National Flood Insurance Program Payments
This memorandum provides guidance to state agencies regarding the treatment of National Flood Insurance Payments in determining the eligibility of households for participation in FDPIR, CSFP, or TEFAP.
PL 109-64 amends the National Flood Insurance Act of 1978. It states that payments made under the National Flood Insurance Program (NFIP) for flood mitigation activities shall not be counted as income or resources of the owner of the property when determining eligibility for any Federal means-tested program. Therefore, payments received by property owners under NFIP must be excluded in determining the eligibility of households for participation in FDPIR, CSFP, or TEFAP.