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New Jersey Substantial Damage Management Plan Template
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ISSUED: 9/28/2022
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Executive Summary
This document serves as a template for New Jersey communities to develop a Substantial Damage Management Plan (SDMP), aligning with FEMA's National Flood Insurance Program (NFIP) requirements and Community Rating System (CRS) guidelines. The SDMP aims to assist communities in meeting FEMA requirements concerning substantial damages and improvements, defining substantial damage (SD) and substantial improvement (SI) requirements, tracking SI and SD determinations, outlining vulnerable areas, and establishing clear steps before and after disasters for quick recovery. It also aligns with CRS credits for communities seeking flood insurance discounts by exceeding NFIP minimums. The template includes instructions, checklists, and sample language tailored for both CRS and non-CRS communities.
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Document Text
--- Document: New Jersey Substantial Damage Management Plan Template Document ---
Version 09.28.2022
Community Substantial Damage Management Plan
Date, Version 1.0
Community specific information in [brackets] and highlighted yellow
Higher Standards highlighted in blue
CRS-Specific language options highlighted in green
Cross References are in magenta
Instructions for community in italics and bold (remove from finalized version)
0. Introduction
In the following section you will find two sections: one for communities that participate in CRS and one for those that do not. Use whichever
introduction is fitting for your community.
(1) Non-CRS Community Introduction
0. Introduction
The following plan was implemented by [Community Name] to assist with meeting requirements of the Federal Emergency Management Agency
(FEMA) National Flood Insurance Program regarding substantial damages and improvements. This plan outlines [Community Name]’s definition of
substantial damage (SD) and substantial improvement (SI) requirements, outlines vulnerable areas, tracks SI and SD determinations, and outlines
steps to take before and after a disaster.
The following six steps were used in the development of this plan:
1. Assess community’s vulnerability to substantial damage
2. Identify community’s team for management of substantial damage properties
3. Identify post-event efforts related to substantial damage
4. Build a property database for substantial damage estimates
5. Identify actions community can take to address potential substantial damage
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6. Determine implementation steps and procedures for updating the plan
The correct use of this plan is intended to help [Community Name] be better prepared with resources and materials prior to a disaster and to have
clear steps to follow post-disaster to allow for quick and successful recovery.
(2) CRS Community Introduction
CRS Communities should use this check list to ensure all requirements are met to earn these credits:
Substantial Damage Plan (SDP) Review Checklist
https://crsresources.org/500-2/
0.1 CRS and Substantial Damage
The community rating system (CRS) is a program that was developed by the Federal Emergency Management Agency (FEMA) that provides discounts
on flood insurance for communities that go beyond the basic requirements of the National Flood Insurance Program (NFIP). Communities can receive
discounts in flood insurance premiums for its residents and business owners by meeting criteria outlined in the CRS Coordinator’s Manual and
earning credits. The number of credits earned correlates with different class levels which each provide a different level of discounts, up to 45%.
In 2021, FEMA released an addendum to the CRS Coordinator’s Manual that provides a new credit opportunity (Activity 512.d SDP) for developing
a Substantial Damage Management Plan (SDP). This new credit allows for up to 140 points and the requirements are outlined in the following
Section 0.2. This document was created to also meet the requirements of this credit.
0.2 Steps to Develop Substantial Damage Management Plans that meet CRS Requirements
There are three opportunities for credits for the Activity 512.d SDP credit and they are:
1. SDP1 – 40 points for the development of an SDP
2. SDP2 – 50 points if FEMA’s Substantial Damage Estimator (SDE) is prepopulated or other equivalent program
3. SDP3 – 50 points if pre-event mitigation alternatives are considered
This totals to 140 points available for this credit. The CRS Coordinator’s manual outlines the requirements of this credit, including the following
seven criteria:
1. Must be developed using a definition of substantial damage that meets or exceeds the NFIP definition of substantial damage
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2. If a community is receiving credit for cumulative substantial improvement (element CSI) under Activity 430 (Higher Regulatory Standards),
then the substantial damage management plan must reference the community’s cumulative substantial damage definition credited under
CSI and describe the community’s process for tracking cumulative substantial improvements. If a community is receiving credit for having a
lower threshold for substantial improvement (element LSI), then the definition of lower substantial improvement must be referenced.
3. The plan must be the outcome of the six-step planning process, which is outlined following this list.
4. The community must prepare an annual evaluation report for its substantial damage management plan.
5. The substantial damage management plan and the annual evaluation report must be submitted to the community’s governing body. If
private or sensitive information (such as names or street addresses) is included in the report, then a summary report(s) must be prepared
for the governing body, committees, media, and the public.
6. The community must provide its latest update or revision to its substantial damage management plan in time for each CRS cycle verification
visit. The update or revision must include a review of each of the six planning steps.
7. The substantial damage management plan must be made available to the State NFIP Coordinator and the FEMA Regional Office, if requested.
One of these seven criteria above requires the following six steps be followed when developing the SDP:
1. Assess community’s vulnerability to substantial Damage
2. Identify community’s team for management of substantial damage properties
3. Identify post-event efforts related to substantial damage
4. Build a property database for substantial damage estimates
5. Identify actions community can take to address potential substantial damage
6. Determine implementation steps and procedures for updating the plan
[Community Name] has followed these steps in the development of this plan, as outlined in the following sections. The following table is an outline
of the requirements of each step and where they can be found within the plan.
Please update this table if your community altered the sections and numbering. Steps 2 through 5 can be done in any order. Steps 1 and 6 need to
be the first and last steps of this process.
Table 1 CRS requirements for SDP and Location in this document
Requirement
Section Number
Assess community’s vulnerability to substantial Damage
1
Define SD, SI, CSI, and Lower SI/SD Threshold
1.1
Describe previous SI and SD
1.2, Appendix 2
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List and map of SFHA properties
1.4, Appendix 3 and 4
Description of other building or flood factors
1.6
General description of buildings on the potential SD list
1.5
Identify community’s team for management of substantial damage properties
2
Includes department responsible for issuing permits and office that tracks CSI
2.1
Includes sufficient additional personnel for the SD effort after a major flood or event
2.1
Considers personnel resources such as the State NFIP Coordinator and/or FEMA
2.2
Identify post-event efforts related to substantial damage
3
Post-event coordination and communication efforts
3
Damage estimate and substantial damage determination procedures
3
Post-substantial damage determination procedures for compliance
3
Build a property database for substantial damage estimates
4
Basic substantial damage property database
4
SDP2 – Pre-populate FEMA SDE or other equivalent program
4
Identify actions community can take to address potential substantial damage
5
Include one action the community will take to educate community about SD/SI
5.1
SDP3 - Consider mitigation alternatives for areas of community with high SD potential
5.1
Determine implementation steps and procedures for updating the plan
6
Provide annual evaluation report
6
Share with elected officials
6
Propose an update process for SD management plan and/or schedule
6
Steps that must be taken to adhere to the Privacy Act or state or community privacy
requirement
6
1. Assessment of Vulnerability to Substantial Damage
Implementing this plan requires identifying vulnerable areas so that substantially damaged properties can be safely identified and evaluated, and
homeowners and business owners can rebuild and reoccupy their structures. Identifying areas that are more vulnerable can help focus efforts to
those areas that may need the most attention post disaster. Assessing vulnerability requires tracking previous substantial damages (SD) and
substantial improvements (SI), identifying vulnerable buildings within the special flood hazard areas, describing other flood factors considered, and
providing a general overview of structures in the special flood hazard area.
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1.1 Substantial Damage, Substantial Improvement, Cumulative Substantial Improvement and Lower Substantial
Improvement Threshold
Current Ordinance Definitions:
The following definitions are from [Community Name]’s current Flood Damage Prevention Ordinance.
These definitions are from the most recent Model Code Coordinated Ordinance. Please ensure that they match up with what is in your current flood
damage prevention ordinance (FDPO) definitions. If your community considers Cumulative Substantial Improvement or a Lower Substantial
Improvement Threshold, please be sure this is reflected in these definitions. If your communities FDPO has been updated, ensure that you alter this
language to match your new ordinance during your annual review of this document.
If your community has not adopted the Model Code Coordinated Ordinance, you will need to. In the interim, ensure that these definitions include
any other regulations that my apply to your community such as building codes, zoning, etc.
SUBSTANTIAL DAMAGE – Damage of any origin sustained by a structure whereby the cost of restoring the structure to its before damaged condition
would equal or exceed 50 [or optional lower number] percent of the market value of the structure before the damage occurred.
SUBSTANTIAL IMPROVEMENT – Any combination of reconstruction, rehabilitation, addition, or other improvement including those considered
ordinary maintenance and minor work of a structure taking place over a number of [years] year period, the cumulative cost of which equals or
exceeds fifty (50) [or optional lower number] percent of the market value of the structure before the "start of construction" of the improvement.
The period of accumulation includes the first improvement or repair of each structure is permanent subsequent to [date]. This term includes
structures which have incurred "substantial damage," regardless of the actual repair work performed. The term does not, however, include either:
a) Any project for improvement of a structure to correct existing violations of State or local health, sanitary or safety code specifications which
have been identified by the local code enforcement officer and which are the minimum necessary to assure safe living conditions; or
b) Any alteration of a "historic structure", provided that the alteration will not preclude the structure's continued designation as a "historic
structure."
Cumulative Substantial Improvement — Any reconstruction, rehabilitation, addition, or other improvement of a structure that equals or exceeds 50
percent [lower threshold – e.g.: replace 50 percent with 40 percent] of the market value of the structure at the time of the improvement or repair
when counted cumulatively for 10 years.
Previous Ordinance Definitions:
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[Community Name]’s definition for Substantial Damage and Substantial Improvement has altered slightly throughout the years. The following is
how SD and SI were defined in [Community Name]’s previous ordinance, adopted on [date].
Below are sample definitions from previous Model Flood Damage Prevention Ordinances. These definitions may vary depending on when you adopted
your ordinance. Please indicate which ordinance and what timeframe the definitions you historically used were effective. This step is not required
for the CRS SDP credit, but is recommended for best practices.
Substantial Damage — Damage of any origin sustained by a structure whereby the cost of restoring the structure to its before damaged condition
would equal or exceed fifty (50) percent of the market value of the structure before the damage occurred. Substantial Damage also means flood-
related damages sustained by a structure on two or more separate occasions during a 10-year period for which the cost of repairs at the time of
each such flood event, on the average, equals or exceeds 25 percent of the market value of the structure before the damages occurred.
Substantial Damage — Damage of any origin sustained by a structure whereby the cost of restoring the structure to its condition before damage
would equal or exceed fifty (50) percent [optional – higher standard – lower threshold – e.g.: replace 50 percent with 40 percent] of the market
value of the structure before the damage occurred.
Substantial Improvement — Any reconstruction, rehabilitation, addition, or other improvement of a structure during a 10-year period the cost of
which equals or exceeds fifty (50) percent of the market value of the structure before the "start of construction" of the improvement. Substantial
improvement also means “cumulative substantial improvement.” This term includes structures which have incurred "substantial damage",
regardless of the actual repair work performed or “repetitive loss”. The term does not, however, include either:
a) Any project for improvement of a structure to correct existing violations of State or local health, sanitary or safety code specifications which
have been identified by the local code enforcement officer and which are the minimum necessary to assure safe living conditions; or
b) Any alteration of a "historic structure", provided that the alteration will not preclude the structure's continued designation as a "historic
structure".
