In the aftermath of Hurricane Ian, I have seen (usually somewhat vague) Internet references to a "rule" which apparently requires that if the damage repair cost to a property exceeds 50% of the property value, then that property must be rebuilt to meet current code standards (such as minimum elevation above ground level, etc.). I admit to having been ignorant regarding details of this "rule", but was interested and finally stumbled upon (via a Lee County FL site) some answers to my own questions:
Q1. Does this rule in FL originate with the State? County? FEMA? Other?
A: FEMA. 50% rule.
Q2. Does "property value" refer to buidings & structures only (i.e., exclusive of land value), or does it refer to the total value of the property as a whole?
A: The basic rule is that "if the cost of improvements or the cost to repair the damage exceeds 50% of the market value of the building (red highlighting mine), it must be brought up to current floodplain management standards". (Note: I found no mention or any further clarification regarding exactly who determines "market value", or how, or when. Maybe using the most recent assessed value of the building? I have no idea).
Just sharing a bit of what I learned, alleviating (...a little bit of) my previous clueless state on this subject. Others may very well already know all about this.
Source reference: www.fema.gov/sites/default/files/2020-07/fema_p213_08232018.pdf
Q1. Does this rule in FL originate with the State? County? FEMA? Other?
A: FEMA. 50% rule.
Q2. Does "property value" refer to buidings & structures only (i.e., exclusive of land value), or does it refer to the total value of the property as a whole?
A: The basic rule is that "if the cost of improvements or the cost to repair the damage exceeds 50% of the market value of the building (red highlighting mine), it must be brought up to current floodplain management standards". (Note: I found no mention or any further clarification regarding exactly who determines "market value", or how, or when. Maybe using the most recent assessed value of the building? I have no idea).
Just sharing a bit of what I learned, alleviating (...a little bit of) my previous clueless state on this subject. Others may very well already know all about this.
Source reference: www.fema.gov/sites/default/files/2020-07/fema_p213_08232018.pdf
Last edited: