FHA Mortgagee Letter 2024-20 — Adoption of Federal Flood Risk Management Standard (FFRMS) for Minimum Property Standards (MPS) in Special Flood Hazard Areas (SFHA)
HUD Mortgagee Letter 2024-20. See obligation entries for operative requirements and verbatim primary-source citations.
Verbatim regulatory text
Verbatim provisions from FHA Mortgagee Letter 2024-20 — Adoption of Federal Flood Risk Management Standard (FFRMS) for Minimum Property Standards (MPS) in Special Flood Hazard Areas (SFHA) — each quote is a verified substring of the regulator-published source snapshot, not retyped. Quoted for reference; this is not legal advice. The operational layer (P&P updates, prompts) lives in the regulation update kits.
HUD ML 2024-20 — Eligibility for New Construction in SFHAs (II.A.1.b.iv(A)(1)(b))
If any portion of the dwelling and related Structures or equipment essential to the Property Value is located in an SFHA, the Property is not eligible for FHA mortgage insurance, unless the Mortgagee:
HUD ML 2024-20 — Flood Insurance Required When Property Remains in SFHA
The Mortgagee must ensure that Flood Insurance is obtained when a FEMA NFIP Elevation Certificate (FEMA Form FF-206-FY-22-152) documents that the Property remains located within an SFHA.
FHA Mortgagee Letter 2024-20 — Adoption of Federal Flood Risk Management Standard (FFRMS) for Minimum Property Standards (MPS) in Special Flood Hazard Areas (SFHA) — Purpose
This Mortgagee Letter (ML) updates New Construction property elevation requirements in SFHAs.
FHA Mortgagee Letter 2024-20 — Adoption of Federal Flood Risk Management Standard (FFRMS) for Minimum Property Standards (MPS) in Special Flood Hazard Areas (SFHA) — Effective Date
The provisions of this ML are effective immediately. All updates will be incorporated into a forthcoming update of the HUD Handbook 4000.1, FHA Single Family Housing Policy Handbook (Handbook 4000.1).
FHA Mortgagee Letter 2024-20 — Adoption of Federal Flood Risk Management Standard (FFRMS) for Minimum Property Standards (MPS) in Special Flood Hazard Areas (SFHA) — Affected Programs
The provisions of this ML apply to all FHA Title II Single Family forward and Home Equity Conversion Mortgage (HECM) programs.
FHA Mortgagee Letter 2024-20 — Adoption of Federal Flood Risk Management Standard (FFRMS) for Minimum Property Standards (MPS) in Special Flood Hazard Areas (SFHA) — Background
On April 23, 2024, the U.S. Department of Housing and Urban Development (HUD) Office of Environment and Energy (OEE) published the final rule, Floodplain Management and Protection of Wetlands; Minimum Property Standards for Flood Hazard Exposure; Building to the Federal Flood Risk Management Standard, [Docket No. FR-6272-F-02] in the Federal Register. This final rule revises HUD’s regulations governing floodplain management and the protection of wetlands to implement the Federal Flood Risk Management Standard (FFRMS) in accordance with Executive Order 13690 titled, “Establishing a Federal Flood Risk Management Standard and a Process for Further Soliciting and Considering Stakeholder Input,” dated January 30, 2015. The purpose of the amendment of the property standards is to decrease potential damage from floods, increase the safety and soundness of the Property for residents, and provide for more resilient communities in flood hazard areas. In pursuit of these goals, the amendment revises HUD’s Minimum Property Standards (MPS) under 24 CFR § 200.926d(c)(4), Drainage and flood hazard exposure, which addresses construction requirements for residential structures under HUD’s mortgage insurance programs. The change requires that the lowest floor in newly constructed structures located within the 1- percent-annual-chance (100-year) floodplain be built at least two feet above the Base Flood Elevation (BFE). This new elevation standard is applicable to New Construction with building permit application submission dates on and after January 1, 2025. The flood elevation standards for Manufactured Housing remain unchanged by this rule.
