Flood Disclosure - 10/28/2021

Beginning January 1, 2022, Texas will join Georgia and become one of the only two states in the nation with the requirement of flooding disclosures for rental property owners. HB 531 becomes effective on January 1, 2022 and requires all rental properties to provide flood disclosure notices to prospective renters. This new law will apply to new leases executed or lease renewals signed after the first of the new year. Before entering into a lease agreement or no later than the execution of the new lease contract, property owners must disclose if the property is located in a 100-year flood plain or if the property has flooded due to natural causes within the last 60 months. The Federal Emergency Management Agency (FEMA) continues to expand their flood plain maps due to extreme weather events. An estimated 15 million Americans live in FEMA’s current 100-year flood zones. The designation warns owners that their properties face a 1% risk of flooding in any given year. They must obtain flood insurance if they desire a federally ensured loan.