50% RULE UPDATE - NON-CONFORMING STRUCTURES:
The 50% Rule remains one of the most important topics. FEMA can only address the federal response following a disaster, they do not trump the City's build-back policy. On Leepa.org there is a new tab entitled Tax Role Value Letter for each property in Lee County. It appears that the value of each structure has been adjusted higher than what was previously shown on the site, which will bring some build-back leverage to many homeowners with damage from Hurricane Ian. How to find YOUR adjusted Tax Role Value Letter: Go to "Database Search" then select "Property Data Search" in the drop down menu. Enter your "Street Address" then scroll down to "Tax Role Value Letter". This Tax Role Value Letter will be important for the 50% Rule Calculation if one intends to remodel a non-conforming structure. Property Taxes are not the “true market value” and the best way to determine your home’s value is to hire a certified property appraiser. Please find our recommended Vendor List shown below in Related Articles. Keep in mind that pools, patios, fences, landscaping, driveways, docks, and boat lifts do not count towards the 50% rule. Only structure improvements count towards the 50% rule.
During the October 28th, 2023 community briefing, City Staff referenced the FEMA document titled "Substantial Improvement/ Substantial Damage Desk Reference". Please click here to review the document. If you have more questions regarding the 50% rule, please Watch the City of Sanibel's Facebook Live event from October 28th where John Agnew, the City of Sanibel Attorney gave the most articulate comprehensive overview of this subject. Eric Pfeifer is always available to discuss your particular property and how the build-back rule affects your options.
Several clients, neighbors and friends asked Eric Pfeifer to check with Craig Mole' Chief Building Officer with the City of Sanibel regarding FEMA's 50% build back rule as it related to non-conforming structures. Craig Mole's responses to the most common questions are shown below in GREEN.
In an elevated home, where there had been (non-conforming) improvements below the BFE, and now everything is gutted:
- Can drywall be replaced on wood studs only in the ground level foyer? YES
- Can drywall be replaced on wood studs on walls enclosing the garage? YES
- If the garage can be framed and drywalled (or cement board), do you need special (firewall) doors leading from a garage to a foyer? Yes ceiling of lower level (garage) and walls/door must be rated as required by code to house/foyer
- Can an AC or mini split be replaced to cool a garage or rooms below the BFE for mold purposes, not cooling? Yes, the lower level can be air conditioned. When certain parameters are met: The equipment, ductwork and electrical needs to be above flood elevation.
In calculating the 50% rule for non-conforming single-family homes:
- Does the house need to be put back to the exact pre-Ian condition regarding quality of materials, or can it be made "habitable" with lesser quality materials like countertops and cabinets. YES
- Do cabinets and drywall get added into the 50% since they can be reinstalled without a permit. A permit is required for cabinet and gyp bd install and must be included in 50% rule
Can an owner build back to a habitable condition, close out the permit, get a new appraisal, and then immediately pull a subsequent permit to make the house even better? Or is there a waiting period. There is no waiting period but the home must be repaired to its pre storm condition and comply with the 50% rule before any new permits are issued.
Eric Pfeifer Explanation of the 50% Rule: As you can imagine, after Hurricane Ian made landfall in Southwest Florida, many people contacted Eric Pfeifer regarding the 50% rule for remodeling non-conforming houses. After speaking with Sanibel Planning Director Paula McMichael and insurance agent/owner Chris Heidrick of Heidrick and Co., Eric's personal understanding of the rule is as follows:
Any home with the base floor elevation below the current base flood elevation is non-conforming to the current code. These homes are generally ground level homes built before 1979 when FEMA issued the flood maps for Sanibel. However, there are some exceptions to this. A surveyor can provide an Elevation Certificate to determine whether or not a home is non-conforming. There is a 50% rule for remodeling (or in this case repairing) non-conforming homes. The development permit for the remodel will only be approved by the Sanibel Planning Department if the estimate of the total cost of repairs does not exceed 50% of the appraised value of the current structure. The appraised value will be of the structure prior to the storm.
Example Calculation of the 50% Rule: if you feel your property is worth $1,500,000, the appraiser might allocate $750,000 to the land and $750,000 to the structure, for example. The breakdown is up to the appraiser. The appraisal is the value of the structure pre-storm, not the current damaged value. The City Planning Department will allow the owner to improve/repair the structure 50% of the $750,000, or in this example $375,000.
In this example, if your contractor and/or engineer (in the case of structural repairs) estimates the total repair/renovation cost to exceed the $375,000, then the City Planning Department will NOT approve your permit. In this example, the owner will then have to build back to the current code. This means, the house will have to be elevated with the new base floor elevation above the base flood elevation. With a (now) conforming home, there is no limit to the rebuilding cost. An elevated home can be on wood pilings, concrete pilings, masonry block, etc.. The lowest horizontal structural member must be above the current base flood elevation. There are some homes on the island on higher elevations with stem wall construction, but for this conversation, I am only using the phrase elevated homes.
If your contractor and/or engineer (in the case of structural repairs) estimates the total repair/renovation cost not to exceed the $375,000, in this example, then the City Planning Department will approve your permit.
So, as you can see, it will not be a quick and easy determination of whether or not you may renovate your ground level home. You will need an appraiser and a builder/engineer to help prepare an application for a development permit to be reviewed by the Sanibel Planning Department.
I hope this information helps. ~ Eric