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#2258039 - 08/11/21 02:10 PM Strip Mall
terpsfan Offline
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If part of a strip mall is in a flood zone and for tax purposes it is one building but since there are load bearing walls separating the units can we perform our determination on just the unit we are taking as collateral and not the entire building? This would make the unit not require flood insurance.

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Flood Compliance
#2258045 - 08/11/21 02:41 PM Re: Strip Mall terpsfan
rlcarey Offline
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rlcarey
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Galveston, TX
"This would make the unit not require flood insurance."

Can you explain what you mean by this statement? You either need coverage of the entire building or the single unit if it is considered a separate building under the flood insurance.
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#2258047 - 08/11/21 02:42 PM Re: Strip Mall terpsfan
terpsfan Offline
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Can we just make the determination on the unit if it can be considered a separate building under flood insurance? I guess I am trying to verify that if can be treated as a separate building due to the load bearing wall can we treat it as a separate building for the zone determination as well?
Last edited by terpsfan; 08/11/21 02:45 PM.
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#2258048 - 08/11/21 02:48 PM Re: Strip Mall terpsfan
rlcarey Offline
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rlcarey
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Galveston, TX
You have a means for taking the individual units as collateral? Again, I do not understand where you are going with this.
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#2258049 - 08/11/21 03:00 PM Re: Strip Mall terpsfan
terpsfan Offline
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This is for an SBA loan and SBA requires that you obtain contents coverage even if you are not taking the building. So even though it is one building for tax and ownership purposes we are trying to determine if contents coverage is required when we are only taking the contents of one unit.

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#2258050 - 08/11/21 03:18 PM Re: Strip Mall terpsfan
rlcarey Offline
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rlcarey
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Galveston, TX
You are mixing apples and oranges. The SBA is probably not really going to care whether the structure has load bearing walls.

If any Personal Property Collateral is in a building of which any portion is located in a special flood hazard area and that building is not collateral for the loan, SBA Lender must require Applicant to obtain available flood insurance for the Personal Property Collateral
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#2258051 - 08/11/21 03:37 PM Re: Strip Mall terpsfan
terpsfan Offline
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When you say SBA probably won't care if the structure has load bearing walls do you mean that they would probably consider it one building?

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#2258073 - 08/11/21 06:09 PM Re: Strip Mall terpsfan
rlcarey Offline
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rlcarey
Joined: Jul 2001
Posts: 83,219
Galveston, TX
You would have to ask them as to what their definition of building is. I would not be relying on a definition of another Federal agency. That would be like us using a definition in Regulation Z on a Regulation C question.
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