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195 main Leeds Flood.pdf
195 Main St City Map 2016-05-27.pdf
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Elevation Survey.191-195.Main.St.Leeds.pdf
fema determinimg substantial improvements nfip_sg_unit_8.pdf UNIT 8:
Substantial Improvement/Damage 8-1 UNIT 8 SUBSTANTIAL IMPROVEMENT AND SUBSTANTIAL DAMAGE In this unit This unit covers: • The substantial improvement rule – how to regulate major
additions and other improvements to buildings in the floodplain. • The substantial damage rule – how to regulate reconstruction and repairs to buildings that have been severely damaged.
• Exceptions to the basic rules for some special cases. Substantial Improvement/Damage 8-2 CONTENTS INTRODUCTION.................................................................................
........................8-3 A. SUBSTANTIAL IMPROVEMENT...........................................................................8-4 Projects Affected.................................................
...................................................8-4 Post-FIRM buildings....................................................................................................................8-5
The Formula...........................................................................................................8-5 Project cost................................................................
..................................................................8-6 Market value.....................................................................................................................
...........8-6 Substantial Improvement Examples.....................................................................8-10 Example 1. Minor rehabilitation...............................................
..................................................8-10 Example 2. Substantial rehabilitation........................................................................................8-11
Example 3. Lateral addition—residential ..................................................................................8-12 Example 4. Lateral addition—nonresidential ............................
................................................8-13 Example 5. Vertical addition—residential .................................................................................8-14 Example
6. Vertical addition—nonresidential ...........................................................................8-15 Example 7. Post-FIRM building—minor addition......................................
................................8-16 Example 8. Post-FIRM building—substantial improvement......................................................8-17 B. SUBSTANTIAL DAMAGE.............................
.......................................................8-18 Cost to Repair......................................................................................................8-18 Substantial
Damage Examples............................................................................8-20 Example 1. Reconstruction of a destroyed building.....................................................
.............8-20 Example 2. Substantially damaged structure............................................................................8-21 Substantial Damage Software...............................
...............................................8-22 Increased Cost of Compliance.............................................................................8-22 C. SPECIAL SITUATIONS
.......................................................................................8-25 Exempt Costs..............................................................................................
.........8-25 Historic Structures................................................................................................8-25 Corrections of Code Violations...................................
..........................................8-26 Example ....................................................................................................................................8-27
Substantial Improvement/Damage 8-3 INTRODUCTION In previous units we focused on the rules and regulations that prevent or reduce damage from floods to new buildings. But what happens
when the owner wishes to make an improvement, such as an addition, to an existing building? What if a building is damaged by a fire, flood or other cause? Basic rule: If the cost
of improvements or the cost to repair the damage exceeds 50 percent of the market value of the building, it must be brought up to current floodplain management standards. That means
an existing building must meet the requirements for new construction. People who own existing buildings that are being substantially improved will be required to make a major investment
in them in order to bring them into compliance with the law. They will not be happy. If the buildings have just been damaged, they will be financially strapped and your elected officials
will want to help them, not make life harder for them. For these reasons, it is easy to see that this basic rule can be difficult to administer. It is also the one time when your regulatory
program can reduce flood damage to existing buildings. That’s why this course devotes this unit to administering the substantial improvements and substantial damage regulations. In
this reference guide, the term “building” is the same as the term “structure” in the NFIP regulations. Your ordinance may use either term. The terms are reviewed in more detail in Unit
5, Section E. Substantial Improvement/Damage 8-4 A. SUBSTANTIAL IMPROVEMENT 44 CFR 59.1. Definitions: “Substantial improvement” means any reconstruction, rehabilitation, addition
or other improvement to a structure, the total cost of which equals or exceeds 50 percent of the market value of the structure before the start of construction of the improvement. This
section provides information on determining whether a building has been substantially improved and on what NFIP requirements apply. PROJECTS AFFECTED All building improvement projects
worthy of a permit must be considered. These include: • Remodeling projects. • Rehabilitation projects. • Building additions. • Repair and reconstruction projects (these are addressed
in more detail in Section B on substantial damage) If your community does not require permits for, say, reroofing, minor maintenance or projects under a certain dollar amount, then
such projects are not subject to the substantial improvement requirements. However, if you have a larger project that includes reroofing, etc., then it must include the entire cost
of the project. One problem you may face is a builder trying to avoid the requirement by applying for a permit for only part of the job and then later applying for another permit to
finish the work. If both applications are together worth more than 50% of the value of the building, the combined project should be considered a substantial improvement and subject
to the rules. FEMA requires that the entire improvement project be counted as one. In order to help you enforce this, you may want to count all applications submitted over, say, one
year as one project. Check with your attorney on whether your ordinance clearly gives you the authority to do this and be sure to spell it out in the permit papers given to the applicant.
Some communities require that improvements be calculated cumulatively over several years. All improvement and repair projects undertaken over a period of five years, 10 years or the
life of the structure are added up. When they total 50 percent, the building must be brought into compliance as if it were new construction. The Community Rating System credits keeping
track of improvements to enforce a cumulative substantial improvement requirement. It also credits using a lower threshold than 50 percent. These credits are found under Activity 430,
Section 431.c and d in the CRS Coordinator’s Manual and the CRS Application. See also CRS Credit for Higher Regulatory Standards for example regulatory language. Post-FIRM buildings
The rules do not address only pre-FIRM buildings—they cover all buildings, post-FIRM ones included. In most cases, a post-FIRM building will be properly elevated or otherwise compliant
with regulations for new construction. However, sometimes a map change results in a higher BFE or change in FIRM zone. A substantial improvement to a post-FIRM building may require
that the building be elevated to protect it from the new, higher, regulatory BFE. It should be remembered that all additions to a post-FIRM building must be elevated at least as high
as the BFE in effect when the building was built. (You can’t allow a compliant building to become noncompliant by allowing additions at grade.) If a new, higher BFE has been adopted
since the building was built, additions that are substantial improvements must be elevated to the new BFE. THE FORMULA A project is a substantial improvement if: Cost of improvement
project > 50 percent Market value of the building For example, if a proposed improvement project will cost $30,000 and the value of the building is $50,000: $30,000 = 0.6 (60
percent) $50,000 The cost of the project exceeds 50 percent of the building’s value, so it is a substantial improvement. The floodplain regulations for new construction apply and
the building must meet Substantial Improvement/Damage 8-5 Substantial Improvement/Damage 8-6 the post-FIRM construction requirements. If the project is an addition, only the addition
has to be elevated (see the examples later in this section). The formula is based on the cost of the project and the value of the building. These two numbers must be reviewed in detail.
