FEMA 50% threshold exceeded during construction

[Flnative]

As a licensed GC, I am helping a woman attempt to rebuild the home she lost in a hurricane. Based off what I think, we are just under the 50% mark. However, we are too close for comfort in my opinion.

If I submit the permit with my most accurate estimate, and then we exceed the 50% while in construction, what happens next?

I just fear we might find something during the renovation process that would add significant cost.

Thank you

 

[jar546]

As a licensed GC, I am helping a woman attempt to rebuild the home she lost in a hurricane. Based off what I think, we are just under the 50% mark. However, we are too close for comfort in my opinion.

If I submit the permit with my most accurate estimate, and then we exceed the 50% while in construction, what happens next?

I just fear we might find something during the renovation process that would add significant cost.

Thank you

First, you really need to read the floodplain ordinance in place for the jurisdiction you are working in. Next, if it is post-hurricane, the damage assessment should have already been done by the municipality. If not, and they are waiting on permits to come in, your proposal is just part of the puzzle. Remember that the 50% value is based on the value of the structure itself, not the value of the entire property. Some ordinances have a 49% threshold, not 50%. If your estimate exceeds the threshold of the floodplain ordinance and the property is in a special flood hazard area, then the entire property must comply with FEMA rules. One option you have if you are close to the threshold is to have an independent appraisal of the structure performed. However, it is currently damaged, which may work against you. The bottom line here is that the storms and flooding are getting worse, and not raising the structure or knocking it down and starting from scratch at a higher level is a disservice to the community and the property owner because the flood insurance rates will be astronomical.