If the subdivision is located in an identifiable area of special flood hazards, state whether flood insurance is available for new construction in the area and if available the extent to which it may be required by Federal agencies. State the approximate range of the cost of such insurance and include the following statement in the answer to this paragraph of the property report. (The cost of flood insurance will vary in inverse proportion with the elevation of the lot.)

ii. Examples of unusual conditions relating to the location of the subdivision would include whether the subdivision, or any part thereof, is covered by water at any time during the year or is subject to hurricanes, tornadoes, earthquakes, mudslides, brushfires, forest fires, avalanches, volcanic eruptions, or other natural hazards. The existence, severity, and frequency of natural hazards should be fully explained. If any of the natural hazards of the type illustrated in this paragraph are present, state whether insurance against such hazards is available. State whether the area in which the subdivision is located has been formally identified by any Federal State, or local agency as being in an area subject to a special natural hazard and whether the area is or will be subject to any special land use requirements which will restrict development or entail unusual development or maintenance expense. Examples of unusual noises which might affect the subdivision would include proposed or existing industrial activity, airports or other transportation facilities, animal pens, entertainment centers, and the like.

iii. Unusual safety factors which might affect the subdivision would include any proposed or existing conditions in the area which create physical hazards such as dilapidated or abandoned buildings, unsafe construction, air or vehicular traffic hazards, danger from fire or explosion, radiation hazards, and the like. Examples of other nuisances which might affect the subdivision include noxious odors such as smoke, chemical fumes, stagnant ponds or marshes, slaughterhouses, sewage treatment facilities, and the like. Any such conditions should be fully explained identifying their origins and locations and stating whether they are proposed or existing-if existing, whether temporary (include estimate of duration) or permanent. Paragraph 9.

a. For each recreational facility currently available, proposed, or partly completed, the developer shall complete the format follows:

as

1. State the name or type of the facility. 11. State the percentage of completion. iil. State the estimated date of completion. iv. State the words "Bond" or "Escrow" if such statement is supported by the documentation required by Part IX.A.5. of the statement of record. If that documentation has not been submitted, state "None".

v. State "Yes" or "No".

vi. State amount of buyer's cost or assessment and time basis for charge (i.e., annual, monthly, per use, as applicable).

If the answer to 11. is 100 percent, the answers to iii., iv., and v. will not be applicable; state "NA". At the end of the list of facilities, state who owns or will own them. If the developer has submitted documentation evidencing an obligation or commitment on the part of another person, he may include a summary statement to that effect.

b. If a facility or improvement has been installed and the required permit or license has not been obtained and the developer has not submitted the documentation required by Part IV.E.3. of the statement of record, the developer shall include the following statement in his answer to this paragraph:

"The (identify the permit or license) has not been obtained and there is no assurance that the lot owners will be able to use the (identify the facility or improvement)."

c. If the facility has not been installed or completed and the answer to part IV.D.8. of the statement of record indicated that the developer must obtain a permit or license and if the developer has not submitted the supporting documentation required by part IV.E.3. of the statement of record the answer to this paragraph shall include the following statement:

"The developer has not obtained a (permit or license, identfy which) from the (identify the agency or organization which must issue the permit or license) for the construction of or installation of the (identify the facility or improvement affected). Although he has proposed to obtain the (identify the necessary license or permit) and to complete the facility he may not be able to carry out his proposal.

d. If the developer cannot submit the documentation required by part IX.A.5.b. of the statement of record, include the following statement in your answer to this paragraph of the property report:

"The developers' proposal lacks definition and he may not be able to carry it out."

e. If the developer cannot adhere to his proposed completion schedule, he shall amend his answer to this item in accordance with § 1710.23. His amendment shall include a statement of the original proposed completion date as well as the new proposed completion date.

Paragraph 10. The answers to each of the items under this paragraph shall be a concise and accurate summary of the information required to be stated in the related portion of the statement of record.

a. The developer shall list each item separately and state whether or not it is completed. If not completed, state who will complete, percentage completed, estimated completion date, whether there is any financial

assurance of completion, and whether the developer is obligated to complete the item. If no arrangements have been made to assure completion of a proposed or partly completed facility (contracts supported by completion bonds or escrows, for example), include the following statement:

"The developer has not set aside any money or entered into any bond, escrow or trust arrangement to assure completion of the (facility). Accordingly, there is no assurance, other than the promise of the developer, that the (facility) will be completed."

b. If it later becomes evident that an improvement will not be completed on or before the specified date, amendments to the statement of record and property report are required. An amendment shall include a statement of the original proposed completion date as well as the new proposed completion date. The amendment shall be prepared in accordance with Section 1710.23 of this Part.