FHA Mortgagee Letter 2024-20 — Adoption of Federal Flood Risk Management Standard (FFRMS) for Minimum Property Standards (MPS) in Special Flood Hazard Areas (SFHA) — Summary of Changes
This ML: • revises the eligibility for New Construction in an SFHA (II.A.1.b.iv(A)(1)(b)) and (II.B.2.b.iii(A)(4)(b)) to align with MPS in 24 CFR § 200.926d(c)(4), Drainage and flood hazard exposure; • updates the Existing Construction section title to clarify the applicable type of construction (II.A.1.b.iv(A)(1)(c)) and (II.B.2.b.iii(A)(4)(c)); • updates the Eligibility for Condominiums in SFHAs section title to clarify the applicable stage of construction (II.A.1.b.iv(A)(1)(d)) and (II.B.2.b.iii(A)(4)(d)); • updates the Manufactured Housing section title to clarify the applicable stage of construction (II.A.1.b.iv(A)(1)(e)) and (II.B.2.b.iii(A)(4)(e)); • updates the requirements for New Construction located in Special Flood Hazard Areas (II.A.8.i.vii(A)(5)) with applicable links for reference; and • removes duplicative Flood Hazard Areas section from the HECM for Purchase product and renumbers subsequent sections (II.B.8.a.vi(E)(1)(e)). FHA Single Family Housing Policy Handbook 4000.1 Title II Insured Housing Programs Forward Mortgages Special Flood Hazard Areas (II.A.1.b.iv(A)(1)) (b) Eligibility for New Construction of Site Built Housing or Units in Condominium Project or Legal Phase in SFHAs If any portion of the dwelling and related Structures or equipment essential to the Property Value is located in an SFHA, the Property is not eligible for FHA mortgage insurance, unless the Mortgagee: • obtains a FEMA-issued final LOMA or LOMR that removes the Property from the SFHA; or • obtains a FEMA NFIP Elevation Certificate (FEMA Form FF-206- FY-22-152) based on the finished construction, documenting that when the building permit application submission date, or its equivalent date, is: o before January 1, 2025, the lowest floor of the residential building, including the basement, and all related Structures or equipment essential to the Property Value are built at or above the 100-year flood elevation in compliance with the NFIP criteria; or o on or after January 1, 2025, the lowest floor of the property improvements, including the basement and other permanent enclosures, and all related Structures or equipment essential to the Property Value are at least two feet above the FEMA- determined Base Flood Elevation (BFE). The Mortgagee must ensure that Flood Insurance is obtained when a FEMA NFIP Elevation Certificate (FEMA Form FF-206-FY-22-152) documents that the Property remains located within an SFHA. The building permit application submission date, or its equivalent date, will be required on form HUD-92541, Builder’s Certification of Plans, Specifications, and Site. In jurisdictions where building permits are not issued, an equivalent application submission date represents the request for jurisdictional approval to start construction. The construction start date serves as the equivalent date when no prior application submission date is available. (c) Eligibility for Existing Construction of Site Built Housing in SFHAs When any portion of the residential improvements is determined to be located within an SFHA, Flood Insurance must be obtained. (d) Eligibility for Existing Construction Condominiums in SFHAs The Mortgagee must ensure the Condominium Association obtains Flood Insurance on buildings located within the SFHA. The Flood Insurance coverage (II.C.2.c.vii(D)) must protect the interest of the Borrowers who hold title to an individual unit, as well as the common areas of the Condominium Project. (e) Eligibility for Existing and New Construction Manufactured Housing in SFHAs The finished grade level beneath the Manufactured Home must be at or above the 100-year return frequency flood elevation. If any portion of the dwelling and related Structures or equipment essential to the Property Value for both new and existing Manufactured Homes is located in an SFHA, the Property is not eligible for FHA mortgage insurance, unless the Mortgagee: • obtains a FEMA-issued LOMA or LOMR that removes the Property from the SFHA; or • obtains a FEMA NFIP Elevation Certificate (FEMA Form FF-206- FY-22-152) showing that the finished grade beneath the