FHA Rules prohibit the issuance of insured loans for homes located adjacent to transmission power lines.
The pertinent sections of the relevant directive are reproduced below.
Federal Housing Administration
4150.2 Valuation Analysis for Single Family One- to
Four- Unit Dwellings
1909 4150.2
Transmittal
- Valuation Analysis for Single Family One- to Four-
1910 4150.2
Contents
1911 4150.2
Chapter
1 - SELECTION OF APPRAISER
1912 4150.2
Chapter
2 - SITE ANALYSIS
1913 4150.2
CHAPTER
3 - PROPERTY ANALYSIS
1914 4150.2
CHAPTER
4 - THE VALUATION PROCESS
1915 4150.2
CHAPTER
5 - REPORTING THE APPRAISAL
1916 4150.2
CHAPTER
7 - REGULATORY ENVIRONMENT, ENFORCEMENT AND SANCTIONS
1917 4150.2
CHAPTER
8 - MANUFACTURED HOMES
1918 4150.2
CHAPTER
9 - PLANNED UNIT DEVELOPMENTS AND CONDOMINIUMS
1919 4150.2
APPENDIX A - VALUATION OF OTHER PROPERTIES
1920 4150.2
APPENDIX
D - COMPREHENSIVE VALUATION PACKAGE PROTOCOL
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2 SITE ANALYSIS
2-0 INTRODUCTION
This Chapter addresses the site requirements for FHA-insured mortgages. Before the valuation process can begin, subject properties must meet specific site requirements. The appraisal process is the lender's tool for determining if a property meets the minimum requirements and eligibility standards for a FHA-insured mortgage. In addition, these standards provide a context for the appraiser in performing the physical inspection of the property.
2-1 SITE REQUIREMENTS SKIPPED
2-2 SPECIAL NEIGHBORHOOD HAZARDS AND NUISANCES
Physical conditions in some neighborhoods are hazardous to the personal health and safety of residents and may endanger physical improvements. These conditions include unusual topography, subsidence, flood zones, unstable soils, traffic hazards and various types of grossly offensive nuisances.
When reporting the appraisal, consider site hazards and nuisances.
> If site hazards exist and cannot be corrected but do not meet the level of unacceptability, the appraisal must be based upon the current state.
> If the hazard and/or nuisance endangers the health and safety of the occupants or the marketability of the property, mark "YES" in VC-1 and return the unfinished appraisal to the lender.
(2-2) The lender, who is ultimately responsible for rejecting the site, relies on the appraiser's site analysis to make this determination. Guidelines for determining site acceptability follow. The appraiser is required to note only those readily observable conditions.
A. A. UNACCEPTABLE SITES BODY SKIPPED
B. TOPOGRAPHY BODY SKIPPED
C. SUBSIDENCE BODY SKIPPED
D. OPERATING AND ABANDONED OIL OR GAS WELLS BODY SKIPPED
E. SLUSH PITS BODY SKIPPED
F. HEAVY TRAFFIC BODY SKIPPED
G. AIRPORT NOISE AND HAZARDS BODY SKIPPED
H. SPECIAL AIRPORT HAZARDS BODY SKIPPED
I. PROXIMITY TO HIGH PRESSURE GAS BODY SKIPPED
J. OVERHEAD HIGH-VOLTAGE TRANSMISSION LINES
No dwelling or related property improvement may be located within the engineering (designed) fall distance of any pole, tower or support structure of a high-voltage transmission line, radio/TV transmission tower, microwave relay dish or tower or satellite dish (radio, TV cable, etc.). For field analysis, the appraiser may use tower height as the fall distance.
For the purpose of this Handbook, a High-Voltage Electric Transmission Line is a power line that carries high voltage between a generating plant and a substation. These lines are usually 60 Kilovolts (kV) and greater, and are considered hazardous. Lines with capacity of 12-60 kV and above are considered high voltage for the purpose of this Handbook. High voltage lines do not include local distribution and service lines.
Low voltage power lines are distribution lines that commonly supply power to housing developments and similar facilities. These lines are usually 12 kV or less and are considered to be a minimum hazard. These lines may not pass directly over any structure, including pools, on the property being insured by HUD.
K. SMOKE, FUMES, OFFENSIVE NOISES AND ODORS BODY SKIPPED
L. FLOOD HAZARD AREAS BODY SKIPPED
M. STATIONARY STORAGE TANKS BODY SKIPPED