Substantial Damage and Substantial Improvement


Substantial Damage	Substantial Improvement

Definition: 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 as defined in 44CFR sec. 59.1		Definition: Any reconstruction, rehabilitation, addition, or other improvements of a structure, the cost of which equals or exceeds 50 percent of the market value of the structure before the start of construction of the improvement as defined in 44CFR sec. 59.1
How to Determine Substantial Damage:		How to Determine Substantial Improvement:
Who determines Substantial Damage: The local official who is designated to administer and enforce the community's floodplain regulations and building codes is responsible for making Substantial Damage determinations.		Who Determines Substantial Improvement: The local official who is designated to administer and enforce the community's floodplain regulations and building codes is responsible for making Substantial Improvement determinations.
What Might Trigger the Substantial Damage Requirement: Damage that occurs during a single and sudden event, i.e. fire, flood, tornado, wind storm, lightning strike, earthquake, falling tree, or natural gas explosion. Damage occurs over time, i.e. soil settlement, exposure to elements, vandalism, termite infestation, and other causes. Damage that results in the cost to repair is 50% or more of the pre-damaged condition. Work necessary to restore a substantially damaged structure to its pre-damage condition automatically constitutes substantial improvement, regardless of the actual repair work performed.		What Might Trigger the Substantial Improvement Requirement Rehabilitation or remodeling of a structure, with or without changing the external dimensions Lateral additions that may or may not involve structural modifications of the load-bearing structure of the existing structure Vertical additions Repair, reinforce, or replacement foundations, including extending existing foundations Repair of damage of any origin that is necessary to restore a structure to its pre-damage condition Work on structures that were compliant at the time of construction Work on existing structures where BFE's flood zones or floodways have been revised
How to Know if the Structure is Substantially Damaged: Typically after a disaster, a windshield assessment is conducted by local authorities. This assessment will determine initial damage estimates. A letter will be sent to the homeowner notifying them of a Substantial Damage determination. Homeowners will either need to appeal the decision or bring the structure into current compliance with floodplain regulations.		How to Know if the Structure is Substantially Improved: If the structure is located within the floodplain or floodway, the homeowner should reach out to the local entity responsible for permits and floodplain compliance prior to beginning the construction project. The local entity will make a determination based on the submission of the project. If the local official makes the determination that the structure will be substantially improved, every aspect of the structure must come into compliance.
What Happens if the Structure Does Not Come Into Compliance: Failure to comply with local floodplain regulations will eventually land the property on the 1316 list for non-compliance. Being deemed a 1316 property can result in the loss of flood insurance and the denial of FEMA disaster assistance.		What Happens if the Structure Does Not Come Into Compliance: Failure to comply with local floodplain regulations will eventually land the property on the 1316 list for non-compliance. Being deemed a 1316 property can result in the loss of flood insurance and the denial of FEMA disaster assistance.