Project cost The cost of the project means all structural costs, including • all materials • labor • built-in appliances • overhead • profit • repairs made to damaged parts
of the building worked on at the same time A more detailed list is included in Figure 8-1. To determine substantial improvement, you need a detailed cost estimate for the project,
prepared by a licensed general contractor, professional construction estimator or your office. Your office must review the estimate submitted by the permit applicant. To verify it,
you can use your professional judgment and knowledge of local and regional construction costs, or you can use building code valuation tables published by the major building code groups.
These tables can be used for determining estimates for particular replacement items if the type of structure in question is listed in the tables. There are two possible exemptions
you should be aware of: 1) improvements to correct code violations do not have to be included in the cost of an improvement or repair project and 2) historic buildings can be exempted
from substantial improvement requirements. These are explained in more detail later on. Market value In common parlance, market value is the price a willing buyer and seller agree
upon. The market value of a structure reflects its original quality, subsequent improvements, physical age of building components and current condition. Substantial Improvement/Damage
8-7 However, market value for property can be different than that of the building itself. Market value of developed property varies widely due to the desirability of its location.
For example, two houses of similar size, quality and condition will have far different prices if one is on the coast, or in the best school district, or closer to town than the other—but
the value of the building materials and labor that went into both houses will be nearly the same. For the purposes of determining substantial improvement, market value pertains only
to the structure in question. It does not pertain to the land, landscaping or detached accessory structures on the property. Any value resulting from the location of the property should
be attributed to the value of the land, not the building. Substantial Improvement/Damage 8-8 Items to be included — All structural elements, including: — Spread or continuous
foundation footings and pilings — Monolithic or other types of concrete slabs — Bearing walls, tie beams and trusses — Floors and ceilings — Attached decks and porches — Interior
partition walls — Exterior wall finishes (brick, stucco, siding) including painting and moldings — Windows and doors — Reshingling or retiling a roof — Hardware — All interior
finishing elements, including: — Tiling, linoleum, stone, or carpet over subflooring — Bathroom tiling and fixtures — Wall finishes (drywall, painting, stucco, plaster, paneling,
marble, etc.) — Kitchen, utility and bathroom cabinets — Built-in bookcases, cabinets, and furniture — Hardware — All utility and service equipment, including: — HVAC equipment
— Plumbing and electrical services — Light fixtures and ceiling fans — Security systems — Built-in kitchen appliances — Central vacuum systems — Water filtration, conditioning,
or recirculation systems — Cost to demolish storm-damaged building components — --- Labor and other costs associated with moving or altering undamaged building components to accommodate
improvements or additions — --- Overhead and profits Items to be excluded — Plans and specifications — Survey costs — Permit fees — Post-storm debris removal and clean
up — Outside improvements, including: — Landscaping — Sidewalks — Fences — Yard lights — Swimming pools — Screened pool enclosures — Detached structures (including garages,
sheds and gazebos) — Landscape irrigation systems Figure 8-1. Items included in calculating cost of the project Substantial Improvement/Damage 8-9 Acceptable estimates of market
value can be obtained from these sources: • An independent appraisal by a professional appraiser. The appraisal must exclude the value of the land and not use the “income capitalization
approach” which bases value on the use of the property, not the structure. • Detailed estimates of the structure’s actual cash value— the replacement cost for a building, minus a depreciation
percentage based on age and condition. For most situations, the building’s actual cash value should approximate its market value. Your community may prefer to use actual cash value
as a substitute for market value, especially where there is not sufficient data or enough comparable sales. • Property values used for tax assessment purposes with an adjustment recommended
by the tax appraiser to reflect current market conditions (adjusted assessed value). • The value of buildings taken from NFIP claims data (usually actual cash value). • Qualified
estimates based on sound professional judgment made by the staff of the local building department or tax assessor’s office. Some market value estimates are often used only as screening
tools (i.e., NFIP claims data and property appraisals for tax assessment purposes) to identify those structures where the substantial improvement ratios are obviously less than or greater
than 50 percent (i.e., less than 40 percent or greater than 60 percent). For structures that fall in the 40 percent to 60 percent range, more precise market value estimates are sometimes
necessary. SUBSTANTIAL IMPROVEMENT EXAMPLES Example 1. Minor rehabilitation A rehabilitation is defined as an improvement made to an existing structure which does not affect the
external dimensions of the structure. If the cost of the rehabilitation is less than 50 percent of the structure’s market value, the building does not have to be elevated or otherwise
protected. However, it is advisable to incorporate methods to reduce flood damage, such as use of flood-resistant materials and installation of electrical, heating and air conditioning
units above the BFE. Figure 8-2 shows a building that had a small rehabilitation project. Central air conditioning was installed and the electrical system was upgraded. The value
of the building before the project was $60,000. The value of the project was $12,000: $12,000 = 0.2 (20 percent) The project costs less than 50 percent of the $60,000 building,
so this is not a substantial improvement. Figure 8-2. Minor rehabilitations use flood-resistant methods and materials Neither structure would benefit from post-FIRM flood insurance
rates because they are not elevated. Note: To gauge what happens to flood insurance premiums if a substantially improved building is not brought up to post-FIRM standards, see Figures
7-7 through 7-12. Substantial Improvement/Damage 8-10 Example 2. Substantial rehabilitation If the rehab costs more than 50 percent of the value of the building, your ordinance
requires that an existing structure be elevated and/or the basement filled to meet the elevation standard. Figure 8-3 shows a building that has been allowed to run down. It’s market
value is $35,000. To rehab it will require gutting the interior and replacing all wallboard, built-in cabinets, bathroom fixtures and furnace. The interior doors and flooring will be
repaired. The house will get new siding and a new roof. The cost of this rehab will be $25,000: $25,000 = 71.4 percent Because total cost of the project is greater $35,000
than 50 %the rehab is a substantial improvement Figure 8-3. substantially rehabilitated building elevated above the BFE. In A Zones, elevation may be on fill, crawlspace, columns,
