Environmental

A property located in an Arizona '100-year floodplain' (Zone AE on FEMA maps) faces which additional costs compared to a non-flood zone property?

AHigher property taxes
BMandatory flood insurance for federally financed mortgages and potentially higher construction costs for flood-proofing✓ Correct
CAnnual FEMA inspection fees
DRequired drainage easements

Explanation

Properties in FEMA Zone AE (100-year floodplain) require flood insurance for federally backed mortgages, face potential construction requirements (elevated structures), and may have reduced marketability due to flood risk.

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