In the February 8, 2016, issue of the Federal Register (click here) the Rural Housing Service (RHS) issued a final rule amending its December 9, 2013, interim final rule (78 FR 73928) to the Single Family Housing Guaranteed Loan Program (SFHGLP). The February 8, 2016, final rule makes changes to the December 9, 2013, interim final rule in response to public comment and further consideration of certain issues by the RHS to the SFHGLP. The February 8, 2016, final rule becomes effective on March 9, 2016. The SFHGLP is codified in 7 CFR Part 3555 and the changes to the December 9, 2013, interim final rule made by the February 8, 2016, final rule amend the following sections of Part 3555, as summarized below: Subpart A-GENERAL §3555.5 Environmental requirements. For existing dwellings in a SFHA, paragraphs (d)(5) and (d)(6) are revised to permit private flood insurance policies approved by the lender that meet the requirements of 42 U.S.C. 4012a(b)(1)(A). Lenders remain responsible to ensure a private flood insurance policy meets the requirements of 42 U.S.C. 4012a(b)(1)(A). For new or proposed homes in a SFHFA, paragraph (d)(7) is revised to additionally require that the lender perform an alternatives analysis in compliance with the Agencies National Environmental Policy Act regulation.
