Revision: Oct. 19, 2023, 2:15 p.m.
2024 SESSION
24-2374.0
12/10
HOUSE BILL [bill number]
AN ACT relative to real property and flood risk disclosure.
SPONSORS: [sponsors]
COMMITTEE: [committee]
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ANALYSIS
This bill requires disclosures to purchasers of property and to tenants or lessees of certain property of flood risk.
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Explanation: Matter added to current law appears in bold italics.
Matter removed from current law appears [in brackets and struckthrough.]
Matter which is either (a) all new or (b) repealed and reenacted appears in regular type.
24-2374.0
12/10
STATE OF NEW HAMPSHIRE
In the Year of Our Lord Two Thousand Twenty Four
AN ACT relative to real property and flood risk disclosure.
Be it Enacted by the Senate and House of Representatives in General Court convened:
1 New Sections; Notification of Flood Risk Prior to Sale of Real Property. Amend RSA 477 by inserting after section 477:4-h the following new sections:
477:4-i Flood Risk Notification Required, Purchase and Sale of Real Property.
I. Prior to or during the preparation of an offer for the purchase and sale of any interest in real property the seller shall disclose, in writing, the following information to the buyer: Whether the property:
(a) Has been or could be affected by flooding;
(b) Is located within any FEMA designated Floodplain including the FEMA Special Flood Hazard Area (“100-year floodplain”) or FEMA Moderate Risk Flood Hazard Area (“500-year floodplain”); or
(c) May be outside a FEMA designated Floodplain and any actual knowledge of the seller concerning flood risks of the property, as required pursuant to this section.
II.(a) Each purchaser shall be notified pursuant to this section in writing before the purchaser becomes obligated under any contract for the purchase of the property. The flood risk disclosure required under this subsection (“Flood Risk Disclosure”) shall be a separate rider, written in not less than 12-point typeface, individually signed or otherwise acknowledged by the seller and purchaser, and witnessed accordingly.
(b) Flood Risk Disclosure required under paragraph (b) shall contain the heading “Flood Risk” and contain questions, and space for sellers to answer yes, no, or unknown. The questions regarding the property being in a FEMA Special or Moderate Risk Flood Hazard Area shall not contain the option for unknown since this information is readily available on FEMA’s website. If a seller answers yes to any question, the Flood Risk Disclosure shall require the seller to explain the answer. The Flood Risk Disclosure shall contain the following questions and explanatory language:
(1) Is any or all of the property located in a Federal Emergency Management Agency (FEMA) designated floodplain?;
(2) Is any or all of the property located wholly or partially in the Special Flood Hazard Area ("100-year floodplain") according to FEMA’s current flood insurance rate maps for your area?;
(3) Is any or all of the property located wholly or partially in a Moderate Risk Flood Hazard Area ("500-year floodplain") according to FEMA's current flood insurance rate maps for your area?
(4) Has property premises or any portion of real property ever experienced any flood damage from flood waters entering a building or pooling making the property inaccessible due to a natural flood event, such as heavy rainfall, coastal storm surge, tidal inundation, or riverine flooding? If “yes” how many times?
(5) Is the property subject to any requirement under federal law to obtain and maintain flood insurance on the property? Properties in the special flood hazard area, also known as high-risk flood zones, on FEMA's flood insurance rate maps with mortgages from federally regulated or insured lenders are required to obtain and maintain flood insurance. Even when not required, FEMA encourages property owners in high risk, moderate risk, and low risk flood zones to purchase flood insurance that covers the structure and the personal property within the structure. Also note that properties in coastal and riverine areas may be subject to increased risk of flooding over time due to projected sea level rise and increased extreme storms caused by climate change which may not be reflected in current flood insurance rate maps;
(6) Have you ever received assistance, or are you aware of any previous owners receiving assistance, from FEMA, the U.S. Small Business Administration, or any other federal disaster flood assistance for flood damage to the property? For properties that have received federal disaster assistance, the requirement to obtain flood insurance passes down to all future owners. Failure to obtain and maintain flood insurance can result in an individual being ineligible for future assistance.;
(7) Is there flood insurance currently on the property? A standard homeowner's insurance policy typically does not cover flood damage. You are encouraged to examine your policy to determine whether you are covered;
(8) Is the property eligible under the Community Rating System (CRS) which is a voluntary incentive program that is part of the National Flood Insurance Program (NFIP)? A community that conducts floodplain management activities that exceed the NFIP minimum requirements can earn points for each activity. The number of points a community accumulates decides what percent discount some of their residents and businesses will receive on their annual flood insurance premiums. For more information, contact your local town or city.”
(9) Is there a FEMA elevation certificate available for the property? If “yes”, the elevation certificate must be shared with the buyer. An elevation certificate is a FEMA form, completed by a licensed surveyor or engineer. The form provides critical information about the flood risk of the property and is used by flood insurance providers under the National Flood Insurance Program to help determine the appropriate flood insurance rating for the property. A buyer may be able to use the elevation certificate from a previous owner for their flood insurance policy;
(10) Have you ever filed a claim for flood damage to the property with any insurance provider, including the National Flood Insurance Program? If the claim was approved, what was the amount received?”;
(11) Is any or all of the property located in a designated wetland?;
The party to whom the disclosure is made shall acknowledge receipt of the disclosure by signing a copy of the disclosure.
