[Federal Register Volume 60, Number 233 (Tuesday, December 5, 1995)]
[Rules and Regulations]
[Pages 62213-62218]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 95-29561]
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FEDERAL EMERGENCY MANAGEMENT AGENCY
44 CFR Part 65
RIN 3067-AC38
Review of Determinations for Required Purchase of Flood Insurance
AGENCY: Federal Emergency Management Agency (FEMA).
ACTION: Final rule.
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SUMMARY: This final rule establishes the procedures for FEMA's review
of determinations whether a building or manufactured home is located in
an identified Special Flood Hazard Area. The determination review
process will provide an opportunity for borrowers and lenders of loans
secured by improved real estate to resolve disputes regarding contested
determinations.
EFFECTIVE DATE: January 2, 1996.
FOR FURTHER INFORMATION CONTACT: Michael K. Buckley, P.E., Chief,
Hazard Identification Branch, Mitigation Directorate, 500 C Street SW.,
Washington, DC 20472, (202) 646-2756, or by facsimile (202) 646-4596
(not toll-free calls).
SUPPLEMENTARY INFORMATION: As part of its implementation of the
National Flood Insurance Reform Act of 1994 (NFIRA), FEMA published a
proposed rule (60 FR 31442, June 15, 1995) to establish the procedures
for its review of determinations whether a building or mobile home is
located in an identified Special Flood Hazard Area. The comment period
ended on August 14, 1995. The proposed rule used the term ``mobile
home'' for consistency with the statute. However, the term
``manufactured home'' is preferred in the industry, and is specifically
defined in both the National Flood Insurance Program (NFIP) regulations
at 44 CFR part 59, and in the standard flood insurance policy.
Therefore, the term ``manufactured home'' will be used in this final
rule.
This final rule addresses FEMA's requirement under 42 U.S.C.
4012a(e)(3) to review a determination whether a building or
manufactured home is located in an identified Special Flood Hazard Area
(SFHA) if jointly requested by the borrower and lender for a loan
secured by improved real estate or a manufactured home. FEMA will begin
accepting requests for determination reviews under this regulation on
January 2, 1996. Requests should be mailed to the following locations:
For Minnesota and locations east of the Mississippi River:
Determination Review Coordinator, c/o Dewberry &
[[Page 62214]]
Davis, P.O. Box 2020, Merrifield VA 22116-2020.
For Louisiana and locations west of the Mississippi River:
Determination Review Coordinator, c/o Michael Baker Jr., Inc., 3601
Eisenhower Avenue, Alexandria VA 22304-6439.
We received comments from 25 organizations and individuals, as
follows: 12 lenders, 9 associations, 3 third party determinators, and 1
consultant. The greatest number of comments related to who pays the
requested fee (12 comments). Others commented on whether FEMA will
accept individual requests (9 comments), whether and when borrowers are
required to purchase flood insurance (6 comments). We also received 6
comments stating that FEMA should not require copies of NFIP maps to be
submitted because it should already have them on file. Summarized below
are the comments we received and our responses to them.
Fees
The $60.00 fee for FEMA's review of determinations, contained in
the proposed rule, has been increased to $80.00, based on FEMA's
anticipated costs to process reviews of determinations. The $80.00 fee
does not completely cover FEMA's costs, and contains some subsidy to
the requestor. The costs for this service will be monitored and revised
at the beginning of FY 1997, if necessary.
Determination of fee. Two responders asked how the fee was
determined.
Response. The amount of time required to handle, record, document,
and respond to these requests was estimated based on our experience
with high volumes of similar types of requests. Using current $40 per
hour fee rates for the existing Letter of Map Revision (LOMR) review
process, we estimated the $80 fee based on the anticipated steps and
time required to review a determination and process the request.
Fee is excessive. Five responders felt that the fee is excessive
and more than commercial third party determinators charge for the same
service.
Response. The vast majority of flood determinations made by third
party determinators are for structures well away from the SFHA. These
determinations can be done very quickly using automated processes at
very low cost. For example, a third party determinator may determine
that the only area of a community having SFHAs has a specific zip code.
