District Circular Letters

September 16, 1998

BANKING SUPERVISION AND REGULATION:
FLOOD INSURANCE REQUIREMENTS IN AR ZONES

To Compliance Officers
of State Member Banks
in the Twelfth Federal Reserve District

FEMA Publication Regarding AR Zone Flood Hazard Areas

The Federal Reserve Bank of San Francisco is pleased to provide the enclosed Federal Emergency Management Agency (FEMA) publication, "Commonly Asked Questions About Flood Insurance Requirements in AR Zones." FEMA developed this document to help answer the questions most commonly asked by the public regarding the National Flood Insurance Program, AR Zones, and the mandatory purchase requirements of flood insurance. We hope you will find this guidance a valuable source of information for your customers as well as your staff.

Zone AR is a Special Flood Hazard Area designation that may be used in an area where a Federal flood control system, such as a levee, no longer provides the mandated level of protection. A Zone AR designation on a community's Flood Insurance Rate Map indicates that the increased flood hazard is considered temporary until the flood protection system can again provide base flood protection. A community must participate in the National Flood Insurance Program (NFIP) and meet the eligibility and application requirements of Section 65.14 of the NFIP regulations before it can receive the Zone AR designation on its Flood Insurance Rate Map.

For Additional Information

For additional information regarding the enclosed material or FEMA's flood insurance requirements, please contact Mr. Gregory Imm, Consumer Compliance Liaison, at (415) 974-2953, or Ms. Christiane Price, Consumer Compliance Liaison, at (415) 974-2955, both of our Banking Supervision and Regulation Department. You may also wish to visit the FEMA Internet site.

FEDERAL RESERVE BANK OF SAN FRANCISCO

Enclosure