477-j Notification of Flood Risk Prior to Rental Property Agreement.
I. For the purposes of this section, "landlord" means any person who rents or leases, for a term of at least one month, commercial space or residential dwelling units other than dwelling units in a premises containing not more than two such units, or in an owner-occupied premises of not more than 3 dwelling units, or in hotels, motels, or other guest houses serving transient or seasonal guests defined as those who rent a property for a period of less than 120 days.
II. Every landlord shall notify each of his or her tenants if the rental property which is the subject of a lease has been determined to be:
(a) Located in a flood zone or area whether the rental property, which is the subject of a lease, has been or could be affected by flooding prior to lease signing or renewal,
(b) Located within any FEMA designated Floodplain including the FEMA Special Flood Hazard Area (“100-year floodplain”) or FEMA Moderate Risk Flood Hazard Area (“500-year floodplain”); or
(c) May be outside a FEMA designated Floodplain where the landlord has actual knowledge concerning the flood risks of the property, as required pursuant to this section.
III. The landlord shall disclose any factual knowledge that the rental premises or any portion of the parking areas of the real property containing the rental premises has been subjected to flooding during the period which landlord has owned the property.
IV. Short-term rentals of less than 120 days shall be exempt from the requirements of this section.
V. Each new tenant shall be notified pursuant to this section in writing at the time of application and prior to the time that the lease of the rental unit is signed. The flood risk disclosure required under this subsection (“Flood Risk Disclosure”) shall be a separate rider written in not less than 12-point typeface, individually signed or otherwise acknowledged by the landlord and tenant and witnessed accordingly.
VI. The flood risk disclosure for rental properties required by this chapter shall contain the heading “Flood Risk” and contain questions, and space for landlord to answer yes, no, or unknown , based upon the landlord’s actual knowledge. The questions regarding the property being located in a FEMA Special or Moderate Risk Flood Hazard Area shall not contain the option for unknown since this information is readily available on FEMA’s website at https://msc.fema.gov/portal/home. The Notice shall include the following information in substantially similar language:
(a) Is any or all of the property located in a Federal Emergency Management Agency (FEMA) designated floodplain?;
(b) Is any or all of the rental property located wholly or partially in the Special Flood Hazard Area ("100-year floodplain") according to FEMA’s current flood insurance rate maps for the leased premises’ area?;
(c) Is any or all of the rental property located wholly or partially in a Moderate Risk Flood Hazard Area ("500-year floodplain") according to FEMA's current flood insurance rate maps for the leased premises’ area?; and
(d) During the period when landlord has owned the property, has the rental property premises or any portion of the parking areas of the real property containing the rental premises subject to the lease experienced any flood damage from flood waters entering a building or pooling, making the property inaccessible due to a natural flood event, such as heavy rainfall, coastal storm surge, tidal inundation, or riverine flooding.? If “yes” when did those damages occur?
(e) Is the landlord aware of any other instances when the rental property premises or any portion of the parking areas of the real property containing the rental premises subject to the lease experienced any flood damage from flood waters entering a building or pooling, making the property inaccessible due to a natural flood event, such as heavy rainfall, coastal storm surge, tidal inundation, or riverine flooding.? If “yes” when did those damages occur?
VII. Every residential lease shall also contain the following notice to tenants:
(a) “Flood insurance may be available to renters through FEMA’s National Flood Insurance Program (NFIP) to cover your personal property and contents in the event of a flood. A standard renter's insurance policy does not typically cover flood damage. You are encouraged to examine your policy to determine whether you are covered.”
(b) The Community Rating System (CRS) is a voluntary incentive program that is part of the National Flood Insurance Program (NFIP). A community that conducts floodplain management activities that exceed the NFIP minimum requirements can earn points for each activity. The number of points a community accumulates decides what percent discount some of their residents and businesses will receive on their annual flood insurance premiums. For more information, contact your local town or city.”
VIII. If a landlord violates this section by failing to disclose that the property is in the FEMA Special or Moderate Risk Flood Hazard Area or that flooding has occurred as specified in this section and a tenant subsequently becomes aware that the property is in the FEMA Special or Moderate Risk Flood Hazard Area and flooding occurred as specified in this section, the tenant may terminate the lease by giving a written notice of termination to the landlord.
IX. If a landlord violates this section and flooding occurs that results in damage to a tenant’s personal property, affects the habitability of the leased premises, or affects the tenant’s access to the leased premises, the tenant may pursue all legal remedies under the law to recover damages recognizing the landlord’s failure to disclose critical information. Termination of a lease under this subsection is effective when the tenant surrenders possession of the dwelling.
X. Not later than the 30th day after the effective date of the termination of a lease under this chapter, the landlord shall refund to the tenant all rent or other amounts paid in advance under the lease.
2 Effective Date. This act shall take effect January 1, 2025.