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FEDERAL RESERVE BANK
OF NEW YORK
NATIONAL FLO OD INSURANCE PR O G R A M
Proposed S tan d ard H azard D eterm ination Form
Comments Invited by May 8, 1995
To the Chief Executive Officers of all State Member Banks and
Bank Holding Companies in the Second Federal Reserve
District, and Others Concerned:
The flood insurance provisions o f Title V o f the Riegle Community Development and Regulatory
Improvement Act o f 1994 ("Act") require changes to the federal regulations implementing flood insurance
requirements. Presently, the regulatory agencies are working together to issue new flood insurance
regulations in the fall o f 1995. The Act requires the Federal Emergency Management Agency (FEMA)
to develop a Standard Flood Hazard Determination form, which, once the new flood regulations are issued,
lenders will be required to use on all loans secured by real improved property.
Printed on the following pages is the text o f a notice published by FEMA in the Federal Register
inviting comments on a standardized form for determining whether a structure is located within an
identified Special Flood Hazard Area. Comments on the proposed form should be submitted by
May 8, 1995, and should be sent directly to FEMA at the address specified in the notice. Since the form
will affect all loans issued after the new flood regulations are implemented, we urge that you review the
form and its instructions, and provide any comments you may have directly to FEMA by May 8.
* * * *
Other changes made by the Act to statutory flood insurance provisions include some which were
effective upon enactment, on September 23, 1994. These changes concern not only lenders who originate
mortgages secured by real improved property or mobile homes located in areas having special flood
hazards, but also servicers o f these mortgages.
In particular, these changes include:
• the requirement to purchase flood insurance at any time during the life o f the loan if the lender
discovers that flood insurance is either absent or insufficient in coverage amount. The
provisions also require the lender to "force place" the insurance if, after providing sufficient
notice to the borrower, the borrower fails to obtain the coverage;
• the assessment o f civil money penalties for lender noncompliance with the flood insurance
purchase provisions whenever a loan is "made, extended, increased, or renewed," or
noncompliance with the provisions involving notifying the borrower that the property is located
in an area with special flood hazards.
Other provisions of the law, including escrow and notification requirements, will be effective when
the new regulations are issued.
The Act raised the limits on flood insurance, and new coverage amounts were available as o f
March 1, 1995. These new maximum coverage amounts, and a revised provision with respect to
nonresidential property, are as follows:
• residential property — $250,000;
• residential property contents — $100,000;
• nonresidential property (including churches)
and contents -- $500,000 for each structure,
and $500,000 for any contents related to each structure.
Any questions regarding this matter may be directed to our Compliance Examinations Department
(Tel. No. 212-720-5914).
JAMES K. HODGETTS,
Vice President.
17758
Federal Register / Vol. 60, No. 67 / Friday, April 7, 1995 / Proposed Rules
(NFIRA) (42 U.S.C. 4012a(b)), requires
that federally regulated lending
institutions and federal agency lenders
review the National Flood Insurance
Program map for the community in
which they are contemplating making,
increasing, extending, or renewing any
loan secured by improved real estate to
determine whether the property is
located in an identified Special Flood
Hazard Area, and if so, require the
purchase of flood insurance for the
building or mobile home. Section 528 of
the NFIRA (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 [of FEMA] 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 structure is
located within an identified Special
FEDERAL EMERGENCY
Flood Hazard Area (SFHA) and whether
MANAGEMENT AGENCY
flood insurance may be required and is
available. Use of this form will ensure
44 CFR Part 65
that required flood insurance coverage
RIN 3067-AC34
is purchased for buildings located in an
SFHA, and will assist federal entities for
Standard Hazard Determination Form
lending regulation in assuring
compliance with these purchase
AGENCY: Federal Emergency
requirements.
Management Agency (FEMA).
Section 528(c) of the NFIRA (42
ACTION: Proposed rule.
U.S.C. 1365(c)) requires that federal
entities for lending regulation shall by
SUMMARY: FEMA is developing a
regulation require the use of this form
standard form for determining whether
by regulated lending institutions. Each
a structure is located within an
federal agency lender shall also, by
identified Special Flood Hazard Area
regulation, provide for the use of the
(SFHA) and whether flood insurance
may be required and is available. Use of form with respect to any loan made by
this form will ensure that required flood such federal agency lender. The Federal
National Mortgage Association, the
insurance coverage is purchased for
Federal Home Loan Mortgage
buildings located in an SFHA, and will
Corporation
and the Government
assist federal entities for lending
National Mortgage Association shah
regulation in assuring compliance with
require the use of the form with respect
these purchase requirements.