Any time that a third party determinator gets a request for a
determination in that community it first checks the zip code. If it is
any zip code other than the one having SFHAs, a determination of ``Not
in SFHA'' can be made quickly. This determination takes only minutes
and costs are minimal. Only when a request for a determination is for a
property with the zip code containing SFHAs is more effort required.
Most of these determinations are for structures well away from the
boundary of the SFHA and are clearly shown in or out of the SFHA.
Determinations where a structure is located near the edge of a
mapped SFHA are the most complex because additional review is often
required to locate the structure accurately on the NFIP map. While
these latter determinations cost the determinator more, the inexpensive
determinations comprise the vast majority of determinations made. We
expect that FEMA's determination reviews will cost more because we
anticipate receiving primarily requests for structures near the
boundary of mapped flood hazards, where a review of the technical data
used in making the determination and comparing it to the printed map
will be required in order to issue a response.
Multiple structures. One commenter asked how the fee would apply to
multiple structures.
Response. One fee will apply to each Standard Flood Hazard
Determination Form (SFHDF) submitted. Generally, an SFHDF is prepared
for a single structure used as loan collateral. If a request for a
determination review includes multiple buildings, the fee will be based
on the number of SFHDFs included in the request.
Authority. Two responders requested that FEMA cite the specific
authority for imposing a fee.
Response. The authority for FEMA to charge a fee is at 31 U.S.C.
9701, which allows Federal agencies to recover costs associated with
providing something of value to a customer.
Responsibility and Disclosure. Almost half of the responders asked
who would pay the fee. Two responders asked how the fee for a
determination review related to the Real Estate Settlement Procedures
Act, if this fee was considered a finance charge, and if the fee needed
to be disclosed.
Response. These issues were sent to the Federal Financial
Institutions Examination Council for the Council's review and advice.
We understand that they will be considered by the Council during the
comment period (October 18-December 18, 1995) following the publication
of the proposed rule for loans in areas having special flood hazards
(60 FR 53962, October 18, 1995).
Notification. One commenter indicated that FEMA should not rely on
the Federal Register for notification of the initial fee or subsequent
increases or decreases in the amount, and suggested that all interested
parties be notified directly regarding fee changes.
Response. Publication in the Federal Register is a legally
acceptable method to notify the public of rule changes. Notifying
individual parties is not FEMA's role, and cannot be provided within
the constraints of FEMA's budget and staff. We expect that
organizations and trade associations that serve the banking industry
will provide such notification to their constituents.
Payment Method. The proposed rule included an option of payment by
credit card. On further investigation this option will not be available
because of the expense that would be incurred by FEMA to process credit
card payments. Payment for requests for review must be made by check or
by money order, in U.S. funds, payable to the National Flood Insurance
Program.
Insurance Purchase Requirements
Forced placement. Five responders questioned how the request for
review of lender determinations impacts the 45-day clock for forced
placement of flood insurance. One responder asked whether a lender
could force place insurance during the 90-day window (45 days to
submit, 45 days to review) without liability or penalty, and whether
new extensions of credit should be postponed pending FEMA's Response.
Response. Section 524 of the NFIRA states that if the request is
made in connection with the origination of a loan and if FEMA fails to
respond before the later of the expiration of the 45-day period after
receiving the request or closing of the loan, then flood insurance is
not required until such a letter is provided. Thus, section 524 only
temporarily delays the flood insurance purchase requirement. If the
closing of the loan occurs prior to 45 days after FEMA receives a
request, then the flood insurance purchase requirement is not waived
under section 524 because FEMA has not failed to respond within the 45-
day period. If loan closing occurs after FEMA's 45-day response period,
then the mandatory flood insurance purchase requirement is waived only
if FEMA's response is not issued by loan closing. We plan to respond to
requests within 45 days.
However, if we do not respond within 45 days and the mandatory
purchase requirement is delayed until we do respond, it is nevertheless
a prudent business practice to require the
[[Page 62215]]
purchase of flood insurance to protect the collateral. The lender
always retains the prerogative to require flood insurance even when its
purchase is not Federally mandated. Flood insurance premiums can be
refunded if it is determined by FEMA that the structure is not located
in the SFHA and the lender waives the flood insurance purchase
requirement.
