[Federal Register Volume 60, Number 129 (Thursday, July 6, 1995)]
[Rules and Regulations]
[Pages 35276-35284]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 95-16404]
[[Page 35275]]
_______________________________________________________________________
Part IV
Federal Emergency Management Agency
_______________________________________________________________________
44 CFR Part 65
Standard Flood Hazard Determination Form; Final Rule
Federal Register / Vol. 60, No. 129 / Thursday, July 6, 1995 / Rules
and Regulations
[[Page 35276]]
FEDERAL EMERGENCY MANAGEMENT AGENCY
44 CFR Part 65
RIN 3067-AC34
Standard Flood Hazard Determination Form
AGENCY: Federal Emergency Management Agency (FEMA).
ACTION: Final rule.
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SUMMARY: This final rule establishes a standard form for determining
whether a building or mobile home is located within an identified
Special Flood Hazard Area (SFHA), whether flood insurance is required,
and whether federal flood insurance is available. Use of this form will
help ensure that required flood insurance coverage is purchased for
buildings and mobile homes located in SFHAs, and will help federal
entities for lending regulation in assuring compliance with these
purchase requirements.
EFFECTIVE DATE: July 6, 1995.
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 at (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 17758, April 7, 1995) to establish a standard form
for determining whether a building or mobile home is located within an
identified Special Flood Hazard Area (SFHA), if flood insurance is
required, and if federal flood insurance is available. The comment
period ended officially on May 8, 1995; however, we considered comments
received by May 12, 1995, in our preparation of this final rule.
This final rule addresses FEMA's requirement under 42 U.S.C.
4012a(b) to develop the Standard Flood Hazard Determination Form
(SFHDF), and provides information on completing the form. The
regulating agencies' rule regarding use of the form is published today
in this issue of the Federal Register.
We received comments from 98 individuals from 34 states, as
follows: 77 lenders, nine trade associations, nine map determination
companies, one secondary market organization, one federal agency
representative, and one unknown (no return address or signature
provided). Six respondents provided a general comment concurring with
the proposed form. Seventeen respondents indicated that they were
generally opposed to the form, and 12 respondents indicated that the
proposed form would create an added cost or burden.
The issues receiving the most number of comments were requests for
the addition of borrower information (25 comments), requests to allow
lenders more flexibility (21 comments), comments regarding the wording
of the amount of required flood insurance (21 comments), and comments
on the form's format (22 comments). FEMA met with the federal entities
for lending regulation and asked for their guidance on these issues as
part of the preparation of this final rule. Our responses to the
comments are based on our interpretation of FEMA's authority under the
NFIRA and on the guidance from the federal entities for lending
regulation.
We summarize below the comments we received and our response to
them.
Purpose of the Form
Additional borrower information. We received many comments asking
that we add more information to the form, such as borrower information,
borrower signature, current owner's name, lender's signature, life of
loan coverage, property identification number, fee charged for
determination, loan amount, age of structure, base flood elevation,
insurance policy information, etc.
Response. The SFHDF will be completed for every loan. We chose to
keep it as brief and concise as possible. In general, we did not
include on the form additional items such as borrower notification,
which will impact a small percentage of loans. However, we did create a
space labeled ``Loan Identifier,'' which the lender may use for loan
identification purposes. We enlarged the space allotted for comments.
This space may be used in any manner desired.
Notification compliance. Some comments suggested that the borrower
should sign the form to comply with the notification requirements.
Response. The SFHDF does not meet the notification requirements set
forth in Sections 524 and 527 of the NFIRA. The SFHDF may be used as
part of the borrower's notification; however, as directed by the NFIRA,
the form is for determining whether a building or mobile home is
located in an SFHA and whether flood insurance is required and if
federal flood insurance is available.
Use of form. Several people asked when the form is to be used.
Three respondents interpreted the NFIRA as not requiring the SFHDF if
the property is not located in the SFHA.
Response. The NFIRA states that the form is to be used ``for
determining, in the case of a loan secured by improved real estate or a
mobile home, whether the building is located in an area . . . having
special flood hazards. . .'' We interpret this to mean that the form is
to be used for all loans, not only for loans for which the building or
mobile home is in the SFHA. The form will document that a determination
was made for a building or mobile home, whether it is in or out of the
SFHA, and whether flood insurance is required and if federal flood
insurance is available.
Lender Processing and Loan Information
Format. We believe that the format of the form is efficient for use
in a standard loan transaction. The form is formatted so that the loan
application and lender information is consolidated at the top, followed
by the flood hazard determination information.