etc. In V Zones, only pilings, columns or other open foundations are allowed. The new structure would benefit from post-FIRM flood insurance rates. Substantial Improvement/Damage
8-11 Example 3. Lateral addition—residential Additions are improvements that increase the square footage of a structure. Commonly, this includes the structural attachment of a bedroom,
den, recreational room garage or other type of addition to an existing structure. Note that if one building is attached to another through a covered breezeway or similar connection,
it is a separate building and not an addition. When an addition is a substantial improvement, the addition must be elevated or floodproofed, providing that improvements to the existing
structure are minimal. Figures 8-4 and 8-5 illustrate lateral additions that are compliant. Depending on the flood zone and details of the project, the existing building may not
have to be elevated. The determining factors are the common wall and what improvements are made to the existing structure. If the common wall is demolished as part of the project, then
the entire structure must be elevated. If only a doorway is knocked through it and only minimal finishing is done, then only the addition has to be elevated. In A Zones only, if significant
improvements are made to the existing structure (such as a kitchen makeover), both it and the addition must be elevated and otherwise brought into compliance. Some states and many communities
require that both the existing structure and lateral additions be elevated in all cases. In V Zones, the existing structure always has to be elevated, placed on an engineered foundation
system, etc., when an addition is proposed that constitutes a substantial improvement. This is due to the “free-of obstruction” standard whereby the lower existing structure would
obstruct the storm surge, causing damage to the addition. Figure 8-4. Lateral additions to a residential building in an A Zone. In V Zones, the entire building must be elevated
on pilings, columns or other open foundations. The Substantial Improvement/Damage 8-12 structure on the left would not benefit from post-FIRM flood insurance rates because it was
not elevated. Example 4. Lateral addition—nonresidential A substantial improvement addition to a nonresidential building may be either elevated or floodproofed. Otherwise, all the
criteria for residential buildings reviewed in Example 3 must be met. If floodproofing is used, the builder must ensure that the wall between the addition and the original building
is floodproofed. Floodproofing is not allowed as a construction measure in V Zones. Figure 8-5. Lateral addition to a nonresidential building in an A Zone. This approach is not
allowed in V Zones. The structure would not benefit from post-FIRM flood insurance rates because the original building was not elevated or flood-proofed. Substantial Improvement/Damage
8-13 Example 5. Vertical addition—residential When the proposed substantial improvement is a full or partial second floor, the entire structure must be elevated (Figure 8-6). In
this instance, the existing building provides the foundation for the addition. Failure of the existing building would result in failure of the addition, too. Figure 8-6. Vertical
addition to a residential building in a V Zone. The new structure would benefit from post-FIRM flood insurance rates. Substantial Improvement/Damage 8-14 Example 6. Vertical addition—nonresiden
tial When the proposed substantial improvement is a full or partial second floor, the entire structure must be elevated or floodproofed (Figure 8-7). The owner could obtain post-FIRM
rates on the building if it is floodproofed to one foot above the BFE and he has a floodproofing certificate signed by a registered engineer. An optional approach is to elevate the
entire building and obtain an elevation certificate. Figure 8-7. Vertical addition to a nonresidential building in an A Zone. The new floodproofed structure would benefit from post-FIRM
flood insurance rates. Substantial Improvement/Damage 8-15 Example 7. Post-FIRM building—minor addition All additions to post-FIRM buildings are defined as new construction and
must meet the requirements of your floodplain management ordinance regardless of the size or cost of the addition (Figure 8-8). A small addition to a residential structure that is not
a substantial improvement must be elevated at least as high as the BFE in effect when the building was built. Minor additions to nonresidential structures can be floodproofed to the
BFE. If a map revision has taken place and the BFE has increased, only additions that are substantial improvements have to be elevated to the new BFE or flood-proofed (nonresidential
buildings only). Figure 8-8. Small additions to post-FIRM buildings must be elevated. Substantial Improvement/Damage 8-16 Example 8. Post-FIRM building—substantial improvement
Substantial improvements made to a post-FIRM structure must meet the requirements of the current ordinance. Figure 8-9 shows a lateral addition made after a map revision took place
and the BFE was increased. Figure 8-9. Substantial improvements to post-FIRM buildings must be elevated above the new BFE. Nonresidential buildings may be floodproofed Substantial
Improvement/Damage 8-17 Substantial Improvement/Damage 8-18 B. SUBSTANTIAL DAMAGE 44 CFR 59.1. Definitions: "Substantial damage" 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. Two key
points: • The damage can be from any cause—flood, fire, earthquake, wind, rain, or other natural or human-induced hazard. • The substantial damage rule applies to all buildings in
a flood hazard area, regardless of whether the building was covered by flood insurance. The formula is essentially the same as for substantial improvements: Cost to repair
> 50 percent Market value of the building Market value is calculated in the same way as for substantial improvements. Use the predamage market value. COST TO REPAIR
Notice that the formula uses “cost to repair,” not “cost of repairs.” The cost to repair the structure must be calculated for full repair to the building’s before-damage condition,
even if the owner elects to do less. It must also include the cost of any improvements that the owner has opted to include during the repair project. The total cost to repair includes
the same items listed in Figure 8-1. As shown in Example 2 below, properly repairing a flooded building can be more expensive than people realize. The owner may opt not to pay for all
of the items needed. The owner may: • Do some of the work, such as removing and discarding wallboard. • Obtain some of the materials free. • Have a volunteer organization, such as
the Mennonites, do some of the work. • Decide not to do some repairs, such as choosing to nail down warped flooring rather than replace it. Substantial Improvement/Damage 8-19
Basic rule: Substantial damage is determined regardless of the actual cost to the owner. You must figure the true cost of bringing the building back to its pre-damage condition using
qualified labor and materials obtained at market prices. The permit office and the owner may have serious disagreements over the total list of needed repairs and their cost, as the
owner has a great incentive to show less damage than actually occurred in order to avoid the cost of bringing the building into compliance. Here are four things that can help you:
• Get the cost to repair from an objective third-party or undebatable source, such as: - A licensed general contractor. - A 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 a disaster. - Your office.
