S. 374 — Direct Property Acquisitions Act

This section establishes a pilot program under which covered communities—local governments able to meet federal and state requirements for hazard mitigation assistance with limited state assistance and positive state feedback—may directly apply to the FEMA Administrator for property acquisition, structure demolition, or relocation assistance under the Hazard Mitigation Grant Program (HMGP; 42 U.S.C. 5170c(b)). (As background: The HMGP provides post-disaster grants to states, which typically subgrant to local governments, to fund measures that reduce long-term risk to life and property from natural hazards, including buyouts of repetitively flooded properties.) The Administrator must (1) select up to 2 covered communities per FEMA region (not more than 1 per state in a region) after consulting states and evaluating factors such as prior performance on mitigation projects, level of need, and weather risks; (2) provide written justifications to applicants and states; (3) publish participation requirements in the Federal Register within 1 year of enactment; and (4) limit participation to 48 months. The Administrator must submit annual reports to the Senate Committee on Homeland Security and Governmental Affairs and the House Committee on Transportation and Infrastructure assessing program effectiveness (including whether it expedites acquisitions), covered community characteristics (e.g., demographics, National Flood Insurance Program participation, non-flood disaster history), potential problems with direct applications, and recommendations on permanence, extension, or termination. The pilot program terminates 8 years after community selection, with necessary appropriations authorized.