Stationary storage tanks containing flammable or explosive material pose potential hazards to housing, including hazards from fire and explosions.
If the subject property line is within 300 feet of an aboveground, stationary storage tank with a capacity of 1,000 gallons or more of flammable or explosive material, then the property is ineligible for FHA insurance. The Appraiser must notify the Mortgagee of the deficiency of Minimum Property Requirements (MPR) or Minimum Property Standards (MPS), so the Mortgagee can determine the eligibility.
For additional information see Handbook 4000.1 II.D.3.c.iii.(C)(7) available at: https://www.hud.gov/program_offices/administration/hudclips/handbooks/hsgh