Environmental

In New Mexico, a property disclosed as being in a FEMA 'Zone AE' flood zone means:

AThe property is in a low-risk flood area
BThe property is in a high-risk Special Flood Hazard Area (SFHA) with a 1% annual chance of flooding and base flood elevations established✓ Correct
CThe property is above the 500-year flood plain
DNo flood insurance is required

Explanation

FEMA Zone AE designates a Special Flood Hazard Area with a 1% annual chance of flooding (100-year flood plain) and established base flood elevations. Flood insurance is required for federally backed mortgages on properties in Zone AE.

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