Substantial Improvement — Any reconstruction, rehabilitation, addition, or other improvement of a structure, the cost of which equals or exceeds
fifty (50) percent [optional – higher standard – lower threshold – e.g.: replace 50 percent with 40 percent] of the market value of the structure
before the "start of construction" of the improvement. This term includes structures which have incurred "substantial damage", regardless of the
actual repair work performed. The term does not, however, include either:
a) Any project for improvement of a structure to correct existing violations of State or local health, sanitary or safety code specifications which
have been identified by the local code enforcement officer and which are the minimum necessary to assure safe living conditions; or
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b) Any alteration of a "historic structure", provided that the alteration will not preclude the structure's continued designation as a "historic
structure".
1.2 Description of Previous Substantial Damage and Substantial Improvement Determinations
Some communities track cumulative SD/SD using a table. A sample table can be found in Appendix 2. This sample table is not required but is
recommended as a simple way of documenting this information. Your community can choose to export this information from wherever it is tracked,
or you may provide a short and simple explanation of previous substantial damage and substantial damage determinations. If structural information
is being shared with local officials or the public, please make sure that it does not contain Personally Identifiable Information (PII).
In addition to being a requirement of the NFIP, keeping track of previous substantial damages and improvements can make these calculations quicker
for structures where these calculations have already been made. A list of all previous substantial damage determinations can be found in Appendix
2. In order to ensure its accuracy and that compliance is met in the allotted time, this list is updated and considered annually on the [first of every
year, or each year from the date of the implementation of this plan, at the same time as County Hazard Mitigation Plan Update or other annual date
selected by community. This could be done at the same time as the SDP annual evaluation and update].
1.3 Procedure for Tracking Cumulative Damage or Improvement
[Community name] keeps track of cumulative damage and improvement using [tracking system used whether it is just an excel sheet, the SDE tool,
or other tracking tools]. Whenever any floodplain development permit is received by [community name] the cost of the improvement is recorded
in [database]. The [database] additionally includes information on the market value of the property, and other pertinent information for determining
if cumulative substantial improvement was triggered. [Community Name] considers the sum of improvements to a structure over a [number of
years. 5, 10, lifetime of structure] year period when calculating cumulative substantial improvement.
For cumulative damage, whenever a substantial damage determination is made, the damage cost is recorded in [database] regardless of substantial
damage being triggered or not. If there are future damages considered they would be added to the previous damage calculated, and then the sum
would be compared to the market value to see if substantial damage has been triggered. [community name] considers the sum of damages to a
structure over a [number of years. 5, 10, lifetime of structure] year period when calculating cumulative substantial damage.
Post disaster, rather than wait for a floodplain development permit, the Floodplain Administrator assembles a team to assess structures in the
Special Flood Hazard Area and make substantial damage determinations. More details on the substantial damage team can be found in Section 2
of this document. Additionally, more information on the procedures post disaster can be found in Section 3 of this document.
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1.4 List and Map of SFHA Properties (buildings that have SD potential)
Appendix 3 contains [Community Name]’s list of [1) all buildings in the SFHA, 2) properties suspected to be below BFE, 3) RL structures, 4) Properties
with prior SD determinations, or 5) building which could meets cumulative SD] including pertinent information about the structures. Tracking these
structures and additional information ahead of time will focus efforts where they are most needed post-disaster and will speed up the substantial
damage determination process.
In addition to this table, [Community Name] also has maps of structures in this list. The full map is available upon request from [FPA, Office, etc] as
it is a [File type, like ArcGIS] file. Copies are maintained by the Floodplain Administrator and the Town Planner as a [Arc GIS, file type, etc.].
In Appendix 4 [Community Name] has included exported maps depicting structures of the Special Flood Hazard Area. After a disaster, copies are
made of these maps and are handed out to those going out into the field and making substantial damage determinations.
1.5 General Description of Building so the Potential Substantial Damage List
The majority of structures in [Community Name] that are in the special flood hazard area are [residential, non-residential, etc.]. The proportion of
the residential to non-residential structures is [X:X]. The types of structures that are present in [Community Name] include: [list types of structures,
commercial, residential, critical facilities, etc.].
1.6 Description of Other Building or Flood Factors
The following studies, maps and data are not required to be included for the SDP credit. This information is beneficial to have at hand for your
community and it is recommended by the state to include these sections.
The following are the maps, data, studies, and other determined flood zones that [Community Name] uses to evaluate flood risks. These will all be
used to after a disaster to determine which areas are vulnerable and need to be focused on.
Effective Flood Insurance Study
Special flood hazard areas are determined by FEMA in scientific and engineering reports called Flood Insurance Studies and are accompanied by
Flood Insurance Rate Maps. The below table indicates the effective studies and maps used by [Community Name].
Please fill in the table below. All of this information should be available to you in your community’s local flood damage prevention ordinance.
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Table 2. Effective Flood Insurance Study
Map Panel #
Effective Date
Revision
Letter
Map Panel #
Effective
Date
Revision
Letter
Federal Best Available Information
[Community name] additionally considers Federal flood information as listed in the table below that provides more detailed hazard information,
higher flood elevations, larger flood hazard areas, and results in more restrictive regulations. This information may include but is not limited to
preliminary flood elevation guidance from FEMA (such as Advisory Flood Hazard Area Maps, Work Maps or Preliminary FIS and FIRM). These studies
are listed on FEMA’s Map Service Center. This information shall be used for floodplain regulation purposes only.
Please fill in the table below. All of this information should be available to you in your community’s local flood damage prevention ordinance.
Table 3. Federal Best Available Information
Map Panel #
Preliminary Date
Map Panel #
Preliminary
Date
State Regulated Flood Hazard Areas
In addition to studies done by FEMA, there are State Studies that need to be considered in [community name]. For State regulated waters, the NJ
Department of Environmental Protection (NJDEP) identifies the flood hazard area as the land, and the space above that land, which lies below the
“Flood Hazard Area Control Act Design Flood Elevation”. A FHACA flood hazard area exists along every regulated water that has a drainage area of
50 acres or greater. Such area may extend beyond the boundaries of the Special Flood Hazard Areas (SFHAs) as identified by FEMA. The following is
a list of New Jersey State studied waters in this community under the FHACA, and their respective map identification numbers.
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Please fill in the table below. All of this information should be available to you in your community’s local flood damage prevention ordinance.
Table 4. State Regulated Flood Hazard Areas
Name of Studied
Water
Section Studied
Project
File Name
Map Number
Community-determined flood zone not depicted on Flood Insurance Rate Maps (High water marks, flood hazard protection areas,
gage data from NOAA, etc.)
In addition to the Federal and State Studies described above, [community name] shall utilize high water elevations from flood events, groundwater
flooding areas, studies by federal or state agencies, or other information deemed appropriate. This other “best available information” is never used
in a way that results in less restrictive flood elevations, design standards, or smaller flood hazard areas than the sources described above. This
information shall be used for floodplain regulation purposes only. Below is a list of all additional information utilized by [community name].
Please list any information your community additionally considers including high water marks, flood hazard protection areas, gage data from NOAA,
etc.)
Historic Maps
As new effective and preliminary maps are released, include historical maps here with the dates they were effective. This information is useful to
look back on to see what maps were effective during the construction of structures.
The following is a list of previously effective maps and the time period that they were effective for [Community Name].
Map Panel #
Time Period
Effective
Revision
Letter
Map Panel #
Time Period
Effective
Revision
Letter
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2. Team for Management of Substantial Damage Properties
When gathering information for this document, it was indicated that many communities already have a team in place that meets regularly to discuss
their flood program and said team would be their team for Management of Substantial Damage Properties. If this is the case, make sure that the
team meets one time per year to review and discuss roles and responsibilities related to substantial damage.
2.1 [Community Name] Substantial Damage Management Team
After a disaster, there are many different offices and local officials that need to be involved in the recovery process. Identifying these individuals
and offices ahead of time and ensuring they are trained in their roles and responsibilities prior to an event is necessary for a swift and quick
rebuild. The following is a list of the members that make up this team and their responsibilities post-disaster for [Community Name]:
These roles and individuals on the team may be different for your community. Remove or add members of team as applicable and move
responsibilities necessary.
•
Floodplain Administrator (responsibilities below can be delegated)
o Letters Prior to an Event
o Notification on permitting procedures for rebuilding
o Request additional help through mutual aid agreement (see Section 5 for more information on mutual aid agreements)
o Provide training and outreach to the staff and contractors
o Identify available resources
o Notify elected officials and community departments including fire, police, and emergency services, planning, and building code of
the upcoming fieldwork
o Plan the SI/SD field inspections including initial field surveys, establishing damage trends, preparing cost information, and collecting
data
o Hire, train, supervise, certify and license staff for field operations
o Ensure follow-up coordination with structure owners is completed
o Coordinate final storage of SI/SD files
o Organize press release and provide information on flood hazards, floodplain map data, advisory flood data and compliance to
residents and property owners
o Review elevation certificates
o Process, maintain, and track temporary occupancy permits and inspect temporary occupancy buildings
o Take corrective action necessary to ensure compliance
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o Determine if damaged structures have been designated as historic or that may be eligible for such designation
•
Construction Official
o Conduct and process condemnation determinations
o Assist in substantial damage inspections and determinations
o If DCA allows for Temporary Certificates of Occupancy, implement a procedure for properties with these certificates to be mitigated
as soon as possible, keeping in mind the 6-year limit of the ICC eligibility period.
o Regularly document and require repairs of existing violations of state or local health, sanitary, or safety code specifications which
have been identified by the Construction Code Official and are the minimum necessary to ensure safe living conditions. If
appropriate, this pre-event documentation may be used by a qualified professional to adjust the market value of distressed
properties after an event.
•
Office that does permitting
o Review and process permit applications
o Determine if interim permitting procedure is necessary
o Track cumulative substantial improvement
o Process and track requests for building code variances and record outcomes
o Collect fees
o Monitor impacted areas for unpermitted construction activities
o Inspect structures under construction for compliance
•
Municipal Engineer
o Assist in substantial damage inspections and determinations
•
Tax Assessor
o Assist in establishing market value for structures
•
OEM Coordinator
o Assist in communicating to public before and after disaster
o Draw on their Community Emergency Response Team (CERT) team (if applicable) to assist during and after emergencies and conduct
preliminary damage assessments
•
CRS Coordinator
•
Grants coordinator/planner
•
Municipal administrator
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2.2 Other Personnel Resources including the State National Flood Insurance Program Coordinator’s Office and The Federal
Emergency Management Agency Region II
[Community Name] will consider other personnel resources when necessary post disaster. This includes the State NFIP Coordinator’s office and the
Federal Emergency Management Agency Region II resources. More detail on this is provided in Section 3 steps 5 and 8, as well as Section 5.2.
2.3 Evaluate Potential Options for Utilizing DRRA 1206 Public Assistance Funding
The Disaster Recovery Reform Act of 2018 (DRRA), amended Sections 402 and 406 of the Robert T. Stafford Disaster Relief and Emergency
Assistance Act (Stafford Act), and authorized FEMA to “provide assistance to state and local governments for building code and floodplain
administration and enforcement, including inspections for substantial damage compliance” and “base and overtime wages for extra hires to
facilitate the implementation and enforcement of adopted building codes for a period of not more than 180 days after the major disaster is
declared.” This policy enacted through FEMA’s Public Assistance (PA) Program implements section 1206 of DRRA by leveraging the amendments
to Section 402 and Section 406. Utilization of these funds requires a non-federal match. More information is available in Section 3.9.
Sources of assistance include:
1. Force Account Labor (i.e. hourly or full time employees working on disaster recovery or other municipal/county employees
available through a shared service agreement)
2. Contracted Assistance procured through a procurement process compliant with federal, state, and local laws.
3. Use of a Disaster Assistance Response Team (DART) available through the Association of State Floodplain Managers (ASFPM),
which is also subject to Force Account and Contracted Assistance Procurement concerns if reimbursement is sought for expenses
and labor.
