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.