Substantial improvement / substantial damage — the 50 percent rule (FIVE-year cumulative period)

THIS IS THE ADOPTED DEFINITION. Code of Ordinances § 152.04: "SUBSTANTIAL IMPROVEMENT. Any combination of repairs, reconstruction, rehabilitation, addition or other improvement to a structure taking place during a period of five years, the cumulative cost of which equals or exceeds 50% of the fair market value of the structure, either before the 'start of construction' of the improvement, or if the structure has been damaged or is being restored, before the damage occurred. This term includes structures that have incurred 'repetitive loss' or 'substantial damage', regardless of the actual work performed. Where more than one improvement is made over a five-year period, which begins at permit issuance date, the percentage value. of the most recent improvement shall be added to the percentage value of all other improvements made within five years of the current improvement. If the cumulative percentage during the five-year period equals or exceeds a total of 50%, then it shall be classified as a SUBSTANTIAL IMPROVEMENT." § 152.04: "SUBSTANTIAL DAMAGE. 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% of the market value of the structure before the damage occurred." The Town stresses substantial damage "includes damage of any origin, not just flooding. A house that is damaged 50% or more by a fire or tornado must also be brought into compliance with the current flood regulations." § 152.04 REPETITIVE LOSS: flood damage on two separate occasions in a 10-year period where the cost of repairs each time averaged 50 percent or more. (stated in the code as equal to or exceeding 25% of market value before the damage, on the average). Section 152.04 was last amended by Ord. 24036, passed 12-16-24. CAUTION: the Town's own "Build responsively" webpage still describes a TEN-year cumulative period — that page conflicts with § 152.04 and with the Town's Flood Protection page, both of which say five years. Verify with the Building Inspection Division at (843) 884-5184.