NFIP Substantial Damage

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NFIP Substantial Damage
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Substantial Damage

• Substantial Damage Restoration cost equals or
  exceeds 50 of pre-damage market value of
  structure, even if not fully restored.
• Substantial Improvement Improvement cost equals
  or exceeds 50 of market value of structure prior
  to the improvement.
• A Substantially Damaged or Substantially Improved
  building must meet new construction requirements
  of the National Flood Insurance Program, if the
  building is located in a FEMA-defined Special
  Flood Hazard Area

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Mathematically Speaking
Cost to Repair Cost of Improvements
gt
50
Market Value
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Post-Event

• Local floodplain managers must be able to quickly
  inform building owners of
• the need to bring substantially damaged buildings
  into compliance with current flood hazard
  regulations
• potential grant opportunities and need to sign
  letter of intent

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SI/SD Determination

• Before issuing floodplain development permits to
  repair damage local floodplain manager must
• Determine costs to repair
• Determine pre-event market values
• Make SI/SD determinations

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Assessed RMV

• In Oregon, the assessed real market value of
  improvements may be used as a starting point to
  establish the market value of a structure
• Building owners may appeal the valuation with a
  professional appraisal

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Pre-planning

• Educate floodplain managers about how RMV is
  estimated
• Discuss limitations
• Help develop substantial damage assessment
  protocols in your jurisdiction