Paragraph 5.8 Protection of Environmental Resource
B.
Flood Hazard Determination
FEMA’s Standard Flood Hazard Determination Form (SFHDF) determines if the home is
located in a Special Flood Hazard Area (SFHA) and states the availability of flood insurance
based on if the community participates in the National Flood Insurance Program (NFIP). Flood
insurance is required when any form of federal financial assistance is intended in whole or in part
for acquisition, construction, reconstruction, or substantial improvement of any building located
in a SFHA. The flood insurance can be through NFIP or under NFIP’s “write your own” program
where the policy is through private insurance that meets the requirements of 42 USC 4012a
(b)(1)(A). Flood insurance must be obtained and maintained throughout the life of the loan when
any portion of the home is located in a SFHA, including attached garages, decks and carports, etc.
Flood insuran
ce is not requ
ired for any
additional s
tructure th
at is
located on the property but is detached from the home (such as detached shed, garage, or other ancillary structure). Flood
insurance is also not required if the financial assistance is less than the substantial improvement
threshold discussed in HB-1-3550, Chapter 7.
The information on the SFHDF will assist in the preparation of the environmental review
documentation, which must examine whether there is a reasonable alternative to a proposed
purchase or construction in a floodplain. The Loan Originator will be responsible for acquiring
the SFHDF from CoreLogic Flood Services at: https://www.floodcert.com/. CoreLogic provides
“Life of Loan Determination” in which the Agency will be notified should the site’s floodplain
designation change. The SFHDF must be acquired prior to the completion of the environmental
review.
If the dwelling is located within a SFHA, the lowest floor (including basements) must be
elevated above the base flood elevation (BFE). Proof that this requirement has been met is usually
in the form of a FEMA Elevation Certificate, however other forms of documentation may be
accepted (see RD Instruction 1970-F).
Additionally, for applications to purchase, construct, or substantially rehabilitate a dwelling
in a floodplain, utilities should be flood-proofed or located above the BFE. If the dwelling does not
use public utilities, the domestic well must be a minimum of 50 feet from the septic drain field (or
more, depending on local or state codes). For minor repairs, these requirements are not applicable
if the dwelling existed prior to the publication of the first FEMA flood map for that location. In
accordance with RD Instruction 1970-F, section 1970.256 (b) and 1970.261(b), if the property is
within a floodplain, the Agency approval official is responsible for notifying the applicant about
the hazards associated with occupancy of locations within a floodplain at the earliest possible point
in the Agency’s decision-making process. A template notice can be found in RD Instruction 1970-
F, Exhibit B, Attachment 2.
C.
Responsibility for Environmental Reviews
The Loan Originator is responsible for ensuring that the appropriate level of environmental review has
been completed prior to the commitment of federal funds. This includes the assembly and analysis of
relevant material, the development and analysis of practical alternatives and mitigation measures (as
appropriate), and the development of recommendations regarding environmental impacts and
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