buying flooded house, must raise?

[Rachel Lang]

So my husband are considering buying a Harvey flooded house as our first live in flip. We are seeing great deals on the market and want to buy something that flooded for the first time in Hurricane Harvey. But, I am hearing rumors about FEMA requiring people to raise the house to a certain elevation before they are allowed to renovate. Does anyone have experience with buying flood houses? How would we find out if FEMA is requiring this before buying a home?

[Nick C.]

Yes, the basic rule is if the repairs are more than 50% of the value of the house you will have to raise the house or tear it down and rebuild. 

The repairs are a specific dollar amount per sq foot, not a quote from a contractor. Also they will come up with the value. You can challenge the value with an appraisal. But if the property truly has flood damage, you're going to have trouble. 

It's a federal rule, it trumps the local ordinances, although they are tasked with enforcing it. But it's best to know it now, than after you purchase the house (like we did).