Unit 8 Learning Check NFIP Flashcards
what is the basic rule on improvements and repairs to existing buildings in the floodplain
of cost of improvements or cost to repair damage exceeds 50% of market value of building, it must be brought up to current floodplain management standards
mrs murphy got a permit 2 months ago to remodel living room and kitchen. now, she wants to remodel 3 bedrooms and bathrooms. should each project be checked separately for substantial improvement?
no. all renovations are counted as 1 project - total cost combined - check total cost against market value of house to determine substantial improvement
what is the substantial improvement formula
substantial improvement = (cost of improvement project) / (market value of building) >= 50%
what is / not included when calculating cost of improvement project
include: attached deck, plumbing, contractors overhead and profit, built in bookcases
not included: permit fees, architect plans, landscaping
what factors considered when determining market value
“price a willing buyer and seller agree”
factors to consider - building original quality, subsequent improvements, age, current condition
3 sources for obtaining market value of house
independent appraisal by professional engineer or building department or tax assessor
detailed estimate of structure actual cash value (replacement cost of building - depreciation% based on age and condition)
property appraisals for tax assessment purposes with adjustment recommended by tax appraiser to reflect market conditions (adjusted assessed value)
value of buildings taken from NFIP claims data (cash value)
mr joans purposes $50,000 addition to $80,000 home in floodplain. Is this a substantial improvement?
yes
(50,000) / (80,000) = 0.625 = 62.5%
more than 50% = yes
if a project is a substantial improvement, what do you need to check to see if the whole house has to be elevated or just the addition
check extent of work on common wall and existing building. if common wall demolished - then existing building & addition must be elevated
what is the basic rule on calculating the cost of the damage
substantial damage is determined regardless of actual cost to owner.
determine true cost of brining the building back to pre damaged condition using labor and materials at market price
a tordano sewpt through town and subtatntially damaged 25 buildings in floodplain, how can property owners comply with floodplain ordinance substantial damage regulations
help owners obtain financial assistance.
programs available after disaster declaration
mr john prepared a list of everything he has to do to repair his flooded home. which items are counted toward cost of repairs when determining substantial damage
clearing broken trees
replace warp flooring
new doors ($1000) to replace old ones ($500)
new carpet
new wiring to bring building to code
permit fee
clean out and test furnace (free to owner, but $250 if done by private contractor)
replacement fence
clearing broken trees - no
replace warp flooring - yes
new doors ($1000) to replace old ones ($500) - yes, $1000
new carpet - yes
new wiring to bring building to code - yes
permit fee - no
clean out and test furnace (free to owner, but $250 if done by private contractor) - yes, $250
replacement fence - no
what is best way to determine if building is historic and exempt from substantial improvement requirement
see if on approved list of historic structures
what kind of projects need a permit so you can see if they are substantial improvements
remodeling projects
rehabilitation projects
building additions
home was built to post FIRM standards in 1990. lowest floor 4’ above grade, to BFE at that time. in 1995, new FRIM, and BFE 6’ above grade at that site
how high would a small (non substantial) addition have to be elevated
how high would a large (substantial) addition have to be elevated
small - 4’ above grade
large - 6’ above grade
mrs murphy bought a property for $100,000 last year. it is a good basis to determine market value
good base. but market value may be different this year.
also, subtract value of land, landscaping, detached structures from purchase price of property
based on tax assessor, market value is $75,000. owner wants to replace plumbing, kitchen, bathrooms, and furnish basement. total cost is $20,000 for supplies.
contractor does the work - total cost $45,000
owner will do the job himself. total cost of project is $20,000.
what is you response?
total cost of project must be true cost, including cost of labor and donated materials. this project is a substantial improvement
True or false - the substantial damage regulations only apply if the building was damaged by flood
false. damage can be from any cause
a flooded property owner has a brother who is a plumbing contractor. brothers repair estimate is 48% of building value. you think it should be higher. what to do>?
get cost to repair from objective third party or from:
licensed general contractor
professional construction estimator
insurance adjustment papers (exclude damage to contents)
damage assessment field surveys conducted by building inspection, emergency management, or tax assessment agencies after disaster
mrs john is on a fixed income. her home was flooded and substantially damaged. her flood insurance policies will pay for repairs. when told she will have to elevate her house, she thinks she should apply for variance due to financial hardship. what do you tell her?
her flood insurance policy has increased cost of compliance coverage that will help may to meet ordinance requirements to elevate. your office may help find additional financial assistance for the rest of the cost, if needed
before the flood, mr johnstone had been cited by community for a code violation. the paint on grade door was peeling, in violation to local housing maintenance code. since flood left must up to high water line, he repainted the whole house. can he claim exemption of cost of painting because it had been cited as a code violation
no
only exempt the items specifically required by citation and what is minimally necessary to comply