Loan information. Many people commented that the loan number and
date of loan would not be known at the time of loan application.
Comments also indicated that the meaning of the date of loan was
unclear, because it could be the date of application or the date of
closing.
Response. We replaced the spaces labeled ``loan number'' and ``date
of loan'' with one space labeled ``loan identifier.'' Use of this space
is optional. Lenders may use this space to identify loan applications.
Lender Name and Identification Number (ID No.)
Several individuals indicated that the lender name and ID number
provide no useful information, require extra preparation by the bank,
and should be deleted. Others did not understand the purpose of the ID
number, and commented that using a lender's FDIC number, credit union
number, or Farm Credit System number may imply that these agencies have
some responsibility in the flood hazard determination process. A
mortgage banker commented that his institution does not fall into the
categories defined in the instructions for Lender ID No., but they do
sell loans to the Federal National Mortgage Association, the Federal
Home Loan Mortgage Corporation, and to the Government National Mortgage
Association, with a different ID No. for each agency. This lender asked
if this portion of the SFHDF could be left blank until the loan is
delivered to the purchasing entity.
[[Page 35277]]
Response. The lender ID. No. will be transferred onto the flood
insurance policy application by the insurance agent. Using the lender's
ID No. does not place a responsibility for flood hazard determinations
on regulating agencies or Government-sponsored enterprises.
Multiple entities. Another person indicated that multiple entities
can be involved in a single transaction, and that ``at times the
processing of a loan may be initiated by one entity and completed by
another (or others).'' The same person suggested that the Lender ID No.
be defined as relating to the entity that procured the determination
and to clarify that no Lender ID No. is required in those cases where
the determination is procured by an uninsured lender.
Response. The Lender ID No. for the lender involved in the funding
of the loan should be recorded on the form. Only the lending
institutions that are federally regulated are required to use the form.
FDIC Insurance Certificate/assigned seller-servicer numbers. One
respondent asked if a lender has an FDIC Insurance Certificate Number
and has an assigned seller-servicer number, which should be used.
Response. In this case, the FDIC Insurance Certificate Number
should be used.
Amount of flood insurance required
Many specific comments were received on the section titled ``amount
of required flood insurance,'' as follows: modify to identify the
dollar amount of the loan; this section is not required by the NFIRA
and should be deleted; what is the purpose of this section; this
information may allow confidential information to be available to a
third party performing the determination; the lender would not know the
value of the building separate from the land until after the appraisal
is completed; the wording should be revised to allow for the lender's
prerogative to require flood insurance even if not mandated (or up to
the maximum amount available under the law); specific instructions are
needed to complete this section; the parenthetical phrase in the
proposed form is incorrect; include amount of coverage required for
personal property; to calculate the amount of flood insurance required,
the lender would have to contact an insurance agent; different
requirements may be necessary for second mortgages; clear guidance is
needed from FEMA to mortgage lenders on this subject; secondary market
investors require different amounts of insurance for their loans; the
amount of required flood insurance should be included on the notice to
borrower, not the SFHDF.
Response. The completion of this information is optional. Because
this will not be a mandatory entry, no changes were made to the form,
but the instructions were clarified. The purpose of this information is
to help the lender ascertain that the required amount of flood
insurance is purchased, and also to assist lenders who require more
than the federal minimum amount of flood insurance. Lenders should be
aware that NFIP policies do not provide coverage in excess of the value
of the building/mobile home/personal property.
Electronic systems changes. Another comment received was that
including the amount of required flood insurance on the form would
require substantial systems changes for lenders who have flood
determinations done electronically by an outside servicer.
Response. Lenders have the option of including this information on
the form. Additional information regarding the form's electronic format
is included under the heading ``Additional Burden'' below.
Loan amount or property value. One lender requested clarification
that the amount of insurance coverage is the loan amount and not the
property value.
Response. Detailed instructions for this portion have been added.
See below.
Instructions
Instructions for every item. Several respondents requested that
instructions be included for every item on the form.
Response. The instructions have been revised to include an
explanation for each item contained on the form.
Typographical errors. Several comments referred to typographical
errors that appeared in the proposed rule.
Response. We have attempted to correct all typographical errors.
Miscellaneous. One writer suggested that the reverse side of the
form be used ``to explain flood hazard mapping, regulations and
policies concerning both the regulation and standard FEMA flood hazard
information.'' Another requested that formats be given for numeric and
date fields. One respondent suggested eliminating some instructions.