Mandatory purchase. We received comments noting that the proposed
rule did not address when borrowers are or are not required to purchase
flood insurance. Another commenter asked whether the lender could waive
the flood insurance purchase requirement while the determination is
under review. Others noted that FEMA's review of lender determinations
should not delay flood insurance purchase requirements.
Response. As stated above, section 524 temporarily delays the flood
insurance purchase requirement only when FEMA fails to respond within
its allotted 45-day period. At all other times, the mandatory purchase
of flood insurance for structures located in SFHAs remains in effect.
Requirement for Joint Request
Individual requests. Seven responders indicated that individual
requests for determination reviews should be accepted, and that joint
requests would be too time consuming.
Response. The NFIRA states that the borrower and lender of a loan
secured by improved real estate or a manufactured home may jointly
request the Director to review a determination whether the building or
manufactured home is located in an area having special flood hazards.
FEMA interprets the statute to require a joint request from both the
borrower and the lender for this review. If an individual submits a
request for a determination review, FEMA will make a reasonable attempt
to obtain the needed signature. However, if it is not possible to
obtain both parties' signatures for the request, FEMA will not review
the request under 44 CFR 65.17, and will return the request promptly in
its entirety. FEMA will notify the requestor that the data submitted
with the request do not meet the requirements of 44 CFR 65.17;
therefore, the lender's obligation to require the purchase of flood
insurance remains in effect. Further, we shall notify the requestor
that other procedures are available to individuals under 44 CFR parts
70 and 65, commonly known as the Letter of Map Amendment (LOMA) and the
Letter of Map Revision (LOMR) processes, if the requestor believes that
a structure has been incorrectly included in the SFHA, or if conditions
have changed since the NFIP map was issued.
Signatures. One responder asked whether all borrowers had to sign
the request.
Response. The request for a determination review must be signed by
at least one of the borrowers, or the borrowers' legal representative
for the loan. Likewise, the lender must also sign the request. To
ensure the involvement of all appropriate parties as intended by the
legislation, and to ensure an objective process, FEMA will not accept
the signature of a third party determinator as a representative for the
borrower or the lender.
Responsibility. Several requestors also asked who is responsible
for the preparation of the joint submittal and whether others may join
in on requests or submit on behalf of the borrower and lender.
Response. The responsibility for the preparation of the request for
review of a determination is held jointly, by both the borrower and the
lender. The data package may be prepared by others, but the request
itself must be an original (not photocopied), and signed by the
borrower and lender, as discussed above.
Time Frames
Submittal. We received many comments on the requirement to submit
the request for a determination review within 45 days of the lender's
notification to the borrower that flood insurance is required. Two
commenters questioned FEMA's authority for limiting the time frame and
five commented that the time allotted was too short or should be
eliminated. Other comments indicated that the combined submission and
processing time was too long or that the lender and borrower should be
allowed to submit at any time, and that FEMA should expedite its
review.
Response. We limited the time frame for submittal to permit us to
provide reviews in a timely manner. The 45-day period is also within
the time period in which loans are generally closed. This time frame
avoids a protracted period of time before a final determination is made
whether the property is or is not located in a SFHA. Processing times
may be minimized if a request for review is submitted immediately after
the lender notifies the borrower that flood insurance is required, and
if a complete data package is submitted to FEMA.
Available options. One responder asked what options are available
if the 45-day window for the submittal of a request for determination
review is missed.
Response. In this case, flood insurance should be purchased if
required. The procedures for a LOMA or LOMR are available to
individuals if a structure has been inadvertently included in the SFHA
or if conditions have changed since the NFIP map was issued.
Resubmittals. Two commenters asked about the charge for
resubmissions. Two others asked what effect a request returned for
insufficient data would have on the 45-day clock.
