This rule proposes to revise HUD Minimum Property Standards (MPS) for new construction properties to rescind burdensome and duplicative flood elevation standards for FHA mortgage insurance eligibility. The current flood elevation requirements for newly constructed homes, which is the product of recent rulemaking, results in both price increases and limitations on supply which conflict with the President’s agenda. The Federal Emergency Management Agency (FEMA) enforces flood standards primarily by setting minimum requirements that communities participating in the National Flood Insurance Program (NFIP) must adopt and enforce through local ordinances. FEMA has established that construction of a residential building in an identified Special Flood Hazard Area (SFHA) with a lowest floor below the Base Flood Elevation (BFE) level is a violation of the floodplain management requirements set forth at 44 CFR 60.3(c)(2), unless the community has obtained an exception to NFIP requirements from FEMA and has approved procedures in place. Therefore, it is unnecessary for FHA to maintain its own flood elevation standard at 24 CFR 200.926d(c)(4) while FEMA NFIP is best positioned with the expertise to establish and manage new construction flood risks.