• Even if your office does not prepare the cost estimate, it needs to review the estimate submitted by the permit applicant. You can use your professional judgment and knowledge of
local and regional construction costs. Or, you can use building code valuation tables published by the major building code groups. • Use an objective system that does not rely on
varying estimates of market value or different opinions of what needs to be repaired. The Substantial Damage Estimator Program discussed later in this section will do this. • Publicize
the need for the regulations and the benefits of protecting buildings from future flooding. A well-educated public won’t argue as much as one that sees no need for the requirement.
• Help the owner find financial assistance to meet the extra cost of complying with the code. If there was a disaster declaration, there may be sources of financial assistance as discussed
in the next unit. If the owner had flood insurance and the building was substantially damaged by a flood, the new Increased Cost of Compliance coverage will help (see next section).
SUBSTANTIAL DAMAGE EXAMPLES Example 1. Reconstruction of a destroyed building Reconstructions are cases where an entire structure is destroyed, damaged, purposefully demolished
or razed, and a new structure is built on the old foundation or slab. The term also applies when an existing structure is moved to a new site. Reconstructions are, quite simply,
“new construction.” They must be treated as new buildings. Razed or “totaled” building Reconstruction on with remaining foundation existing foundation
Figure 8-10. A reconstructed house is new construction. This example is for A Zones only. A new building in the V Zone must be elevated on piles or columns. Substantial Improvement/Damage
8-20 Substantial Improvement/Damage 8-21 Example 2. Substantially damaged structure To determine if a damaged structure meets the threshold for substantial damage, the cost of
repairing the structure to its before-damaged condition is compared to the market value of the structure prior to the damage. The estimated cost of the repairs must include all costs
necessary to fully repair the structure to its before-damaged condition. If equal to or greater than 50 percent of that structure’s market value before damage, then the structure
must be elevated (or floodproofed if it is nonresidential) to or above the level of the base flood, and meet other applicable local ordinance requirements. This is the basic requirement
for substantial damage. Figure 8-11 graphically illustrates the amount of damage that can occur to a building flooded only four feet deep. Even though the structure appears sound
and there are no cracks or breaks in the foundation, the total cost of repair can be significant. The cost of repair after a flood that simply soaked the building will typically include
the following structural items: — Remove all wallboard and insulation. — Install new wallboard and insulation. — Tape and paint. — Remove carpeting and vinyl flooring. — Dry
floor, replace warped flooring. — Replace cabinets in the kitchen and bathroom. — Replace built-in appliances. — Replace hollow-core interior doors. — Replace furnace and water
heater. — Clean and disinfect duct work. — Repair porch flooring and front steps. — Clean and test plumbing (licensed plumber may be required). — Replace outlets and switches,
clean and test wiring (licensed electrician may be required). Note: See also Figures 7-7 through 7-12 for what happens to flood insurance premiums if a substantially damaged building
is granted a variance and is not brought up to post-FIRM standards. Figure 8-11. Even slow moving floodwater can cause substantial damage. SUBSTANTIAL DAMAGE SOFTWARE FEMA has
developed a software program to help local officials make substantial damage determinations. The software is based on Microsoft Access, but is self-contained and does not require any
software in addition to a Windows operating system. The software comes with a manual, Guide on Estimating Substantial Damage Using the NFIP Residential Substantial Damage Estimator,
FEMA 311. This includes a user’s manual and worksheets that allow the calculations to be done manually. Contact your FEMA Regional Office for a copy of the software package and help
in using it. Following a major disaster declaration, training sessions and technical assistance may be available. INCREASED COST OF COMPLIANCE On June 1, 1997, the NFIP began offering
additional coverage to all holders of structural flood insurance policies. This coverage is called Increased Cost of Compliance or ICC. Substantial Improvement/Damage 8-22 The
name refers to cases where the local floodplain management ordinance requires elevation or retrofitting of a substantially damaged building. Under ICC, the flood insurance policy will
not only pay for repairs to the flooded building, it will pay up to $30,000 to help cover the additional cost of complying with the ordinance. This is available for any flood insurance
claim and, therefore, is not dependent on the community receiving a disaster declaration. There are some limitations to ICC: • It’s only available if there was a flood insurance
policy on the building before the flood. • It covers only damage caused by a flood. • Claims are limited to $30,000 per structure. • Claims must be accompanied by a substantial damage
determination by the floodplain ordinance administrator. It should also be mentioned that a portion of the rest of the claim payment may help meet the cost of bringing the building
up to code. For example, if there was foundation damage, the regular claim will pay for the cost of repairing or replacing the foundation. The ICC funds would only be needed for the
extra costs of raising the foundation higher than it was before. An ICC claim cannot be paid unless the community has determined the building to be substantially damaged and requires
that the building comply with local ordinance requirements. For further information on how ICC coverage works and how you can help policyholders in your community qualify for the coverage,
refer to National Flood Insurance Program’s Increased Cost of Compliance Coverage: Guidance for State and Local Officials, FEMA 301. In certain cases, an ICC claim can be filed if
the building is repetitively flooded, and has had two or more claims averaging 25% or more of building value within a ten-year period, provided the community has language in the flood
damage ordinance that implements the substantial damage rule in these cases. Figure 8-12 has example ordinance language. This language exceeds the minimum NFIP requirements, but would
be needed if you wanted to trigger the ICC provision for repetitively damaged buildings. The Community Rating System credits keeping track of improvements to enforce a cumulative substantial
improvement requirement. The 1999 CRS Coordinator’s Manual credits the ordinance language in Figure 8-12. These credits are found under Activity 430, Section 431.c in the CRS Coordinator’s
Manual and the CRS Application. Substantial Improvement/Damage 8-23 Substantial Improvement/Damage 8-24 Option 1 A. Adopt the Following Definition: “Repetitive Loss” means
flood-related damage sustained by a structure on two separate occasions during a 10-year period for which the cost of repairs at the time of each such flood event, on the average, equals
or exceeds 25 percent of the market value of the structure before the damage occurred. B. And modify the “substantial improvement” definition as follows: “Substantial Improvement”
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 before the
“start of construction” of the improvement. This term includes structures which have incurred “repetitive loss” or “substantial damage”, regardless of the actual repair work performed.
