Review of Determinations for Required Purchase of Flood Insurance

FEDERAL EMERGENCY MANAGEMENT AGENCY

44 CFR Part 65

RIN 3067-AC38

Review of Determinations for Required Purchase of Flood Insurance

AGENCY: Federal Emergency Management Agency (FEMA).

ACTION: Final rule.

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SUMMARY: This final rule establishes the procedures for FEMA's review

of determinations whether a building or manufactured home is located in

an identified Special Flood Hazard Area. The determination review

process will provide an opportunity for borrowers and lenders of loans

secured by improved real estate to resolve disputes regarding contested

determinations.

EFFECTIVE DATE: January 2, 1996.

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 (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 31442, June 15, 1995) to establish the procedures

for its review of determinations whether a building or mobile home is

located in an identified Special Flood Hazard Area. The comment period

ended on August 14, 1995. The proposed rule used the term ``mobile

home'' for consistency with the statute. However, the term

``manufactured home'' is preferred in the industry, and is specifically

defined in both the National Flood Insurance Program (NFIP) regulations

at 44 CFR part 59, and in the standard flood insurance policy.

Therefore, the term ``manufactured home'' will be used in this final

rule.

This final rule addresses FEMA's requirement under 42 U.S.C.

4012a(e)(3) to review a determination whether a building or

manufactured home is located in an identified Special Flood Hazard Area

(SFHA) if jointly requested by the borrower and lender for a loan

secured by improved real estate or a manufactured home. FEMA will begin

accepting requests for determination reviews under this regulation on

January 2, 1996. Requests should be mailed to the following locations:

For Minnesota and locations east of the Mississippi River:

Determination Review Coordinator, c/o Dewberry &

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Davis, P.O. Box 2020, Merrifield VA 22116-2020.

For Louisiana and locations west of the Mississippi River:

Determination Review Coordinator, c/o Michael Baker Jr., Inc., 3601

Eisenhower Avenue, Alexandria VA 22304-6439.

We received comments from 25 organizations and individuals, as

follows: 12 lenders, 9 associations, 3 third party determinators, and 1

consultant. The greatest number of comments related to who pays the

requested fee (12 comments). Others commented on whether FEMA will

accept individual requests (9 comments), whether and when borrowers are

required to purchase flood insurance (6 comments). We also received 6

comments stating that FEMA should not require copies of NFIP maps to be

submitted because it should already have them on file. Summarized below

are the comments we received and our responses to them.

Fees

The $60.00 fee for FEMA's review of determinations, contained in

the proposed rule, has been increased to $80.00, based on FEMA's

anticipated costs to process reviews of determinations. The $80.00 fee

does not completely cover FEMA's costs, and contains some subsidy to

the requestor. The costs for this service will be monitored and revised

at the beginning of FY 1997, if necessary.

Determination of fee. Two responders asked how the fee was

determined.

Response. The amount of time required to handle, record, document,

and respond to these requests was estimated based on our experience

with high volumes of similar types of requests. Using current $40 per

hour fee rates for the existing Letter of Map Revision (LOMR) review

process, we estimated the $80 fee based on the anticipated steps and

time required to review a determination and process the request.

Fee is excessive. Five responders felt that the fee is excessive

and more than commercial third party determinators charge for the same

service.

Response. The vast majority of flood determinations made by third

party determinators are for structures well away from the SFHA. These

determinations can be done very quickly using automated processes at

very low cost. For example, a third party determinator may determine

that the only area of a community having SFHAs has a specific zip code.

Any time that a third party determinator gets a request for a

determination in that community it first checks the zip code. If it is

any zip code other than the one having SFHAs, a determination of ``Not

in SFHA'' can be made quickly. This determination takes only minutes

and costs are minimal. Only when a request for a determination is for a

property with the zip code containing SFHAs is more effort required.

Most of these determinations are for structures well away from the

boundary of the SFHA and are clearly shown in or out of the SFHA.

Determinations where a structure is located near the edge of a

mapped SFHA are the most complex because additional review is often

required to locate the structure accurately on the NFIP map. While

these latter determinations cost the determinator more, the inexpensive

determinations comprise the vast majority of determinations made. We

expect that FEMA's determination reviews will cost more because we

anticipate receiving primarily requests for structures near the

boundary of mapped flood hazards, where a review of the technical data

used in making the determination and comparing it to the printed map

will be required in order to issue a response.

