Need some advice in Houston on a rehab in the flood plain

[Thomas Kiefer]

I recently bought a home to flip in Houston and it sits in the flood plain.  That doesn't necessarily bother me because many homes in Houston are in the same predicament.  According to seller disclosures this home didn't flood earlier this year when many in the area did.  There are half a dozen or more rehab/flips going on in the same neighborhood and on the same street.  When I was applying for the building permit I had to get an elevation certificate and the house is 0.74 feet below the BFE.  I haven't heard back from the city yet but I anticipate bad news.  In order not to have to raise the structure (not happening) I have to keep the renovation at less than 50% of the assessed value of the structure only.  In this case the structure is only assessed at $70k.  This is a $60k rehab to get the house up to the standards of the recent comps.  

Anyone else in Houston have any experience with this?