Response. No change.
Structure Location and Elevation Information
Land in SFHA. Several asked what the result would be if a portion
of the parcel of land is located in an identified SFHA, but the
building or mobile home is not.
Response. The SFHDF is to be used to determine whether a building
or mobile home is located in an identified SFHA. If a lender would like
to document additional information about the parcel of land, the
comments section may be used for this purpose.
Building partially in SFHA. Some asked how to indicate that a
building or mobile home is partially in the SFHA and partially out.
Response. If any portion of a building or mobile home is located in
an identified SFHA, the building or mobile home is considered to be in
the SFHA, and flood insurance is required.
Collateral property location. Some people commented about the
instructions for completing the section titled ``Collateral property
address or legal description.'' They were concerned that the
instructions stated ``Describe the property in sufficient detail to
locate the specific building or mobile home accurately . . . ,'' and
that generally this would not be possible.
Response: We revised the instructions for this item to clarify our
intent. If available, a street address locating the building or mobile
home is preferred. In rural areas a legal description referring to
township and range lines or other coordinates may be necessary to
locate a building or mobile home, because the postal address does not
refer to a geographic location. We do not mean to imply that a legal
description locating the building is always required.
Rural postal addresses. Regrettably, a typographical error crept
into the form instructions in the proposed rule, stating ``A postal
address in a rural area may be sufficient.'' The correct statement is
``A postal address in a rural area may not be sufficient.''
Space for legal description. Another person indicated that the
space allotted for the legal description was insufficient.
Response. If necessary, legal descriptions may be attached to the
SFHDF as a separate sheet, or included in the comments section.
Flood Hazard Determinations
The SFHDF is used for determining whether a building or mobile home
is located in the SFHA shown on the National Flood Insurance Program
(NFIP) map for the community, and whether flood insurance is available.
FEMA expects that these determinations will be done by using a street
map, plat, survey, or whatever information is needed to locate a
structure on the NFIP map. Structure or ground elevation data are not
required to perform such a determination. If elevation data are
available for a structure and this
[[Page 35278]]
information indicates that the structure and surrounding ground may be
above the flood elevation, the elevation data may be submitted to FEMA
under the Letter of Map Amendment (LOMA)/Letter of Map Revision (LOMR)
procedures and a map revision requested to remove the structure from
the designated floodplain. However, the structure officially remains in
the SFHA, regardless of elevation data, until FEMA revises the
designated SFHA affecting to the structure.
More than one LOMA or LOMR. Several respondents asked how to handle
situations where more than one LOMA or LOMR have been issued affecting
the property.
Response. The map action affecting the building or mobile home
(revised panel, LOMA, or LOMR) with the most recent date must be used
to make a determination for the building or mobile home.
Review of Determinations
Section 524 of the NFIRA authorizes FEMA to review flood hazard
determinations. One person indicated that some readers of the NFIRA
understand Section 524 ``to provide a means for obtaining a flood
hazard determination directly from FEMA without the need for an outside
service to track the flood maps or for the lender to maintain and
analyze the flood maps.''
Response. This is not a correct interpretation. Section 524 of the
NFIRA states that the borrower and lender for a loan secured by
improved real estate or a mobile home may jointly request FEMA to
review a determination of whether the building or mobile home is in an
identified SFHA.
Section 524 authorizes a review process, whereby a disputed flood
hazard determination may be jointly submitted to FEMA for a final
determination on whether a building or mobile home is located in an
identified SFHA. FEMA must either affirm or disapprove the existing
flood hazard determination. Section 524 does not authorize FEMA to make
the flood hazard determination in the first instance. A flood hazard
determination review differs from a LOMA or a LOMR, in that a LOMA or
LOMR revises the FIRM.; the flood hazard determination review does not.
Determination Authority and Responsibility
Several people asked who can make determinations and who is
responsible for making determinations.
Response. The lender is ultimately responsible for the
determination of whether a building or mobile home is in the SFHA and
whether flood insurance is required. However, a third party may be used
to acquire the information. In many areas, community or state
officials, surveyors, appraisers, realtors, and map determination
companies provide flood hazard information to lenders. These third
parties may complete the form for the lender or the lender may use the
information provided by the third party to complete the SFHDF. The
accuracy of third party information must be guaranteed by the third
party.
