What is FEMA’s 50% rule? OK, so some folks are just learning all about this. Basically if your house is damaged by a flood and the cost to replace it or rennovate it exceeds 50% of the value of the improvement then it must be brought up to current zoning and building code standards. It all has to do with something FEAM calles “Sustantial Damage“.
“Substantial damage” means damage of any origin sustained by a structure whereby the cost of restoring the structure to its before damaged condition would equal or exceed 50 percent of the market value of the structure before the damage occurred.
60 Minutes did a story on this after Sandy when the folks on Statin Island found out that in order to get a CO for their house not only did they need to repair the damage but they also had to elevate the structure to the current code requireements. This is the big issue. Why?
Well, all building codes include thresholds that if one does so much repair or renovation then EVERYTHING must be brought into compliance with the current code. That’s electric, plumbing, structural, etc. But the big “rub” for the FEMA rule is typically elevating the structure.
With Risk Rating 2.0 now in effect one of the remaining uses of the flood maps (FIRM’s) is that if your property is shown in a Flood Hazard Area then this rule applies EVEN IF THE REPAIRS ARE NOT FROM A STORM and IT APPLIES TO HOUSES NOT COVERED BY A FLOOD INSURANCE POLICY.
Two key points:
• The damage can be from any cause—flood, fire, earthquake, wind, rain, or other natural or human-induced hazard.
• The substantial damage rule applies to all buildings in a flood hazard area, regardless of whether the building was covered by flood insurance.
Also note that if this property is homesteaded there are some laws that will help keep your taxes low.
The code has lots of details in it but basically the first floor of your house, the first floor of living area, must be above the Base Flood Elevation (BFE) as shown on the current FIRM plus (+) 1 foot.
