Understanding the FEMA 50% Rule
The FEMA 50% Rule
While the Property Appraiser has no role in issuing building permits or determining flood zones, our values may be used in calculating the FEMA 50% rule. It is important to note that the best option is a private appraisal, which may also be used for this calculation.
What is the rule?
The 50% Rule is a regulation of the National Flood Insurance Program (NFIP) that prohibits improvements to a structure exceeding 50% of its market value unless the entire structure is brought into full compliance with current flood regulations. This may include elevating the structure, using flood resistant materials, and proper flood venting among others.
For a complete explanation, visit https://www.scgov.net/government/planning-and-development-services/building/disaster-recovery.
Who does it affect?
Properties in a designated flood zone that suffered substantial damage.
How is the permit threshold calculated?
The calculation can use either the improvement value shown on the most recent pre-damage tax roll OR an appraisal performed for this purpose by a state licensed appraiser. We cannot recommend one over another. If using the tax roll values, use the search page to locate your property. Take the most recent improvement value and multiply it by a factor of 1.2. The threshold will be 50% of the resulting number.
Why is a private appraisal a better option?
The Property Appraiser’s values are ONLY for the purpose of ad valorem taxation. Since we perform mass appraisal, we have a lengthy set of rules set by the Florida Department of Revenue to comply with that a private appraiser does not.
How are land and building values determined?
Our process begins by valuing the land. We use sales of vacant lots and homes that were demolished soon after the sale to arrive at market value for land. We then review sales of improved properties. Improvement values are determined by adjusting for changes in building characteristics and subtracting land value.
Why can’t you just lower my land value and increase my building value?
The Florida Department of Revenue evaluates and approves our tax roll by comparing our values to recent sales prices. This includes vacant land. Our land values must pass the tests of being consistent among neighbors and in line with the sale prices.
Other resources
FEMA Substantial damage Quick Guide: https://www.fema.gov/fact-sheet/substantial-damage-quick-guide
FEMA Answers to questions about damaged buildings: https://www.fema.gov/sites/default/files/2020-07/fema_p213_08232018.pdf
Sarasota County has a web page for disaster recovery: https://www.scgov.net/government/planning-and-development-services/building/disaster-recovery
They also have a document on this subject here: https://www.scgov.net/home/showpublisheddocument/63324/638452193564930000
To look up your values and see your flood zone, use our search page: https://www.sc-pa.com/propertysearch