Environmental

A floodplain designation affects real estate primarily because:

AProperties in a floodplain cannot be sold
BLenders may require flood insurance and the designation affects insurability and value✓ Correct
CFloodplain properties are automatically condemned
DFloodplain properties are exempt from property taxes

Explanation

Properties in FEMA-designated Special Flood Hazard Areas (SFHAs) require flood insurance for federally backed mortgages and may face higher insurance costs and building restrictions, affecting value and marketability.

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