Response. Requests returned because the 45-day deadline was missed
cannot be resubmitted. Requests returned for insufficiency of
information will have the fee returned with the package. FEMA will
return the entire package to the borrower with the fee and a letter
explaining what information is needed for the review to be
accomplished. The borrower will have 14 days from date of FEMA's letter
or 45 days from the date of lender notification, whichever is later, to
send the request back to FEMA. A fee must be provided with any
resubmission; there is no second charge. The date of postmark from the
sender will determine the timeliness of the resubmission.
Start of 45 days for FEMA review and response. Two responders asked
when the 45-day FEMA review clock would begin and what effect, if any,
an uncollected fee would have on the clock.
Response. The 45-day timeframe for FEMA to complete the review will
begin on the day that FEMA receives a complete request supported by
technical information at the proper location (addresses given above).
Uncollected fees may be turned over to the Treasury Department for
handling and such action will not have an impact on the processing of
the review.
Definitions. One responder asked for clarification of the word
``submitted'' as in ``submitted within 45 days of the lender's
notification''.
Response. Submitted means postmarked. This is defined in 44 CFR
65.17 (b) (3).
Timing of LOMAs and Determination Reviews. One responder asked how
the 45-day time limit is impacted if a LOMA or LOMR is requested before
the request for a determination review.
Response. The determination review procedures provide a mechanism
for FEMA to review a lender's or its agent's determination of whether a
structure is within a mapped SFHA. LOMA and LOMR procedures allow the
submittal of more detailed, site-specific information than was
available when
[[Page 62216]]
the maps were initially prepared. After reviewing this information, and
if warranted, FEMA can revise the mapped SFHAs by LOMA or LOMR. If the
question is whether the NFIP map was read correctly, the determination
review procedure is appropriate. If the question is whether the SFHA
should be changed, LOMA or LOMR procedures are appropriate. In most
instances, only one procedure is applicable. However, should both
procedures be underway simultaneously, most likely they will be
addressed separately. While FEMA has 45 days to respond to a request
for determination review, FEMA has 60 or 90 days, respectively, to
respond to LOMA and LOMR requests because a more detailed review is
necessary. Any determination made through the determination review
procedure will consider only effective LOMAs or LOMRs, and the
submittal and response timeframes for the determination review process
will not change as a result of any ongoing LOMA or LOMR reviews.
Providing a Copy of the NFIP Map
Seven responders questioned why a copy of the NFIP map must be
submitted with the request when FEMA already has the maps on file.
Response. The purpose of FEMA's review is to judge whether the
determination presented by the lender is appropriate. If the location
of the structure on the NFIP map used in that determination is not
provided with the submitted data, FEMA would have to make an
independent determination, which was not the intent of the NFIRA.
Further, if a copy of the NFIP map used to make the determination is
not provided, it would be unclear whether the current NFIP map panel
was used to make the determination. A full copy of the map panel is not
required. The title block, including map date, scale bar, and north
arrow, and the portion of the map including the property location (with
the property location noted) are the only portions of the NFIP map that
need to be provided.
FEMA Processing
Effective date. Four responders had concerns about the effective
date for the use of the Standard Flood Hazard Determination Form
(SFHDF) and the commencement of FEMA's reviews under 44 CFR 65.17, and
two responders suggested that any form be admissible before January
1996.
Response. FEMA is currently developing a system to handle requests
for determination reviews and will begin accepting requests under
Sec. 65.17 on January 2, 1996. The mandatory use of the SFHDF by
lenders also begins on January 2, 1996.
Technical data requirements. Five responders expressed the need for
FEMA to define the technical data requirements and provide examples.
Response. FEMA needs the same technical data that were used by the
lender or third party determinator to make the determination. Items
that typically complete this requirement include, but are not limited
to, a copy of the tax assessor's map showing the property, a map
showing the location of the structure on the property, a copy of the
plat for the subdivision/tract or similar document, and information
showing the relationship of the NFIP map and the location of the
structure on the property. Structures located in rural areas or areas
where the NFIP map contains few physical features may need additional
data so that the structure can be definitively located on the property
and the property located relative to reference features. Multiple-unit
structures would need data for the entire building. Properties with
multiple buildings must show data for all structures. If a building has
a porch or deck, this should be indicated in detail.
