The current version of the Special Flood Hazard Determination Form (SFHDF), FEMA Form 086-0-32 published on June 1, 2016, is set to expire on October 31, 2018. The SFHDF is required for all federally backed loans and is used by lenders to determine the flood risk for their building loans. FEMA (Federal Emergency Management Agency) oversees the National Flood Insurance Program (NFIP) and is responsible for updates to the SFHDF.
As we near the expiration date of the form, FEMA has yet to indicate when an updated form will be released. However, those of us in the banking industry who have been around a few years know, FEMA’s lack of punctuality in renewing the form is not new. For example, the previous version of the SFHDF (published 4/2012) was set to expire on May 30, 2015; the new and current form was not published until June 1, 2016. And before that the SFHDF (published 12/2008) was set to expire on December 31, 2011, but a newly approved form was not published by FEMA until April 2012.
But perhaps we shouldn’t be too hard on FEMA – it is an agency that generously spends its resources in the trenches helping those in need after disasters. And historically, FEMA has recognized expiring forms and indicated lenders should continuing using the current form until a new form is published. With this in mind, lenders should continue using the current form until a new form is released by FEMA and be mindful that a new SFHDF will likely be released in the not too distant future.
We will monitor FEMA’s progress and be sure to let you know of any updates or information related to the form. The SFHDF is available on FEMA’s website.