c. If the item has not been installed or completed and the answer to part IV.D.8. of the statement of record indicated that the developer must obtain a permit or license and if the developer has not submitted the supporting documentation required by part IV.E.3. of the statement of record, the answer to this paragraph shall include the following statement:

"The developer has not obtained a (permit or license, identify which) from the (identify the agency or organization which must issue the permit or license) for the construction of or installation of the (identify the facility or improvement affected). The developer may not be able to obtain the required permit or license and although he has proposed to obtain the (identify the license or permit) and to complete the facility he may not be able to carry out his proposal.

d. If the facility or improvement has been installed and the required permit or license has not been obtained, the developer shall include the following statement:

"(Identify the permit or license) has not been obtained and there is no assurance that the lot owners will be able to use the (identify the facility or improvement).”

e. If the developer has not submitted the documentation required by any of the following parts of the statement of record, he shall amend the appropriate subparagraph of paragraph 10. of the property report to include the statement set forth below.

Statement to be included in the appropriate subparagraph of paragraph 10. "The developers' proposal lacks definition and he may not be able to carry it out."

f. In addition to the above instructions, the following additional instructions shall be followed in preparing the answer to the following subparagraphs:

Subparagraph a.2.

If the supporting documentation required by part VII.C. 1. and 3. of the regulations is not submitted, the answer to this item shall include a statement that the roads have not been accepted by the local authorities and a statement of the alternate plan for maintenance of the roads within the subdivision. Where the developer states that he will maintain the roads and he has not escrowed or set aside any money to assure continued maintenance of the roads, he shall include the following statement in his answer:

"The developer has not set aside any money or entered into any escrow or trust arrangements in order to assure continued maintenance of the roads during the life of the subdivision. You may be required to pay all or part of the cost of maintaining the roads in the subdivision."

Subparagraph b.1. 1. If the developer has not obtained the documentation required by part VIII.A.7.d. of the statement of record, the following statement must be made in the reply to question 10 of the property report:

"The developer has not obtained a letter or report from a cognizant health officer on the quality and purity of water. Accordingly, there is no assurance that the available water will be either pure or of acceptable quality."

il. If an analysis of the water is submitted, it must include a statement in layman's language of whether the water is drinkable and whether it contains any unusual characteristics. This statement shall be included in the answer to this paragraph of the property report.

iii. If water is to be provided by private well, indicate (1) estimated completion cost and (2) any other data establishing that a sufficient quantity of potable water is available to each buyer or lessee. If water is to be provided by a private utility, describe assurance for continuous service and reasonable rates.

iv. If the developer's answer to part VIII. A.2. of the statement of record indicates that the private entity has not been formed or if the developer has not submitted the supporting documentation required by part VIII.A.7. e. of the statement of record, the following statement shall be included with his answer to this subparagraph:

"The (state the name or type of association or entity proposed) has not been formed. Although the developer has proposed to form such an entity he may not be able to carry out his proposal."

v. If the developer's answer to part VIII. A.2.b. of the statement of record indicates that not all of the lot owners will be required to use the services of the company or if not all of the lot owners will be assessed for the cost of the service, the following statement shall be included in your answer to this subparagraph:

"Since the use of the service of the (state the name or type of association or entity proposed) is not mandatory, some of the lot owners may not be required to pay the assessments levied by the (state the name or type of association or entity proposed). Therefore, you may have to pay a disproportionate share of the cost of operating the water system."

vi. If the developer's answer to part VIII.A. of the statement of record or the contract or restrictive covenants indicates that: (1) A central water system will be installed in the future; (2) purchasers who wish to construct on their lot prior to the installation of the central system may use their own individual system; and (3) when the central system is installed, the purchaser will be required to connect to and/or be assessed for a portion of the cost of the central system, the developer shall include the following statement in his answer to this subparagraph of the property report:

"If you wish to use your lot prior to the installation of the central water system, you will be required to install your own individual water system and you will be required to connect to and/or will be assessed for the cost of the central water system."

The answer shall include the estimated cost of an individual system as well as the estimated cost of the central system.

vii. If the developer's answer to part VIII.A of the statement of record indicates that the central water system will be installed in the future and that the purchaser will not be able to use an individual water system prior to the installation of the central system, the developer shall include the following statement in his answer to this subparagraph of the property report:

"You will not be permitted to use individual water systems and water will not be available to your lot until after the central water system has been completed."