-------------------------------------------------------------------------------------------------------------------------------- Option 2 Modify the substantial damage definition
as follows: “Substantial Damage” 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 dam-age occurred. Substantial damage also means flood-related damage sustained by a structure on two separate occasions during
a 10-year period for which the cost of repairs at the time of each such flood event, on the average, equals or exceeds 25 percent of the market value of the structure before the damage
occurred. -------------------------------------------------------------------------------------------------------------------------------- NOTE 1: Communities need to make sure that
these definitions are tied to the floodplain management requirements for new construction and substantial improvements and to any other requirements of the ordinance, such as the permit
requirements, in order to enforce this provision. NOTE 2: An ICC Claim Payment is ONLY made for flood-related damage. The substantial damage part of the definition must still include
“damage of any origin” to be compliant with the minimum NFIP Floodplain Management Regulations. Figure 8-12. Sample ordinance language for ICC repetitive loss definitions Source:
-- Increased Cost of Compliance Coverage: Guidance for State and Local Officials, FEMA-301, September 2003. This language is only needed to trigger an ICC payment for a repetitive
loss. No ordinance changes are needed for the ICC coverage for substantial damage. Substantial Improvement/Damage 8-25 C. SPECIAL SITUATIONS As explained in previous sections, the
substantial improvement and substantial damage requirements affect all buildings regardless of the reason for the improvement or the cause of the damage. There are three special situations
you should be aware of: exempt costs, historic buildings and corrections of code violations. EXEMPT COSTS Certain costs related to making improvements or repairing damaged buildings
do not have to be counted toward the cost of the improvement or repairs. These include: • Plans and specifications. • Surveying costs. • Permit fees. • Demolition or emergency
repairs made for health or safety reasons or to prevent further damage to the building. • Improvements or repairs to items outside the building, such as the driveway, fencing, landscaping
and detached structures. HISTORIC STRUCTURES Historic structures are exempted from the substantial improvement requirements subject to the criteria listed below. The exemption can
be granted administratively if the current NFIP definitions of substantial improvement and historic structure are included in your ordinance, or they can be granted through a variance
procedure. In either case, they are usually granted subject to conditions. If the improvements to a historic structure meet the following three criteria and are approved by the
community, the building will not have to be elevated or floodproofed. It can also retain its pre-FIRM flood insurance rating status. 1. The building must be a bona fide “historic structure.”
Figure 7-13 has the definition that must be followed. Substantial Improvement/Damage 8-26 2. The project must maintain the historic status of the structure. If the proposed improvements
to the structure will result in it being removed from or ineligible for the National Register or federally-certified state or local inventory, then the proposal cannot be granted an
exemption from the substantial improvement rule. The best way to make such determinations is to seek written review and approval of proposed plans by the local historic preservation
board, if it is federally-certified, or by the state historic preservation office. If the plans are approved, you can grant the exemption. If not, no exemption can be permitted.
3. Take all possible flood damage reduction measures. Even though the exemption to the substantial improvement rule means the building does not have to be elevated to or above BFE,
or be renovated with flood-resistant materials that are not historically sensitive, many things can and should be done to reduce the flood damage potential. Examples include: • Locating
mechanical and electrical equipment above the BFE or flood-proofing it. • Elevating the lowest floor of an addition to or above the BFE with the change in floor elevation disguised
externally. CORRECTIONS OF CODE VIOLATIONS The NFIP definition of substantial improvement includes another exemption: 44 CFR 59.1 Definitions: "Substantial improvement" means …. The
term does not, however, include … Any project for improvement of a structure to correct existing violations of state or local health, sanitary, or safety code specifications which have
been identified by the local code enforcement official and which are the minimum necessary to assure safe living conditions Note the key words in this exemption: correct existing
violations, identified by the local official, and minimum necessary to assure safe conditions. This language was included in order to avoid penalizing property owners who had no choice
but to make improvements to their buildings or face condemnation or revocation of a business license. This exemption was intended for involuntary improvements or violations that
existed before the improvement permit was applied for or before the damage occurred—for example, a restaurant owner who must upgrade the wiring in his kitchen in order to meet current
local and state health and safety codes. You can only exempt the items specifically required by code. For example, if a single stair tread was defective and had to be replaced, do
not exempt the cost of rebuilding the entire stairway. Similarly, count only replacement in like kind and what is minimally necessary. If the Substantial Improvement/Damage 8-27 owner
chooses to upgrade the quality of a code-required item, the extra cost is not exempt from the formula—it’s added to the true cost of the improvement or repairs. Unfortunately, many
property owners and builders pressure local building official to exclude “code violation corrections” from their voluntary improvement proposals. There are “code violations” in all
structures built before the current code was enacted. In many cases, those elements must be brought up to code as part of an improvement project. This is very different from a code
violation citation that forces a property owner to correct those violations and make improvements that were otherwise not planned. The building official must know about and document
the violations before or at the time the permit is issued. Example A small business in a 40-year old building was damaged by a fire. The building’s pre-fire market value was $100,000.
