; or (B) the effective date of the initial flood insurance rate map published by the Administrator under section 1360 of the National Flood Insurance Act of 1968 ( 42 U.S.C. 4101 ) for the area in which the building is located. (2) Amendment to regulations The Administrator shall amend section 59.1 of title 44, Code of Federal Regulations, to exclude from the definition of the term basement any pre-FIRM condominium building, the lowest floor of which is not more than 4 feet below the lowest adjacent grade. (b) Study on consequences of street-Raising (1) Definition In this subsection, the term affected property means a property containing an area— (A) the floor of which was located at or above grade before the community raised the street adjacent to the property; and (B) after the street-raising described in subparagraph (A), that was designated as a basement because of the street-raising. (2) Study; report Not later than 1 year after the date of enactment of this Act, the Administrator shall study and submit to Congress a report on the consequences of street-raising on flood insurance coverage for an affected property under the National Flood Insurance Program, including the cost implications for the property owner. 403. Mold damage clarification The Administrator shall amend the Standard Flood Insurance Policy to provide that— (1) as a general rule, loss caused by water, moisture, mildew, or mold caused by a flood is covered by flood insurance under the National Flood Insurance Program; (2) the exemption from coverage for water, moisture, mildew, or mold damage caused by a policyholder who is truly derelict in inspecting or maintaining a property after a flood recedes is a limited exemption; (3) in the case of water, moisture, mildew, or mold damage described in paragraph (2), only the amount of water, moisture, mildew, or mold that built up because of the dereliction of duty, and only during the time when the water, moisture, mildew, or mold build-up reasonably could have been mitigated, shall not be covered