Subparagraph b.3. If natural gas is not available in the subdivision the answer to this paragraph shall include the following statement: "Natural gas is not available in this subdivision." The answer to this paragraph should then disclose whether an alternative fuel source such as propane or butane is available and the estimated cost of the service including storage facilities. Subparagraph b.5. i. If no central sewage disposal arrangements are contemplated,

state whether the land is suitable for the use of septic tanks, describing the results of any percolation tests. State estimated cost to buyer for septic tank.

ii. If the developer has not submitted the documentation required by part VIII.E.10.b. or if such documentation does not clearly indicate that onsite sewerage units have been approved for use of each and every lot in the subdivision, the developer shall include the following statement in his answer to this subparagraph of the property report:

"The developer has not obtained a letter or report from a cognizant health officer approving the use of an onsite sewerage disposal system on each and every lot in the subdivision. There is no assurance that you will be able to obtain a permit or approval from the health officials for the installation and use of an onsite sewerage disposal system."

iii. Where onsite sewerage disposal is to be used and the developer has made no provision for the installation of a central sanitary sewerage system, the following statement shall be added:

"The developer has made no provision for the installation of a central sanitary sewerage system, nor has the developer made any provision to set aside any money to fund the installation of such a system."

iv. If the developer's answer to part VIII.E.2. of the statement of record indicates that the developer proposes the use of a private company to provide sewage disposal within the subdivision and that the entity has not been formed and if the developer has not submitted the supporting documentation required by part VIII.E.10. c. of the statement of record, the following statement shall be included in his answer to this subparagraph:

"The (state the name or type of association or entity proposed) has not been formed. Although, the developer has proposed to form such an entity he may not be able to carry out his proposal."

v. If the developer's answer to part VIII.E.2.b. of the statement of record indicates that not all of the lot owners will be required to use the services of the company or if not all of the lot owners will be assessed for the cost of the service, the following statement shall be included in your answer to this subparagraph:

"Since the use of the services of the (state the name or type of association or entity proposed) is not mandatory, some of the lot owners may not be required to pay the assessments levied by the (state the name or type of association or entity proposed). Therefore, you may have to pay a disproportionate share of the cost of operating the sewerage disposal system."

vi. If the developer's answer to part VIII.E. of the statement of record or the contract or restrictive covenants indicates that: (1) A central sewerage system will be installed in the future; (2) purchasers who wish to construct on their lot prior to the installation of the central system will have to install their own private sewerage disposal system; and (3) when the central system is installed the purchaser will be required to connect to and/or will be assessed for the cost of the central system, the developer shall include the following statement in his answer to this subparagraph of the property report.

"If you wish to use your lot prior to the installation of the central sewerage system, you will be required to install your own individual sewerage system and you will be required to connect to and/or will be assessed for the cost of the central sewerage system."

The answer shall include the estimated cost of an individual system as well as the estimated cost of the central system.

vil. If the developer's answer to part VIII.E. of the statement of record indicates that the central sewerage system will be installed in the future and that the purchaser will not be able to use an individual system prior to the installation of the central system the developer shall include the following statement in his answer to this subparagraph of the property report;

"You will not be permitted to use an individual sewerage disposal system; sewage disposal will not be available to your lot until after the central sewerage system has been installed."

Subparagraph c.1. State whether or not there is a fire fighting force offering yearround fire protection to the individual homes in the subdivision. If not include the following statement in your answer to this paragraph:

"Fire protection is not available yearround. A fire insurance policy may not be available or the cost of obtaining such a policy may be increased."

Paragraph 11. If the developer states that the water supply will be adequate to serve the anticipated population of the area such statement must be supported by an engineer's report or hydrological survey which is to be submitted as Exhibit VIII A 7 c of the Statement of Record. If such documentation is unavailable, the answer to this question shall include the following statement:

The developer has not obtain an engineer's report or a hydrological survey indicating the source and quantity of water in the subdivision and accordingly, there is no assurance that a sufficient quantity of water will be available to serve the anticipated population of the area.

Paragraph 14. The number of homes occupied can be amended to reflect periodic increases subsequent to the initial filing date.

Paragraph 15.a. Include a statement as to nature of terrain (flat, rolling, hilly, mountainous, etc.), type of soil (sandy, swampy, rocky, etc.) and vegetation (cactus, trees, grass, etc.).

Paragraph 20. If the answer to any of the questions in this paragraph is no and you do not submit the documentation required by part VIII.F.7.c. of the statement of record include the following statement in your

answer:

"Erosion and flooding could result in property damage and could create a health and safety hazard."

The answer to this paragraph should address the areas of local flooding caused by excessive rainfall and erosion and sedimentation which may be controlled or prevented by the application of the appropriate soil conservation principles. Information with respect to flooding caused by natural hazards and in areas identified by federal agencies as hazard areas must be discussed in paragraph 8d of the property report.

SPECIAL RISK FACTORS

The statements with respect to Special Risk Factors must be included in the property report verbatim to that set forth in the format.