Multiple structures. One commenter asked how the fee would apply to

multiple structures.

Response. One fee will apply to each Standard Flood Hazard

Determination Form (SFHDF) submitted. Generally, an SFHDF is prepared

for a single structure used as loan collateral. If a request for a

determination review includes multiple buildings, the fee will be based

on the number of SFHDFs included in the request.

Authority. Two responders requested that FEMA cite the specific

authority for imposing a fee.

Response. The authority for FEMA to charge a fee is at 31 U.S.C.

9701, which allows Federal agencies to recover costs associated with

providing something of value to a customer.

Responsibility and Disclosure. Almost half of the responders asked

who would pay the fee. Two responders asked how the fee for a

determination review related to the Real Estate Settlement Procedures

Act, if this fee was considered a finance charge, and if the fee needed

to be disclosed.

Response. These issues were sent to the Federal Financial

Institutions Examination Council for the Council's review and advice.

We understand that they will be considered by the Council during the

comment period (October 18-December 18, 1995) following the publication

of the proposed rule for loans in areas having special flood hazards

(60 FR 53962, October 18, 1995).

Notification. One commenter indicated that FEMA should not rely on

the Federal Register for notification of the initial fee or subsequent

increases or decreases in the amount, and suggested that all interested

parties be notified directly regarding fee changes.

Response. Publication in the Federal Register is a legally

acceptable method to notify the public of rule changes. Notifying

individual parties is not FEMA's role, and cannot be provided within

the constraints of FEMA's budget and staff. We expect that

organizations and trade associations that serve the banking industry

will provide such notification to their constituents.

Payment Method. The proposed rule included an option of payment by

credit card. On further investigation this option will not be available

because of the expense that would be incurred by FEMA to process credit

card payments. Payment for requests for review must be made by check or

by money order, in U.S. funds, payable to the National Flood Insurance

Program.

Insurance Purchase Requirements

Forced placement. Five responders questioned how the request for

review of lender determinations impacts the 45-day clock for forced

placement of flood insurance. One responder asked whether a lender

could force place insurance during the 90-day window (45 days to

submit, 45 days to review) without liability or penalty, and whether

new extensions of credit should be postponed pending FEMA's Response.

Response. Section 524 of the NFIRA states that if the request is

made in connection with the origination of a loan and if FEMA fails to

respond before the later of the expiration of the 45-day period after

receiving the request or closing of the loan, then flood insurance is

not required until such a letter is provided. Thus, section 524 only

temporarily delays the flood insurance purchase requirement. If the

closing of the loan occurs prior to 45 days after FEMA receives a

request, then the flood insurance purchase requirement is not waived

under section 524 because FEMA has not failed to respond within the 45-

day period. If loan closing occurs after FEMA's 45-day response period,

then the mandatory flood insurance purchase requirement is waived only

if FEMA's response is not issued by loan closing. We plan to respond to

requests within 45 days.

However, if we do not respond within 45 days and the mandatory

purchase requirement is delayed until we do respond, it is nevertheless

a prudent business practice to require the

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purchase of flood insurance to protect the collateral. The lender

always retains the prerogative to require flood insurance even when its

purchase is not Federally mandated. Flood insurance premiums can be

refunded if it is determined by FEMA that the structure is not located

in the SFHA and the lender waives the flood insurance purchase

requirement.

Mandatory purchase. We received comments noting that the proposed

rule did not address when borrowers are or are not required to purchase

flood insurance. Another commenter asked whether the lender could waive

the flood insurance purchase requirement while the determination is

under review. Others noted that FEMA's review of lender determinations

should not delay flood insurance purchase requirements.

Response. As stated above, section 524 temporarily delays the flood

insurance purchase requirement only when FEMA fails to respond within

its allotted 45-day period. At all other times, the mandatory purchase

of flood insurance for structures located in SFHAs remains in effect.

Requirement for Joint Request

Individual requests. Seven responders indicated that individual

requests for determination reviews should be accepted, and that joint

requests would be too time consuming.

Response. The NFIRA states that the borrower and lender of a loan

secured by improved real estate or a manufactured home may jointly

request the Director to review a determination whether the building or

manufactured home is located in an area having special flood hazards.

