Flood insurance under the National Flood Insurance Program (NFIP) is not available within that community. Furthermore, Section 202(a) of Public Law 93-234, as amended, prohibits federal officers or agencies from approving any form of financial assistance for acquisition or construction purposes in a Special Flood Hazard Area (SFHA).
For example, this would prohibit loans guaranteed by the Department of Veterans Affairs, insured by the Federal Housing Administration, or secured by the Rural Housing Services. Under Section 202(b) of Public Law 93-234, if a Presidentially declared disaster occurs as a result of flooding in a non-participating community, no federal financial assistance can be provided for the permanent repair or reconstruction of insurable buildings in SFHAs. Eligible applicants may receive those forms of disaster assistance that are not related to permanent repair and reconstruction of buildings.
If the community applies and is accepted into the NFIP within six months of a presidential disaster declaration, these limitations on federal disaster assistance are lifted.