The lender must take the responsibility for making determinations,
regardless of whether the lender actually makes the determination or
acquires it from another source. Only the lender can make the
determination whether flood insurance is required for a loan. The NFIRA
states that the lender may provide for the acquisition or determination
of flood hazard information to be made by a person other than the
lender only to the extent such person guarantees the accuracy of the
information.
Third Party Guarantee
Nine comments requested that space be allotted on the form for a
guarantee for use by the party making the determination.
Response: As stated earlier, we intentionally limited the amount of
information contained on the form. The NFIRA does not mandate a
guarantee in the contents of the form. The law states that banks may
provide for the acquisition or determination of information regarding
special flood hazards to be made by a party other than the lender only
to the extent such person guarantees the accuracy of the information.
Many services are provided to the lending community in the course of a
loan application. The information provided is generally guaranteed by a
contract for services or information, or because an individual is
licensed or has expertise in a particular field. The guarantee for a
flood hazard determination performed by a third party is based on the
lender's needs and negotiations between the third party and the lender.
This is considered standard business practice.
Community Participation in the NFIP
Some comments suggested that the community's participation status
be included in the form, because that affects the amount of available
flood insurance.
Response. We included a space on the form for indicating whether
the community participates in the Regular or Emergency Program of the
NFIP.
Unmapped, Non-participating, and Non-identified Communities
Many questions were asked about unmapped or non-participating
communities, as well as communities not identified by the NFIP as being
floodprone.
Non-participating communities. Non-participating communities may
still have NFIP maps; if so, the NFIP community jurisdiction and NFIP
map information must be completed.
Unmapped communities. If no NFIP map is in effect for the location
where the building or mobile home is located, check the ``No NFIP Map''
box.
NFIP community number. Not every non-participating community in the
United States has an NFIP community number; if no NFIP community number
exists, specify ``none'' for ``NFIP Community Number.'' The
instructions have been clarified for these last two issues.
Determining whether community participates in the NFIP. One person
asked: If a mortgaged property is located in a flood zone, but the
community is not currently participating in the NFIP, how does a lender
learn if or when a community becomes a participant?
Response. FEMA has community status information available and is in
the process of centralizing the information and making it available
through a 1-800 number.
Federal disaster assistance/non-participating community. If a
mortgaged residence is located in an identified special flood area, but
the community is not participating in the NFIP, will the property be
eligible for federal disaster assistance if the borrower purchases
flood insurance?
Response. Structures located in communities not participating in
the NFIP are not eligible for Federal flood insurance, but might find
privately placed flood insurance. Even if the borrower purchases flood
insurance through the private insurance market, individual and family
grants cannot be made for acquisition or construction purposes where
the structure to which the grant assistance relates is located in a
designated special flood hazard area, unless the community in which the
structure is located agrees to participate in the NFIP within 6 months
after the declared disaster date.
Coastal Barrier Resources System (CBRS)
CBRS determinations. Some writers asked that the form be modified
to release the party making the
[[Page 35279]]
determination from the obligation of determining the date of
construction or substantial improvements to a structure located in the
CBRS.
Response. The form does not require the date of construction or
substantial improvement for structures. The Coastal Barrier Resources
Act of 1982 specifically restricts Federal financial assistance
(including Federal flood insurance) for structures that are built or
substantially improved after the CBRS designation date. Although FEMA
shows CBRS areas on the NFIP maps in cooperation with the U.S. Fish and
Wildlife Service, FEMA is not able to provide the date of construction
or substantial improvement for specific structures. This information
must therefore be procured by some other means, such as by contacting
the property assessment branch of a community's tax department.
Space for CBRS information. We were also asked to provide a place
on the form to indicate the date of construction or substantial
improvement of a structure located within the CBRS.
Response. The user may add this information in the comments section
of the SFHDF.
Prudent CBRS practice. A lender advised that it would always be
prudent for lenders to know whether a dwelling is located within a CBRS
area due to the additional risk that they may be accepting in making
the loan.
Response. We agree, and revised the form so that CBRS information
and the CBRS designation date (which is readily available on the NFIP
map) may be indicated, if applicable.
Form Format
The comments summarized below concern the form layout and
composition. We took these comments into consideration in our final
form design, accepting some, but not all, of the recommendations.
Order of sections. One comment pointed out that the flood hazard
determination form could not be completed without first completing the
Community Jurisdiction and NFIP data, and suggested that we reorganize
the order of these sections. Another suggested the order of Sections I
and II be reversed.
Response. We made minor changes in the order.