FEMA interprets the statute to require a joint request from both the

borrower and the lender for this review. If an individual submits a

request for a determination review, FEMA will make a reasonable attempt

to obtain the needed signature. However, if it is not possible to

obtain both parties' signatures for the request, FEMA will not review

the request under 44 CFR 65.17, and will return the request promptly in

its entirety. FEMA will notify the requestor that the data submitted

with the request do not meet the requirements of 44 CFR 65.17;

therefore, the lender's obligation to require the purchase of flood

insurance remains in effect. Further, we shall notify the requestor

that other procedures are available to individuals under 44 CFR parts

70 and 65, commonly known as the Letter of Map Amendment (LOMA) and the

Letter of Map Revision (LOMR) processes, if the requestor believes that

a structure has been incorrectly included in the SFHA, or if conditions

have changed since the NFIP map was issued.

Signatures. One responder asked whether all borrowers had to sign

the request.

Response. The request for a determination review must be signed by

at least one of the borrowers, or the borrowers' legal representative

for the loan. Likewise, the lender must also sign the request. To

ensure the involvement of all appropriate parties as intended by the

legislation, and to ensure an objective process, FEMA will not accept

the signature of a third party determinator as a representative for the

borrower or the lender.

Responsibility. Several requestors also asked who is responsible

for the preparation of the joint submittal and whether others may join

in on requests or submit on behalf of the borrower and lender.

Response. The responsibility for the preparation of the request for

review of a determination is held jointly, by both the borrower and the

lender. The data package may be prepared by others, but the request

itself must be an original (not photocopied), and signed by the

borrower and lender, as discussed above.

Time Frames

Submittal. We received many comments on the requirement to submit

the request for a determination review within 45 days of the lender's

notification to the borrower that flood insurance is required. Two

commenters questioned FEMA's authority for limiting the time frame and

five commented that the time allotted was too short or should be

eliminated. Other comments indicated that the combined submission and

processing time was too long or that the lender and borrower should be

allowed to submit at any time, and that FEMA should expedite its

review.

Response. We limited the time frame for submittal to permit us to

provide reviews in a timely manner. The 45-day period is also within

the time period in which loans are generally closed. This time frame

avoids a protracted period of time before a final determination is made

whether the property is or is not located in a SFHA. Processing times

may be minimized if a request for review is submitted immediately after

the lender notifies the borrower that flood insurance is required, and

if a complete data package is submitted to FEMA.

Available options. One responder asked what options are available

if the 45-day window for the submittal of a request for determination

review is missed.

Response. In this case, flood insurance should be purchased if

required. The procedures for a LOMA or LOMR are available to

individuals if a structure has been inadvertently included in the SFHA

or if conditions have changed since the NFIP map was issued.

Resubmittals. Two commenters asked about the charge for

resubmissions. Two others asked what effect a request returned for

insufficient data would have on the 45-day clock.

Response. Requests returned because the 45-day deadline was missed

cannot be resubmitted. Requests returned for insufficiency of

information will have the fee returned with the package. FEMA will

return the entire package to the borrower with the fee and a letter

explaining what information is needed for the review to be

accomplished. The borrower will have 14 days from date of FEMA's letter

or 45 days from the date of lender notification, whichever is later, to

send the request back to FEMA. A fee must be provided with any

resubmission; there is no second charge. The date of postmark from the

sender will determine the timeliness of the resubmission.

Start of 45 days for FEMA review and response. Two responders asked

when the 45-day FEMA review clock would begin and what effect, if any,

an uncollected fee would have on the clock.

Response. The 45-day timeframe for FEMA to complete the review will

begin on the day that FEMA receives a complete request supported by

technical information at the proper location (addresses given above).

Uncollected fees may be turned over to the Treasury Department for

handling and such action will not have an impact on the processing of

the review.

Definitions. One responder asked for clarification of the word

``submitted'' as in ``submitted within 45 days of the lender's

notification''.

Response. Submitted means postmarked. This is defined in 44 CFR

65.17 (b) (3).

Timing of LOMAs and Determination Reviews. One responder asked how

the 45-day time limit is impacted if a LOMA or LOMR is requested before

the request for a determination review.

