Conveyance restrictions for the disposition of multifamily real property.

§ 55.22 Conveyance restrictions for the disposition of multifamily real property. (a) In the disposition (including leasing) of multifamily properties acquired by HUD that are located in a floodplain (a 500-year floodplain for a Critical Action), the documents used for the conveyance must: (1) Refer to those uses that are restricted under identified federal, state, or local floodplain regulations; and (2) Include any land use restrictions limiting the use of the property by a grantee or purchaser and any successors under state or local laws. (b)(1) For disposition of multifamily properties acquired by HUD that are located in a 500-year floodplain and contain Critical Actions, HUD shall, as a condition of approval of the disposition, require by covenant or comparable restriction on the property's use that the property owner and successive owners provide written notification to each current and prospective tenant concerning: (i) The hazards to life and to property for those persons who reside or work in a structure located within the 500-year floodplain, and (ii) The availability of flood insurance on the contents of their dwelling unit or business. (2) The notice shall also be posted in the building so that it will be legible at all times and easily visible to all persons entering or using the building. [59 FR 19107, Apr. 21, 1994, as amended at 59 FR 33199, June 28, 1994]