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#2288239 - 08/31/23 04:26 PM 32 unit residential condo construction loan
Cloud9 Offline
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Joined: Jul 2008
Posts: 208
We have a construction loan on a 32-unit residential condo and 1-unit commercial space which is in a flood zone. It is one building only. I'm confused on the required amount of flood insurance we need to have. Thank you.

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Flood Compliance
#2288244 - 08/31/23 04:42 PM Re: 32 unit residential condo construction loan Cloud9
rlcarey Offline
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rlcarey
Joined: Jul 2001
Posts: 82,977
Galveston, TX
If it is a construction loan, there is no condo association yet - correct?

If not, you need $500,000, as that would be the limit for such a building until such time as they qualify to buy a RCBAP.
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#2288252 - 08/31/23 05:11 PM Re: 32 unit residential condo construction loan rlcarey
Cloud9 Offline
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Joined: Jul 2008
Posts: 208
Yes, that's correct. Thank you for your help!

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#2288487 - 09/07/23 05:35 PM Re: 32 unit residential condo construction loan Cloud9
Compliance NABW Offline
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Joined: Oct 2015
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Hey RL! Are you saying $500k for the entire structure? What if there was no commercial unit - still $500K? I came to the conclusion such a situation would have a $500k max. as well. But, is your answer based on the 2009 Q & A preamble combined with updated knowledge of policies for "other residential?" Do you have any recent reference categorizing residential condos in the construction phase where no Association exists as "other residential" for NFIP purposes?

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#2288490 - 09/07/23 05:43 PM Re: 32 unit residential condo construction loan Cloud9
rlcarey Offline
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rlcarey
Joined: Jul 2001
Posts: 82,977
Galveston, TX
If you search the Flood Manual for "other residential" you will find a number of references, such as this one:

If the policyholder is not a condominium association, select either the Single-Family Home, Two-to-Four Family Building, or Other Residential Building occupancy depending on the building’s total number of units.

An Other Residential Building is eligible for $500,000 per structure.
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The opinions expressed here should not be construed to be those of my employer: PPDocs.com

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#2288513 - 09/07/23 07:43 PM Re: 32 unit residential condo construction loan rlcarey
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Okay, yeah, so nothing "Regulatory" since 2009, but mentioned in the Flood Manual. Thanks for the clarification!

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