Response. The determination review procedures provide a mechanism

for FEMA to review a lender's or its agent's determination of whether a

structure is within a mapped SFHA. LOMA and LOMR procedures allow the

submittal of more detailed, site-specific information than was

available when

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the maps were initially prepared. After reviewing this information, and

if warranted, FEMA can revise the mapped SFHAs by LOMA or LOMR. If the

question is whether the NFIP map was read correctly, the determination

review procedure is appropriate. If the question is whether the SFHA

should be changed, LOMA or LOMR procedures are appropriate. In most

instances, only one procedure is applicable. However, should both

procedures be underway simultaneously, most likely they will be

addressed separately. While FEMA has 45 days to respond to a request

for determination review, FEMA has 60 or 90 days, respectively, to

respond to LOMA and LOMR requests because a more detailed review is

necessary. Any determination made through the determination review

procedure will consider only effective LOMAs or LOMRs, and the

submittal and response timeframes for the determination review process

will not change as a result of any ongoing LOMA or LOMR reviews.

Providing a Copy of the NFIP Map

Seven responders questioned why a copy of the NFIP map must be

submitted with the request when FEMA already has the maps on file.

Response. The purpose of FEMA's review is to judge whether the

determination presented by the lender is appropriate. If the location

of the structure on the NFIP map used in that determination is not

provided with the submitted data, FEMA would have to make an

independent determination, which was not the intent of the NFIRA.

Further, if a copy of the NFIP map used to make the determination is

not provided, it would be unclear whether the current NFIP map panel

was used to make the determination. A full copy of the map panel is not

required. The title block, including map date, scale bar, and north

arrow, and the portion of the map including the property location (with

the property location noted) are the only portions of the NFIP map that

need to be provided.

FEMA Processing

Effective date. Four responders had concerns about the effective

date for the use of the Standard Flood Hazard Determination Form

(SFHDF) and the commencement of FEMA's reviews under 44 CFR 65.17, and

two responders suggested that any form be admissible before January

1996.

Response. FEMA is currently developing a system to handle requests

for determination reviews and will begin accepting requests under

Sec. 65.17 on January 2, 1996. The mandatory use of the SFHDF by

lenders also begins on January 2, 1996.

Technical data requirements. Five responders expressed the need for

FEMA to define the technical data requirements and provide examples.

Response. FEMA needs the same technical data that were used by the

lender or third party determinator to make the determination. Items

that typically complete this requirement include, but are not limited

to, a copy of the tax assessor's map showing the property, a map

showing the location of the structure on the property, a copy of the

plat for the subdivision/tract or similar document, and information

showing the relationship of the NFIP map and the location of the

structure on the property. Structures located in rural areas or areas

where the NFIP map contains few physical features may need additional

data so that the structure can be definitively located on the property

and the property located relative to reference features. Multiple-unit

structures would need data for the entire building. Properties with

multiple buildings must show data for all structures. If a building has

a porch or deck, this should be indicated in detail.

Incomplete submittals. One responder asked what happens to

incomplete submissions and three asked when the fee is returned.

Response. Incomplete submissions are returned in their entirety,

with the fee, to the borrower. Requests received with a postmark more

than 45 days after the date the lender notified the borrower that flood

insurance is required will also be returned to the borrower with the

fee. The only data retained by FEMA are the database record of the

receipt and disposition of the request. There are no circumstances when

the fee can be reimbursed to the lender or borrower.

Format for requests. Five responders requested that FEMA provide a

form or a format for requesting the reviews.

Response. FEMA will provide guidance on how to request a review,

but does not plan to develop an official form to be used when

requesting determination reviews. This issue has been discussed with

the lending industry trade associations and they are willing to develop

a recommended format that can be used.

Publication of Letters of Determination Review. One responder asked

whether FEMA will publish public notices of determination reviews

similar to LOMAs and LOMRs.

Response. No publication by FEMA is contemplated because the

determination review does not change the effective map.

Distribution of correspondence. One responder suggested that copies

of the correspondence be provided to the borrower and the lender.

Response. Copies of the Letter of Determination Review will be sent

to the lender and the borrower, as well as to the third party

determinator, if known. Packages returned for insufficiency will be

sent to the borrower with notice of return to the lender.

Review of Accuracy of NFIP Map. One responder asked whether FEMA's

review would include verification of the accuracy of the NFIP map.

Response. No. The purpose of the review is to determine whether or

not the security property has been accurately located on the effective

NFIP map. If the accuracy of the NFIP map is in question, procedures

under 44 CFR parts 70 and 65 must be used to request a LOMA or LOMR.

