Access to a safe and stable home is a keystone of American well-being, a fact the United States Department of Agriculture (USDA) recognizes with various initiatives aimed at enhancing rural housing. Among these efforts, the Form RD 3550-6 emerges as a critical document, encapsulating the interplay between federal regulation, financial prudence, and individual responsibility in areas vulnerable to flooding. Conceived under the scrutiny of the Office of Management and Budget (OMB), this form serves as a stark reminder of the realities of living in flood-prone areas, providing applicants and borrowers with an essential notice of special flood hazards. This notice not only informs the property owner of the statistically derived risk associated with their prospective property's location but also underscores the mandatory requirements for flood insurance in compliance with national endeavors to mitigate the economic strain of flood disasters. Disclosures contained within vividly delineate the expectations for flood insurance coverage, setting the minimum requirements while also touching on the consequences of non-compliance. Moreover, the form subtly weaves in the prospects of federal disaster relief assistance, although contingent upon the community's standing with the National Flood Insurance Program (NFIP). Through this nuanced document, borrowers are educated about the critical need for flood insurance, drawing a direct line between individual protection and broader community resilience against the caprices of nature.
| Question | Answer |
|---|---|
| Form Name | Form Rd 3550 6 |
| Form Length | 1 pages |
| Fillable? | No |
| Fillable fields | 0 |
| Avg. time to fill out | 15 sec |
| Other names | Borrower, OMB, participates, form rd 3550 6 |
Form RD |
Form Approved |
(Rev. |
OMB No. |
UNITED STATES DEPARTMENT OF AGRICULTURE
RURAL HOUSING SERVICE
NOTICE OF SPECIAL FLOOD HAZARDS, FLOOD INSURANCE PURCHASE REQUIREMENTS, AND
AVAILABILITY OF FEDERAL DISASTER RELIEF ASSISTANCE
Date:
Mailing Address:
Applicant's or Borrower's Name
Re: Property Address
Loan #
I. Notice of Special Flood Hazard
We are giving you this notice to inform you that the building or manufactured home, proposed as security for the loan for which you have applied, is or will be located in an area that has been identified by the Director of the Federal Emergency Management Agency (FEMA) as a special flood hazard area. Refer to
FEMA's Flood Insurance Rate Map or the Flood Hazard Boundary Map for the following community:. This area has at least a I
Federal law allows a lender and applicant or borrower to jointly request the Director of FEMA to review the determination of whether the property proposed
as security for the loan is located in a special flood hazard area. If you would like to make such a request, please contact us for further information.
II. Flood Insurance Purchase Requirements
Federal law will not allow us to provide federal financial assistance in special flood hazard areas in communities which are not participating in the National Flood Insurance Program (NFIP). However, the property you have proposed as security for the loan is located in a community which does participate in the NFIP. Federal law will allow us to make your loan, if you purchase flood insurance. The flood insurance must be maintained for the life of the loan.
Flood insurance coverage under the NFIP may be purchased through an insurance agency who will obtain the policy either directly through the NFIP or through an insurance company that participates in the NFIP.
At a minimum, flood insurance purchased must cover the lesser of. (1) The outstanding principal amount of the loan; or (2) The maximum amount of coverage allowed for the type of property under the NFIP.
If, at any time during the term of the loan, it is determined that the building or manufactured home and any personal property securing the loan is not covered by flood insurance or is covered by less than the required amount of insurance, you shall be notified to obtain such insurance at your expense. If you fail to purchase such insurance within 45 days, such insurance shall be purchased on your behalf and you may be charged for the cost of premiums and fees incurred in the purchase of the insurance.
III. Federal Disaster Relief Assistance
Federal disaster relief assistance (usually in the form of a low interest loan) may be available for damages incurred if your community's participation in the NFIP is in accordance with NFIP requirements. However, if your community's participation in the NFIP is discontinued, properties located in the community will not be eligible for Federal disaster relief assistance in the event of a Federally declared flood disaster.
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I/We acknowledge receipt of the above completed notice and certify that I/we have read and understand the contents of such notice.
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Please return an executed copy of this notice in the envelope provided. If you have any questions, please call your loan official promptly.
According to the Paperwork Reduction Act of 1995, no persons are required to respond to a collection of information unless it displays a valid OMB control number. The valid OMB control number for this information collection is