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Title 42, The Public Health and WelfareRelease 119-110

§5154a Prohibited Flood Disaster Assistance

Title 42 › CHAPTER 68 — DISASTER RELIEF › SUBCHAPTER III — MAJOR DISASTER AND EMERGENCY ASSISTANCE ADMINISTRATION › § 5154a

Last updated Sep 22, 2026|Official source

Summary

Federal disaster aid in a flood disaster area cannot pay to fix or replace personal, residential, or commercial property if the person once got disaster help that required them to buy flood insurance and then later failed to get and keep that insurance for the property. When such a property is sold, the seller must give the buyer written notice at the time of transfer, in the transfer papers, that the buyer must obtain and maintain flood insurance under federal law. If the seller fails to give that notice, and afterward the buyer does not insure the property, the property is damaged by flood, and federal aid pays for its repair, then the seller must repay the government the amount of that aid. "Flood disaster area" means an area the Secretary of Agriculture has found affected under 7 U.S.C. 1961(a) or an area the President has declared a major disaster or emergency under the Stafford Act (42 U.S.C. 5121 et seq.). These rules apply to disasters declared after September 23, 1994.

Full Legal Text

Title 42, §5154a

The Public Health and Welfare, Source: USLM XML via OLRC

(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.

Legislative History

Notes & Related Subsidiaries

Editorial Notes

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, 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.

Reference

Citations & Metadata

Citation

42 U.S.C. § 5154a

Title 42, The Public Health and Welfare

Last Updated

Sep 22, 2026

Release point: 119-110