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[Federal Register: July 6, 1995 (Volume 60, Number 129)]

[Rules and Regulations]

[Page 35275-35284]

From the Federal Register Online via GPO Access




 

[[Page 35275]]


 

_______________________________________________________________________


 

Part IV






 

Federal Emergency Management Agency






 

_______________________________________________________________________




 

44 CFR Part 65




 

Standard Flood Hazard Determination Form; Final Rule



 

[[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.


 

-----------------------------------------------------------------------


 

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


 

[[Page 35282]]





 

BILLING CODE 6718-03-C


 

[[Page 35283]]



 

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.


 

[[Page 35284]]


 

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