 94–50 inserted provision excepting from the prohibition of this section any loan made prior to
January 1, 1976, to finance the acquisition of a previously occupied residential dwelling.
Statutory Notes and Related Subsidiaries
Transfer of Functions
For transfer of all functions, personnel, assets, components, authorities, grant programs, and liabilities of the Federal Emergency Management Agency, including the functions of the Under Secretary for Federal Emergency Management relating thereto, to the Federal Emergency Management Agency, see section 315(a)(1) of Title 6, Domestic Security. For
Transfer of Functions
, personnel, assets, and liabilities of the Federal Emergency Management Agency, including the functions of the Director of the Federal Emergency Management Agency relating thereto, to the Secretary of Homeland Security, and for treatment of related references, see former section 313(1) and section 551(d), 552(d), and 557 of Title 6, Domestic Security, and the Department of Homeland Security Reorganization Plan of November 25, 2002, as modified, set out as a note under section 542 of Title 6.
Executive Documents
Floodplain ManagementFor provisions relating to the reduction of the risk of flood loss, the minimization of the impact of floods on human safety, health and welfare, and the management of floodplains, see Ex. Ord. No. 11988, May 24, 1977, 42 F.R. 26951 set out as a note under section 4321 of this title.
Reference
Citations & Metadata
Citation
42 U.S.C. § 4106
Title 42 — The Public Health and Welfare
Last Updated
Apr 6, 2026
Release point: 119-73