[Federal Register Volume 60, Number 67 (Friday, April 7, 1995)]
[Proposed Rules]
[Pages 17758-17761]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 95-8343]



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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