Land Use & Zoning

A floodplain designation in Minnesota affects property owners because:

AAll floodplain properties are automatically condemned
BDevelopment is restricted and flood insurance (NFIP) is typically required for mortgage loans in designated flood zones✓ Correct
CFloodplain property receives a property tax exemption
DAll floodplain property must be sold to the government

Explanation

Properties in FEMA-designated Special Flood Hazard Areas (100-year floodplains) in Minnesota are subject to development restrictions and are required to have flood insurance under the National Flood Insurance Program (NFIP) when a federally backed mortgage is obtained. Disclosure of flood zone status is a material fact.

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