DATES: We invite your comments on this to any loan purchased by such entities.
Rules specifying the use of this form
proposed form, which should be
will be published separately by these
submitted on or before May 8, 1995.
federal agencies. However, as required
ADDRESSES: Send written comments to
by the NFIRA, FEMA is presenting the
the Rules Docket Clerk, Office of the
form itself in this proposed rule to
General Counsel, Federal Emergency
provide an opportunity for review and
Management Agency, 500 C Street SW., comment.
room 840, Washington, DC 20472,
The NFIRA also directs FEMA to
(facsimile) (202) 646-4536.
consult with representatives of the
FOR FURTHER INFORMATION CONTACT:
mortgage and lending industry, the
Michael K. Buckley, P.E., Chief, Hazard federal entities for lending regulation,
Identification Branch, Mitigation
the federal agency lenders and any other
Directorate, 500 C Street SW.,
appropriate individuals in developing
Washington, DC 20472, (202) 646-2756, this form. Before publishing this
or by facsimile at (202) 646-4596 (not
proposed rule, FEMA held an informal
toll-free calls).
30-day review period. We provided a
copy of a two-page draft standard
SUPPLEMENTARY INFORMATION: Section
hazard determination form to over 400
102(b) of the Flood Disaster Protection
Act of 1973, as amended by the National individuals, agencies and groups
representing the following interests:
Flood Insurance Reform Act of 1994
Federal entities for lending regulation,.
federal agency lenders, governmentsponsored enterprises for housing,
lenders, insurance agents, flood zone
determination companies, attorneys,
trade associations, professional
surveyors and engineers, and floodplain
managers. We received a total of 74
comments by February 16, 1995. The
breakdown of respondents is as follows:
Seven federal entities for lending
regulation, federal agency lenders, and
government-sponsored entities for
housing; 10 lenders; 14 insurance
agents; 12 flood zone determination
companies; nine associations
representing bankers, credit unions,
floodplain managers, and surveyors; one
engineering firm; one software
corporation; five state/local floodplain
managers; and 15 other individuals.
There were several recurring themes
in the comments, which have been
addressed in the current version of the
form. The focus of the form has been
significantly narrowed. Much
extraneous information has been deleted
and the form has been shortened to one
page. We prepared a one-page set of
instructions to accompany the form. The
instructions refer to the source for
obtaining information needed to
complete the form. All references to
“property” have been replaced with
“building/mobile home.” An entry for
the amount of flood insurance required
by the lender has been included. The
amount of space available for the
property address has been enlarged. The
sections of the form have been
streamlined, and the lender information
is clearly separated from the
determination section. Some sections of
the form may be left blank, depending
on the determination. Additional space
was provided for comments and for the
preparer’s information.
We received many comments
regarding the availability of the form in
an electronic format. The NFIRA states
that the form may be used in a printed,
computerized, or electronic manner.
Once finalized, the form will be made
available by FEMA in an electronic
format. We anticipate that a standard
format common to all potential users
will be employed for this electronic
version.
Some of the questions we received
during the informal review period
related to use of the form, for example:
will the form content be mandatory or
will the use of the form be mandatory?
Section 528(c) of the NFIRA (42 U.S.C.
1365(c)) mandates that
“Federal entities for lending
regulation shall by regulation require
the use of the form under this section by
regulated lending institutions. Each
Federal Register / Vol. 60, No. 67 / Friday, April 7, 1995 / Proposed Rules
Federal agency lender shall by
regulation provide for the use of the
form with respect to any loan made by
such Federal agency lender. The Federal
National Mortgage Association and the
Federal Home Loan Mortgage
Corporation and the Government
National Mortgage Association shall
require the use of the form with respect
to any loan purchased by such entities.”
The federal entities for lending
regulation, federal agency lenders, and
government-sponsored entities for
housing will establish the regulations
and guidelines regarding the use of the
form later.
We also received comments regarding
review of determinations by FEMA,
outlined in Section 524 of the NFIRA.
We anticipate publishing a proposed
rule for these procedures soon.
Determination Form is required by the
National Flood Insurance Reform Act of
1994, 42 U.S.C. 4012a. A regulatory
flexibility analysis has not been
prepared.
17759
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:
Regulatory Planning and Review
§ 65.16
Standard Hazard Determination
This proposed rule would not be a
(Flood Hazards) Form and Instructions.
significant regulatory action under
Section 528 of the National Flood
Executive Order 12866 of September 30,
Insurance Reform Act of 1994 (42 U.S.C.
