Environmental

A Louisiana property is located in a Special Flood Hazard Area (SFHA) designated Zone AE on the FEMA flood map. Which of the following is required for a federally backed mortgage on this property?

AA coastal use permit from the state
BMandatory flood insurance through NFIP or a private carrier meeting NFIP standards✓ Correct
CAn environmental impact statement
DElevation of the property to BFE + 3 feet before purchase

Explanation

Federal law (the Flood Disaster Protection Act) requires that properties in Special Flood Hazard Areas with federally backed mortgages carry flood insurance through the National Flood Insurance Program (NFIP) or an approved private carrier.

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