What to Know About the New Federal Flood Risk Management System

The Department of Housing and Urban Development released a new Federal Flood Risk Management Standard (FFRMS) in April 2024 that will affect both single-family homes and multifamily properties. Compliance will be required as of Jan. 1, 2025.

For FHA-insured or HUD-assisted multifamily properties, the new FFRMS requires a complicated, three-tiered process for determining the extent of the FFRMS floodplain, with a preference for a climate-informed science approach (CISA). The FFRMS expands the vertical and horizontal floodplain boundaries beyond the special flood hazard area (100-year floodplains). The rule requires more stringent elevation and flood proofing requirements of properties where federal funds are used to develop or provide financing for new construction within the now defined FFRMS floodplain. It also applies to substantial improvement to structures financed through HUD grants, subsidy programs and applicable multifamily programs.