Environmental

The National Flood Insurance Program (NFIP) administered by FEMA affects Texas real estate by:

AProhibiting development in flood zones
BProviding flood insurance for properties in participating communities and imposing floodplain management requirements✓ Correct
CSetting property values in flood zones
DRequiring TREC disclosure of flood insurance rates

Explanation

The NFIP provides flood insurance in participating communities (virtually all Texas cities and counties) and requires those communities to adopt and enforce floodplain management regulations. Federally backed loans in Special Flood Hazard Areas must carry flood insurance.

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