Environmental
What is the significance of a property being located in a FEMA 'Special Flood Hazard Area' (100-year floodplain)?
ANo significance; flooding happens rarely
BProperties in SFHAs require federal flood insurance if they have a federally backed mortgage, and must be disclosed to buyers✓ Correct
COnly affects commercial properties
DOnly relevant if the property has flooded before
Explanation
Properties in FEMA Special Flood Hazard Areas (SFHAs/100-year floodplains) must carry flood insurance if financed with a federally backed loan. Sellers must disclose SFHA status in California's Natural Hazard Disclosure Statement. Flood insurance can add significantly to monthly housing costs.
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