FINANCIAL STATEMENTS

The statements with respect to financial statements must be included in the property report verbatim to that set forth in the format. The financial statements to be attached as Exhibit A shall be a copy of those financial statements submitted by the developer in order to comply with the requirements of Part XIV of the statement of record. The developer shall include the financial statements only. He may not include promotional material such as that usually set forth in annual reports.

SIGNATURE OF THE SENIOR EXECUTIVE OFFICER

The Senior Executive Officer or his duly authorized agent may sign the property report. Facsimile signatures may be used for purpose of reproduction of the property report.

Part D. Additional paragraphs to be added to the property report in special circumstances.

In the interest of consumer protection, special circumstances warrant the inclusion of additional items in the property report. This list of paragraphs shall not be interpreted to in any way limit the authority and responsibilities set forth in part B.1.d. of

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this section. Paragraphs in addition to those listed here shall be added whenever the circumstances justify the need for such additional paragraphs. If any of the following provisions are applicable to the filing, the applicable question and an appropriate reply shall be added as paragraph 21, et seq., immediately after question 20 of the property report.

1. If the subdivision plat map has not been recorded, the developer shall add the following additional item and an appropriate reply to the property report:

"State whether the subdivision is based on a proposed rather than a currently approved division of the land. If proposed, state whether the description of each of the lots in the offering is legally adequate for the conveyancing of the land in the political subdivision wherein the land is located."

2. In those instances where the subdivision has not been approved by the local authorities, the developer shall add the following additional item and an appropriate reply to the property report:

"State whether the subdivision must be approved by the local authorities before it is platted of record. If yes, and the subdivision plat has not been approved by the local authorities, or if the subdivision has not been platted of record, you are advised as follows: The local authorities may require significant alterations before they will approve the proposed use of the land. Zoning requirements may prevent the land from being used for the purpose for which it is currently being sold."

3. Where the financial information submitted by the developer to satisfy the requirements of part XIV.A. of the statement of record indicates a deficit in retaining earnings or an operating loss during the last fiscal year, the following item shall be added to the property report:

"State whether or not the developer has a deficit in retained earnings or has experienced an operating loss during the last fiscal year. Yes or no. If yes, your attention is directed to those items in the property report wherein the developer may have promised to complete certain facilities or to discharge financial obligations."

4. If the developer is a newly-formed entity, it shall add the following paragraph and an appropriate reply to its property report.

"State whether the developer is a newly formed entity. Yes or no. If yes, state the effect which the heavy expenditures necessary to begin a land development sales operation will have on the developer's earnings."

5. If the certified opinion required by part XIV. of the statement of record is qualified, the developer shall add the following paragraph to his property report.

"State whether the accountant qualified his opinion on the financial statements. Yes or no. If yes, your attention is called to the copy of that opinion in exhibit A of this property report."

6. If the developer's sales contract has reserved the right to encumber the land subsequent to the signing of the contract, add the following paragraph and an appropriate reply to the property report.

"Does the seller have the right to encumber the purchaser's lot by a mortgage or mortgages during the continuance of the contract of sale? Yes or no. If yes, you may not be able to obtain a clear title to your lot regardless of whether the contract is recorded."

7. If the answer to part II.C. indicates that the subdivision or any of the parties involved in the subdivision have been or are parties to any disciplinary proceedings, bankruptcies or litigation which will materially affect the operation of the subdivision include the following paragraph and an appropriate reply in the property report.

"State whether the subdivision or any of the parties involved in the development of the subdivision have been or are parties to disciplinary proceeding, bankruptcies or litigation which may materially affect lot purchasers in this subdivision."

8. For all foreign filings, the following questions should be added to the property report and answered appropriately:

a. "State whether or not the owner of the subdivision is a foreign corporation. Yes or No. If yes, you may have to seek legal remedy in the courts of a foreign country should it become necessary to enforce this contract."

b. "State whether the land is located in a foreign country. Yes or No. If yes, the laws and constitution of the United States may not be applicable."

c. "State whether or not it is necessary for an alien to obtain a license granted by the Government of (insert the name of the government wherein the property is located) in order to acquire title to a lot in the subdivision."

d. "State whether or not it is necessary for an alien to obtain a work permit, license to do business, or similar document from the Government of (insert the name of the government wherein the property is located) before he will be able to reside, work, own and/or manage a business in (insert the name of the country wherein the property is located). If so, describe the procedures for obtaining such a document and state the length of time for which it will be effective." [38 FR 23875, Sept. 4, 1973; 38 FR 32444, Nov. 26, 1973; as amended at 39 FR 38099, Oct. 29, 1974; 39 FR 39720, Nov. 11, 1974]