9.6.5 Floodplain Management (24 CFR 50.4(b)(2))

A. Applications for Firm Commitment are subject to regulations regarding floodplain management found at 24 CFR Part 55 which implements Executive Order 11988 (Floodplain Management). Lenders must provide the effective FEMA Flood Insurance Rate Map (FIRM) with the subject site(s) clearly marked to determine whether the project is in or near a floodplain. In most areas, FIRMs are available online through the FEMA Map Service Center at https://msc.fema.gov.

B. In addition, Lenders must provide any FEMA-supplied preliminary or pending floodplain maps or studies or Advisory Base Flood Elevations (ABFE) for the site, as HUD must use the latest of these sources unless the ABFE or preliminary FIRM indicates a lower Base Flood Elevation (BFE) than the current FIRM and Flood Insurance Study (FIS). Preliminary FIRMs can be found through the FEMA Map Service Center by clicking "Show ALL Products", or at a central Flood Map Changes Viewer (https://fema.maps.arcgis.com/apps/webappviewer/index.html?id=e7a7dc3ebd7f4ad39bb8e485bb64 ce44). FEMA issues Advisory Base Flood Elevations after major flood disasters and disseminates them by region.

C. FEMA maps indicate floodplains as follows:

1. 100-year floodplains (a.k.a. the Special Flood Hazard Area (SFHA) and the 1% annual chance floodplain) are designated as Zone A1–30, AE, A, AH, AO, AR, or A99.

2. 500-year floodplains (a.k.a. the moderate flood hazard area and the 0.2% annual chance floodplain) are designated as Zone B or a shaded Zone X.

MAP Guide, March 2021 Go to beginning of Chapter 9

Bookmarked Version

Chapter 9 Page 9-40

Go to Acronym and Abbreviation List, Glossary, Index

To return to this page after clicking a link, press ALT + Back Arrow

Chapter 9 Environmental Review and Requirements 9.6 Environmental Laws and Authorities

Go to Table of Contents

3. Floodways are the portion of the floodplain which is effective in carrying the flow of flood waters and will generally be the most dangerous part of the floodplain during riverine flooding. Floodways are designated as Zone AE hatched.

4. Coastal high hazard areas are areas subject to high velocity waters and wave action, and they are designated as Zone V1–30, VE, or V.

5. Limit of Moderate Wave Action (LiMWA) are coastal areas in updated FEMA maps that are outside of the coastal high hazard area, but which are expected to receive between 1.5 and 3 foot breaking waves during a 1% annual chance flood. LiMWAs are designated with an informational line.

6. Areas where FEMA has not completed a detailed study sufficient to identify the flood risk are designated as Zone D. As these areas have the potential for unidentified flood hazards, HUD will rely on best available information to assess risk.

D. If any part of the site or integral offsite development (i.e., ingress, egress and/or parking) is located within the 100-year floodplain or within a 500-year floodplain for critical actions[48] , according to the best available data, the project must comply with HUD’s floodplain management regulations at 24 CFR Part 55.

E. An application for mortgage insurance shall not be approved for a property located in: (a) a floodway; (b) a coastal high hazard area; or (c) a FEMA identified special flood hazard area in which the community has been suspended from or does not participate in the National Flood Insurance Program. If a stream coursing through a proposed site is designated as being in the 100-year floodplain according to FEMA’s best available data, but there is no designated floodway area, development will be prohibited in the channel of the stream.

F. 24 CFR 55.12(c) lists categories of proposed actions for which the floodplain management requirements in 24 CFR 55 are not applicable. These exceptions include:

1. An incidental exception, if only an incidental portion of the project is in the 100-year floodplain, floodway, or coastal high hazard area (or for critical actions, the 500-year floodplain), and certain conditions are met (see 24 CFR 55.12(c)(7)).

   • HUD does not consider improvements[49] to be incidental, meaning that this exception does not apply if there are any buildings or improvements in any portion of the floodplain.

==> picture [8 x 7] intentionally omitted <==

==> picture [8 x 9] intentionally omitted <==

• The incidental exception does not apply to sites that plan to bring in fill for a Letter of Map Revision because the fill modifies the floodplain.

• For a visual representation of the incidental floodplain exception, see https://www.hudexchange.info/resources/documents/Incidental-Floodplain-ExceptionIllustration.pdf.

