SFHA Vs Non SFHA - Special Flood Hazard Area

[Adrian Castillo]

Special Flood Hazard Area, had a client look at a property within flood zone AE in Tampa. I was very surprised, by what FEMA requires, if you exceed a rehab budget over 50% of the assessed value. Has anyone experienced this process?

[Doug Smith]

Quote from @Adrian Castillo:

Special Flood Hazard Area, had a client look at a property within flood zone AE in Tampa. I was very surprised, by what FEMA requires, if you exceed a rehab budget over 50% of the assessed value. Has anyone experienced this process?

Yep...the FEMA 50% Rule. I'm also in East Hillsborough...howdy neighbor. Is the property in Hillsborough County? Head to the property appraiser site (hcpafl.org) and pull up the assessed value for the STRUCTURE ALONE. That is what they use to determine the 50%...not the appraised value of the total property...only the structure. It can really bite you in the behind. If you can't renovate it for 50% of the tax-assessed structure value or less, then they will require you to tear it down and build to current code. Before others start piling in about the value used, that is how the Hillsborough County and City of Tampa officials gauge the property structure's value for calculating the 50% rule. I've done rehabs and dealt with them...trust me I know. Let me know if you have any other questions. Doug