HUD published a rule for HUD financed projects or buildings constructed using HUD-assisted funds. The rule redefines and expands the existing 100-year Floodplain by establishing a new “Federal Flood Risk Management Standard (FFRMS) Floodplain.” This new FFRMS Floodplain encompasses an original 100-year floodplain area and adds additional acreage which has a “future risk of flooding”. From what I can tell this new rule only applies to HUD financed projects, not the typical single family home. But it seems possible that the new definition will replace the 100-year Floodplain as to all properties (HUD funding or not) in the future. If so, homes currently adjacent to but not in a 100-year floodplain, may be added into a new FFRMS Floodplain. This could mean buyers would be required to have mandatory flood insurance. Flood insurance is pricey and can prevent some buyers from qualifying for a mortgage in these zones.
