This is the FEMA Substantial Damage Estimator Training Series.
Welcome to Module 9
Using SDE Collection Results.
In this module we’ll review
approved methods for FEMA SDE data collection
the importance of adopting a community-wide approach
and preparing determination letters.
When field inspections are complete
review all SDE reports to confirm
that all required structures in the community were inspected.
Under the NFIP only structures in the SFHA
are required to have Substantial Damage determinations.
Communities may regulate to a larger area.
To review from previous modules
Substantial Damage determinations are based on the ratio
between the cost to repair a structure to pre-damage conditions
divided by the market value of the structure
before it was damaged.
If the ratio is greater than 50%
the structure is considered substantially
damaged under the NFIP.
Communities may set a lower threshold
or track damage cumulatively over time.
NFIP regulations limit the options
for determining the costs of repair and building values.
Repair costs can be determined from the
computed damages from the SDE Tool
a contractor’s estimate or the community’s estimate.
Building value can be determined from the
computed actual cash value
also from the SDE Tool
a professional market appraisal
or the adjusted tax assessed value.
Communities should adopt a collection approach
that best suits their needs
and that can be applied consistently
throughout the entire community.
If your community finds that the SDE data collected is
acceptable it may be adopted
as the official determination for Substantial Damage
for all properties in the community.
If your community decides that the SDE data does not
fully meet your needs
an alternate plan may be adopted.
There are several different options allowed by the NFIP.
Cost of repairs can be adopted from the SDE data
but another option for determining building value can be used.
Another approach is to use the building value from the SDE data
but use another option for determining the cost of repairs.
A third option is to adopt an approved alternate method
for determining the cost of repairs and building value
that better suit the needs of your community.
These methods meet the NFIP requirements
and provide the numerator and denominator for
Substantial Damage equation.
For more information on determining the cost of repairs
and building value
refer to section 4.4 and 4.5 of the
FEMA Substantial Improvement/Substantial Damage Desk Reference.
Communities may use any of the approved methods
if they are adopted and applied consistently
throughout the community and not limited to select properties.
Once the community-wide approach is adopted
and inspections completed
determination letters must be sent out as soon as possible.
Determinations are not official
until letters are sent.
Focus on getting letters to properties that are
substantially damaged first
since these owners are most impacted by the determinations.
Communities must issue official determination letters
to owners of all properties that have been determined
to have Substantial Damage.
These letters should include property information
such as the owner's name and address
parcel number
whether it’s a residential or non-residential property
and the Substantial Damage determination.
The letter should explain the consequences of the determination
the permit requirements
and include contact information for the community official.
The letter does not have to specify the
precise percentage determination used
just that it’s 50% or higher.
Determination letters must also be sent to
properties that have been determined not
to have Substantial Damage
with property information, the official determination
consequences and contact information for the community official.
In Appendix C of the SDE User Manual and in
Appendix E of the Substantial Improvement/Substantial Damage Desk Reference
there are sample letters that can be used as the basis for your community’s
determination letters.
In your determination letters
remind property owners that building requirements
remain in-effect after a disaster.
These permits increase workload for community building officials
but it’s necessary to avoid rebuilding in violation of
adopted building codes, standards
and floodplain ordinances.
If permits are not issued during the rebuilding
it can lead to severe consequences down the road
especially if your community participates in the NFIP.
Thanks for watching.
This training is one of a ten-part series.
Please continue to Module 10.