"On June 30, 2004, President George W. Bush signed into law the Flood Insurance Reform Act of 2004 (FIRA). The FIRA has two main purposes: 1) to reauthorize the National Flood Insurance Program (NFIP or Program) through September 30, 2008; and 2) to establish a pilot program aimed at mitigating the damage and costs associated with repairing properties with severe repetitive flood losses. the FIRA requires the Director of FEMA to develop minimum education requirements for agents and brokers who write flood insurance policies, as well as forms, handbooks, rules and regulations governing the information given to policyholders regarding flood insurance, and processing claims? The FIRA developed a new, five-year pilot program to assist with mitigating damage and loss to severe repetitive loss properties. Residential one to four unit severe repetitive loss properties are ones that: 1) have been the subject of four or more separate claims valued at more than $5,000 each and collectively valued at more than $20,000; or 2) properties with two or more claims the total value of which exceeds the value of the property. Multifamily properties with five or more units also are covered by the mitigation program and will be designated according to a definition of "severe repetitive loss" for multifamily property established by FEMA through regulations. The pilot program provides money to state and local governments to fund mitigation activities. The mitigation offers may include elevation, relocation, demolition, rebuilding, flood proofing and purchasing the property. The FIRA establishes a formula for distribution of federal mitigation funds to state and local governments, provided that state or local governments match 25% of the federal funding granted. The state and local government matching funds requirement can be reduced to 10% at the discretion of FEMA if the state has an approved mitigation plan and the Director of FEMA determines that the state has taken action to reduce the number of severe repetitive loss properties."The FIRA provides that if the property owner of a severe repetitive loss property refuses a reasonable offer of mitigation, the property owner's flood insurance premium will be increased to 150% of the chargeable rate for the property at the time the offer of mitigation was made. In addition, if the property suffers a flood loss greater than $1,500 following a refusal of an offer of mitigation, the premium will again increase to 150% of the chargeable rate for the property at the time of the flood loss. The chargeable premium rate cannot be increased to "an amount exceeding the applicable estimated risk premium rate for the area". (Independent Insurance Agents & Brokers of America, Inc., Impact of Flood Insurance Reform Act of 200, 2004, 1-4)