3. (1) If in the opinion of the State Government it is necessary or expedient to rehabilitate persons affected by floods during the notified period in any area it may, by a notification in the official Gazette, declare such area to be flood affected area.
(2) All house sites in a flood area, held or occupied, on the notified date, for building purposes by any person in pursuance of any contract, custom or usage, the houses whereon have completely or partially fallen down or damaged owing to rains or floods, shall continue to be held or occupied by such persons, for such purposes subject to such terms and conditions as may be prescribed, any contract, custom or usage or provisions of any law to the contrary, notwithstanding ;br
Provided that the house shall be reconstructed, remodeled or repaired by the holder or occupier of the house site within a period of one year or such further period as may by State Government be fixed by notification in the official Gazette.
(3) Nothing in this Act shall affect the terms and conditions under which the house site was originally held or occupied except in so far as under this Act the holder or occupier has been given the right to continue to hold or occupy the house site as well as to repair, remodel or reconstruct his house.