Substantial Improvement/Substantial Damage Desk …

1 FEMAS ubstantial Improvement/Substantial Damage desk ReferenceFEMA P-758 / May 2010 Substantial improvement / Substantial Damage desk ReferenceFEMA P-758 / May 2010SI/SD desk RefeRence PrefaceWhen bu ld ngs undergo repa r or mprovement, t s an opportun ty for local floodpla n management programs to reduce flood Damage to ex st ng structures. More than 21,000 com-mun t es part c pate n the Nat onal Flood Insurance Program (NFIP), wh ch s managed by the Federal Emergency Management Agency (FEMA).

2 To part c pate n the NFIP, commun t es must adopt and enforce regulat ons and codes that apply to new development n Spec al Flood Hazard Areas (SFHAs). Local floodpla n management regulat ons and codes conta n m n mum NFIP requ rements that apply not only to new structures, but also to ex st ng structures wh ch are substant ally mproved (SI) or substant ally damaged (SD). Enforc ng the SI/SD requ rements s a very mportant part of a commun ty s floodpla n man-agement respons b l t es. There are many factors that local offic als w ll need to cons der and several scenar os they may encounter wh le mplement ng the SI/SD requ rements.

3 Th s desk Reference prov des pract cal gu dance and suggested procedures to mplement the NFIP re-qu rements for SI/SD. Th s desk Reference prov des gu dance on the m n mum requ rements of the NFIP regulat ons. State or locally-adopted requ rements that are more restr ct ve take precedence (often referred to as exceed ng the NFIP m n mums or h gher standards ).SI/SD desk RefeRence iiiAcknowledgmentsFEMA would like to thank the following individuals who provided information, data, review, and guidance in developing this Ingargiola FEMA Building Science BranchLois ForsterFEMA Floodplain Management BranchJack Anderson FEMA Regional and Disaster Support BranchJhun de la CruzFEMA Underwriting BranchLilah HaxtonFEMA Grants Policy BranchMary ColvinFEMA Region IIAlan Springett FEMA Region IIHenry ChauFEMA Region IIIJ oseph ZagoneFEMA Region IIIJudy MarvelFEMA Region IVJohn PlisichFEMA Region IVRoss Richardson FEMA Region VIRoger Connell FEMA Region VIIMark Marik Formerly FEMA Region IX

4 Michael Powell Delaware Department of Natural Resources and Environmental ControlLisa JonesSouth Carolina Department of Natural ResourcesKen FordFormerly National Association of Home Builders, Inc. Kim Paarlberg International Code Council, McDonald City of Savannah, GATom Richards City of Findlay, OH Tim Condit Pikes Peak Regional Building Department. COBob Croft Pikes Peak Regional Building Lewis Pikes Peak Regional Building Department. COTom Leatherbee Del City, OKChristopher P. Jones, C. QuinnRCQuinn Consulting, SI/SD desk RefeRence AcknowledgmentsJimmy YeungGreenhorne & O Mara, KendroGreenhorne & O Mara, DalyGreenhorne & O Mara, LiptakGreenhorne & O Mara, of 11 22 The NFIP: Roles and 33 NFIP Substantial Improvement/Substantial Damage : Requirements and.

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7 6- 29 Chapter SI/SD desk RefeRence SI/SD desk RefeRence 1-11 Introduction Overview When buildings undergo repair or improvement , it is an opportunity for floodplain manage-ment programs to reduce flood Damage to existing structures. More than 21,000 communities participate in the National Flood Insurance Program (NFIP) by adopting and enforcing regu-lations and codes that apply to development in Special Flood Hazard Areas (SFHAs). Local floodplain management regulations and codes contain minimum NFIP requirements that are not only for new structures, but also for existing structures with proposed Substantial improve-ments or repair of Substantial Damage .

8 Local officials in communities that participate in the NFIP must determine whether proposed work qualifies as a Substantial improvement or repair of Substantial Damage (referred to as an SI/SD determination ). If work on buildings constitutes SI/SD, then structures must be brought into compliance with NFIP requirements for new construction, including the require-ment that lowest floors be elevated to or above the base flood elevation (BFE). Meeting this requirement can also be accomplished by demolition followed by construction of new buildings that meet the NFIP requirements on the same sites or by relocating buildings to locations out-side of the SFHA.

9 In some cases after a disaster, communities have worked with owners to buy damaged homes in order to demolish the buildings and preserve the land as open space. The NFIP defines SI/SD as follows: n Substantial improvement (SI) means any reconstruction, rehabilitation, addition, or other improvement of a structure, the cost of which equals or exceeds 50 percent of the market value of the structure (or smaller percentage if established by the community) before the start of construction of the improvement . This term includes structures that have incurred Substantial Damage , regardless of the actual repair work performed.

10 N Substantial Damage (SD) 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. Work on structures that are determined to be substantially damaged is considered to be Substantial improvement , regardless of the actual repair work performed. The 50 percent threshold was chosen as a compromise between two extremes. One extreme would be to prohibit all investment in existing structures that do not meet minimum NFIP requirements.