If an existing property is located in an area mapped by the Federal Emergency Management Agency and it is in a special flood hazard area (100 year flood plain), flood insurance must be obtained. HUD will not guarantee properties located in a mapped flood plain without such insurance. This is a statutory requirement and an elevation certificate does not eliminate the flood insurance requirement.

When an area is not mapped, the tribe may request the Federal Emergency Management Agency to map a specific area or an entire reservation. This is recommended, especially if it is anticipated that there will be significant Section 184 activity.

Absent a flood plain map, the appraiser must indicate that to the best of his/her knowledge the property is or is not in a flood plain. If the appraiser believes the property is in a flood plain, no guarantee may be issued unless flood insurance is obtained. If the appraiser will not provide an opinion on this issue, the lender may contact the tribal housing office for flood plain information. The Tribe/IHA/TDHE may certify that the property is not in a flood plain.

The only way new construction can be done in a mapped or unmapped flood plain is to demonstrate that there are no practicable alternatives to floodplain development. Executive Order 11988 outlines an 8-step decision making process which is outlined in 24 CFR 55.20. An elevation certificate alone would not allow for new construction in a flood area. In most communities, there is vacant, buildable land that is located outside the floodplain and in such cases proposed flood plain development is to be rejected in favor of flood-free locations.