Review for Letters of Map Change. One responder asked whether FEMA

would review for LOMAs and LOMRs, how it would perform this task, and

what LOMA/LOMR information would be provided back to the borrower and

lender.

Response. When reviewing a lender's or its agent's determination,

FEMA will check its Community Information System database for LOMAs and

LOMRs that would affect the determination. If the original

determination overlooked a LOMA or LOMR, FEMA's final response will so

state and will provide the date of the letter. LOMAs and LOMRs are

available through the community's map repository. In addition, FEMA

publishes a compendium of all map changes semi-annually in the Federal

Register.

Initiation of LOMA/LOMR process. Two responders promoted the

automatic initiation of the LOMA/LOMR process.

Response. There will not be an automatic initiation of the LOMA/

LOMR procedures from the 44 CFR 65.17 submission. Elevation data are

not considered in the determination review process, but are frequently

required for the LOMA/LOMR process. The Sec. 65.17 procedure has been

designed for fast response and the review of extra data will not be

performed at this time. FEMA's response to a request for determination

review that includes elevation data will include information regarding

other procedures that are available to consider the elevation data.

Format of FEMA's Response. One responder asked whether FEMA's

review would result in a Standard Flood Hazard Determination Form

prepared by FEMA.

Response. No. The intent of these procedures is to provide a review

of a

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lender's or its agent's determination. Section 524 of the NFIRA states

that FEMA shall provide to the borrower and the lender a letter stating

whether or not the building or manufactured home is in an area having

special flood hazards.

Status inquiries. One responder wanted to know how to obtain the

status of the request after submission.

Response. Due to the anticipated volume of requests, such inquiries

will not be accommodated. We plan to acknowledge receipt of the request

within five days and to issue the final response within 45 days.

Elevation data. A responder asked that the final rule explicitly

state that FEMA will not consider elevation data for this review. The

same responder advocated that the determination review process not

result in the initiation of the LOMA/LOMR process.

Response. This is stated in the final rule under 44 CFR 65.17(a).

Miscellaneous Comments

Definition of ``in SFHA'' and ``partially in SFHA''. One responder

asked that ``in the SFHA'' be defined and another responder asked how

we would deal with reviews of ``part in, part out''.

Response. The SFHA is delineated on the NFIP map for the community.

For purposes of this procedure, if any part of the structure is

indicated to be in the SFHA on the NFIP map, the structure is

considered to be in the SFHA and flood insurance is required. The flood

insurance purchase requirement applies to insurable structures. If a

portion of the land lies in the SFHA, the purchase of flood insurance

is not Federally mandated unless the structure itself is indicated to

be in or partially in the SFHA.

Determinations ``Pursuant to a Revision.'' Several responders

asked us to clarify whether these determination review procedures were

available in the case of a FEMA remapping.

Response. These procedures are available for the review of lender

determinations when requested within 45 days after the borrower was

notified that flood insurance is required, regardless of the impetus of

the request. However, the intent of the determination review procedures

is to allow a mechanism for FEMA to review a lender's or its agent's

determination when specifically requested. FEMA will return requests at

the outset if the submitted Standard Flood Hazard Determination Form is

based on an outdated map panel. After the lender conducts or obtains a

determination using the current map panel in effect, FEMA will review

the determination upon request if the request meets the stipulated

criteria.

Applicability of Process. One responder asked if the procedure

would apply to existing loans as well as loan originations.

Response. The process is available within 45 days after the lender

advises the borrower that flood insurance is required as a condition

for the loan. Therefore, this procedure applies to all loans.

Guarantee. One responder asked whether FEMA would guarantee its

determination.

Response. No. A guarantee is only required if a third party

completes the Standard Flood Hazard Determination Form for a lender.

FEMA is not authorized to guarantee these determinations. However, FEMA

will review the available data and ensure that the determinations are

as accurate as possible.

Initial Determinations. One responder suggested that FEMA should

provide initial flood hazard determinations.

Response. Although the NFIRA does not prohibit FEMA from providing

initial flood hazard determinations, we interpret section 524 as

providing a mechanism for FEMA to review and resolve appeals on others'

determinations. As indicated in the NFIRA, FEMA's determination shall

be final. As stated earlier, FEMA's review of a determination is based

on the data provided by others that allowed the original determination

to be made. FEMA's review of the determination will correct an error,

if one was made in locating a structure relative to a mapped SFHA, but

does not change the map, the location of the property on the map, or

the findings of a third party determinator or lender if they correctly

used the available data. Other procedures with additional data

requirements are available through FEMA's LOMA and LOMR processes.