The insurance adjuster and the permit office concluded that the total cost to repair would be $45,000. However, the community’s building code states that whenever an applicant applies
for a permit to modify or improve a building, the building must be brought up to code. This building would need the following additional work: • Replace unsafe electrical wiring.
• Install missing fire exit signs, smoke detectors and emergency lighting. • Widen the front door and install a ramp to make the business accessible to handicapped and mobility-impaired
people. The total cost of these code requirements would be $8,000. However, since these were required by the code before the fire occurred, they would not have to be counted toward
the cost to repair. Based on the basic formula: $45,000 = 0.45 or 45% The building is not declared $100,000 substantially damaged In this example, the building can
be repaired without elevating or floodproofing. However, the permit office should strongly recommend incorporating flood protection measures and flood resistant materials in the repair
project (as in the example in Figure 8-2).
state-building-code-eric-carlson-coastal-code-2016.pdf Slide 1
Massachusetts State Building Code Flood Standards 8 th Ed. Base & Residential Vol March 9, 2016 Eric Carlson, Environmental Engineer 44 CFR 60.3 • Minimum standards for National Flood
Insurance Program International Code Series • Massachusetts Code currently based on 2009 I Code Series • Proposed 9th Ed based on 2015 series Referenced Standards • ASCE 24 Flood Resistant
Design • ASCE 7 Minimum Design Loads Massachusetts State Building Code • 8th Edition Residential Volume • 8th Edition Base Volume • 44 CFR – FEMA • I Codes – ICC • ASCE 24 & 7
– ASCE • MA Codes - BBRS Too Many Cooks? Base Volume • Chapter 16, Structural Design – Section 1612 Flood Loads • Appendix G, Flood-Resistant Construction • ASCE 24, Flood Resistant
Design and Construction • ASCE 7, Minimum Design Loads for Buildings and Other Structures Residential Volume • Chapter 1, Scope and Administration • Chapter 2, Definitions • Chapter
3, Building Planning – Section R322 Flood-Resistant Construction • Chapter 4, Foundations Basement Base Volume The portion of a building having its floor subgrade (below ground level)
on all sides. This definition of “Basement” is limited in application to the provisions of Section 1612 and Chapter 115, Appendix G (see “Basement” in Section 502.1). Base Volume,
Ch 16 Basement Residential Volume The portion of a building having its floor subgrade (below ground level) on all sides, but is not a crawlspace. This definition of “Basement” is
limited in application to the provisions of Section R322 (see “Basement” in Section R202). Residential Volume, Section R322.1.11 Lowest Floor Base Volume The floor of the lowest enclosed
area including basement, but excluding any unfinished or floodresistant enclosure, usable solely for vehicle parking, building access or limited storage provided that such enclosure
is not built so as to render the structure in violation of this section. Base Volume, Section 1612.2 Lowest Floor Residential Volume The lowest floor shall be the floor of the lowest
enclosed area, including basement, but excluding any unfinished flood-resistant enclosure that is not a basement and is useable solely for vehicle parking, building access or limited
storage provided that such enclosure is not built so as to render the building or structure in violation of this section Residential Volume, Section R322.1.5 Substantial Improvement
Base Volume Any repair, reconstruction, rehabilitation, addition or improvement of a building or structure, the cost of which equals or exceeds 50 percent of the market value of the
structure before the improvement or repair... Base Volume 1612.2 Substantial Improvement Residential Volume • R105.3.1.1 Determination of Substantially Improved or Substantially Damaged
Existing Buildings in Flood Hazard Areas and Coastal Dunes. (This whole subsection was rewritten) Substantial Repair of a Foundation Base Volume G201.2 • Work to repair and/or replace
a foundation that results in the repair or replacement of the portion of the foundation walls with a perimeter along the base of the foundation that equals or exceeds 50% of the perimeter
of the base of the entire foundation measured in linear feet. The term “substantial repair of a foundation” also includes a building or structure including a manufactured home that
has incurred a failure of a foundation regardless of the actual work done to repair or replace the foundation. Substantial Repair of a Foundation Residential Volume R105.3.1.1.1 •
When work to repair or replace a foundation results in the repair or replacement of a portion of the foundation with a perimeter along the base of the foundation that equals or exceeds
50% of the perimeter of the base of the foundation measured in linear feet the building official shall determine it to be substantial repair of a foundation. Applications determined
by the building official to constitute substantial repair of a foundation shall require all existing portions of the entire building or structure to meet the requirements of Section
R322. Base Volume • Flood Hazard Areas (A zones) • Flood Hazard Areas Subject to High Velocity Wave Action (V zones) • Coastal Dunes • Design Flood/Base Flood Residential Volume
• Flood Hazard Areas (A zones) • Coastal High Hazard Areas (V zones) • Coastal dunes • Design Flood/Base Flood Construction Documents Base Volume • 1612.4 Design and Construction.