3. Post-Event Actions Related to Substantial Damage
The following are steps that your community may take post disaster. These steps are recommended by the state, but there is a chance that some
steps are not feasible or need to be done out of order. It is ultimately up to your community to add or remove steps that you plan to take. Keep in
mind, different levels of disasters may not warrant all of these steps.
The following is a list of steps for [Community Name] to follow after a disaster.
1. Warning Prior to an Event
If there is ever an instance where [Community Name] is aware of an impending disaster, [letters, social media posts, or emails] notifying the
residents will be sent out. This notice contains information to inform residents of the upcoming event, include information on permitting
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and requirements for substantial damage. Language for this notice has been prepared ahead of time and can be found in Appendix 5 of this
document.
2. Debris Management
Information on staging areas are available in your County’s Hazard Mitigation Plan. If this is not available in your County’s plan, work with
the your Local and County Offices of Emergency Management to develop a Disaster Debris Management Plan (DDMP).
Clearing debris is an important first step to take after a disaster so that emergency vehicles are able to navigate the community. This effort
will be led by [department leading effort, department of public works]. The [County Name]’s Hazard Mitigation Plan indicates the following
staging areas in [Community Name] that the debris can be transported to, including [list of locations of staging areas, provide map of
locations if available].
Note: FEMA provides supplemental Federal disaster grant assistance for debris removal through the Public Assistance (PA) Program.
Consider this resource if additional assistance is needed. More information on this program can be found in below in #8 of this list ‘Post
Disaster and Mitigation Funding Assistance’.
3. Communication with Elected Officials and Property Owners
Notify Property Owners
After a disaster, notifications will be sent out to property owners via [letters, email, social media] informing them of permitting procedures,
substantial damage requirements, and of upcoming inspections of structures. During this time, property owners will be eager to rebuild, so
it is important to inform them of these requirements as quickly as possible and ensure that work performed on their property is properly
permitted. Appendix 5 contains example language to be shared property owners.
Press Release
After a disaster, it is important to get the word out to citizens about rebuilding plans and resources they may need. Appendix 6 contains
example text for press releases that can be altered to fit the disaster situation. [Community Name] will work with their Public Information
Officer to develop an appropriate and informative press release. Here are a few items that are important to be included and considered:
•
Permit requirements
•
Substantial damage requirements including information on elevation and freeboard ordinance requirements
•
Safety hazards
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•
Update on public utilities (i.e. what is working and what is not, a timeline of when things will be restored, etc.)
•
Locations for resources, shelters and food
•
State and Federal Assistance
•
How to file flood insurance claims and how to appeal claims payments
•
NFIP Increased Cost of Compliance Procedure
•
Phone number or email address where questions can be directed to
4. Meet with Substantial Damage Team, Train Members, and Assign Areas of Responsibility
The roles and responsibilities of the substantial damage manager were designated to the Floodplain Administrator in Section 2 of this
document (unless your community has changed them). If so, change who is designated as the Substantial Damage Manager in this section.
The substantial damage team members and their areas of responsibility are defined in Section 2 of this document. After a disaster,
[Community Name] will schedule a meeting with the team as soon as possible to review roles and responsibilities and ensure all members
are trained and have all necessary tools to carry out their work. This substantial damage team will be broken up into smaller groups to
assess the floodplain and structure damages or will acquire additional help and delegate these assessments. The floodplain administrator
will be designated as the Substantial Damage Manager. These roles and responsibilities are as follows:
•
Identify available resources.
•
Notify elected officials and community departments including fire, police, and emergency services, planning, and building code of
the upcoming fieldwork.
•
Plan the SI/SD field inspections.
•
Organize and train the inspectors, and construction code/floodplain administration support staff.
•
Supervise field operations.
•
Ensure follow-up coordination with structure owners is completed.
•
Coordinate final storage of SI/SD files
5. Notify the New Jersey Office of Emergency Management of the intent to utilize DRRA 1206 funds
1. Establish the need and eligibility for funding (See Section 2.3, above)
2. Notify the New Jersey Office of Emergency Management Public Assistance Section within 90 days of the Recovery Scoping Meeting of
the intent to utilize DRRA 1206 funds.
3. Establish a plan for ensuring full reimbursement that is compliant with the Public Assistance Program and Policy Guide.
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4. Obtain the CFO’s or Purchasing Agent’s approval of any procurement methodology and contracting below the Federal, State, and
Local minimum purchase requirements provided in Appendix 13.
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6. Assess Post-Disaster Needs and Request Assistance
Initial Screening of Damages
In the case of a flood, the initial damage assessments, led by the Substantial Damage Team,
includes a tour of the flooded portions of the Special Flood Hazard Area (SFHA) to identify every
affected structure and those with obvious structural damage. It is key to identify affected
properties in the first days after an event. This initial damage assessment will be done by walking
the SFHA and viewing structures from the street. At that time, damage will be estimated depending
on the level of the high-water mark (in the case of flooding) or on other characteristics, such as
roof damage after a high-wind event. Additionally, photos will be taken of these structures and a
photo log will be kept. High water marks will also be documented and tracked. A printout of a
map will be used to identify locations of damaged buildings and photographs will be taken for
future reference. When marking this map, buildings should be marked with green, yellow and red
colors to indicate levels of damages.
Designation
Description
Green
•
Structures with low water levels (in the case of a flood)
and damages
•
Not likely to be substantially damaged
•
Approximately 0-40% damaged
Yellow
•
Structures that are not clearly substantially damaged or
not
•
May need more extensive evaluation to determine if
substantial damage is triggered
•
Approximately 40-60% damaged
Red
•
Structures that experienced high levels of water (in the
case of a flood) and damages
•
Clearly substantially damaged
•
Approximately 60-100% damaged
Some rules of thumb that the Substantial Damage Team will use during this initial screening include
the following:
o If a structure has been moved off of its foundation or if there is major foundation damage,
it is nearly certain that it has been substantially damaged
o If flood depths exceed two feet above the first (primary) floor on a traditionally constructed
(frame) building, the structure may be approaching substantial damage thresholds.
o If flood depths exceed one foot on a mobile or manufactured home, the structure may be
approaching substantial damage thresholds.
During this time, notices will be posted on structures notifying the owners that damage has
occurred and that there is a need for inspection before the house is occupied again or repair work
is done. The notice that will be used is provided in Appendix 7. Additionally, if the disaster is flood
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related, door hangers informing property owners of substantial damage requirements and flood
recovery will be hung up. The door hanger that will be used is also in Appendix 7.
Information collected during this initial damage assessment will identify the approximate location
of the affected structures. This information will be used to define the scope of the field inspection,
and to calculate the number of days and staffing needs to complete the SI/SD determinations.
Areas that have a lot of structures with the “yellow” marking should have teams with more
experience assigned to them. It is important to note, that even structures that are clearly damaged
still need evaluation and documentation of the substantial damage determination.
Establishing Timeframes
Establishing timeframes is not a requirement for the CRS credit for developing an SDP. It is
recommended by the state to consider this section to have a better understanding of timing and
staffing needs to recover. Keep in mind that DRRA Section 1206, discussed in Section 8, provides
funds (matched at 25% by municipalities) for this work in a 180-day period after a Federally declared
disaster that can be used to supplement existing staff with force account or contracted staff.
It is recommended by FEMA that local officials begin damage assessments as soon as possible after
a disaster, whenever determined to be safe. After the initial screening of damages, the Substantial
Damage Team will have a better understanding the extent of the damages. Using this information,
the following equation will be used by the team to determine the amount of time necessary to
assess all structures in the Special Flood Hazard Area. Using this calculation will help in determining
whether additional assistance is necessary to perform all of these inspections in a timely manner.
FEMA has estimated that a two-person team can assess approximately 20 to 35 homes in one day
when they can walk between structures. Or approximately 2 to 4 homes per hour. Keep this in mind
when doing these calculations.
Mutual Aid Agreements
Section 5.2 of this document provides information on what mutual aid agreements [Community
Name] has in place. After the initial screening and assessing timeframes and post-disaster needs,
the Substantial Damage Team will consider areas and work that they need assistance with and will
seek help through their established agreements.
Interim Permit Procedures
Number of
Homes in the
Special Flood
Hazard Area
Minutes
Inspection
Team Needs
per Home
The Number
of Teams
Minutes
Needed for
inspections
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Waving permit fees and inspection fees is a common practice post disaster. This does not waive
the requirements of permitting. It is up to your community to determine if that is an action you
would like to take post disaster.
After a disaster, the [office that handles permits] will be flooded with permit applications as
property owners are eager to rebuild. This may require interim permitting procedures in order to
process the large number of applications in a timely manner. This does not waive the requirement
to obtain a permit. [Insert community interim permit procedures here].
7. Damage Determinations
Conduct Inspections, Make Damage Estimates, and Occupancy Determinations
When breaking up teams to conduct inspections and assigning areas of work, the Substantial
Damage Team will send more experienced teams to areas indicated as the “yellow” color during
the initial screening. All groups will walk the floodplain and conduct inspections in their assigned
areas. Appendix 8 has worksheets that were created by FEMA that will aid in this inspection
process, along with guidance on estimating damages and percentages. Using this data, the team
or floodplain administrator will be able to make estimates of the damage costs. It is important to
remember, the damage estimate needs to include all costs to return the structure to its pre-
damaged condition regardless of if the owner plans to have all of the work done or not.
Additionally, if the owner plans perform labor themselves or uses donated materials, the cost of
these still need to be added to the to the damage estimate. Appendix 5 includes two lists of what
should be considered in the damage estimate and what should be excluded. All calculations for
damage are tracked by [Community Name] in [whatever tracking system is used, SDE tool,
spreadsheet, or other database].
During this time, teams will also make occupancy determinations for the structures. If a structure
is unsafe, the building will be marked with notices stapled directly onto the properties. An example
of this notice can be found in Appendix 7. Homeowners will also be notified in by [letter, email,
etc.] in case they are not in the area.
Establishing Market Value
It is important that this is done in a uniform way by your community. There are several ways to do
this, but here are recommendations from the state. Adjust as necessary for your community.
Method (1) is recommended for consistency and because the homeowner is already paying taxes
on this value. If the cost is contested, then use the other methods.
When calculating substantial damage, the market value used is of the structure alone, and does
not consider land or exterior improvements. Section 4.5 of the FEMA Desk Reference P-758
“Substantial Improvement/Substantial Damage Desk Reference” provides extensive background
information that can but used to determine market value. While establishing market value
[Community name]…
Pick one of the following methods
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(1) recommended for consistency. If contested, then use the alternative methods.
…consults with the tax assessor to get the market value of the structure who can also provide
advice on adjusting a structure’s tax assessed market value to reflect the market at the time of the
event.
(2) - Some communities, with the advice of their tax appraiser, allocate percentage of a distressed
property’s purchase price to the structure and the remaining percentage to the land for properties
that were distressed prior to a disaster or have been sold post-disaster as a previously-designated
substantially damaged structure that is proposed for renovation.
… finds the price that the structure was purchased for and estimates the percentage of that price
for the structure based upon structure condition at the time of sale in consultation with the tax
assessor.
(3)
…uses independent appraisals performed by New Jersey professional appraisers to determine
market value.
(4)
… uses detailed estimates of the structure’s Actual Cash Value (replacement cost minus
deprecation)
(5)
… uses qualified estimates based on sound professional judgment made by staff of the local
building department.
All determinations of market value are tracked by [Community Name] in [whatever tracking system
is used, SDE tool, spreadsheet, or other database].
Substantial Damage Determinations
After the damage estimate and market value have been determined and recorded, [Community
Name] will calculate if the cost of work is equivalent to greater than 50% [or other lower threshold
for substantial damage] of the market value. If that is the case, then the structure is substantially
damaged. Since [Community Name] tracks substantial damages and improvements cumulatively,
this value is added to any previous cost of improvement or damage that the building may have
when calculating this percentage.
