FEMA Reinstates Federal Flood Risk Standards
The Federal Emergency Management Agency (FEMA) on Aug. 27 announced a new interim policy to partially implement the Federal Flood Risk Management Standards (FFRMS) that would require certain structures located in Special Flood Hazard Areas to conform to higher flood elevation standards if they use Hazard Mitigation Assistance (HMA) grant funds.
Although the FFRMS was reinstated through Executive Order 14030 Climate-Related Financial Risk, signed by President Biden on May 20, the interim policy — effective immediately — is the first step toward implementation.
While further actions are anticipated by FEMA and other agencies to fully implement FFRMS, the interim policy applies to certain projects funded through hazard mitigation grant programs. Specifically, the interim policy applies to Fiscal Year 2021 funding for the Building Resilient Infrastructure and Communities (BRIC) and Flood Mitigation Assistance (FMA) programs; the Hazard Mitigation Grant Program (HMGP) for any major disaster declared on or after Aug. 27 and assistance authorized for all 59 COVID-19 disaster declarations. In addition, it applies to HMGP Post Fire for any Fire Mitigation Assistance Grant (FMAG) declarations issued on or after Aug. 27.
The interim policy partially implements the FFRMS by requiring higher flood elevations for three types of actions — elevation, dry floodproofing and mitigation reconstruction — when done in the Special Flood Hazard Area. FEMA’s approach requires additional elevation (Base Flood Elevation plus 2 feet) except in situations where doing so would result in the project being unable to meet applicable cost-effectiveness requirements.
For more information on the Hazard Mitigation Assistance Grants, visit FEMA’s website.
Latest from NAHBNow
For the first time since 2022, the share of new homes with two-story foyers increased, according to the Census Bureau's Survey of Construction (SOC). Despite the increase, the market share of two-story foyers has generally trended downward since 2017, with most new single-family homes being built without a two-story foyer both nationally and regionally.
Mortgage rates rose sharply in September as multiple factors applied significant upward pressure on U.S. treasury bond yields, a key factor in mortgage rates.
Latest Economic News
Mortgage application activity declined as the 30-year fixed mortgage rate rose sharply. The Mortgage Bankers Association’s (MBA) Market Composite Index, a measure of total mortgage application volume, decreased 7.7% month-over-month in September on a seasonally adjusted basis. Compared to a year ago, total mortgage applications were lower by 35.4%.
Mortgage rates rose sharply in September as multiple factors applied significant upward pressure on the U.S. treasury yields. According to Freddie Mac, the 30-year fixed-rate mortgage averaged 6.86% in September, up nearly 20 basis points (bps) from August.
In 2025, around a quarter of new homes were built with a two-story foyer, slightly up from 2024, according to data obtained from the Census Bureau’s Survey of Construction (SOC) and tabulated by NAHB.