==> picture [7 x 6] intentionally omitted <==

48 Critical Actions are defined at 24 CFR 55.2(b)(3). Critical actions include roadways providing sole egress from flood-prone areas, and projects likely to contain occupants who may not be sufficiently mobile to avoid loss of life or injury during flood or storm events, e.g., persons who reside in hospitals, nursing homes, convalescent homes, intermediate care facilities, board and care facilities, and retirement service centers. Housing for independent living for the elderly is not considered a critical action.

49 HUD defines improvements as buildings, roads, sidewalks, parking lots, permanent recreational areas with impervious surfaces, or other man-made structures or impervious surfaces other than landscaping.

MAP Guide, March 2021 Go to beginning of Chapter 9

Bookmarked Version Go to Acronym and Abbreviation List, Glossary, Index

Chapter 9 Page 9-41

To return to this page after clicking a link, press ALT + Back Arrow Chapter 9 Environmental Review and Requirements 9.6 Environmental Laws and Authorities

Go to Table of Contents

==> picture [8 x 9] intentionally omitted <==

• When invoking the incidental portion exception at 24 CFR 55.12(c)(7), a protective covenant or comparable restriction must be placed on the property’s continued use to preserve the floodplain. This covenant must protect the entire portion of the site in the floodplain. The covenant or comparable restriction must run with the land to provide for permanent preservation of the floodplain. A restriction that is contained in a document that would expire at the conclusion of the HUD-insured mortgage does not meet the requirement for permanent preservation of the floodplain.

2. Refinances of currently HUD-insured mortgages are exempt from the 24 CFR Part 55 requirements when the refinance will not result in any physical impacts or changes except for maintenance under 24 CFR 50.19(b)(21) (CENST). However, the flood insurance requirements specified at 24 CFR 50.4(b)(1) and Section 9.6.6 are still applicable.

3. The requirement for a 5- or 8-step analysis does not apply if the project is not on a wetland and has a Conditional Letter of Map Amendment (CLOMA) or of Map Revision (CLOMR) removing the entire site from the applicable floodplain prior to submission of the pre-application or, in the absence of a preapplication, prior to submission of the application for Firm Commitment. If the Borrower has a CLOMA or CLOMR, HUD approval for a Firm Commitment will be conditioned on the Borrower: (1) meeting the requirements of the CLOMA or CLOMR; (2) obtaining a Final Letter of Map Amendment (LOMA) or Map Revision (LOMR) removing the entire property from the applicable floodplain prior to Final Endorsement; and, (3) maintaining flood insurance on any building during the construction period until the LOMA or LOMR is issued. If any portion of the HUD-insured property remains in the floodplain or floodway after the CLOMA/CLOMR, the project will not qualify for this exception and must proceed with a 5- or 8-step decision making process (see 24 CFR 55.12(c)(8).)

• G. Projects that are converting from a non-residential to a residential use are considered the same as “new construction” for floodplain management.

H. In considering the safety of the residents, offsite floodways and other flood hazards will be evaluated in terms of separation distance, elevation differences, and the nature of the hazard in question. Unacceptable proximity to hazards may result in rejection of the application.

I. Due to the potential for significant wave damage in Limit of Moderate Wave Action (LiMWA) areas, HUD will not approve applications for any new construction or substantial rehabilitation project in the LiMWA. HUD strongly discourages approving currently uninsured 223(f)s or currently insured 223(f)s with repairs at Level Two or above in the LiMWA and will only do so if the work meets the current standards for coastal high hazard areas in FEMA regulations (44 CFR 60.3(e)). HUD will consider on a case by case basis approving currently insured refinance transactions that do not exceed Level One repairs (as defined in Chapter 5 of this MAP guide) or currently assisted projects with minor rehabilitation.

irs at Level Two or above in the LiMWA and will only do so if the work meets the current standards for coastal high hazard areas in FEMA regulations (44 CFR 60.3(e)). HUD will consider on a case by case basis approving currently insured refinance transactions that do not exceed Level One repairs (as defined in Chapter 5 of this MAP guide) or currently assisted projects with minor rehabilitation.

