The federal maps are static and only periodically updated by the Federal Emergency Management Agency.
Climate change poses many problems for society as a whole, and for commercial real estate (CRE). Properties can face flooding or wildfires or heavy damage from winds. A building can be cut off from everything else. All the time while increasingly cut off new business lines in states that have been particularly hard hit by disasters.
At a time when insurance can’t be counted on as the rescue of last resort, lenders must consider the risk they could take on. The Federal Reserve Bank of New York emphasized this point in a recent blog post.
NY, NJ adopt laws requiring flood risk disclosure for homebuyers, tenants
Both New York and New Jersey have adopted laws requiring the sellers of residential properties to tell buyers, and landlords to tell tenants, about known flood risks.
In the wake of several incidents of unprecedented rainfall and disastrous flooding, both New York and New Jersey have adopted laws requiring the sellers of residential properties to tell buyers, and landlords to tell tenants, about known flood risks. The New Jersey law also requires disclosures in commercial transactions.
A New York enactment also eliminates the commonly-used ability of sellers to avoid making property disclosures (not only about flood risk) by taking $500 off the purchase price.
