The Natural Hazard Disclosure Statement is NOT required for which type of property?

• A. located in a special flood hazard zone.
• B. having five units or more.
• C. located in a seismic hazard zone.
• D. both a and b.

Answer: (B)

The question tests an exemption in the Natural Hazard Disclosure requirements. In California, the NHD must be provided for residential property with up to four dwelling units and for properties in certain natural hazard areas. However, there is a specific exemption: once a property has five or more dwelling units, the NHD is not required at all, regardless of whether it sits in a special flood hazard zone or a seismic hazard zone. That’s why having five units or more is the type of property for which the disclosure is not required.

So, even though hazards like being in a flood zone or a seismic zone would normally trigger NHD disclosure if the property were within the typical requirement, the five-or-more-unit threshold overrides that requirement. A property with four units or fewer would still need the NHD if it sits in those hazard areas, but a property with five or more units is exempt from needing it. An example: a six-unit building would not require an NHD, even if located in a seismic or flood hazard area.