On Dec. 27, NAHB filed comments opposing HUD’s planned implementation of the Federal Flood Risk Management Standard (FFRMS). As we previously reported, NAHB believes the proposed rule is substantially flawed and should be withdrawn.
“HUD’s proposal unnecessarily expands floodplain management requirements and fundamentally threatens access to FHA mortgage insurance programs for single-family home buyers and multifamily builders,” said NAHB Chairman Ed Brady. “If implemented, the proposal will severely disrupt the housing market and harm affordability for countless families living in areas designated under the expanded floodplain definition.”
If the proposal is not withdrawn, at a minimum HUD should take the following steps before implementing the regulations:
- Limit the FFRMS to “federally funded projects”
- Exclude single family and multifamily FHA mortgage insurance programs from the FFRMS and any elevation and/or flood proofing requirements outside of the 100-year floodplain and above the 100-year base flood elevation
- Provide nationwide maps of the expanded floodplain area
- Include a grandfathering provision that would set an effective date of one year after publication of a final rule for new federally funded projects.
The comment period has closed and HUD is reviewing comments. Stay tuned for more information as the regulatory process unfolds.