Notify Property Owners
Once all of the determinations have been made, property owners need to be notified of the
outcomes. Appendix 5 contains two letters that should be sent to property owners if their
structures are determined to be substantially damaged or not substantially damaged. Additionally,
these letters will be posted directly on the structure. If a structure has been determined
Cost of Improvement or cost to Repair to Pre-Damage Condition
------------------------------------------------------------------------------------
≥
50% (or lower %)
Market Value of Building
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substantially damaged homeowners will also be informed to contact their insurance provider,
where resources for NFIP insurance including Increased Cost of Compliance coverage can be found.
Some homeowners may have private sector flood coverage where coverage options and resources
can vary. More information on these is provided in step 7 of this section, with links and resources
that can be shared with owners of substantially damaged structures.
Double check your municipality’s ordinance to see if the following is a requirement.
The New Jersey NFIP Coordinator’s office should be copied on all substantial damage letters issued.
Contact information can be found in step 10 below.
Variances
Language for variances or appeals can be found in the new model code coordinated ordinance.
Older ordinances refer to appeals. Check your ordinance to make sure the language here matches
what you find there. If your ordinance is updated, remember to update this section during your
annual review.
Not every property owner is going to be satisfied with their substantial damage determination. An
owner may apply for a variance to the local official’s finding or determination that the proposed
work constitutes substantial damage. The owner may apply for a variance to an SI/SD
determination on the basis of insufficient information, errors, repair/improvement costs that
should be included/excluded, inappropriate valuations of costs for the proposed work, or an
inappropriate method to determine the market value of the building. Pre-event outreach regarding
SI/SD can help reduce the number of variances. Community officials should inform residents whose
homes are within the SFHA that SI/SD determinations will apply to them. FEMA Publication 213
“Answers to Questions about Substantially Damaged Buildings” can be a helpful resource that can
be shared with property owners.
Language from [Community Name]’s Local Flood Damage Prevention Ordinance regarding the
process to apply for variances can be found in Appendix 11.
8. Flood Insurance claims and Increased Cost of Compliance
National Flood Insurance Program Flood Insurance Claims
Property owners who have NFIP flood insurance policies receive information from FEMA on the
claims process, including the NFIP Insurance Claims Handbook. The following steps need to be
taken to file a claim and the process:
•
Owners report losses to their insurance agents or companies.
•
Adjusters are assigned to estimate damage (“a detailed room-by-room unit-cost estimate
of damage”) and advise owners about preparing the “Proof of Loss” documentation.
Adjusters may authorize advance partial payments to help owners start making repairs.
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•
After the adjuster and owner agree on the damage estimate, the adjuster sends
documentation to the owner’s insurance company and the claim is settled (paid), unless
the claim is denied by FEMA.
Often times, NFIP claims can be paid quickly and ahead of a community’s effort to determine
building permit requirements. Therefore, it is important that the Substantial Damage Team makes
sure property owners understand the need for permits, and that working without them may violate
the building code. If residents ask about filing a claim, they will be directed to the resources below.
If they do not have NFIP insurance, they will be informed that they need to work with their
insurance provider.
Additional resources for policy holders:
National Flood Insurance Program Claims Handbook:
https://www.fema.gov/sites/default/files/2020-05/FINAL_ClaimsHandbook_10252017.pdf
FEMA Web Page, How do I start my flood claim?
https://www.fema.gov/flood-insurance/resources-practitioners/file-your-claim
Increased Cost of Compliance (ICC)
Substantially damaged properties that are in the SFHA and insured through the NFIP may be eligible
for Increased Cost of Compliance (ICC) coverage. (Private insurance may or may not have a rider
that provides these funds.) As of 2021, ICC coverage provides up to $30,000 toward the costs to
mitigate a property that has been determined to be substantially damaged. A substantial damage
determination triggers the requirement that owners bring structures into compliance with NFIP
requirements for new buildings and the community’s ordinance in effect at the time of the flood
event, which may mean elevating or relocating the structure, adding flood vents, or making other
changes based on the flood zone. Below are the steps property owners need to take to file an ICC
claim:
•
Contact insurance company and document the loss, including photos.
•
If home determined to be substantially damaged, discuss with community what mitigation
activity is required to bring their buildings into compliance and if any mitigation grants are
available.
•
Submit to adjuster the community’s substantial damage or repetitive loss letter, a signed
repair contract, and building permit that documents rebuilding requirements in the
floodplain.
•
Insurance providers will also verify that a building’s flood damages equate to 50% or
greater of the before damage market value.
Owners can also assign ICC payments to communities seeking FEMA grant funds for mitigation; the
assigned ICC claim funds are used as part of the non-federal share required by FEMA mitigation
grant programs and can cover structure demolition costs. Some communities have found that
grouping applicants allow for better mitigation value. ICC funds can be used for relocating,
elevating, and demolishing buildings, and for dry floodproofing non-residential buildings.
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The following paragraph only applies if your community has adopted a repetitive loss provision (or
cumulative substantial damage or improvement language) in your flood damage prevention
ordinance. This provision needs to be in the ordinance before the time of a disaster and cannot be
applied retroactively. Please remove if this section does not apply to your community...
Additionally, ICC funds can be used for repetitive loss structures. In order for a structure to be
considered a repetitive loss structure, it needs to have been damaged two times over a 10-year
period, and the cost of repairs was on average 25% or higher than the market value of the building
before the damage occurred each time. Additionally, a flood insurance claim needs to have been
paid out after each instance of damage.
…End
Additional resources on Increased Cost of Compliance can be found here below. If the Substantial
Damage Team is asked about ICC, they should point residents to these resources.
FEMA ICC Website:
https://www.fema.gov/floodplain-management/financial-help/increased-cost-compliance
Increased Cost of Compliance Factsheet
https://www.fema.gov/sites/default/files/2020-08/fema_increased-cost-of-compliance_fact-
sheet.pdf
FEMA P-1080 – Answers to Frequently Asked Questions About Increased Cost of Compliance
https://www.fema.gov/sites/default/files/2020-11/fema_p1080_icc_faq_20170817.pdf
FEMA 301 ICC guidance was not included at this time because neither the 2003 or 2008 versions
are
FEMA National Flood Insurance Program Claims Manual
https://www.fema.gov/sites/default/files/2020-
05/NFIPClaimsManual_withcover_v6_Guidehouse_092718.pdf
9. Post Disaster and Mitigation Funding Assistance
Most FEMA post-disaster funding assistance requires a matching 25% cost share of local funds at
the disaster level (can be made in-kind or met through a global match at the disaster level or
through homeowner contributions). Reducing and eliminating risk in the floodplain over time
through the enforcement of building practices and substantial damage and improvement
determinations is a fairer and more equitable way to address buildings built in the SFHA because it
doesn’t impact property owners who have little to no risk but must pay increased taxes to fund
grant cost shares. Gradually, improved floodplain management and enforcement should reduce
municipal floodplain risk and increase building resiliency after floods. However, when
circumstances dictate that a community’s viability is dependent upon housing stock rehabilitation
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and/or the elimination of structures in the floodplain, there may be disaster recovery and
competitive grant funding available.
The following programs are subject to specific eligibility, funding, and application requirements
that may change from year to year. FEMA mitigation funding is distributed through the New Jersey
Office of Emergency Management. Check their website for the latest New Jersey Hazard Mitigation
Plan and for more information on prioritization of projects: http://ready.nj.gov/mitigation/hazard-
mitigation-plans.shtml. Blue Acres funding is distributed through the Blue Acres Program at the
NJDEP. This section is intended as an overview.
Disaster Recovery & Reform Act (DRRA)
The Disaster Recovery Reform Act of 2018 (DRRA) amended sections of the Robert T. Stafford
Disaster Relief and Emergency Assistance Act (Stafford Act) to authorize FEMA to assist state and
local governments for building code and floodplain administration enforcement. This policy is
intended to provide communities with the necessary resources to administer and enforce state
and locally adopted building codes and floodplain management ordinances for a period no longer
than 180 days after a declared disaster. In doing so, this policy aims to increase the overall speed
of recovery and enhance compliance. This is a FEMA Public Assistance program that is
administered by the New Jersey Office of Emergency Management (NJOEM).
FEMA Policy FP 2-4-079-01 Building Code and Floodplain Management Administration and
Enforcement defines the framework and requirements for consistent and appropriate
implementation with the objective of increasing the overall speed of recovery by providing
additional assistance for major disasters declared after November 20, 2020 in NFIP-participating
communities. The following funding conditions should be considered when evaluating this
source of funding:
1. All building code and floodplain management ordinance administration and enforcement
activities must be performed, in a designated area of the major disaster declaration and relate to
the repair, replacement, or retrofit of disaster-damaged structures in the jurisdiction of the
Applicant. This may include public, private, and residential structures.
2. FEMA will determine the eligibility of actions based on whether the work falls within the
general parameters described below in Section 3, below, and is consistent with the work that is
normally done to administer and enforce building codes.
3. Eligible Work. The following list provides examples of eligible activities under this policy.
Activities not on this list will be evaluated on a case-by-case basis by FEMA and/or the New Jersey
Office of Emergency Management Public Assistance Section.
a) Building Code Administration:
i. Review and process applications for building permits; certificates of occupancy;
certificates of compliance; and the associated plans, specifications, and
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construction documents for compliance with federal, state, and municipal
building, housing, and life-safety codes and standards applicable to disaster-
related repair, replacement, or retrofit.
ii. Process requests for building code variances.
iii. Collect fees.
iv. Hire, train, supervise, certify, and license staff, as required to conduct eligible
activities.
v. Contract for services (e.g., contract planning, initiation, solicitation, evaluation,
and award).
vi. Provide training and information to staff, contractors, and the public on
unique considerations for repair of disaster-damaged historic buildings.
vii. Provide training and outreach to the public on building code and building
permit requirements applicable to the repair, replacement, or retrofit of disaster-
damaged buildings.
viii. Establish construction plan review and inspection processes, procedures, and
instructions for permit holders.
ix. Monitor impacted areas for unpermitted construction activities.
x. Coordinate building code administration and enforcement with floodplain
management ordinance administration and enforcement, as appropriate.
FEMA provides PA funding for contract costs based on the terms of the contract if the Applicant
meets Federal procurement and contracting requirements under 2 C.F.R. Part 200. To ensure that
contracting and procurement methodologies meet all Federal, State, and Local regulations, it is
recommended that the CFO provide additional guidance on any contracting that is below minimum
purchase thresholds. These thresholds are included in Appendix 13 For more guidance on the
public assistance requirements, eligibility, contracting and procurement consult the following
documents below. Additionally, work with your Office of Emergency Management Coordinator to
get more information on Public Assistance funding.
Public Assistance Program and Policy Guide FP 104-009-2
https://www.fema.gov/sites/default/files/2020-06/fema_public-assistance-program-and-policy-
guide_v4_6-1-2020.pdf
Procurement Guidance for Recipients and Subrecipients Under 2 C.F.R PART 200 (Uniform Rules)
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https://www.fema.gov/sites/default/files/2020-07/fema_procurement-under-grants-field-
manual-supplement_1.pdf
Hazard Mitigation Grant Programs
Note: this information changes annually. Be sure to check with your Office of Emergency
Management Coordinator for the latest Notice of Funding Opportunity for the latest information
for the current fiscal year.
The Hazard Mitigation Grant Program (HMGP) provides grants to state and local governments,
Indian tribes or other tribal organizations, and certain private non-profit to implement long-term
hazard mitigation measures after a major disaster declaration. The purpose of the program is to
reduce the loss of life and property due to natural disasters and to enable mitigation measures to
be implemented during the immediate recovery from a disaster. Hazard Mitigation Grant Program
funding is only available in states following a Presidential disaster declaration.