Notes. Eight people commented on the notes contained on the form.
Some suggested clarifications to the note regarding the NFIRA and the
note regarding the basis of determination. Some suggested deleting the
notes.
Response. We deleted one note and revised the other based on these
comments.
Additional space. Several individuals asked that additional space
be given for certain entries, including the lender's name, the
determination, and the collateral description.
Response. Additional space is provided for lender name and the
collateral property address.
Form name. Three people suggested that the title of the form be
changed to ``Standard Flood Hazard Determination Form'', ``Standard
Notice of Flood Hazard Determination,'' and ``Standard Flood Hazard
Determination Report (Flood Hazards).''
Response. We changed the name to ``Standard Flood Hazard
Determination Form''.
Original or update. One writer suggested that a space be included
to indicate if the form is an original or an update.
Response. This comment concerns the use of the form, which is
outside FEMA's authority.
Other suggestions.
Another person suggested deleting the note at the top of the form
that states ``see reverse side for instructions.''
Response. The instructions will now be attached to the form.
The same person suggested that the determination section of the
SFHDF be deleted, and suggested that the yes/no approach to the
determination section be replaced with the choice of two responses.
This person also suggested that the requirement for the name of the
determination preparer be deleted ``because the data is unnecessary and
inappropriate in the context of the business environment.''
Response. We retained the determination section, with very minor
changes. The name of the individual preparing the determination is not
required.
One lender suggested that ``Collateral'' be expanded to include
personal property.
Response. This has been included.
Five people commented that the paperwork burden disclosure notice
uses up much valuable space. Four suggested moving it to the
instructions side of the form or to an appendix.
Response. The paperwork burden disclosure notice has been moved to
the instructions.
Another person asked that the NFIP Flood Map Distribution Center's
Program Status Code and Date for the community be added.
Response. We kept the form as simple as possible. These types of
codes may be used in the comments section.
One writer asked that references to building/mobile home be changed
to building/improvements/mobile home.
Response. The reference has been changed to building/mobile home/
personal property.
Additional Burden
Several comments indicated that the SFHDF causes an added burden,
results in additional costs, and is a duplication of federal forms.
Response. The National Flood Insurance Reform Act itself requires
the form. The form standardizes the collection of information that has
been required by law since 1973, and will replace a number of different
forms previously used. We tried to simplify the form to the greatest
extent possible. Once lenders, regulators and other users gain
experience with the form, we anticipate that its common use across
different lending and regulatory venues will prove useful.
Changes to existing systems. Many wrote to indicate that they were
already complying with the law and that it would be an inconvenience
and additional burden for them to redo their existing system to include
this form. They suggested that the form should establish data content
rather than dictate the format of the data. Another suggested an
approval process by which flood determination vendors submit a proposed
form to FEMA for approval.
Response. It is clearly the intent of the law for FEMA to develop a
standard form for determining and recording the results of the
determination of whether a building or mobile home is located in an
SFHA. The current lack of consistency in this area was the impetus
behind this portion of the NFIRA. Additional information may be
attached to or included on the comments section of the SFHDF.
Electronic format. Three people commented on the use of the form in
electronic format. FEMA will assist in development of an electronic
data interchange version of the form, involving our industry partners
and using national standards. However, before the electronic format can
be developed, we needed to develop the paper version of the form. We
discussed this issue with the federal entities for lending regulation,
and together we decided that if an electronic format is used, the
format and exact layout of the SFHDF is not required, but the fields
and elements listed on the form are required. Any electronic format
used by lenders must contain all mandatory fields indicated on the
SFHDF.
[[Page 35280]]
Promulgate Concurrent Regulations on Form and Its Use
Three people commented that the regulations regarding the use of
the SFHDF and the SFHDF itself be published at the same time.
Response. This final rule and the regulations issued by the federal
entities for lending regulation regarding the use of the SFHDF are
published today concurrently.
Flood Insurance Availability
A lender wrote regarding the instructions for the section titled
``Federal Flood Insurance Availability.'' The statement in the
instructions is ``to obtain federal flood insurance, provide a copy of
this completed form to an insurance agent.'' The lender did not feel
that this was the most appropriate manner in which a customer should be
directed to obtain flood insurance.
Response. This form provides most of information that an insurance
agent needs to write a flood insurance policy, so having a copy of the
form would be useful to the customer. We revised the wording on the
instructions to include the word ``may,'' to make the direction
optional.
