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EX <br />ionotahjj^^arbara A. Peterson <br />Page 2 <br />flood hazard areas. For example, this would prohibit mortgage loans guaranteed by the Department <br />of Veterans Affairs, insured by the Federal Housing Administration, or secured by the Rural <br />Economic and Community Development Services. In the case of disaster assistance under the <br />Robert T. Stafford Disaster Relief and Emergency Assistance Act of 198S, as amended, this <br />prohibition only applies to assistance in connection with a flood. <br />Furthermore, Section 202(b) of P. L. 93-234, as amended, requires federally regulated lending <br />institutions to notify the purchaser or lessee of improved real property situated in a special flood <br />hazard area whether Federal disaster assistance will be available when such property is being used to <br />secure a loan that is being made, increased, extended or renewed. <br />A suspended community can regain eligibility in the NFE? by submitting a new application and <br />enacting the floodplain management measures established in Section 60.3 of the NFIP regulations. <br />However, please note that during the period of suspension from the NFEP, if the community permits <br />development to take place in the floodplain that aggravates the flood hazard, the community will be <br />required to remedy the increased hazard to the maximum e.xtent possible before eligibility can be <br />restored. <br />We encourage you to contact the Minnesota Department of Natural Resources or our Regional Office <br />if you need assistance or have any questions. Our regional staff will provide technical assistance and <br />guidance in the development of your community's floodplain management measures. The adoption <br />of compliant floodplain management measures will ensure participation in the NFIP and will provide <br />the citizens in your community protection from disaster. <br />Sincerely, <br />David 1. Maurstad <br />Acting Director <br />Mitigation Division <br />Emergency Preparedness <br />and Response Directorate <br />DM:bl <br />Enclosure <br />cc: Mr. Michael P. Gaffron, City of Orono Planning Director <br />Regional Director, FEMA, Region V <br />NFIP State Coordinator