Incomplete submittals. One responder asked what happens to
incomplete submissions and three asked when the fee is returned.
Response. Incomplete submissions are returned in their entirety,
with the fee, to the borrower. Requests received with a postmark more
than 45 days after the date the lender notified the borrower that flood
insurance is required will also be returned to the borrower with the
fee. The only data retained by FEMA are the database record of the
receipt and disposition of the request. There are no circumstances when
the fee can be reimbursed to the lender or borrower.
Format for requests. Five responders requested that FEMA provide a
form or a format for requesting the reviews.
Response. FEMA will provide guidance on how to request a review,
but does not plan to develop an official form to be used when
requesting determination reviews. This issue has been discussed with
the lending industry trade associations and they are willing to develop
a recommended format that can be used.
Publication of Letters of Determination Review. One responder asked
whether FEMA will publish public notices of determination reviews
similar to LOMAs and LOMRs.
Response. No publication by FEMA is contemplated because the
determination review does not change the effective map.
Distribution of correspondence. One responder suggested that copies
of the correspondence be provided to the borrower and the lender.
Response. Copies of the Letter of Determination Review will be sent
to the lender and the borrower, as well as to the third party
determinator, if known. Packages returned for insufficiency will be
sent to the borrower with notice of return to the lender.
Review of Accuracy of NFIP Map. One responder asked whether FEMA's
review would include verification of the accuracy of the NFIP map.
Response. No. The purpose of the review is to determine whether or
not the security property has been accurately located on the effective
NFIP map. If the accuracy of the NFIP map is in question, procedures
under 44 CFR parts 70 and 65 must be used to request a LOMA or LOMR.
Review for Letters of Map Change. One responder asked whether FEMA
would review for LOMAs and LOMRs, how it would perform this task, and
what LOMA/LOMR information would be provided back to the borrower and
lender.
Response. When reviewing a lender's or its agent's determination,
FEMA will check its Community Information System database for LOMAs and
LOMRs that would affect the determination. If the original
determination overlooked a LOMA or LOMR, FEMA's final response will so
state and will provide the date of the letter. LOMAs and LOMRs are
available through the community's map repository. In addition, FEMA
publishes a compendium of all map changes semi-annually in the Federal
Register.
Initiation of LOMA/LOMR process. Two responders promoted the
automatic initiation of the LOMA/LOMR process.
Response. There will not be an automatic initiation of the LOMA/
LOMR procedures from the 44 CFR 65.17 submission. Elevation data are
not considered in the determination review process, but are frequently
required for the LOMA/LOMR process. The Sec. 65.17 procedure has been
designed for fast response and the review of extra data will not be
performed at this time. FEMA's response to a request for determination
review that includes elevation data will include information regarding
other procedures that are available to consider the elevation data.
Format of FEMA's Response. One responder asked whether FEMA's
review would result in a Standard Flood Hazard Determination Form
prepared by FEMA.
Response. No. The intent of these procedures is to provide a review
of a
[[Page 62217]]
lender's or its agent's determination. Section 524 of the NFIRA states
that FEMA shall provide to the borrower and the lender a letter stating
whether or not the building or manufactured home is in an area having
special flood hazards.
Status inquiries. One responder wanted to know how to obtain the
status of the request after submission.
Response. Due to the anticipated volume of requests, such inquiries
will not be accommodated. We plan to acknowledge receipt of the request
within five days and to issue the final response within 45 days.
Elevation data. A responder asked that the final rule explicitly
state that FEMA will not consider elevation data for this review. The
same responder advocated that the determination review process not
result in the initiation of the LOMA/LOMR process.
Response. This is stated in the final rule under 44 CFR 65.17(a).
Miscellaneous Comments
Definition of ``in SFHA'' and ``partially in SFHA''. One responder
asked that ``in the SFHA'' be defined and another responder asked how
we would deal with reviews of ``part in, part out''.
Response. The SFHA is delineated on the NFIP map for the community.