Completion of sections. Several respondents indicated that
``Federal Flood Insurance Availability'' should always be completed,
not simply for buildings or mobile homes located in an identified SFHA.
Some lenders will require flood insurance irrespective of the mandatory
purchase requirement, and this information would be useful to them.
Response. We revised the form to remove the option of only
completing some of the sections.
Section name. A trade association representative indicated that
``Federal Flood Insurance Availability'' should be renamed
``Participating/Non-participating Community''. This person further
stated that our titling of this section introduces confusion into the
purpose of the section.
Response. Determining whether federal flood insurance is available
is one of the purposes of the form. There are other factors besides
participation and non-participation (i.e., location in the CBRS) that
impact the availability of federal flood insurance. No change has been
made to the title of this section.
Clarification of Determination Section. One person suggested
deleting the final two sentences contained in the Determination section
regarding flood insurance requirements, because these statements may
preclude the lender's option to require flood insurance if the
collateral property is not within an identified SFHA. Another suggested
that the wording be revised from ``If yes, flood insurance may be
required * * *.,'' to ``If yes, flood insurance will be required * *
*.''
Response. We revised the form to state, ``If yes, flood insurance
is required * * *.'' The form presents the minimum federal requirements
regarding the purchase of flood insurance, and does not preclude a
lender from exceeding the minimum federal requirements. Lenders should
be aware that NFIP policies do not provide coverage in excess of the
value of the building/mobile home/personal property.
Multiple Buildings and Condominiums
Multiple buildings/single property. Eleven people asked that no
separate form be required for a property that contains multiple
buildings, and suggested that a schedule be attached for properties
that contain several buildings.
Response. We agree that the SFHDF could be completed for the
principal structure on a parcel of land, and a schedule attached for
any additional buildings (used as collateral for a loan) located on the
parcel. This schedule should be referred to in the comments section of
the SFHDF. The instructions have been revised to reflect these
procedures. Even though the determination can be documented in this
manner, a separate flood insurance policy will be necessary for each
building.
Condominiums. One person asked that the form be enhanced for use
for condominiums.
Response. Similar to what has been described above for multiple
buildings, information regarding a condominium structure could be
attached to the form and referred to in the comments section.
Miscellaneous Comments
One information source. One person asked that all required
information be available from one source.
Response. FEMA is establishing a 1-800 number to provide
information regarding the NFIP.
Flood maps. A lender asked that township and range lines be added
to NFIP maps for rural area, and stated that the latitude and longitude
should be used in determining the location of a property.
Response. FEMA agrees that both of these items are useful tools in
aiding flood hazard determinations and has initiated an effort to
digitize FIRMs. The use of digital FIRM information together with
coordinates such as latitude and longitude will assist in performing
flood hazard determinations.
Community jurisdiction. One lender commented that it is unclear
from the instructions how a lender determines which community has land-
use jurisdiction for a parcel of land, and suggested that FEMA follow
the map data in this instance as well.
Response. This issue would impact a lender only when adjoining
communities have differing NFIP participation status; otherwise, flood
insurance availability is unaffected. Nevertheless, land-use
jurisdiction is determined by which community has authority to adopt
and enforce floodplain management regulations for the structure on
question.
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 the SFHDF 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 is not 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 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.
Executive Order 12612, Federalism
This final rule involves no policies that have federalism
implications under Executive Order 12612, Federalism, dated October 26,
1987.
Executive Order 12778, Civil Justice Reform
This rule meets the applicable standards of section 2(b)(2) of
Executive Order 12778.
[[Page 35281]]
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 65.16 is added to read as follows:
Sec. 65.16 Standard Flood Hazard Determination Form and Instructions.
Section 528 of the National Flood Insurance Reform Act of 1994 (42
U.S.C. 1365(a)) directs that FEMA shall develop a standard form for
determining, in the case of a loan secured by improved real estate or a
mobile home, whether the building or mobile home is located in an area
identified by the Director as an area having special flood hazards and
in which flood insurance under this title is available. The purpose of
the form is to determine whether a building or mobile home is located
within an identified Special Flood Hazard Area (SFHA), whether flood
insurance is required, and whether federal flood insurance is
available. Use of this form will ensure that required flood insurance
coverage is purchased for structures located in an SFHA, and will
assist federal entities for lending regulation in assuring compliance
with these purchase requirements. The Standard Flood Hazard
Determination Form and accompanying instructions are found in Appendix
A to this Part.
