---
kind: "section"
citation: "7 C.F.R. § 3565.254"
title: "7"
number: "3565.254"
heading: "Property standards."
url: "https://uscodex.org/cfr/7/3565.254"
---

# §3565.254. Property standards.

- (a) **Housing quality and site and neighborhood standards.** The property must meet the site and neighborhood requirements established by the state or locality, and those standards contained under [7 CFR part 1924](/cfr/7/part1924.md), subparts [A](/cfr/7/subpartA.md) and [C](/cfr/7/subpartC.md) or any successor regulations.
- (b) **Third party assessments.** As part of the application for a guaranteed loan, the lender must provide documentation of qualified third parties' assessments of the property's physical condition and any environmental conditions or hazards which may have a bearing on the market value of the property. These assessments must include:
  - (1) **An acceptable property appraisal.**
  - (2) **A Phase I Environmental Site Assessment (American Society of Testing and Materials).**
  - (3) **A Standard Flood Hazard Determination.**
  - (4) In the case of the purchase of an existing structure, rehabilitation or refinancing, a physical needs assessment.

## Notes

### Authority

Authority: 5 U.S.C. 301; 7 U.S.C. 1989; 42 U.S.C. 1480.

### Source

Source: 63 FR 39458, July 22, 1998, unless otherwise noted.