1. What is the 50% 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. What is Substantial Improvement and Substantial Damage? Any combination of repair, reconstruction, rehabilitation, addition, or other improvement of a building, the cumulative cost of which equals or exceeds 50% of the (depreciated) market value of the building or structure before the improvement or repair is started. If a project meets the definition of Substantial Improvement or Substantial Damage it is considered new construction and the entire building must be elevated to or above the Base Flood elevation (BFE) and otherwise made fully flood compliant.

2. Why is it important to know if an improvement is “substantial?” Exceeding the Substantial Improvement threshold requires the entire structure to be brought into compliance with current NFIP regulations, the Florida Building Code, and your Town Land Development Code. This may include elevating the structure at or above BFE, flood proofing it, installing proper flood venting, and using flood-resistant construction materials.

 3. What types of structures does the “50% Rule” apply to?

a. All existing structures: Those that were present the year (1984) that the NFIP floodplain management and Flood Insurance Rate Maps were adopted in Lee County as well as those structures built earlier.

b. New construction: Substantially improved structures must meet the floodplain management regulations and BFE effective at the time the permit is approved.

c. Non-compliant structures erected prior to 1984 may remain so unless they are substantially improved. These structures are evaluated on a case-by-case basis.

4. Will permits be issued for a “Substantial Improvement?” Yes, provided the plans demonstrate the entire structure is being brought into compliance. A Repair Improvement Cost Form must be submitted, reviewed, and approved prior to the building permit being approved. 

 5. What is Market Value? The price at which a property will change hands between a willing buyer and a willing seller, neither party being under compulsion to buy or sell and both having reasonable knowledge of relevant facts. The Town of Fort Myers Beach determines market value in the following ways: 

 a. Utilize the Lee County Property Appraiser’s assessment for ad valorem taxation for the (depreciated) market value for the structure only.

 b. An independent appraisal for the structure only prepared and certified by a Florida Licensed Appraiser