3. Appendix A to Part 65 is added at the end of Part 65 to read as
follows:
Appendix A to Part 65--Federal Emergency Management Agency,
Standard Flood Hazard Determination Form and Instructions
BILLING CODE 6718-03-P
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BILLING CODE 6718-03-C
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Standard Flood Hazard Determination Form Instructions
Paperwork Burden Disclosure Notice
Public reporting burden for FEMA Form 81-93 is estimated to
average 20 minutes per response. The burden estimate includes the
time for reviewing instructions, searching existing data sources,
gathering and maintaining the data needed, and completing and
reviewing the form. Send comments regarding the accuracy of the
burden estimate and any suggestions for reducing the burden to:
Information Collections Management, Federal Emergency Management
Agency, 500 C Street, SW, Washington, DC 20472; and to the Office of
Management and Budget, Paperwork Reduction Project (30676-0264),
Washington, DC 20503.
Note: The 1-800 number referred to in these instructions is not
available as of June 1995. FEMA is in the process of establishing
this service and will have this number in place by December 1995. A
notice will be published in the Federal Register announcing this
service. In the meantime, community status information can be
obtained by faxing a request to (202) 646-3445. Mapping information
can be obtained by faxing a request to (202) 646-4596.
Section I
1. Lender Name and Address: Enter lender name and address.
2. Collateral (Building/Mobile Home/Personal Property) Property
Address: Enter property address for the insurable collateral. In
rural areas, a postal address may not be sufficient to locate the
property. In these cases, legal property descriptions may be used
and may be attached to the form if space provided is insufficient.
3. Lender Id. No.: The lender funding the loan should identify
itself as follows: FDIC-insured lenders should indicate their FDIC
Insurance Certificate Number; Federally-insured credit unions should
indicate their charter/insurance number; Farm Credit institutions
should indicate their UNINUM number. Other lenders who fund loans
sold to or securitized by FNMA or FHLMC should enter the FNMA or
FHLMC seller/servicer number.
4. Loan Identifier: Optional. May be used by lenders to conform
with their individual method of identifying loans.
5. Amount of Flood Insurance Required: Optional. The minimum
federal requirement for this amount is the lesser of: the
outstanding principal loan balance; the value of the improved
property, mobile home and/or personal property used to secure the
loan; or the maximum statutory limit of flood insurance coverage.
Lenders may exceed the minimum federal requirements. National Flood
Insurance Program (NFIP) policies do not provide coverage in excess
of the value of the building/mobile home/personal property.
Section II
A. National Flood Insurance Program (NFIP) Community Jurisdiction
NFIP Community Name. Enter the complete name of the community
(as indicated on the NFIP map) in which the building or mobile home
is located. Under the NFIP, a community is any State or area or
political subdivision thereof, or any Indian tribe or authorized
tribal organization, or Alaska Native village or authorized native
organization, which has authority to adopt and enforce floodplain
management regulations for the areas within its jurisdiction.
(Examples: Brewer, City of; Blue Springs, Town of; Washington,
Borough of; Worcester, Township of; Baldwin County; Jefferson
Parish.) For a building or mobile home that may have been annexed by
one community but is shown on another community's NFIP map, enter
the Community Name for the community with land-use jurisdiction over
the building or mobile home.
County(ies). Enter the name of the county or counties in which
the community is located. For unincorporated areas of a county,
enter ``unincorporated areas.'' For independent cities, enter
``independent city.''
State. Enter the two-digit state abbreviation. (Examples: VA,
TX, CA.)
NFIP Community Number. Enter the 6-digit NFIP community number.
This number can be determined by consulting the NFIP Eligibility
Book or can be found on the NFIP map; copies of either can be
obtained by calling 1-800-xxx-xxxx. If no NFIP Community Number
exists for the community, enter ``none''.
B. NFIP Data Affecting Building/Mobile Home
The information in this section (excluding the LOMA/LOMR
information) is obtained by reviewing the NFIP map on which the
building/mobile home is located. The current NFIP map, and a
pamphlet titled ``Guide to Flood Maps,'' may be obtained by calling
1-800-xxx-xxxx. Note that even when an NFIP map panel is not
printed, it may be reflected on a community's NFIP map index with
its proper number, date, and flood zone indicated; enter these data
accordingly.