J. New construction and substantial improvement, as defined at 24 CFR 55.2(b)(10), in 100-year floodplains are strongly discouraged. This flood buffer zone is extended to the 500-year floodplain for proposed rehabilitation, refinancing, or new construction for facilities housing or serving mobilityimpaired individuals, a critical action. Such sites in the applicable floodplain according to the best available data will not be considered for mortgage insurance unless the following steps are taken:

1. HUD must determine if there may be extraordinary circumstances which lead to the conclusion that there are no practicable alternatives to the project site being in the floodplain. In order to make this determination, HUD must conduct an 8-step decision making process which includes publishing two

MAP Guide, March 2021 Go to beginning of Chapter 9

Bookmarked Version Go to Acronym and Abbreviation List, Glossary, Index

Chapter 9 Page 9-42

To return to this page after clicking a link, press ALT + Back Arrow

Chapter 9 Environmental Review and Requirements 9.6 Environmental Laws and Authorities

Go to Table of Contents

public notices and taking comments, as summarized in 24 CFR 55.20[50] . Prior to issuing the first public notice, HUD will require detailed information about how the property will be altered and improvements designed. This information includes the elevation of the property, the base flood elevation, and the location of life support systems and other data that may be necessary to assess the safety of the site.

==> picture [8 x 7] intentionally omitted <==

==> picture [8 x 9] intentionally omitted <==

==> picture [7 x 6] intentionally omitted <==

==> picture [8 x 9] intentionally omitted <==

==> picture [8 x 7] intentionally omitted <==

==> picture [6 x 8] intentionally omitted <==

• The 8-step process may require as a condition of any project approval that a CLOMA or CLOMR for the buildings be issued prior to initial endorsement, a LOMA or LOMR be issued prior to Final Endorsement, and flood insurance be maintained on any building during the construction period until the issuance of the LOMA or LOMR.

• The 8-step process shall require that the lowest floor of new construction be elevated at or above the Base Flood Elevation of the applicable floodplain based on the best available FEMA data, plus two feet of freeboard. Substantial rehabilitation projects must elevate or mitigate following National Flood Insurance program requirements (as instituted by state and local codes).

• The 8-step process requires that all “critical actions” as defined in 24 CFR 55.2(b) (3) must comply with the requirements of 24 CFR 55.20(e).

• Instead of elevating non-residential or mixed-use structures that are not critical actions, the project may be designed and constructed such that below the flood level, the structure is nonresidential and floodproofed to the level of the best available flood data plus two feet. Floodproofing requires structures to be watertight with walls substantially impermeable to the passage of water and with structural components having the capability of resisting hydrostatic loads, hydrodynamic loads, the effects of buoyancy, or higher standards required by the FEMA National Flood Insurance Program as well as state and locally adopted codes.

• The 8-step process shall be completed by HUD before issuance of the Firm Commitment. HUD will develop the 8-step, including the two notices, but the costs of publication will be borne by the Borrower.

• The 8-step process shall consider three alternatives: the action as proposed, modifications within the aggregated project site, or no action, i.e., rejection of the application.

K. For purchase or refinancing actions described in 24 CFR 55.12(a)(2) or non-substantial repair, rehabilitation, modernization or improvement actions described in 24 CFR 55.12(a)(3), an abbreviated 5- step process pursuant to 24 CFR 55.12(a) may be used by HUD to determine their acceptability. The abbreviated process eliminates the two public notices and the alternatives analysis. Detailed information about the proposed actions, and about any plans for mitigation, must be submitted with the application or preapplication. HUD will evaluate risks and mitigation measures in making its decision. HUD discourages these actions if the lowest floor and/or the life support facilities, or egress and ingress of the existing building, are below the 100-year base flood elevation. The abbreviated review process shall be completed by HUD before issuance of the Firm Commitment.

L. Where a site does not appear to be located in the floodplain on official FEMA maps, but shows evidence of flooding or has a history of flooding, HUD shall qualitatively evaluate the acceptability of the site.

50 Additional guidance, including an example 8-step process and sample notices, can be found at https://www.hudexchange.info/programs/environmental-review/floodplain-management/.

MAP Guide, March 2021 Go to beginning of Chapter 9

Bookmarked Version Go to Acronym and Abbreviation List, Glossary, Index

Chapter 9 Page 9-43

To return to this page after clicking a link, press ALT + Back Arrow

Chapter 9 Environmental Review and Requirements 9.6 Environmental Laws and Authorities

Go to Table of Contents

Lenders will be required to provide extensive data to aid HUD in evaluating previously flooded or floodplain sites.

M. The cost of floodplain mitigation may be included in the proposed mortgage loan.