FEMA'S 50% Rule

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You are probably asking what is this "50% Rule" you have been hearing. The 50% Rule is a regulation of the National Flood Insurance Program (NFIP) that prohibits improvements to a structure exceeding 50% of it's market value unless the entire structure is brought into full compliance with the current flood regulations. This may include elevating the entire structure, using flood resistant materials, and proper flood venting among others.  While recovering from these past 2 hurricanes (Milton & Helene), residents whose homes were damaged and who reside in a Federal Emergency Management Agency (FEMA) Special Flood Hazard Area, which includes flood zones A, AE, V, VE, AO, AH, AR, or A99, and are insured under the National Flood Insurance Program, should educate themselves about the program’s “50% Rule.”   

This shall mean damage of any origin sustained by a structure whereby the cost of restoring the structure to its before-damage condition would equal or exceed fifty (50) percent of the market value of the structure before the damage occurred. Substantial damage also means flood-related damage sustained during a five-year period for which the cost of repairs at the time of the event, equals or exceeds fifty (50) percent of the market value of the structure before the damage occurred. (Note: The cost of the repairs must include all costs necessary to fully repair the structure to before-damage condition.)  https://www.fema.gov/fact-sheet/substantial-damage-quick-guide

This shall mean any combination of repair, reconstruction, rehabilitation, addition or improvement of a building or structure taking place during a 5-year period, the cumulative cost of which equals or exceeds fifty (50) percent of the market value of the structure before the improvement or repair is started. For each building or structure, the 5- year period begins on the date of the first permit issued for improvement or repair of that building or structure. If the structure has sustained substantial damage, any repairs are considered substantial improvement regardless of the actual repair work performed. The term does not, however, include: Any project for improvement of a building required to correct existing health, sanitary or safety code violations identified by the building official and that are the minimum necessary to assure safe living conditions. All repairs and improvements must be permitted through the Building Division for properties subject to the Substantial Improvement/Substantial Damage (SI/SD) review. Even some improvements that typically do not require a permit (i.e., cabinets, floor covering replacement, fixture replacement) must be evaluated as a remodel since the value must be included in the calculation for this review.