Individual homeowners and businesses may not apply directly to the program; however, a
community or other qualified sub-grantee may apply on their behalf. Projects must provide a long-
term solution to a problem, for example, elevation of a home to reduce the risk of flood damages
as opposed to buying sandbags and pumps to fight the flood. In addition, a project's potential
savings must be more than the cost of implementing the project. Funds may be used to protect
either public or private property or to purchase property that has been subjected to, or is in danger
of, repetitive damage.
Additional information on HMGP can be found here:
https://www.fema.gov/grants/mitigation/hazard-mitigation
Hazard Mitigation Assistance Guidance:
https://www.fema.gov/sites/default/files/2020-07/fy15_HMA_Guidance.pdf
Flood Mitigation Assistance
Note: this information changes annually. Be sure to check with your Office of Emergency
Management Coordinator for the latest Notice of Funding Opportunity for the latest information
for the current fiscal year.
The Flood Mitigation Assistance (FMA) Program is a competitive grant program that is offered on
an annual basis and provides funding to states, local communities, federally recognized tribes and
territories to be used for projects that reduce or eliminate the risk of flood damage to buildings
insured by the NFIP. Grants are designed to help communities apply a sustained flood reduction
program that focuses on reducing or eliminating claims under the NFIP. The goal is to reduce overall
risk to population and structures from future flood hazard events while reducing reliance on federal
disaster funding.
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FEMA requires local governments to develop and adopt hazard mitigation plans as a condition for
receiving funding for FMA projects. FEMA chooses recipients based on the applicant’s ranking of
the project and the eligibility and cost-effectiveness of the project. FEMA establishes ranking
criteria with each grant cycle. Project eligibility requirements include a positive benefit cost
analysis, good standing in the NFIP and the project must be identified in the Hazard Mitigation Plan.
Consult the Hazard Mitigation Assistance guidance below for more information.
Local governments may apply for FMA grants through the state. Individuals must seek assistance
and apply through their local governing authority.
FMA Project Grants are available to help States and NFIP participating communities implement
measures to reduce flood losses. Communities receiving FMA Project Grants must be participating
in the NFIP. Examples of eligible FMA projects include: flood reduction projects, elevation,
acquisition, or relocation of NFIP-insured structures.
Additional information on FMA grants can be found here:
https://www.fema.gov/grants/mitigation/floods
Hazard Mitigation Assistance Guidance:
https://www.fema.gov/sites/default/files/2020-07/fy15_HMA_Guidance.pdf
Link to DCA Division of Disaster Recovery and Mitigation
https://www.nj.gov/dca/ddrm/pdf_docs/2.10.102%20MAP_Policy_Final.pdf
Building Resilient Infrastructure and Communities (BRIC)
Note: this information changes annually. Be sure to check with your Office of Emergency
Management Coordinator for the latest Notice of Funding Opportunity for the latest information
for the current fiscal year.
FEMA’s Building Resilient Infrastructure and Communities (BRIC) program is also a competitive
grant program that is offered on an annual basis for infrastructure projects. It supports
communities that undertake hazard mitigation projects to reduce the risks they face from disasters
and natural hazards. BRIC is a new pre-disaster hazard mitigation program that replaces FEMA’s
Pre-Disaster Mitigation (PDM) program.
The BRIC program's guiding principles are supporting communities through capability- and
capacity-building; encouraging and enabling innovation; promoting partnerships; enabling large
projects; maintaining flexibility; and providing consistency.
The BRIC program aims to categorically shift the federal focus away from reactive disaster spending
and toward research-supported, proactive investment in community resilience. BRIC projects
demonstrate innovative approaches to partnerships, such as shared funding mechanisms, and/or
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project design. Through BRIC, FEMA will continue to invest in a variety of mitigation activities, with
an added focus on infrastructure projects and Community Lifelines.
More
information
on
the
BRIC
program
can
be
found
here:
https://www.fema.gov/grants/mitigation/building-resilient-infrastructure-communities
Hazard Mitigation Assistance Guidance:
https://www.fema.gov/sites/default/files/2020-07/fy15_HMA_Guidance.pdf
Pre-Disaster Mitigation (PDM) Grant
The Pre-Disaster Mitigation Grant funding is currently unavailable. Check with your Office of
Emergency Management Coordinator for current Notice of Funding Opportunity.
Community Development Block Grant-Disaster Recovery (CDBG-DR)
Following major disasters declared by the President, the U.S. Congress may appropriate additional
funds for Disaster Recovery Grants to help rebuild affected areas. This funding can cover a broad
range of recovery activities and enables HUD to help communities that may not otherwise be able
to recover due to limited resources.
Individuals nor communities can apply for funds. HUD will notify eligible States, cities and counties
if they are eligible to receive CDBG-DR grants. HUD allocates funds based on unmet recovery needs.
Each CDBG-DR award/allocation method is published in a Federal Register Notice, which also
contains information on:
•
Eligible Recovery Activities.
•
Program Requirements, including distribution of funds to be spent in low- and moderate-
income communities.
•
Appropriation Specific Waivers and Alternative Requirements
For more information, visit the Community Development Block Grant Disaster Recovery Program
Website:
https://www.hudexchange.info/programs/cdbg-dr/
CBDG-DR Fact Sheet
https://files.hudexchange.info/resources/documents/CDBG-DR-Fact-Sheet.pdf
Blue Acres Program
The Green Acres, Farmland, Blue Acres, and Historic Preservation Bond Act of 2007 authorized $12
million for acquisition of lands in the floodways of the Delaware River, Passaic River or Raritan River,
and their respective tributaries, for recreation and conservation purposes. An additional $24
million was approved by the voters in the Green Acres, Water Supply and Floodplain Protection,
and Farmland and Historic Preservation Bond Act of 2009. In 2014, under the Preserve New Jersey
Act, voters approved permanently dedicating a portion of the Corporate Business Tax for open
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space and historic preservation efforts and that legislation earmarks 4% of each preservation
allocation to the State’s acquisition of flood prone properties.
Residential properties (including structures) that have been damaged by, or may be prone to
incurring damage caused by, storms or storm-related flooding, or that may buffer or protect other
lands from such damage, are eligible for acquisition. All Blue Acres acquisitions must be from
willing sellers, and the program looks to buy clusters of homes or whole neighborhoods in flood
vulnerable areas. In many cases, the program will buyout your home at its pre damaged cost and
is intended to give homeowners the ability to choose the best option for their individual situation.
After the homes are acquired and demolished, the land will be permanently preserved as open
space, accessible to the public, for recreation or conservation. The preserved land will serve as
natural buffers against future storms and floods. The goal of the Blue Acres Program is to
dramatically reduce the risk of future catastrophic flood damage, and to help families to move out
of harm’s way.
For more information, visit their website:
https://www.nj.gov/dep/greenacres/blue_flood_ac.html
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Funding Resource Summary Table
Grant
Who is Eligible?
When?
Other Requirements
What's covered?
Cost Share
More info:
Increased Cost
of Compliance
(ICC)
NFIP policy holders in
the special flood
hazard area with
substantially
damaged or severe
repetitive loss
structures
After a
substantial
damage
determination
has been
received
Funds need to be
used to bring
structure into
compliance with
community's flood
damage prevention
ordinance
Any one or
combination of the
following:
relocation,
elevation, and
demolition of
buildings, and for
dry floodproofing
non-residential
buildings
$30,000
provided at
no cost
share
https://www.fema.
gov/floodplain-
management/finan
cial-
help/increased-
cost-compliance
Disaster
Recovery and
Reform Act
(DRRA)
State and local
governments, Indian
tribes or other tribal
organizations
Within 180
days after a
declared
disaster
Community in good
standing with NFIP,
meet federal
procurement rules in
2 CFR Part 200. Must
notify of intent to
leverage funding
within 90 days of the
post-disaster
Recovery Scoping
Meeting. Must
consult with CFO on
any procurement
below minimum
thresholds.
Building code and
floodplain
administration
enforcement post-
disaster
https://www.fema.
gov/sites/default/fi
les/2020-
10/fema_building-
dode-floodplain-
management-
ddministration-
enforcement-
policy_drra-
1206_signed_10-
15-2020.pdf
Hazard
Mitigation
Grant Program
(HMGP)
State, local
governments, Indian
tribes or other tribal
organizations, certain
private non-profit
After state
received a
presidential
major disaster
declaration
Approved hazard
mitigation plan
(HMP), project needs
to be in the HMP,
and be a member in
Long-term efforts to
reduce risk and the
potential impact of
future disasters.
Up to 75%
FEMA, 25%
Applicant
https://www.fema.
gov/grants/mitigati
on/hazard-
mitigation
Version 09.28.2022
organization (Local
community must
apply on property
owners behalf)
good standing with
NFIP
See the latest
Notice of Funding
Opportunity and
HMA Guidance for
more information.
https://www.fema.
gov/sites/default/fi
les/2020-
07/fy15_HMA_Gui
dance.pdf
Flood
Mitigation
Assistance
(FMA)
States, local
communities,
federally recognized
tribes and territories
Offered
annually,
FEMA
announces
Notice of
Funding
Opportunity
Approved hazard
mitigation plan
(HMP), project has to
be in the HMP, be a
member in good
standing with NFIP,
property has to be
NFIP insured.
Two types of
Grants: Planning
grant to develop or
update Flood
Mitigation Plans or
Projects grants to
reduce or eliminate
the risk of repetitive
flood damage to
buildings insured by
the NFIP
75% FEMA,
25%
Applicant
(Repetitive
loss or
Severe
Repetitive
loss may be
eligible for
higher cost
share up to
90% or
100%
respectively
)
https://www.fema.
gov/grants/mitigati
on/floods
See the latest
Notice of Funding
Opportunity and
HMA Guidance for
more information.
https://www.fema.
gov/sites/default/fi
les/2020-
07/fy15_HMA_Gui
dance.pdf
Building
Resilient
Infrastructure
and
Communities
(BRIC)
States, local
communities,
federally recognized
tribes and territories
Offered
annually,
FEMA
announces
Notice of
Funding
Opportunity
Approved hazard
mitigation plan
(HMP), and project
has to be part of the
HMP.
Infrastructure
projects.
Research-
supported,
proactive
investment in
community
resilience. Priority
given to: public
infrastructure,
75% FEMA,
25%
Applicant
https://www.fema.
gov/grants/mitigati
on/building-
resilient-
infrastructure-
communities
Version 09.28.2022
mitigate risk to one
or more lifelines,
incorporating
nature based
solutions, enforcing
modern building
codes
See the latest
Notice of Funding
Opportunity and
HMA Guidance for
more information.
https://www.fema.
gov/sites/default/fi
les/2020-
07/fy15_HMA_Gui
dance.pdf
Community
Development
Block Grant
Disaster
Recovery
Program
(CDBG-DR)
State and Local
Governments.
Individuals nor
communities can
apply for funds.
After a
declared
disaster,
Congress may
appropriate
funds to HUD
when
significant
needs are
unmet for
recovery
HUD will notify
eligible States, cities
and counties if they
are eligible to receive
CDBG-DR grants
Disaster Relief, Long
Term-Recovery,
Restoration of
Infrastructure,
Housing, Economic
Revitalization
https://www.hude
xchange.info/progr
ams/cdbg-dr/
Check Federal
Registrar Notice
after a disaster for
more information
on
award/allocation,
eligible recovery
activities, program
requirements,
appropriation
specific waivers
and alternative
requirements.
New Jersey
Blue Acres
Program
Property owners
willing to sell
properties and
structures that have
incurred damage
caused by storms or
Any time,
complete Blue
Acres offer
application
which is
Seeks to buyout
clusters of flood
vulnerable residential
properties from
willing sellers
Acquisition of
properties
throughout the
State including
those in the
floodway and
Buyouts are
State and
Federally
funded.