1994, Regulatory Planning and Review,
58 FR 51735. To the extent possible this 1365(a)) directs that FEMA “shall
develop a standard form for
proposed rule adheres to the principles
determining, in the case of a loan
of regulation as set forth in Executive
Order 12866. This proposed rule has not secured by improved real estate or a
mobile home, whether the building or
been reviewed by the Office of
mobile home is located in an area
Management and Budget under the
identified by the Director as an area
provisions of Executive Order 12866.
having special flood hazards and in
Executive Order 12612, Federalism
which flood insurance under this title is
This proposed rule would involve no available.” The purpose of the form is
policies that have federalism
to determine whether a structure is
implications under Executive Order
National Environmental Policy Act
located within an identified Special
12612,
Federalism,
dated
October
26,
Flood
Hazard Area (SFHA) and whether
This proposed rule would be
1987. Executive Order 12778, Civil
flood insurance may be required and is
categorically excluded from the
Justice Reform. This proposed rule
available. Use of this form will ensure
requirements of 44 CFR Part 10,
would meet the applicable standards of that required flood insurance coverage
Environmental Consideration. No
section 2(b)(2) of Executive Order
is purchased for buildings located in an
environmental impact assessment has
12778.
SFHA, and will assist federal entities for
been prepared.
lending regulation in assuring
List of Subjects in 44 CFR Part 65
Regulatory Flexibility Act
compliance with these purchase
Flood insurance, Reporting and
requirements. The Standard Hazard
The Associate Director, Mitigation
recordkeeping requirements.
Determination (Flood Hazards) form and
Directorate, certifies that this rule would
Accordingly, 44 CFR part 65 is
accompanying instructions are found
not have a significant economic impact
below in Appendix A to Part 65.
on a substantial number of small entities proposed to be amended as follows:
in accordance with the Regulatory
3. Appendix A to Part 65 is added at
PART 65—IDENTIFICATION AND
Flexibility Act, 5 U.S.C. 601 et seq.,
the end of Part 65 as follows:
MAPPING OF SPECIAL HAZARD
because it would not be expected (1) to
AREAS
Appendix A to Part 65 —Federal
have significant secondary or incidental
Emergency Management Agency,
1.
The
authority
citation
for
Part
65
is
effects on a substantial number of small
Standard Hazard Determination (Flood
entities, nor (2) to create any additional revised to read as follows:
Hazards) Form and Instructions.
burden on small entities. Moreover,
Authority: 42 U.S.C. 4001 et seq.;
Reorganization Plan No. 3 of 1978, 43 FR
establishing the Standard Hazard
BILUNG CODE 6718-03-P
17760
Federal Register
/ V o l. 6 0 , N o . 6 7 / F r id a y , A p r il 7, 1 9 9 5 / P r o p o s e d R u le s
S ea The H a v a n a S id a
FEDERAL EMERGENCY MANAGEMENT AGENCY
F or In s tru c tio n s
S T A N D A R D H A Z A R D DETER M IN A TIO N (FLOOD H A ZA R D S)
O .M .R N o . 3 0 6 7 -X X X X
E xpires
PAPERWORK BURDEN DISCLOSURE NOTICE
Public reporting burden for this form is estimated to average 20 minutes per response. The burden estimate includes the time for reviewing
instructions, searching existing
sources, g a th e rin g and m a in ta in in g the data needed, and completing and reviewing the (arm. 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 20742; and to the Office of Management and Budget, Paperwork Reduction
Project (30676- XXXX), Washington, DC 20503.
NOTE: This formmeets the requirements of Section 1365 of the National Flood Insurance Act of 1968, as amended, 42 U.S.C. 4012a.
Exceptions: This formis not required for loans for which either the outstanding principal balance or the value of the building is S5000 or less, and
the repayment term is 1 year or less.
SECTION 1 - TO BE COMPLETED BY LENDER
3 . LOAN NO.
2 . LE N D E R ID .N O .
1. LENDER NAME
4. DATE OF LOAN
6. AM O U NT OF REQUIRED FLOOD
5. COLLATERAL (B u ild in g /M o b ile H o m a l PROPERTY ADDRESS OR LEGAL DESCRIPTION
INSURANCE (The le tte r o f the principal
balance o f the loan or the value o f the buMdlngl
SECTION II - TO BE COMPLETED BY PERSON MAKING DETERMIN ATION
A. DETERMINATION
IS BUILDING/MOBILE HOME IN SPECIAL FLOOD HAZARD AREA
(ZONES BEGINNING WITH LETTERS "A ” OR ”V ” )? □ YES
□ NO
If yes, flood insurance m ay be required by the R ood Disaster Protection A ct o f 1 9 7 3 . Parts B-F m ust be com pleted.
