Making Substantial Damage (SD) Determinations

Information about making Substantial Damage Determinations for Existing Buildings in the Special Flood Hazard Area

Before repairs to buildings located in the Special Flood Hazard Area shown on FEMA’s flood maps can be performed, NFIP communities must determine if the building has been Substantially Damaged. This is a formal determination of whether the cost to repair a building to its “before damage” condition will equal or exceed 50% of the market value of the structure before the damage. This determination must be made for proposed repairs to damage from any source, not just flooding.

If determined to be Substantially Damaged, the building must meet the requirements in the community’s floodplain ordinance that apply for Substantial Improvements (SI) and new construction. Communities may choose to adopt a higher standard (e.g., using a lower percentage to make the SD determination or adopting a cumulative SD provision) to further improve flood resilience in the community.

There are exceptions that apply for repairs to designated historic structures and corrections of existing code violations, as outlined in the community’s floodplain ordinance.

SD Resources

• More information about the SD provision, making SD determinations, and the exceptions above is available in FEMA’s Substantial Improvement (SI) /Substantial Damage (SD) Desk Reference.
• FEMA's Substantial Damage Quick Guide
• The NH Floodplain Management Program team has developed the following resources:
  • "An Introduction to Substantial Improvements and Substantial Damage", a half-hour training video for community officials.
  • The SI/SD Application Packet  and Property Owner Guide to SI/SD  which community officials can use to better manage the SD determination process.
• Other helpful resources include:
  • Making Substantial Damage Determinations webinar (recording and slide deck pdf file)
  • Answers to Questions About Substantially Improved/Substantially Damaged Buildings (FEMA)
  • Substantial Damage Estimator (SDE) Tool
  • NH Flood Hazards Handbook for Community Officials and checklist
  • State Model Floodplain Ordinances and Menu of Higher Floodplain Regulation Standards

 

SD Determination Process for Community Officials

Listed below are general steps that must be performed by communities to make SD determinations. Your community’s process may vary depending on the number of buildings affected by damage. The NH Flood Hazards Handbook and checklist contains best practices for community officials making SD determinations following a significant disaster.

Community Officials SD Determination Process
Step	Resources
1. Determine if an SD determination needs to be made and communicate permit/SD determination requirements to property owners.	Substantial Improvement and Substantial Damage Application Packet Property Owner Guide to Understanding Substantial Improvement/Damage Requirements SI/SD Desk Reference (Sections 5.5 and 5.6)
2. Verify the cost of repairs to the structure.	Substantial Improvement and Substantial Damage Application Packet SI/SD Desk Reference (Section 4.4) FEMA Substantial Damage Estimator tool
3. Verify the market value of the structure.	Substantial Improvement and Substantial Damage Application Packet SI/SD Desk Reference (Section 4.5) FEMA Substantial Damage Estimator tool
4. Make the SD determination and issue it to the property owner.	SI/SD Desk Reference (Sections 4.3, 5.6.15, Appendix E) FEMA Substantial Damage Estimator tool
5. Permit development/ensure compliance with community ordinance.	Your community’s floodplain ordinance SI/SD Desk Reference (Sections 5.6.12 and 5.6.13)
6. Maintain documentation.	Your community’s floodplain ordinance SI/SD Desk Reference (Section 5.6.14)

Connections with Flood Insurance and FEMA Grants

• NFIP-insured property owners of buildings determined to be Substantially Damaged due to flooding are eligible for Increased Cost of Compliance (ICC) insurance funds. More information about the community’s role in the ICC process is available in FEMA’s publication, ICC Coverage: Guidance for State and Local Officials.
• For FEMA hazard mitigation assistance grants, an expedited cost-effectiveness methodology may apply for property acquisition projects that affect a Substantially Damaged building. Learn more in FEMA’s publication, Hazard Mitigation Assistance Guidance.
• Communities may apply for Public Assistance program funds to administer and enforce building codes and their floodplain management ordinance following a major disaster declaration. This includes the process of making SD determinations.