For purposes of this procedure, if any part of the structure is
indicated to be in the SFHA on the NFIP map, the structure is
considered to be in the SFHA and flood insurance is required. The flood
insurance purchase requirement applies to insurable structures. If a
portion of the land lies in the SFHA, the purchase of flood insurance
is not Federally mandated unless the structure itself is indicated to
be in or partially in the SFHA.
Determinations ``Pursuant to a Revision.'' Several responders
asked us to clarify whether these determination review procedures were
available in the case of a FEMA remapping.
Response. These procedures are available for the review of lender
determinations when requested within 45 days after the borrower was
notified that flood insurance is required, regardless of the impetus of
the request. However, the intent of the determination review procedures
is to allow a mechanism for FEMA to review a lender's or its agent's
determination when specifically requested. FEMA will return requests at
the outset if the submitted Standard Flood Hazard Determination Form is
based on an outdated map panel. After the lender conducts or obtains a
determination using the current map panel in effect, FEMA will review
the determination upon request if the request meets the stipulated
criteria.
Applicability of Process. One responder asked if the procedure
would apply to existing loans as well as loan originations.
Response. The process is available within 45 days after the lender
advises the borrower that flood insurance is required as a condition
for the loan. Therefore, this procedure applies to all loans.
Guarantee. One responder asked whether FEMA would guarantee its
determination.
Response. No. A guarantee is only required if a third party
completes the Standard Flood Hazard Determination Form for a lender.
FEMA is not authorized to guarantee these determinations. However, FEMA
will review the available data and ensure that the determinations are
as accurate as possible.
Initial Determinations. One responder suggested that FEMA should
provide initial flood hazard determinations.
Response. Although the NFIRA does not prohibit FEMA from providing
initial flood hazard determinations, we interpret section 524 as
providing a mechanism for FEMA to review and resolve appeals on others'
determinations. As indicated in the NFIRA, FEMA's determination shall
be final. As stated earlier, FEMA's review of a determination is based
on the data provided by others that allowed the original determination
to be made. FEMA's review of the determination will correct an error,
if one was made in locating a structure relative to a mapped SFHA, but
does not change the map, the location of the property on the map, or
the findings of a third party determinator or lender if they correctly
used the available data. Other procedures with additional data
requirements are available through FEMA's LOMA and LOMR processes.
Upholding original determinations due to insufficient information.
One responder asked for clarification on why the original determination
would be ``upheld'' instead of ``withheld'' if insufficient information
was submitted to review the determination.
Response. FEMA will presume the lender or lender's agent has made
the correct determination and predicts that most determinations will
not be submitted to FEMA for review. Therefore, the lender's
determination is considered valid until found to be in error. We have
revised the language in 44 CFR 65.17(c)(2) to clarify this issue.
Unusual cases. A responder asked for clarification of the term
``unusual cases.''
Response. This may have been a poor choice of words in the proposed
rule. If the lender or third party determinator uses prudent and
reasonable judgment in their evaluations, disputes should not arise
that would require a determination review by FEMA.
Use of term ``mobile home.'' One responder stated that 44 CFR 65.17
should use the term ``manufactured home'' instead of ``mobile home'' to
be consistent with the NFIP regulations.
Response. Section 65.17 has been changed to use the term
``manufactured home.''
National Environmental Policy Act
This final rule is categorically excluded from the requirements of
44 CFR part 10, Environmental Consideration. No environmental impact
assessment has been prepared.
Regulatory Flexibility Act
The Associate Director for Mitigation certifies that this rule
would not have a significant economic impact on a substantial number of
small entities in accordance with the Regulatory Flexibility Act, 5
U.S.C. 601 et seq., because it would not be expected (1) to have
significant secondary or incidental effects on a substantial number of
small entities, nor (2) to create any additional burden on small
entities. Moreover, establishing a procedure for FEMA's review of
determinations is required by the National Flood Insurance Reform Act
of 1994, 42 U.S.C. 4012a. A regulatory flexibility analysis has not
been prepared.