If no, flood insurance is n ot required. Parts B. C. F must be com pleted.
B. COMMUNITY JURISDICTION
Community
Name
State
County lies)
Community
Number
C. NATIONAL FLOOD INSURANCE PROGRAM (NFIP) DATA AFFECTING BUILDING/MOBILE HOME
Map Number or Community-Panel Number
(Community name, if not the same ss *B 'i
No NFIP
Mao Panel Effective/Revised Date
LOMA/LOMR
Flood Zone
Mao
__ Y e s ___Ne
Date:
OAA 1V1 L -t r t r r n v i
g o . FEDERAL FLOOD INSURANCE AVAILABILITY
□
□
Federal Flood insurance it available (com m unity p a rtic ip a te s in N F IP ).
Federal Flood insurance is not available because
Community is not participating in the NFIP
I I Building/Mobile Home is in a Coastal Barrier Resources Area (CBRA) and was built or substantially improved after the CBRA
designation date.
E. C O M M E N T S (OptionalI:
T h i s d e t e r m i n a t i o n is b a s e d o n e x a m i n i n g th e N F I P m a p , any F e d e r a l E m e r g e n c y M a n a g e m e n t A g e n c y r e v i s i o n s to It, s n d a n y o t h e r
in f o r m a ti o n a f f e c tin g th is b u il d in g as n e c e s s a ry
F PREPARER'S INFORMATION
FEMA Form 81-93, FEB 95
EILLING CODE 6718-03-C
to locate t h e
b u ild in g /m o b iJ e h o m e o n th e N F I P m a p .
Federal Register
/ V o l. 6 0 , N o . 67 / F rid a y , A p r il 7, 1 9 9 5 / P r o p o se d R u le s
Standard Hazard Determination (Flood
Hazards) Instructions
Section I
2.
Lender ID. No.: FDIC-ensured 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.
5. The lender should attach legal property
description only if space provided is
insufficient. Describe the property in
sufficient detail to locate the specific
building or mobile home accurately; a postal
address in a rural area may be sufficient.
Section II
A. Determination: Self-explanatory.
B. Community Jurisdiction. The 6-digit
National Flood Insurance Program (NFIP)
community number can be determined by
consulting the NFIP Community Status Book
or can be found on the NFIP map; copies of
either can be obtained by calling 1-800-xxxxxxx. For areas that may have been annexed
by one community but are shown on another
community’s NFIP map, the Community
Number for the community with land-use
jurisdiction over the area should be used.
C. 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.
If no NFIP map exists, check the box under
“No NFIP Map”.
NFIP Maps. The current NFIP map, and a
pamphlet titled “Guide to Flood Maps”
(FEMA-258) may be obtained by calling 1 800—xxx-xxxx.
LOMAs and LOMRs. If a Letter of Map
Amendment (LOMA) or Letter of Map
Revision (LOMR) has been issued by 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, check “no”. Information on
LOMAs and LOMRs fs 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, all 1-800xxx-xxxx.
3. Information about most LOMAs and
LOMRs issued since 1983 nationwide is
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-xxxxxxx.
D. Federal Flood Insurance Availability. To
obtain Federal flood insurance, provide a
copy of this completed form to an insurance
agent. 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
Community Status Book. Federal flood
insurance is prohibited in designed Coastal
Barrier Resources Areas (CBRAs) for
buildings or mobile homes built or
substantially improved after the date of the
CBRA designation. An information sheet
explaining CBRAs may be obtained by calling
1-800—xxx-xxxx.
E. Comments. This form only requires a
determination regarding a single building’s or
mobile home’s relation to a specific Flood
Hazard Area. If the person making the
determination wishes to add additional
information regarding flood hazards (such as
the property’s location with respect to
floodways, etc.), he or she may do here.
F. Preparer’s Information. Self-explanatory.
Other Information
Multiple Buildings. Use a separate form for
each building or mobile home. 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: March 30, 1995.
Richard T. Moore,
Associate Director for Mitigation.
[FR Doc. 95-8343 Filed 4-6-95; 8:45 am]
BILLING CODE 6718-03-P
17761
@FedFRASER