National Flood Insurance Program Reauthorization and Reform Act of 2023

# Summary of Section 1327: Disclosure of Flood Risk Information Prior to Transfer of Property This section establishes new requirements for disclosing flood risk information before property transactions occur: 1. **Effective Date**: After September 30, 2024, no new flood insurance coverage may be provided for real property unless a required flood hazard disclosure is provided to the purchaser or lessee. 2. **For Property Sellers**: - Must provide written disclosure to purchasers before they become obligated under a purchase contract - Must disclose: * Prior flood damage to structures on the property * Previous insurance claims related to flood damage * Repetitive loss structure status * Federal flood insurance obligations * Wetland status * Elevation certificate status * Previous disaster assistance received * Relative flood risk and approximate cost of flood insurance 3. **For Property Lessors** (for leases of 30+ days): - Must provide written disclosure to lessees before they become obligated under a lease contract - Must disclose: * Federal flood insurance obligations * Prior flood damage to the leased unit * Availability of flood insurance coverage for contents 4. **State Flexibility**: The section explicitly states that nothing prevents states from adopting additional disclosure requirements beyond those specified in this section. 5. **Implementation Deadline**: Property owners must provide satisfactory assurance that flood hazard disclosure requirements meeting these standards will be adopted for their area by October 1, 2024 (as amended in Section 1305(c)). This provision aims to increase transparency about flood risks before property transactions, helping potential buyers and renters make informed decisions about flood insurance needs and property risks.