The design and construction of buildings and structures located in flood hazard areas, including flood hazard areas subject to highvelocity wave action, shall be in accordance with
Chapter 5 of ACSE 7 and ASCE 24. Plans shall be prepared by a registered design professional. – Note. In using ASCE 24, delete tables 1-1, 2-1, 4-1, 51, 6-1, 7-1. For elevation requirements
use section 1612 and Chapter 115 Appendix G. Also, delete references to Coastal A zones and instead use requirements for A zones in Section 1612 and Appendix G. Construction Documents
Residential Volume • R322.1.12 Construction documents. The construction documents shall include documentation that is prepared and sealed by a registered design professional that the
design and methods of construction to be used meet the applicable criteria of this section. Construction Standards Residential Volume R322.2.1 Elevation requirements. 1. Buildings
and structures in flood hazard areas shall have the lowest floors elevated to or above the design flood elevation. 2. In areas of shallow flooding (AO Zones), buildings and structures
shall have the lowest floor (including basement) elevated at least as high above the highest adjacent grade as the depth number specified in feet on the FIRM, or at least 2 feet (610
mm) if a depth number is not specified. R322.2.1 Elevation requirements. 3. Basement floors shall be elevated to or above the design flood elevation. 4. For lateral additions that
are a substantial improvement, only the addition shall be elevated so that the lowest floor, including basement/cellars, is located at or above design flood elevation. Exception: Enclosed
areas below the design flood elevation, including areas that are not basements, shall meet the requirements of Section R322.2.2. Enclosed Areas Below the Design Flood Elevation R322.2.2
Enclosed area below design flood elevation. Enclosed areas, including crawl spaces, that are below the design flood elevation and are not basements shall: 1. Be used solely for parking
of vehicles, building access or storage. 2. Be provided with flood openings that meet the following criteria: • 2.1. There shall be a minimum of two openings on different sides of
each enclosed area; if a building has more than one enclosed area below the design flood elevation, each area shall have openings on exterior walls. • 2.2. The total net area of all
openings shall be at least 1 square inch (645 mm2) for each square foot (0.093 m2) of enclosed area, or the openings shall be designed and the construction documents shall include a
statement by a registered design professional that the design of the openings will provide for equalization of hydrostatic flood forces on exterior walls by allowing for the automatic
entry and exit of floodwaters as specified in Section 2.6.2.2 of ASCE 24. • 2.3. The bottom of each opening shall be 1 foot (305 mm) or less above the adjacent ground level. • 2.4.
Openings shall be not less than 3 inches (76 mm) in any direction in the plane of the wall. • 2.5. Any louvers, screens or other opening covers shall allow the automatic flow of floodwaters
into and out of the enclosed area. • 2.6. Openings installed in doors and windows, that meet requirements 2.1 through 2.5, are acceptable; however, doors and windows without installed
openings do not meet the requirements of this section. R322.1.6 Protection of mechanical and electrical systems. • Electrical systems, equipment and components; heating, ventilating,
air conditioning; plumbing appliances and plumbing fixtures; duct systems; and other service equipment shall be located at or above the elevation required in Section R322.2 (flood hazard
areas including A Zones) or R322.3 (coastal high-hazard areas including V Zones). If replaced as part of a substantial improvement, electrical systems, equipment and components; heating,
ventilating, air conditioning and plumbing appliances and plumbing fixtures; duct systems; and other service equipment shall meet the requirements of this section. Systems, fixtures,
and equipment and components shall not be mounted on or penetrate through walls intended to break away under flood loads. R322.1.8 Flood-resistant materials. • Building materials used
below the elevation required in Section R322.2 (flood hazard areas including A Zones) or R322.3 (coastal high-hazard areas including V Zones) shall comply with the following: • 1. All
wood, including floor sheathing, shall be pressurepreservative-treated in accordance with AWPA U1 for the species, product, preservative and end use or be the decayresistant heartwood
of redwood, black locust or cedars. Preservatives shall be listed in Section 4 of AWPA U1. • 2. Materials and installation methods used for flooring and interior and exterior walls
and wall coverings shall conform to the provisions of FEMA/FIA-TB-2. R408.7 Flood resistance. For buildings located in areas prone to flooding as established in Table R301.2(1):
1. Walls enclosing the under-floor space shall be provided with flood openings in accordance with Section R322.2.2. 2. The finished ground level of the under-floor space shall be
equal to or higher than the outside finished ground level on at least one side. Exception: Deleted. Chapter 4 Foundations BFE BFE BFE BFE BFE BFE BFE BFE BFE BFE R322.3 Coastal
high-hazard areas (including V Zones). • Areas that have been determined to be subject to wave heights in excess of 3 feet (914 mm) or subject to high-velocity wave action or waveinduced
erosion shall be designated as coastal high-hazard areas. Coastal high-hazard areas shall include all areas shown as V zones on the most recent Flood Hazard Boundary Map or Flood Insurance
Rate Map. Buildings and structures constructed in whole or in part in coastal highhazard areas shall be designed and constructed in accordance with Sections R322.3.1 through R322.3.6.
R322.3.2 Elevation requirements. • 1. All buildings and structures erected within coastal high hazard areas shall be elevated so that the lowest portion of all structural members
supporting the lowest floor, with the exception of mat or raft foundations, piling, pile caps, columns, grade beams and bracing, is located at or above the design flood elevation plus
two feet. R322.3.2 Elevation requirements. 2. Basement floors that are below grade on all sides are prohibited. 3. The use of fill for structural support is prohibited. 4. Minor grading,
and the placement of minor quantities of fill, shall be permitted for landscaping and for drainage purposes under and around buildings and for support of parking slabs, pool decks,
patios and walkways. 5. For lateral additions that are not substantial improvements, only the addition shall be elevated so that the bottom of the lowest horizontal structural member
of the lowest floor with the exception of the pilings or pile caps is located at an elevation that is at least two feet above the design flood elevation. R322.3.4 Walls below design
flood elevation. • Walls and partitions are permitted below the elevated floor, provided that such walls and partitions are not part of the structural support of the building or structure
and: • 1. Electrical, mechanical, and plumbing system components are not to be mounted on or penetrate through walls that are designed to break away under flood loads; and • 2. Are
constructed with insect screening or open lattice; or • 3. Are designed to break away or collapse without causing collapse... R322.3.5 Enclosed areas below design flood elevation. •
Enclosed areas below the design flood elevation shall be used solely for parking of vehicles, building access or storage. BFE + 2’ • Construction Standards for Non-Residential Floodproofing
(A zones Only) • Base Volume G301.3 Enclosures below base flood elevation. • G301.3.1 Flood hazard areas. Enclosed spaces including basements and cellars, are not permitted below the
base flood elevation. • Exception 1: Fully enclosed spaces in an area other than a basement/cellar, used for means of egress, entrance foyers, stairways and incidental storage are
allowed but shall be designed to automatically equalize hydrostatic forces on exterior walls by allowing for the entry and exit of floodwaters in accordance with ASCE 24 Section 2.6.
