Section 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 , 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.