July 2015 Flood Final Rule – For the detached structure exemption, what is meant by “residential property?”

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Q:  With regard to the detached structure exemption, what is meant by “residential property?”  Does it include multi-family properties?
 
A:  “Residential property” means a building that is used primarily for residential purposes which could include single and multi-family properties.
 
The preamble to the final rule included this discussion:    “Although the Agencies decline to adopt the FDPA’s definition of “residential improved  real estate” for “residential property,” the Agencies agree with commenters that “residential property” should be interpreted as broadly as “residential improved real estate” as set forth in the Interagency Questions and Answers Regarding Flood Insurance (Q&As).  Commenters in particular referenced Q&A 51, which indicates that “residential improved real estate” does not distinguish whether a building is single- or multi-family, or owner- or renter-occupied, and includes single-family dwellings, two- to four-family dwellings, multi-family dwellings containing five or more residential units, and mixed-use buildings, so long as the building is used primarily for residential purposes.”
 
 
 

This can be found in the July 2015 Final Rule on Loans in Areas Having Special Flood Hazards, here:  https://www.federalregister.gov/articles/2015/07/21/2015-15956/loans-in-areas-having-special-flood-hazards

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