10/25/2024
The FEMA 50 percent rule is having a profound impact on our local residents after Helene and Milton. This rule basically requires that any structure in a FEMA flood zone (NOT equivalent to your evacuation zone) meet certain requirements when renovating a structure. The value of one's building is different than the amount one pays for the land AND the building. For FEMA, only the value of the structure is relevant. For example, if you paid $600,000 for your home, the land may be worth $350,000 and depending on the condition of the actual structure on the site, maybe your building/structural value is at $200,000. FEMA requires that any renovations to your structure do not exceed 50% of the structural replacement value of your building. So, in this example, any renovations may not exceed $100,000. Some things are not included in this cost (i.e. demolition, paint, soft costs, etc.). Obviously, every property is different and with 27 or more municipalities in our area, the regulations have some variations on what you may or may not do when it comes to "fixing" your home or business after these storms.
We know many of our friends, family and neighbors are struggling to weave their way through the FEMA regulations right now and it certainly is not an easy task. Do you renovate the building, do you elevate the existing structure out of the flood plane, or do you demo and start fresh per the new building codes?
Between FEMA and the Florida Building Code (two completely separate entities), there is a lot to consider and follow when building new, renovating or even trying to raise an existing structure out of the flood plane.
If you are in need of some assistance maneuvering through this in these difficult times, we will be happy to give some guidance.