Manufactured Home is at or above the 100-year return frequency flood elevation. The Mortgagee must ensure that Flood Insurance is obtained when a FEMA NFIP Elevation Certificate (FEMA Form FF-206-FY-22-152) documents that the Property remains located within an SFHA. Site Considerations (II.A.8.i.vii(A)) (5) Flood Hazard Areas A New Construction Property must meet: • the Eligibility for New Construction of Site Built Housing or Units in Condominium Project or Legal Phase in SFHAs requirements; or • the Eligibility for Existing and New Construction Manufactured Housing requirements. FHA Single Family Housing Policy Handbook 4000.1 Title II Insured Housing Programs Reverse Mortgages Special Flood Hazard Areas (II.B.2.b.iii(A)(4)) (b) Eligibility for New Construction of Site Built Housing or Units in Condominium Project or Legal Phase in SFHAs If any portion of the dwelling and related Structures, or equipment essential to the Property Value is located in an SFHA, the Property is not eligible for FHA mortgage insurance, unless the Mortgagee: • obtains a FEMA-issued final LOMA or LOMR that removes the Property from the SFHA; or • obtains a FEMA NFIP Elevation Certificate (FEMA Form FF-206- FY-22-152) based on the finished construction, documenting that when the building permit application submission date, or its equivalent date, is: o before January 1, 2025, the lowest floor of the residential building, including the basement, and all related Structures or equipment essential to the Property Value are built at or above the 100-year flood elevation in compliance with the NFIP criteria; or o on or after January 1, 2025, the lowest floor of the property improvements, including the basement and other permanent enclosures, and all related Structures or equipment essential to the Property Value are at least two feet above the FEMA- determined Base Flood Elevation (BFE). The Mortgagee must ensure that Flood Insurance is obtained when a FEMA NFIP Elevation Certificate (FEMA Form FF-206-FY-22-152) documents that the Property remains located within an SFHA. The building permit application submission date, or its equivalent date, will be required on form HUD-92541, Builder’s Certification of Plans, Specifications, and Site. In jurisdictions where building permits are not issued, an equivalent application submission date represents the request for jurisdictional approval to start construction. The construction start date serves as the equivalent date when no prior application submission date is available. (c) Eligibility for Existing Construction of Site Built Housing in SFHAs When any portion of the residential improvements is determined to be located within an SFHA, Flood Insurance must be obtained. (d) Eligibility for Existing Construction Condominiums in SFHAs The Mortgagee must ensure the Condominium Association obtains Flood Insurance on buildings located within the SFHA. The Flood Insurance coverage must protect the interest of the Borrowers who hold title to an individual unit, as well as the common areas of the Condominium Project. See Flood Insurance (Existing Construction) (II.C.2.c.vii(D)). (e) Eligibility for Existing and New Construction Manufactured Housing in SFHAs The finished grade level beneath the Manufactured Home must be at or above the 100-year return frequency flood elevation. If any portion of the dwelling and related Structures or equipment essential to the Property Value for both new and existing Manufactured Homes is located in an SFHA, the Property is not eligible for FHA mortgage insurance, unless the Mortgagee: • obtains a FEMA-issued LOMA or LOMR that removes the Property from the SFHA; or • obtains a FEMA NFIP Elevation Certificate (FEMA Form FF-206- FY-22-152) showing that the finished grade beneath the Manufactured Home is at or above the 100-year return frequency flood elevation. The Mortgagee must ensure that Flood Insurance is obtained when a FEMA NFIP Elevation Certificate (FEMA Form FF-206-FY-22-152) documents that the Property remains located within an SFHA.
Operationalizing FHA Mortgagee Letter 2024-20 — Adoption of Federal Flood Risk Management Standard (FFRMS) for Minimum Property Standards (MPS) in Special Flood Hazard Areas (SFHA)
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