by David Dickinson: If the lender determines that flood insurance coverage purchased under the RCBAP is insufficient to meet the Regulation’s mandatory purchase requirements, then the lender should request that the individual unit owner/borrower ask the condominium association to obtain additional coverage that would be sufficient to meet the Regulation’s requirements… If the condominium association does not obtain sufficient coverage, then the lender must require the individual unit owner/borrower to purchase a dwelling policy in an amount sufficient to meet the Regulation’s flood insurance requirements. [Interagency FAQ #30]
If you can't get what you need from the Association, you force place on the unit owner (as necessary).
by Randy Carey: However, the only flood insurance available to a commercial condo owner is content insurance. They cannot buy an individual dwelling policy. If you cannot force place with your insurance carrier due to similar rules, unfortunately your only option is to call the loan under your default provisions for the property not remaining properly insured. Hopefully, that will put enough pressure on the borrower to get the condo association off the stick.