Would the flood insurance requirements apply to a loan secured by a building only, built on leased land? If it matters, the land is owned by the city. I'm leaning toward "yes" based on this definition of "designated loan" found in 12 CFR Part 22:

"(e) Designated loan means a loan secured by a building or mobile home that is located or to be located in a special flood hazard area in which flood insurance is available under the Act."

The definition does not refer to ownership of the land; it only refers to the location of the building as the determining factor.

You are right; flood ins. is definitely required. The building is in the flood zone. That is all that matters here.

Ken, I agree with you. If you take an interest in a MH, Flood applies whether you take an interest in the property the MH sets on or not, so I think the same logic applies in your situation.