FEMA Flood Determination

[NJ Valuator]

Does the FEMA map typically only indicate whether or not the building is in a flood zone or the entire site?

 

[alebrewer]

It's an interactive map that illustrates where the various flood zones are. When there is ambiguity, I will usually reach out to my client(s) for an official flood determination.

 

[Terrel L. Shields]

These maps are somewhat inaccurate if nothing more than the scale of the projection. Further, if part of the site is floodable, generally, you need to disclose that that and suggest a survey. Only a survey can determine that. I did a property with a flood zone near the building and the survey indicated that one corner and only one corner of the foundation of the building could get up to 12" of water. Since it was sloped that was still 2' below the floor level but the guy, who was a bank loan officer himself, had to buy flood insurance.

 

[NJ Valuator]

These maps are somewhat inaccurate if nothing more than the scale of the projection. Further, if part of the site is floodable, generally, you need to disclose that that and suggest a survey. Only a survey can determine that. I did a property with a flood zone near the building and the survey indicated that one corner and only one corner of the foundation of the building could get up to 12" of water. Since it was sloped that was still 2' below the floor level but the guy, who was a bank loan officer himself, had to buy flood insurance.

It's an interactive map that illustrates where the various flood zones are. When there is ambiguity, I will usually reach out to my client(s) for an official flood determination.

The client is saying no, but I think they are referring to just the structure because the site itself has wetlands and per tax map is in a flood hazard area. But because the building itself is not in a flood zone they are saying I should report that it is not in a flood zone. I am appraising the entire property not just the house; hence, why I indicated two zones C & AE on the URAR and checked Yes because part of the site is in a flood zone.

 

[Terrel L. Shields]

The client is saying no, but I think they are referring to just the structure because the site itself has wetlands and per tax map is in a flood hazard area. But because the building itself is not in a flood zone they are saying I should report that it is not in a flood zone. I am appraising the entire property not just the house; hence, why I indicated two zones C & AE on the URAR and checked Yes because part of the site is in a flood zone.

I am thinking they want you to report if any part of the site is in the flood zone...FNMA says "the property" and does not say the improvements only.
FHA
Flood Insurance is required when any portion of the home site or residential
improvement including Structures or equipment essential to the value is located in
an SFHA identified by FEMA using the Life of the Loan Flood Certification, and
must be maintained for the life of the insured Loan....
The Mortgagee must obtain flood zone determination services,
independent of any assessment made by the Appraiser, to cover the Life of the
Loan Flood Certification
FNMA
Fannie Mae’s appraisal report forms provide an area for the appraiser to indicate whether the property is
located in a Special Flood Hazard Area that is identified on the Federal Emergency Management Agency’s
(FEMA) Flood Insurance Rate Maps. The appraiser must also indicate the specific FEMA flood zone and the map
number and its effective date. For additional information concerning Fannie Mae’s policies on flood insurance,

 

[alebrewer]

Terrel is right - for FHA, it's any portion of the property. Fannie Mae is a bit less straightforward (as is typically the case) - hence my recommendation for the client to provide you with an official FEMA determination. That way you can report, "Per the Flood Determination provided by the Client"