Upholding original determinations due to insufficient information.

One responder asked for clarification on why the original determination

would be ``upheld'' instead of ``withheld'' if insufficient information

was submitted to review the determination.

Response. FEMA will presume the lender or lender's agent has made

the correct determination and predicts that most determinations will

not be submitted to FEMA for review. Therefore, the lender's

determination is considered valid until found to be in error. We have

revised the language in 44 CFR 65.17(c)(2) to clarify this issue.

Unusual cases. A responder asked for clarification of the term

``unusual cases.''

Response. This may have been a poor choice of words in the proposed

rule. If the lender or third party determinator uses prudent and

reasonable judgment in their evaluations, disputes should not arise

that would require a determination review by FEMA.

Use of term ``mobile home.'' One responder stated that 44 CFR 65.17

should use the term ``manufactured home'' instead of ``mobile home'' to

be consistent with the NFIP regulations.

Response. Section 65.17 has been changed to use the term

``manufactured home.''

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 a procedure for FEMA's review of

determinations 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 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 rule adheres to the

principles of regulation as 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.

Paperwork Reduction Act

This final rule does not involve any collection of information for

the purposes of the Paperwork Reduction Act.

Executive Order 12612, Federalism

This final rule involves no policies that have federalism

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

1987.

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Executive Order 12778, Civil Justice Reform

This rule meets 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 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 65.17 is added to read as follows:

Sec. 65.17 Review of determinations.

This section describes the procedures that shall be followed and

the types of information required by FEMA to review a determination of

whether a building or manufactured home is located within an identified

Special Flood Hazard Area (SFHA).

(a) General conditions. The borrower and lender of a loan secured

by improved real estate or a manufactured home may jointly request that

FEMA review a determination that the building or manufactured home is

located in an identified SFHA. Such a request must be submitted within

45 days of the lender's notification to the borrower that the building

or manufactured home is in the SFHA and that flood insurance is

required. Such a request must be submitted jointly by the lender and

the borrower and shall include the required fee and technical

information related to the building or manufactured home. Elevation

data will not be considered under the procedures described in this

section.

(b) Data and other requirements. Items required for FEMA's review

of a determination shall include the following:

(1) Payment of the required fee by check or money order, in U.S.

funds, payable to the National Flood Insurance Program;

(2) A request for FEMA's review of the determination, signed by

both the borrower and the lender;

(3) A copy of the lender's notification to the borrower that the

building or manufactured home is in an SFHA and that flood insurance is

required (the request for review of the determination must be

postmarked within 45 days of borrower notification);

(4) A completed Standard Flood Hazard Determination Form for the

building or manufactured home, together with a legible hard copy of all

technical data used in making the determination; and

(5) A copy of the effective NFIP map (Flood Hazard Boundary Map

(FHBM) or Flood Insurance Rate Map (FIRM)) panel for the community in

which the building or manufactured home is located, with the building

or manufactured home location indicated. Portions of the map panel may

be submitted but shall include the area of the building or manufactured

home in question together with the map panel title block, including

effective date, bar scale, and north arrow.

(c) Review and response by FEMA. Within 45 days after receipt of a

request to review a determination, FEMA will notify the applicants in

writing of one of the following:

(1) Request submitted more than 45 days after borrower

notification; no review will be performed and all materials are being

returned;

(2) Insufficient information was received to review the

determination; therefore, the determination stands until a complete

submittal is received; or

(3) The results of FEMA's review of the determination, which shall

include the following:

(i) The name of the NFIP community in which the building or

manufactured home is located;

(ii) The property address or other identification of the building

or manufactured home to which the determination applies;

(iii) The NFIP map panel number and effective date upon which the

determination is based;

(iv) A statement indicating whether the building or manufactured

home is within the Special Flood Hazard Area;

(v) The time frame during which the determination is effective.

Dated: November 22, 1995.

Robert H. Volland,

Acting Deputy Associate Director for Mitigation.

[FR Doc. 95-29561 Filed 12-4-95; 8:45 am]

BILLING CODE 6718-04-P