[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]]

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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

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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]
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