Final answer:
The developer cannot issue permits for building on the higher lots in Zone A and treat them as C Zone sites. Buildings should be constructed in the appropriate flood zones to minimize potential damage and risk.
Step-by-step explanation:
The developer cannot issue permits for building on the higher lots in Zone A and treat them as C Zone sites. Zones are determined based on flood risk, and the flood study determined that these lots are in the A Zone. Even if they are higher than the calculated BFE, they still fall within the A Zone. It is important to follow zoning regulations and ensure that buildings are constructed in the appropriate flood zones to minimize potential damage and risk.