AC-034 FHA Minimum Property Standards for New Properties in Special Flood Hazard Areas

NOTICE TO ALL CUSTOMERS

FHA Minimum Property Standards for New Properties Located in Special Flood Hazard Areas (SFHA)

Florida Capital Bank would like to inform customers of the recent announcement made by FHA via Mortgagee Letter 2024-20 on November 7, 2024. The Mortgagee Letter announces new requirements for Properties Located in Special Flood Hazard Areas (SFHA).

In the Mortgagee Letter, FHA details the Minimum Property Standards (MPS) for all newly built single-family residential structures (Site Built or Units in Condominium Projects or Legal Phase) stating that if any portion of the dwelling or related structures including equipment essential to the property value is located in a Special Flood Hazard Area (SFHA), the property is not eligible for FHA insurance unless the lender:

 

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