2006 New York Code - Sanctions.

 
  § 36-0109. Sanctions.
    Any  local government with land use jurisdiction that fails to qualify
  for participation in the national flood insurance program, or  that  has
  had  its  participation  terminated  by the federal emergency management
  agency, faces sanctions under federal law including, in areas of special
  flood hazard, ineligibility for flood disaster  aid,  ineligibility  for
  federally  provided  loans  or federally guaranteed financing, including
  residential and other mortgages granted by any banking institution  that
  is  a  member  of  the  federal  deposit  insurance corporation or other
  federal instrumentality. The state of New York will cooperate  with  the
  federal government in the enforcement of these sanctions.