There are
no upfront
https://www.nj.go
v/dep/greenacres/
blue_flood_ac.html
Version 09.28.2022
storm related
flooding or that may
buffer or protect
other lands from
such damage
available on
their website
floodplain or
properties that
serve a recreation
and conservation
purpose
costs to
property
owners to
consider a
buyout.
Closing
costs and
legal fees
may apply.
Version 09.28.2022
10. Enforcing Permitting for Repairs and Mitigation Compliance
Affidavit to ensure no additional work is being done – Owner and Contractor
For structures which were not substantially damaged, [Community Name] will review permit
applications to ensure that substantial improvement [or cumulative substantial improvement] will
not be triggered, thus requiring the structure to be brought into compliance with NFIP
requirements. In some cases, property owners will try to avoid triggering this requirement by only
applying for part of the work at one time. In Appendix 5 you will find sample affidavits for
homeowners and contractors to sign. These should be sent out with SD and SI Determination
Letters.
Intent to Raise, Demolish or Floodproof Form
After a structure is determined to be substantially damaged, it is the [Community Name]’s
responsibility to ensure that it is mitigated as soon as possible, and to keep in mind the six-year
eligibility limit on ICC funds. One way [Community Name] ensures compliance and confirms the
awareness of property owners of these requirements is to have them sign an intent to raise or
demolish form. The form that [Community Name] uses can be found in Appendix 10.
AW-501 Forms
Tracking and mitigating severe repetitive loss (SRL) and repetitive loss (RL) properties is important
for making communities more resilient. It also helps in updating National Flood Insurance Program
(NFIP) data, which in turn, helps owners of mitigated properties reduce their premium costs.
FEMA designates SRL as any NFIP-insured single family or multi-family residential building:
•
That has incurred flood-related damage for which four or more separate claims payments
have been made, with the amount of each claim (including building and contents
payments) exceeding $5,000, and with the cumulative amount of such claims payments
exceeding $20,000; or
•
For which at least two separate claims payments (building payments only) have been made
under such coverage, with the cumulative amount of such claims exceeding the market
value of the building. In both instances, at least two of the claims must be within 10 years
of each other, and claims made within 10 days of each other will be counted as one claim.
A RL structure is a structure where two claims over a 10-year period have totaled 25% of the value
of the structure or a structure where two or more claims of $1000 have been paid over a 10-year
period since 1978.
Addressing SRL and RL properties is an important part of floodplain management and is required
for Community Rating System participation. In addition, NJOEM Hazard Mitigation Grant Program,
County Hazard Mitigation Plans and NJDEP's Blue Acres Buyout program use SRL and RL
information to assess and prioritize flood mitigation activities and measure success.
Tracking and completing paperwork to update the status of these RL and SRL properties to
“mitigated” on the NFIP records when structures are relocated, retrofitted, elevated, and bought
out and demolished is an important responsibility of the [Community Name]’s Floodplain
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Administrator and will save time and confusion if these are done on a structure-by-structure basis
as they occur.
When permitting a structure elevation or floodproofing project for an RL or SRL structure in
advance of removing it from RL/SRL lists, [Community Name]’s Floodplain Administrators will
ensure that the newly elevated/floodproofed structures are compliant with NFIP standards. Only
when these structures are deemed compliant by FEMA can the structure be successfully updated
on the RL/SRL lists.
AW-501 Forms to update the status of these properties on [Community Name]’s RL/SRL lists can
be obtained here. Once forms have been completed, they will be submitted to the National Flood
Insurance
Program
(NFIP)
via
the NFIP
Underwriting
Mailbox.
All submissions will be sent individually (one per each property location). The submission file needs
to include;
•
The AW-501 form and signed transmittal
•
The post-mitigation Elevation Certificate for the structure
•
Photographs of the mitigated structure
•
Building permits
•
A statement regarding the mitigation effort that was used, (elevated, demolished,
relocated, retrofitted).
•
A community letter, detailing methods used if the structure has been mitigated due to a
project by the public works department
When [Community Name]’s Local Officials or Floodplain Administrator needs to obtain a copy of
the list of RL and SRL properties, an Information Sharing Access Agreement will need to be made
with FEMA to protect Personally Identifiable Information associated with this list. They will need
to contact FEMA Region II or the state NFIP coordinator’s office for guidance on this request.
Guidance for Historic Structures
While ensuring buildings are brought into compliance, [Community Name] will consider the
different requirements when it comes to historic structures. When historic structures in special
flood hazard areas are substantially damaged by flood, fire, or other hazard, they must be mitigated
by elevating, retrofitting, buyouts, or relocations just like other structures in a floodplain. When
severe damage or future risk make elevation or retrofitting structurally impossible, historic
structures should be saved for future generations by pursuing a combination of a buyout and
relocations to higher ground. Demolition of historic structures should be reserved only for those
structures too damaged to be saved or relocated.
When full mitigation is not an option, only structures that are listed on Federal and State registries
can be given a variance according to NFIP and UCC rules. Unfortunately, partial mitigation
activities will not significantly lower insurance premiums for any structure that receives a variance
because the flood risk has not been fully mitigated.
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For more guidance, [Community Name] will develop an adaptation plan for their historic structures
to avoid future flood damage and to reduce insurance premiums. Guidance from the HPO office
along with FEMA guidance can be found below.
NJ Historic Preservation Office - Flood Mitigation Guide for Historic Properties
https://www.nj.gov/dep/hpo/images/_MULT_DG_32_v1_ID14076r.pdf
NJ Historic Preservation Office - Elevation Design Guidelines for Historic Properties
https://www.nj.gov/dep/hpo/images/_MULT_DG_32_v2_ID14078r.pdf
FEMA P-467-2 – Floodplain Management Bulletin – Historic Structures
https://www.nj.gov/dep/hpo/Index_HomePage_images_links/FEMA/FEMA%20historic_structure
s.pdf
Temporary Certificates of Occupancy
It is up to your community to determine procedures and policies for issuing temporary certificates
of occupancy. It is important to note, an end date and plan should be included, and any work done
to make the structure habitable (electrical, mechanical, plumbing, structural, etc.) still needs to be
included in the substantial damage determination.
In some cases, like large scale disasters, there may be several homes determined to be substantially
damaged and a limited amount of alternative housing for displaced residents. If necessary,
[community name] will determine if the structure is safe to occupy and may issue Temporary
Certificates of Occupancy for the time needed to bring the structure into compliance. Any permits
for minimal repairs (i.e., electrical, mechanical, plumbing and structural) granted for temporary
occupancy must be included in the calculation for the substantial damage determination. Only
minimal repairs shall be made so the residence is safe to live in and no other improvements are
made until the structure meets the SD requirements of the local ordinance. The permit application
will document the purpose and need for temporary occupancy of the damaged structure along
with appropriate time restrictions to ensure damaged homes are brought into compliance with
local codes and ordinances within a reasonable time. Temporary occupancy will need to be
reconsidered once the established time limit is over. A determination to extend the temporary
occupancy will be based on need and documented in the permit file. [Insert any policies and
procedures from your community here]. Additional guidance on Temporary certificates of
occupancy can be found below.
FEMA Temporary Occupancy of Substantially Damaged Structures after a Disaster Fact Sheet -
http://www.kymitigation.org/wp-
content/uploads/2010/09/FSTempOccupancySubstantiallyDamagedStructuresAfterDisaster508.p
df
11. Updates to the State National Flood Insurance Program Coordinator’s office and FEMA
Regional Office
Version 09.28.2022
The state NFIP Coordinator’s office is a great resource post disaster. If [Community Name] has
questions, issues or needs assistance they will notify this office at the contact information below.
Additionally, any substantial damage letters should be copied to the contact below.
New Jersey State NFIP Coordinator’s Office
Kenya Lovill
Kenya.lovill@dep.nj.gov
PO BOX 420
Mail Code 501-01A
Trenton, NJ 08625
609-292-2296
4. Build and Utilize a Property Database for Substantial Damage Estimates
There are a few different options for creating a property database. The following are four examples of
property databases. Include whichever method your community uses and remove other sections.
This step requires you to build a ‘basic database’. This is defined as a database that contains the following:
•
Property address or PIN,
•
Building type (residential/non-residential),
•
Foundation type, and the number of stories,
•
Square footage,
•
Fair market value of the building (if available)
•
Lowest floor and/or first floor elevation (if available).
This database can be: A table in hard-copy or digital format (a handful of SD buildings), A larger stand-alone
spreadsheet (more at-risk structures), or a GIS layer or database.
(1) Excel sheet
[Community Name] utilizes Excel to store data on structures in the special flood hazard area and to track
their substantial damage and substantial improvement determinations. One spreadsheet keeps track of
which structures are substantially damaged, improved or are close to triggering either of the two. It also
helps keep track of which structures need to be brought into compliance and by when. The other contains
data on [SAME AS AREA IN SECTION 1.4, 1) all buildings in the SFHA, 2) properties suspected to be below
BFE, 3) RL structures, 4) Properties with prior SD determinations, or 5) building which could meets
cumulative SD] that are in higher risk areas. The Tables in Appendix 2 and 3 of this document were taken
from these spreadsheet.
(2) Database (like Access)
[Community Name] utilizes [database] to store data on structures in the special flood hazard area and to
track their substantial damage and substantial improvement determinations. This database keeps track of
which structures are substantially damaged, improved or are close to triggering either of the two. It also
helps keep track of which structures need to be brought into compliance and by when. Additionally, it
contains data on [SAME AS AREA IN SECTION 1.4, 1) all buildings in the SFHA, 2) properties suspected to be
Version 09.28.2022
below BFE, 3) RL structures, 4) Properties with prior SD determinations, or 5) building which could meets
cumulative SD] that are in higher risk areas. The Tables in Appendix 2 and 3 of this document were exported
from the database.
(3) Other Application
[Community Name] utilizes [Application Name] to store data on structures in the special flood hazard area
and to track their substantial damage and substantial improvement determinations. All information that is
tracked in FEMA’s Substantial Damage Estimator is tracked with this application. This application keeps
track of which structures are substantially damaged, improved or are close to triggering either of the two.
It also helps keep track of which structures need to be brought into compliance and by when. The tables
in Appendix 2 and 3 of this document were exported from the database.
(4) Substantial Damage Estimator
[Community Name] utilizes FEMA’s Substantial Damage Estimator (SDE) tool to store data on structures in
the special flood hazard area and to track their substantial damage and substantial improvement
determinations. The SDE tool was developed by FEMA to assist State and community officials in estimating
Substantial Damage to residential and non-residential structures. It provides a formal and systematic
approach for determining Substantial Damage while meeting NFIP requirements and is a single database
for storage of data collected during substantial damage determinations. It also has the capability of
exporting geospatial data so that one can see the location of the structures and identify vulnerable areas.
The Table in Appendix 2 and 3 of this document is taken from the SDE tool.
For additional credit (SDP 2), your community can fully populate a structure database using all 28 data entry
fields found in the substantial damage estimator tool. Once the substantial damage estimator tool (or
equivalent program) is pre-populated with this data, another 50 points are available. This section is up to
your community to decide to include or exclude this section.
Below, there are two options for language: if your community uses the SDE tool or if your
community uses an equivalent program.
(1) Substantial Damage Estimator Tool
Substantial Damage Estimator (SDE) Tool
Here is the link to download and other guidance on the SDE tool: https://www.fema.gov/emergency-
managers/risk-management/building-science/substantial-damage-estimator-tool
The Substantial Damage Estimator (SDE) tool was developed by FEMA to assist State and community
officials in estimating Substantial Damage to residential and non-residential structures. It provides a formal
and systematic approach for determining Substantial Damage while meeting NFIP requirements and is a
single database for storage of data collected during substantial damage determinations.