G301.3 Enclosures below base flood elevation. • Exception 2: Occupancies other than R-use group may be erected with habitable enclosed spaces or floors below the base flood elevation
provided that the following conditions are met: • 1. All space below the base flood elevation plus one foot shall be constructed with walls and floors that are substantially impermeable
to the passage of water. • 2. All structural components subject to hydrostatic and hydrodynamic loads and stresses during the occurrence of flooding to the base flood elevation shall
be capable of resisting such forces, including the effects of buoyancy. G301.3 Enclosures below base flood elevation. • 3. All openings below the base flood elevation plus one foot
shall be provided with water-tight closures and shall have adequate structural capacity to support all flood loads acting upon the closure surfaces. • 4. All floor and wall penetrations
for plumbing, mechanical and electrical systems shall be made water tight to prevent floodwater seepage through spaces between the penetration and wall construction materials. Sanitary
sewer and storm drainage systems that have openings below the base flood elevation plus one foot shall be provided with shutoff valves or closure devices to prevent backwater flow during
conditions of flooding. BFE 3’ Coastal Dunes (All of the coastal dune standards are MA amendments) • Residential Code R322.4 Coastal Dunes. • Base Code Ch 1612 and Appendix G
R322.4 Coastal Dunes. The following applies to construction in a coastal wetland resource: R322.4.1. Determination of Coastal Dunes. To reduce flood damage, ensure the structural
integrity of buildings or structures including manufactured homes, located in coastal dunes, to protect the public safety and to eliminate certain conflicts between the coastal dune
performance standards set forth in the Wetlands Protection Act Regulations, 310 CMR 10.28, and this Code, R322.4 establishes requirements for design and construction in coastal dunes
significant to the interests of flood control and/or storm damage prevention identified in 310 CMR 10.28: Coastal Dunes. R322.4.1 Determination of Coastal Dunes. • To determine whether
a proposed building or structure, including a manufactured home, a lateral addition, work on a foundation that under R105.3.1.2 requires compliance with R322, or substantial improvement
to a building or structure that has incurred substantial damage as the result of flooding and/or storms is located within an area that is a coastal dune significant to the interests
of flood control and/or storm damage prevention, the building official shall require the submission of certain construction documents in accordance with R322.4.2. R322.4.1 Determination
of Coastal Dunes. • R322.4.2 For buildings and structures, including new or replacement manufactured homes, lateral additions, foundations that are replaced in total or repaired so
as to constitute substantial repair of a foundation, or substantial repair or improvement of a building or structure that has incurred substantial damage as a result of flooding and/or
storms, proposed on a parcel of land that is located wholly or partially within a coastal wetland resource area shown on the map entitled “Map of Coastal Wetland Resources For Building
Officials”, the building official shall require submission of one of the construction documents specified in (a) through (d) below • (a) An Order of Conditions establishing the boundaries
of all coastal wetland resource areas in a plan referenced in and accompanying the Order. • (b) An Order of Resource Area Delineation stating that the proposed construction work is
outside the boundaries of all coastal wetland resource areas as shown on a plan referenced in and accompanying the Order. • (c) A Determination of Applicability stating that the
proposed construction work is outside the boundaries of all coastal wetland resource areas as shown on a plan referenced in and accompanying the Determination or will not fill, dredge
or alter a coastal wetland resource area. • (d) A Notice of Non-significance evidencing that the proposed construction work is within a coastal wetland resource area as shown on a
plan referenced in and accompanying the Notice and stating that the coastal wetland resource area is not significant to any of the interests identified in the Wetlands Protection Act,
M.G.L.c. 131, § 40. R322.4.5 Elevation requirements. • R322.4.5 Elevation requirements. For new buildings and structures, new foundations, replacement or substantial repair of a
foundation, or repair of a substantially damaged structure where damage is the result of a storm or flooding the entire structure shall be elevated so that the bottom of the lowest
horizontal structural member of the lowest floor with the exception of pilings or pile caps is located at the elevation required by the Order of Conditions of the local Conservation
Commission... R322.4.5 Elevation requirements. • R322.4.6 Foundations. Foundations for work meeting the elevation requirements of Section R322 shall consist of open pilings without
footings to allow the movement of the dune. • Exception... • R322.4.7 Enclosed areas below design flood elevation. Enclosures are not permitted below the lowest horizontal structural
member of the lowest floor. Documentation Requirements • R322.1.10 As-built elevation documentation. A registered design professional shall prepare and seal documentation of the elevations
specified in Section R322.2 or R322.3. Documentation Requirements 1612.5 Flood hazard documentation. The following documentation shall be prepared and sealed by a registered design
professional and submitted to the building official: 1. For construction in flood hazard areas not subject to high-velocity wave action: 1.1. The elevation of the lowest floor,
including the basement, as required by the lowest floor elevation inspection in Section 110.3.3. Documentation Requirements 2. For construction in flood hazard areas subject to high-velocity
wave action: 2.1. The elevation of the bottom of the lowest horizontal structural member as required by the lowest floor elevation inspection in Section 110.3.3. • Flood Hazard Management
Program Eric Carlson 617 626-1362 Eric.Carlson@state.ma.us