FHA Eases Flood Elevation Rules to Boost Housing Supply and Affordability

The FHA has temporarily waived its recent rule for new residential construction adopted on April 23, 2024, requiring that the lowest structural member of the lowest floor be at least two feet above the base flood elevation.  FHA announced that this move is intended to align with President Trump’s recent Executive Order: Delivering Emergency Price Relief for American Families and Defeating the Cost-of-Living Crisis by reducing construction costs and increasing the availability of affordable homes.

As a result, and during the partial waiver period, newly constructed residential structures located in a Special Flood Hazard Area or a FEMA designated “coastal high hazard area,” would still need to be constructed such that the lowest floor is above the base flood elevation, but not two feet above the base flood elevation.  The partial waiver, unless further extended, is set to expire one year from February 20, 2025, the effective date of the partial waiver.