If your community uses the SDE for tracking above, and prepopulates the SDE, move the following paragraph
above and skip the other blue highlighted text.
Version 09.28.2022
This database has been downloaded by [Community Name] and has been pre-populated to include basic
data on structures in the SFHA. Field worksheets and guidance are included in Appendix 8 of this document,
which will be used post-disaster to complete substantial damage determinations post-disaster.
(2) Other equivalent program to the SDE
CRS will allow other methods or systems (tools) in place of the SDE provided that (1) the tool
accurately determines substantial damage or substantial improvement (SD/SI) as required by the
NFIP. (2) that it can be prepopulated with the building information for all buildings the community
identifies for the SDP1 credit (those buildings that could be substantially damaged), and (3) the
information gathered on the buildings, at a minimum, matches what the SDE requires.
To meet the additional CRS Credit SDP 2, [Community Name] has pre-populated [program name] with basic
data on structures in the SFHA. [Program Name] was approved by FEMA as an equivalent that can be used
to meet this credit in place of the Substantial Damage Estimator Tool.
5. Identify Pre-Event Actions Related to Substantial Damage
There are a number of activities that can be done ahead of time to prepare for a disaster and make the
process easier and faster. The following sections go over procedures and preparation that [community
name] has put into place.
5.1 Education and Outreach
This section only requires one action to be taken for education on SD/SI, NFIP or CRS. Remove any that your
community does not wish to do and add any additional activities that apply.
Annual Training of Substantial Damage Team Members
When gathering information for this document, it was indicated that many communities already have a
team in place that meets regularly to discuss their flood program and said team would be their team for
Management of Substantial Damage Properties. If this is the case, make sure that the team meets one time
per year to review and discuss roles and responsibilities related to substantial damage.
Once per year on [specify time of year, during plan update, during Hazard Mitigation Plan Update, first of
every year, etc.], the Substantial Damage Team that was assembled in Section 2 will meet to go over each
member’s responsibilities and assess any changes that need to be made. During this time, the process and
requirements for substantial damage will be reviewed, materials to assist with the work will be considered
and any necessary training will take place and will assess any new roles that need to be assigned or
established roles that need to be reassigned.
Handouts and Letters for Property Owners
When gathering information for this document, it was indicated that many communities already reach out
to property owners in repetitive loss areas once per year. If this is something your community does, these
letters can be tailored to cover additional information on substantial damage and to go out to all properties
in the special flood hazard area in addition to repetitive loss areas.
Example documents can be found in Appendix 9 and you community should include whichever documents
you intend to use. These documents should be considered and updated if necessary during the annual
review of this report.
Version 09.28.2022
It is also suggested to tie this into your community’s public outreach/municipal PPI plans.
[Once, quarterly, etc.] per year [Community Name] will send out [letters, handouts, fact sheets, flyers] to
all owners of properties in the special flood hazard area. These documents give basic information on
substantial damage, substantial improvements, NFIP requirements, or CRS. The documents that
[Community Name] will send out can be found in Appendix 9.
Communication with Elected Officials on Substantial Damage and Substantial Improvement
Responsibilities
This could be achieved with an annual evaluation report that is shared with elected officials. A meeting
could also be held after they have time to review the report and answer any questions they may have.
When gathering information for this document, it was indicated that many communities already have a
team in place that meets regularly to discuss their flood program and said team would be their team for
Management of Substantial Damage Properties. These teams comprised of at least on individual from each
department. These team meetings could be a good time to go over substantial damage and improvement
responsibilities that the community has. This team could also provide an annual report to the body
designated by the community’s ordinance to hear variances (or appeals if an older ordinance). This body
(often the planning board) would generally include representation by one council member, who is an elected
official so further clarification from ISO may be necessary if this option is selected.
Each year, after the annual review of this report is completed, the report and updated document is shared
with the elected officials of [Community Name]. After the elected officials have had time to review this
report, a meeting will be held to go over the review, updated report, and to answer any questions they may
have.
[Once, quarterly, monthly, etc.] per year [community name]’s floodplain administrator holds a meeting
with elected officials to discuss the community’s responsibilities for substantial damage and substantial
improvement to meet the requirements of the NFIP. Prior to the meeting, the fact sheet found in Appendix
9 is shared with elected officials, which goes over NFIP requirements including SI and SD, as well as CRS
requirements.
Consideration of Mitigation Alternatives for Neighborhoods with High Potential for Substantial
Damage
This step is optional for the additional SDP 3 credit, which awards 50 points. If your community already
performs a Repetitive Loss Area Analysis for Activity 512.b of the CRS Coordinator’s Manual, that analysis
can be extended to the entirety of the SFHA to receive this credit. This step should also include your
community’s plan to perform outreach to SD property owners identified.
This Retrofitting and Screening Matrix from FEMA may be helpful when considering mitigation alternatives:
https://emilms.fema.gov/is_0280/media/336.pdf
The best time for properties with a high risk of flooding to take mitigation actions is before the next flood.
[Community Name] has historically seen severe flooding in [description of area], as can be seen in the map
below in [Figure(s) #]. Below (each of) the following image(s) you will see a list of the mitigation alternatives
considered, and weather they are recommended or not.
Version 09.28.2022
Insert image of mapped area here. If there are a lot of images they can alternatively be included in the
appendix of this document.
For this area in the image(s) above, [Community Name] has considered the following mitigation actions:
acquisition, relocation, elevation and retrofitting. The table below is the summary of findings from these
considerations. This process is very similar to the Repetitive Loss Area Analysis completed for Activity 512.b
of the CRS Coordinator’s Manual but is applied to the entire [AREA DESIGNATED IN SECTION 1.4].
Complete the table below to summarize consideration of each method for the specified area. Your
community should also look at the Funding Resource Summary Table in Section 3, Step 8 of this document.
As stated above, if there are a lot of areas your town is analyzing you could include this table in the appendix
of this document.
Method
Feasible? Recommended? Ranking Comments
Relocation
Acquisition
Building Elevation
Retrofitting
5.2 Additional Actions Taken Prior to a Disaster
All of these additional actions within this section are not a requirement of the SDP credit. These are good
practices and recommendations from the state for your community to consider.
Mutual Aid and Shared Services Agreements
Depending on the severity of the disaster, additional assistance may need to be requested. Mutual aid
agreements have been set up by [Community Name] with neighboring municipalities to provide reciprocal
emergency aid and assistance after a disaster. Types of assistance can range from staff support to
equipment and materials, including additional staff for conducting substantial damage assessments. A
summary of [Community Name]’s Mutual Aid and Shared Service Agreements, along with [where to find
them and/or copies of them] can be found in Appendix 12.
Have copies of MAAs in appendix or provide links to where they are located.
Elevation Certificate Promotion and Assistance
Understanding their flood risk and insurance ratings by documenting their lowest floor is helpful to property
owners and can help them troubleshoot areas of improvement such as increasing venting or filling
basements that will save on insurance premiums and protect their investment. It is also beneficial for towns
to have this information easily accessible after a disaster. [Community Name] will partner with surveyors
perform outreach to homes on the need for Elevation Certificates and assist in completing them.
Another option is to require ECs for the resale of homes. Your community can choose if it wishes to do either
of these things.
Another way that [Community Name] can increases the number of Elevation Certificates acquired is by
requiring that a homeowner get an Elevation Certificate before they are able to sell their home.
Version 09.28.2022
Keep Copies of Documents Used Post Disaster
After a disaster there is always a chance of power outages. As mentioned in Section 5.6, [Community
Name] has a shared service agreement with [Name of Community with Agreement] in the event that power
is lost so that [Name of Community with Agreement’s] facilities can be used for activities related to
substantial damage determinations. This agreement can be found [link, appendix section X, or both]. To
save time and effort post disaster, copies of necessary paper documents are prepared and stored at
[location where documents will be stored] in the case of emergency. The following list is what copies will
be stored in this location:
1. Flood Maps
2. Maps of structures in the special flood hazard area
3. Substantial damage worksheets
4. Notices for unsafe structures
5. Informational flyers on permitting and rebuilding procedures
6. Substantial damage door hangers
7. Floodplain Development Permits
8. Maintain Public Assistance Documentation for any DRRA 1206 reimbursements for the duration of
the mandatory recordkeeping period.
6. Plan Implementation and Updates
The only requirements for the report are that it is updated or evaluated annually, describe who prepared
the evaluation, be shared with elected officials, and propose an update process or schedule. The below is a
recommendation. It is up to your community to alter this to best fit your needs. If your community does an
annual update for the Hazard Mitigation Report, we recommend doing this update/evaluation at that time
and that the same team collaborates on this. Alternatively, the governing body could provide a resolution
stating that they have reviewed the report, approved and indicate what changes have been made. Check
the CRS Resources website for an Annual Evaluation Report Template for this credit:
https://crsresources.org/500-2/
Once per year [Community Name] will update this Substantial Damage Management Plan on/during
[Hazard Mitigation Report update, on the first of every year, or other time selected by community]. The
report will be evaluated and reviewed by [the floodplain administrator, governing body, substantial damage
team, or other individuals that your community selects]. During this review, the team will go over the
following:
•
Review of pre-event action items
•
Describe what was implemented (or not implemented)
•
Recommend changes to the action items
•
Highlight flood damage that occurred and update Appendix 2 and 3 of this report
•
Update the plan to reflect new ordinance language that affect substantial damage or substantial
improvement (i.e. the Local Design Flood Elevation, implementation of cumulative substantial
damage or improvements, changes to variance language, etc.)
The above is required for the SDP credit. Below are some additional reviews your community may want to
consider.
Version 09.28.2022
•
Review or roles and responsibilities of Substantial Damage Management team. This includes
confirming roles, assigning new roles, redistributing roles, etc.
•
Review of post event actions. If a disaster has recently occurred, [Community Name]’s review team
will ask the following questions: What steps were followed? What steps were not necessary? Were
there additional steps necessary? Are there additional materials or research that could have been
done to make the process easier? Should the order of steps be altered?
•
Inspect documents that are prepared and printed out in case of a disaster. Are they up to date
with current requirements and regulations? Are they in usable condition? Are there any additional
resources to include?
•
Double check that links for references and guidance in the document are up to date, and include
any additional guidance that may have been released in the past year.
After this review is completed, the [governing body/review team] provides a resolution stating that they
have reviewed and approved the report, and indicates any changes that have been made. This updated
plan and evaluation report is shared with [Community Name]’s elected officials. If there is any personally
identifiable information in the data, a summary report will be prepared as aggregate data that will adhere
to the Privacy Act. This summary report will then be shared with elected officials, committees, media, and
the public.