Regulatory Planning and Review
This final rule would not be a significant regulatory action under
Executive Order 12866 of September 30, 1994, Regulatory Planning and
Review, 58 FR 51735. To the extent possible this rule adheres to the
principles of regulation as set forth in Executive Order 12866. This
rule has not been reviewed by the Office of Management and Budget under
the provisions of Executive Order 12866.
Paperwork Reduction Act
This final rule does not involve any collection of information for
the purposes of the Paperwork Reduction Act.
Executive Order 12612, Federalism
This final rule involves no policies that have federalism
implications under Executive Order 12612, Federalism, dated October 26,
1987.
[[Page 62218]]
Executive Order 12778, Civil Justice Reform
This rule meets the applicable standards of section 2(b)(2) of
Executive Order 12778.
List of Subjects in 44 CFR Part 65
Flood insurance, Reporting and recordkeeping requirements.
Accordingly, 44 CFR part 65 is amended as follows:
PART 65--IDENTIFICATION AND MAPPING OF SPECIAL HAZARD AREAS
1. The authority citation for part 65 is revised to read as
follows:
Authority: 42 U.S.C. 4001 et seq., Reorganization Plan No. 3 of
1978, 43 FR 41943, 3 CFR, 1978 Comp., p. 329; E.O. 12127 of Mar. 31,
1979, 44 FR 19367, 3 CFR, 1979 Comp., p. 376.
2. Section 65.17 is added to read as follows:
Sec. 65.17 Review of determinations.
This section describes the procedures that shall be followed and
the types of information required by FEMA to review a determination of
whether a building or manufactured home is located within an identified
Special Flood Hazard Area (SFHA).
(a) General conditions. The borrower and lender of a loan secured
by improved real estate or a manufactured home may jointly request that
FEMA review a determination that the building or manufactured home is
located in an identified SFHA. Such a request must be submitted within
45 days of the lender's notification to the borrower that the building
or manufactured home is in the SFHA and that flood insurance is
required. Such a request must be submitted jointly by the lender and
the borrower and shall include the required fee and technical
information related to the building or manufactured home. Elevation
data will not be considered under the procedures described in this
section.
(b) Data and other requirements. Items required for FEMA's review
of a determination shall include the following:
(1) Payment of the required fee by check or money order, in U.S.
funds, payable to the National Flood Insurance Program;
(2) A request for FEMA's review of the determination, signed by
both the borrower and the lender;
(3) A copy of the lender's notification to the borrower that the
building or manufactured home is in an SFHA and that flood insurance is
required (the request for review of the determination must be
postmarked within 45 days of borrower notification);
(4) A completed Standard Flood Hazard Determination Form for the
building or manufactured home, together with a legible hard copy of all
technical data used in making the determination; and
(5) A copy of the effective NFIP map (Flood Hazard Boundary Map
(FHBM) or Flood Insurance Rate Map (FIRM)) panel for the community in
which the building or manufactured home is located, with the building
or manufactured home location indicated. Portions of the map panel may
be submitted but shall include the area of the building or manufactured
home in question together with the map panel title block, including
effective date, bar scale, and north arrow.
(c) Review and response by FEMA. Within 45 days after receipt of a
request to review a determination, FEMA will notify the applicants in
writing of one of the following:
(1) Request submitted more than 45 days after borrower
notification; no review will be performed and all materials are being
returned;
(2) Insufficient information was received to review the
determination; therefore, the determination stands until a complete
submittal is received; or
(3) The results of FEMA's review of the determination, which shall
include the following:
(i) The name of the NFIP community in which the building or
manufactured home is located;
(ii) The property address or other identification of the building
or manufactured home to which the determination applies;
(iii) The NFIP map panel number and effective date upon which the
determination is based;
(iv) A statement indicating whether the building or manufactured
home is within the Special Flood Hazard Area;
(v) The time frame during which the determination is effective.
Dated: November 22, 1995.
Robert H. Volland,
Acting Deputy Associate Director for Mitigation.
[FR Doc. 95-29561 Filed 12-4-95; 8:45 am]
BILLING CODE 6718-04-P