NFIP Map Number or Community-Panel Number. Enter the 11-digit
number shown on the NFIP map that covers the building or mobile
home. (Examples: 480214 0022 C; 5810C0075 F.) Note that the first
six digits will not match the NFIP Community Number when the sixth
digit is a ``C'' or when one community has annexed land from another
but the NFIP map has not yet been updated to reflect this
annexation. When the sixth digit is a ``C'', the NFIP map is in
countywide format and shows the flood hazards for the geographic
areas of the county on one map, including flood hazards for
incorporated communities and for any unincorporated county contained
within the county's geographic limits. Such countywide maps will
list an NFIP Map Number. For maps not in such countywide format, the
NFIP map will list a Community-Panel Number on each panel. If no
NFIP map is in effect for the location of the building or mobile
home, enter ``none''.
NFIP Map Panel Effective/Revised Date. Enter the map effective
date or the map revised date shown on the NFIP map. (Example: 6/15/
93.) This will be the latest of all dates shown on the map.
LOMA/LOMR. If a Letter of Map Amendment (LOMA) or Letter of Map
Revision (LOMR) has been issued by the Federal Emergency Management
Agency (FEMA) since the current Map Panel Effective/Revised Date
that revises the flood hazards affecting the building or mobile
home, check ``yes'' and specify the date of the letter; otherwise,
no entry is required. Information on LOMAs and LOMRs is available
from the following sources:
1. The community's official copy of its NFIP map should have a
copy of all subsequently-issued LOMAs and LOMRs attached to it.
2. For LOMAs and LOMRs issued on or after October 1, 1994, FEMA
publishes a list of these letters twice a year as a compendium in
the Federal Register; a subscription service providing actual copies
of these letters semi-monthly is also available. To inquire about
these two services, call 1-800-xxx-xxxx.
3. Most LOMAs and LOMRs issued since 1983 nationwide are
contained in FEMA's Community Information System. An electronic
listing may be requested, and may be limited to specific communities
or states, if desired. For information on this service, call 1-800-
xxx-xxxx.
Flood Zone. Enter the flood zone covering the building or mobile
home. (Examples: A, AE, A1-30, V, VE, V1-30, AH, AO, B, C, X, D.) If
the building or mobile home straddles the dividing line between two
flood zones, list both. All flood zones beginning with the letter
``A'' or ``V'' are considered Special Flood Hazard Areas (SFHAs).
Each flood zone is defined in the legend of the NFIP map on which it
appears.
No NFIP Map. If no NFIP map covers the area where the building
or mobile home is located, check this box.
C. Federal Flood Insurance Availability
Check all boxes that apply; however, note that boxes 1 (Federal
Flood Insurance is available * * *) and 2 (Federal Flood Insurance
is not available * * *) are mutually exclusive. Federal flood
insurance is available to all residents of a community that
participates in the NFIP. Community participation status can be
determined by consulting the NFIP Eligibility Book, which can be
obtained by calling 1-800-xxx-xxxx. The NFIP Eligibility Book will
indicate whether or not the community is participating in the NFIP
and whether participation is in the Emergency or Regular Program. If
the community participates in the NFIP, check either Regular Program
or Emergency Program. To obtain Federal flood insurance, a copy of
this completed form may be provided to an insurance agent.
Federal flood insurance is prohibited in designated Coastal
Barrier Resources Areas (CBRA) for buildings or mobile homes built
or substantially improved after the date of the CBRA designation. An
information sheet explaining CBRA areas may be obtained by calling
1-800-xxx-xxxx.
D. Determination: If any portion of the building/mobile home is
in an identified SFHA, check yes (flood insurance is required). If
no portion of the building/mobile home is in an identified SFHA,
check no.
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E. Comments: Optional. Persons completing the form may use this
portion in any manner.
F. Preparer's Information: If other than the lender, enter the
name, address, and telephone number of the company or organization
performing the flood hazard determination. An individual's name may
be included, but is not required.
Date of Determination. Enter date on which the flood hazard
determination was completed.
Other Information
Multiple Buildings: If the loan collateral includes more than
one building, a schedule for the additional building(s)/mobile
home(s) indicating the determination for each may be attached.
Otherwise, a separate form must be completed for each building or
mobile home. Any attachment(s) should be noted in the comment
section. A separate flood insurance policy is required for each
building or mobile home.
Guarantees Regarding Information: Determinations on this form
made by persons other than the lender are acceptable only to the
extent that the accuracy of the information is guaranteed.
Dated: June 20, 1995.
Richard T. Moore,
Associate Director for Mitigation.
[FR Doc. 95-16404 Filed 7-5-95; 8:45 am]
BILLING CODE 6718-03-P
