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FIL-32-95 Attachment

[Federal Register: April 7, 1995 (Volume 60, Number 67)]

[Proposed Rules]

[Page 17758-17761]

From the Federal Register Online via GPO Access [wais.access.gpo.gov]

[DOCID:fr07ap95-30]


 

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FEDERAL EMERGENCY MANAGEMENT AGENCY


 

44 CFR Part 65


 

RIN 3067-AC34



 

Standard Hazard Determination Form


 

AGENCY: Federal Emergency Management Agency (FEMA).


 

ACTION: Proposed rule.


 

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SUMMARY: FEMA is developing a standard form for determining whether a

structure is located within an identified Special Flood Hazard Area

(SFHA) and whether flood insurance may be required and is available.

Use of this form will ensure that required flood insurance coverage is

purchased for buildings located in an SFHA, and will assist federal

entities for lending regulation in assuring compliance with these

purchase requirements.

DATES: We invite your comments on this proposed form, which should be

submitted on or before May 8, 1995.


 

ADDRESSES: Send written comments to the Rules Docket Clerk, Office of

the General Counsel, Federal Emergency Management Agency, 500 C Street

SW., room 840, Washington, DC 20472, (facsimile) (202) 646-4536.


 

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: Section 102(b) of the Flood Disaster

Protection Act of 1973, as amended by the National Flood Insurance

Reform Act of 1994 (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 Flood Hazard Area (SFHA) and whether flood insurance may be

required and is available. Use of this form will ensure that required

flood insurance coverage is purchased for buildings located in an SFHA,

and will assist federal entities for lending regulation in assuring

compliance with these purchase requirements.

Section 528(c) of the NFIRA (42 U.S.C. 1365(c)) requires that

federal entities for lending regulation shall by regulation require the

use of this form by regulated lending institutions. Each federal agency

lender shall also, 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, 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. Rules specifying the use of this form will be published

separately by these federal agencies. However, as required by the

NFIRA, FEMA is presenting the form itself in this proposed rule to

provide an opportunity for review and comment.

The NFIRA also directs FEMA to consult with representatives of the

mortgage and lending industry, the federal entities for lending

regulation, the federal agency lenders and any other appropriate

individuals in developing this form. Before publishing this proposed

rule, FEMA held an informal 30-day review period. We provided a copy of

a two-page draft standard hazard determination form to over 400

individuals, agencies and groups representing the following interests:

Federal entities for lending regulation, federal agency lenders,

government-sponsored 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 [[Page 17759]] 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.


 

National Environmental Policy Act


 

This proposed rule would be 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, Mitigation Directorate, 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 Standard Hazard 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.


 

Regulatory Planning and Review


 

This proposed rule would not be a significant regulatory action

under Executive Order 12866 of September 30, 1994, Regulatory Planning

and Review, 58 FR 51735. To the extent possible this proposed rule

adheres to the principles of regulation as set forth in Executive Order

12866. This proposed rule has not been reviewed by the Office of

Management and Budget under the provisions of Executive Order 12866.


 

Executive Order 12612, Federalism


 

This proposed rule would involve no policies that have federalism

implications under Executive Order 12612, Federalism, dated October 26,

1987. Executive Order 12778, Civil Justice Reform. This proposed rule

would meet the applicable standards of section 2(b)(2) of Executive

Order 12778.


 

List of Subjects in 44 CFR Part 65


 

Flood insurance, Reporting and recordkeeping requirements.


 

Accordingly, 44 CFR part 65 is proposed to be 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 Hazard Determination (Flood Hazards) 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 structure is located within an

identified Special Flood Hazard Area (SFHA) and whether flood insurance

may be required and is available. Use of this form will ensure that

required flood insurance coverage is purchased for buildings located in

an SFHA, and will assist federal entities for lending regulation in

assuring compliance with these purchase requirements. The Standard

Hazard Determination (Flood Hazards) form and accompanying instructions

are found below in Appendix A to Part 65.

3. Appendix A to Part 65 is added at the end of Part 65 as follows:


 

Appendix A to Part 65--Federal Emergency Management Agency, Standard

Hazard Determination (Flood Hazards) Form and Instructions.


 

BILLING CODE 6718-03-P


 

[[Page 17760]]


 

[GRAPHIC][TIFF OMITTED]TP07AP95.000


 

BILLING CODE 6718-03-C


 

[[Page 17761]]


 

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-xxx-xxxx. 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 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, all 1-800-xxx-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-xxx-xxxx.

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

Last Updated: March 24, 2024