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, subparts A and C 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.