As communities begin to recover from the devastating effects of Hurricane Sandy, HUD has determined that it is important to recognize lessons learned to employ mitigation actions that ensure that structures located in floodplains are built or rebuilt stronger, safer, and less vulnerable to future flooding events. This commitment to resiliency is now required of all agencies that use federal funds for construction under Executive Order 13690 (Establishing a Federal Flood Risk Management Standard) and the associated "Guidelines for Implementing Executive Order 11988 (Floodplain Management) and Executive Order 13690."

Based on Executive Order 13690 and the Guidelines, this rule requires, as part of the decisionmaking process established to ensure compliance with Executive Order 11988 (Floodplain Management) that new construction or substantial improvement in a floodplain be elevated or floodproofed 2 feet above the base flood elevation for non-critical actions and 3 feet above the base flood elevation for critical actions based on the Federal Emergency Management Agency's best available data. This rule also revises a categorical exclusion available when HUD performs the environmental review by making it consistent with changes to a similar categorical exclusion that is available to HUD grantees or other responsible entities when they perform the environmental review.