We believe that the flood regulations would still require a flood determination on this property. If the loan is secured by a “building or mobile home” on the property, it would be considered a “designated loan” that is subject to the flood insurance requirements. 12 CFR 339.3. The regulations define “building” as follows (12 CFR 339.2):

Building means a walled and roofed structure, other than a gas or liquid storage tank, that is principally above ground and affixed to a permanent site, and a walled and roofed structure while in the course of construction, alteration, or repair.

The Interagency Questions and Answers Regarding Flood Insurance squarely address this question:

26. Are residential condominiums, including multi-story condominium complexes, subject to the statutory and regulatory requirements for flood insurance?

Answer: Yes. The mandatory flood insurance purchase requirements under the Act and Regulation apply to loans secured by individual residential condominium units, including those located in multi-story condominium complexes, located in an SFHA in which flood insurance is available under the Act. The mandatory purchase requirements also apply to loans secured by other condominium property, such as loans to a developer for construction of the condominium or loans to a condominium association.