Version 09.28.2022
APPENDIX 1 – RESOURCES AND REFERENCES
CRS Coordinator’s Manual - https://www.fema.gov/sites/default/files/documents/fema_community-
rating-system_coordinators-manual_2017.pdf
CRS Coordinator’s Manual Addendum -
https://www.fema.gov/sites/default/files/documents/fema_community-rating-system_coordinator-
manual_addendum-2021.pdf
Delaware Substantial Improvement/Substantial Damage Guidance -
http://www.dnrec.delaware.gov/swc/Shoreline/Documents/Delaware-SI-SD-Guidance.pdf
FEMA 480 – National Flood Insurance Program Floodplain Management Requirements -
https://www.tn.gov/content/dam/tn/tema/documents/national-flood-
insurance/FEMA_480_Complete_reduced_v7.pdf
FEMA F-687 National Flood Insurance Program Claims Handbook -
https://www.fema.gov/sites/default/files/2020-05/FINAL_ClaimsHandbook_10252017.pdf
FEMA Increased Cost of Compliance Fact Sheet – https://www.fema.gov/sites/default/files/2020-
08/fema_increased-cost-of-compliance_fact-sheet.pdf
FEMA Policy FP 204-079-01 Building Code and Floodplain Management Administration and Enforcement -
https://www.fema.gov/sites/default/files/2020-10/fema_building-dode-floodplain-management-
ddministration-enforcement-policy_drra-1206_signed_10-15-2020.pdf
FEMA Publication 213 - Answers to Questions about Substantially Damaged Buildings.
https://www.fema.gov/sites/default/files/2020-07/fema_p213_08232018.pdf
FEMA Substantial Damage Estimator and Field Workbook -
https://www.fema.gov/sites/default/files/2020-07/sde_3.0_user_manual_field_workbook_0.pdf
FEMA Substantial Improvement/Substantial Damage Desk Reference -
https://www.fema.gov/sites/default/files/2020-07/fema_nfip_substantial-improvement-substantial-
damage-desk-reference.pdf
Florida Post Disaster Tool Kit for Floodplain Administrator’s –
https://portal.floridadisaster.org/mitigation/SFMP/External/Community%20Resources/Floodplain%20Ad
ministrators%20Post-Disaster%20Toolkit/Florida%20Post-
Disaster%20Tool%20Kit%20for%20Floodplain%20Administrators.pdf
Hazard Mitigation Assistance Guidance - https://www.fema.gov/sites/default/files/2020-
07/fy15_HMA_Guidance.pdf
Kansas Disaster Damage Assessment Packet - https://agriculture.ks.gov/docs/default-source/dwr-
floodplains/2018-flood-damage-assessment-packet_sde.pdf?sfvrsn=583e8ac1_0
North Carolina Department of Public Safety NFIP Flood Damage Assessment Package -
https://flood.nc.gov/NCFLOOD_BUCKET/NFIP/NC_Post_Flood.docx
Version 09.28.2022
Procurement Guidance for Recipients and Subrecipients Under 2 C.F.R PART 200 (Uniform Rules) -
https://www.fema.gov/sites/default/files/2020-07/fema_procurement-under-grants-field-manual-
supplement_1.pdf
Public Assistance Program and Policy Guide FP 104-009-2 -
https://www.fema.gov/sites/default/files/2020-06/fema_public-assistance-program-and-policy-
guide_v4_6-1-2020.pdf
State of Illinois Flood Damage Assessment Packet -
https://www2.illinois.gov/dnr/WaterResources/Documents/IL_Damage_Assess_Packet_%20March_2020
%20%281%29.pdf
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APPENDIX 2 – SUBSTANTIAL DAMAGE AND IMPROVEMENT
DETERMINATIONS
Below is an example table for describing previous substantial damage determinations. If your community
uses a tracking system or database, please export the following information and include the table in this
section. If this document is being shared with local officials or publicly, make sure that it does not contain
Personally Identifiable Information (PII).
Substantial Damage Determinations
Address
Building
Type
Flood
Zone
SD or
SI?
Date of
Determination
Date to
Comply?
Compliant?
(Y/N)
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APPENDIX 3 – LIST AND DATA OF PROPERTIES IN SFHA
Note: Include table here to list either: 1) all buildings in the special flood hazard area, 2) properties suspected
to be below BFE, 3) RL structures, 4) Properties with prior SD determinations, or 5) building which could
meets cumulative SD. If your community uses a tracking system or database, please export the following
information and include the table in this section.
If this document is being shared with local officials or publicly, make sure that it does not contain Personally
Identifiable Information (PII).
The only data required for this credit is as follows:
•
Property address or PIN,
•
Building type (residential/non-residential),
•
Foundation type, and the number of stories,
•
Square footage,
•
Fair market value of the building (if available)
•
Lowest floor and/or first floor elevation (if available).
This database can be: A table in hard-copy or digital format (a handful of SD buildings), A larger stand-alone
spreadsheet (more at-risk structures), or a GIS layer or database.
Note: If your community is going for the SDP2 credit, this table should include all the fields from the
Substantial Damage Estimator Tool, listed in this table taken from the Substantial Damage Estimator User
Manual:
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This is especially important if you will be using a different software to prepopulate the SDE for the SDP2
Credit. You will need to export and provide a table with all of this data, explain any data missing from fields,
import it into the SDE tool, and make sure the properties match the list of properties made in step 1.
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APPENDIX 4 – Exported Maps of Structures in the SFHA
Please include exported maps of structures in the SFHA.
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APPENDIX 5 – Letters to Property Owners
Appendix 5 Contents:
•
Letter Prior to a Disaster
•
Sample Notice for Property Owners, Contractors, and Design Professionals
•
Requirements for Applications for Permits for Substantial Improvements and Repair of
Substantial Damage
•
Costs for Substantial Improvements and Repair of Substantial Damage
•
Owner’s Affidavit
•
Contractor’s Affidavit
•
Sample Letter to Notify Property Owners of a Determination That Work Constitutes Substantial
Improvement
•
Sample Letter to Notify Property Owners of a Determination That Work Constitutes Repair of
Substantial Damage
•
Sample Letter to Notify Property Owners of a Determination That Work Does NOT Constitute
Repair of Substantial Damage
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Letter Prior to a Disaster
Insert a letter using your community’s letterhead with signature blocks of Mayor, FPA, or whoever
appropriate.
[Community Letterhead]
Date
TO:
Property Owners, Contractors, and Design Professionals
Address
FROM:
Local Official
Address
SUBJECT:
Damages Expected from [upcoming disaster]
Dear [Name],
[Disaster type, name if known] is likely to result in significant damages to structures due to [descriptor of
disaster, i.e. coastal and inland flooding, wind damage, etc.] in [Community Name]. Residents and business
owners are understandably anxious to repair damaged building components after the storm. Municipalities
are already burdened with the necessity to make sure that structures are safe.
Rebuilding requirements after a flood or any other disaster must also consider the flood protection
requirements contained in [Community Name]’s Flood Damage Prevention Ordinance that was passed as
a condition of participation in the National Flood Insurance Program. These requirements also coordinate
with the New Jersey Flood Hazard Area Control Act, and the Uniform Construction Code.
A primary goal of the National Flood Insurance Program is to break the damage – rebuild – damage cycle
by requiring all new, substantially improved, and substantially damaged structures within mapped flood
hazard areas to be constructed in a manner that is reasonably safe from flooding. That requires proper
building elevation and protection techniques. The definition of “substantial damage” is:
“Damage of any origin sustained by a structure whereby the cost of restoring the structure to its
before damaged condition would equal or exceed 50 [or lower number if in your flood damage
prevention ordinance] percent of the market value of the structure before the damage occurred.”
This definition applies whether or not actual repair work is performed. Additionally, since [Community
Name] tracks substantial damages and improvements cumulatively, this value is added to any previous cost
of improvement or damage that the building may have when calculating this percentage.
FEMA regulations (44 CFR 60.3) require new construction and substantially improved or damaged
structures within mapped flood hazard areas to meet specific floodplain development standards.
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The New Jersey Flood Hazard Area Control Act, Uniform Construction Code, and [Community Name]’s Flood
Damage Prevention Ordinance all require substantially damaged buildings in flood hazard areas to meet all
of the flood design requirements for new construction. The purpose of these requirements is to make sure
that damage is minimized when the next flood occurs.
It is the responsibility of [Community Name] as participant in the National Flood Insurance Program, and as
the enforcement agents for the Uniform Construction Code to determine if a damaged structure is in a
FEMA mapped flood hazard area and, if so, to determine if the structure has been substantially damaged.
If a structure has been substantially damaged, it must then be elevated to the Local Design Flood Elevation
required by our Flood Damage Prevention Ordinance.
The [community name] is requesting your cooperation to assist us with expediting the recovery of our
community from the impacts of [insert name of event]. As you should be aware, before we can issue
building permits for repair, reconstruction, or other improvements, we must inspect properties in the high-
risk flood zones shown on our flood maps that were damaged by wind, water, fallen trees, or other hazards
must be inspected before we can issue building permits for repair, reconstruction, or other improvements.
In accordance with the [community name] building code and our flood damage prevention regulations, we
must determine whether the damage meets the definition of “substantial damage.” The process we’ve
developed to achieve an efficient, orderly, and responsive permit review begins with damage inspections.
Therefore, please allow our staff, or staff from state, FEMA, or private contractors working on our behalf,
to access and inspect your damaged building. These authorized staff carry a “right of entry” document and
their agency identification. They must show you those documents before you let them access your
property.
The preliminary damage inspections are limited to evaluating the extent of damage to foundations, roofs,
windows and doors, siding, installed appliances, electrical and plumbing, heating and air conditioning, and
walls and floors. These inspections are required to assess the condition of the building and determine the
work required to repair the building to its pre-damaged condition. The period of inspections is limited to
daylight hours only, between [insert anticipated period of inspections]. Once we have inspected your
property and recorded the results in our database, we will send you a letter with the results and explain
any requirements that may apply.
We greatly appreciate your willingness to allow our community’s inspectors to assess the condition of your
property. This will help you and the community move forward as quickly as possible with the permitting
and repair of your building.
For further assistance on floodplain development requirements during this difficult time, or at any time,
please call your regional [Community Contact, FPA or other].
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Sample Notice for Property Owners, Contractors, and Design Professionals
[Community Letterhead]
Date
TO:
Property Owners, Contractors, and Design Professionals
Address
FROM:
Local Official
Address
SUBJECT:
Notice for Work on Existing Buildings in Special Flood Hazard Areas
Substantial Improvement / Substantial Damage Worksheets
The [community name] is requesting your cooperation to assist us with expediting the recovery of our
community from the impacts of [name of event]. As you should be aware, before we can issue building
permits for repair, reconstruction, or other improvements, we must inspect properties in the high-risk flood
zones shown on our flood maps that were damaged by wind, water, fallen trees, or other hazards must be
inspected before we can issue building permits for repair, reconstruction, or other improvements.
The [Community Name]’s floodplain management regulations and codes require the determination if
structures damaged in the Special Flood Hazard Areas (SFHAs) (regulated floodplains) constitute
“substantial damage”. If the structure is deemed substantially damaged, it may be required to have their
lowest floors elevated to the Local Design Flood Elevation (LDFE) which is calculated using the methodology
described in the Flood Damage Prevention Ordinance. It is important to note that all costs to repair a
substantially damaged building to its pre-damage condition must be identified.
Prior to applying for permits or beginning any work, [Community Name] will be conducting preliminary
damage inspections. Please allow our staff, or staff from state, FEMA, or private contractors working on
our behalf, to access and inspect your damaged building. These authorized staff carry a “right of entry”
document and their agency identification. They must show you those documents before you let them
access your property.
The preliminary damage inspections are limited to evaluating the extent of damage to foundations, roofs,
windows and doors, siding, installed appliances, electrical and plumbing, heating and air conditioning, and
walls and floors. These inspections are required to assess the condition of the building and determine the
work required to repair the building to its pre-damaged condition. The period of inspections is limited to
daylight hours only, between [insert anticipated period of inspections]. Once we have inspected your
property and recorded the results in our database, we will send you a letter with the results and explain
any requirements that may apply
There are several aspects that must be addressed to achieve compliance with the floodplain management
requirements. The requirements depend on several factors, including the flood zone at your property. The
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most significant compliance requirement is that the lowest floor, as defined in [Community Name]’s Flood
Damage Prevention Ordinance must be elevated to the Local Design Flood Elevation specified in our Flood
Damage Prevention Ordinance.
Our regulations define these terms:
Ensure that the definitions used match the definitions in your community’s flood damage prevention
ordinance.
Substantial damage - Damage of any origin sustained by a structure whereby the cost of restoring the
structure to its before damaged condition would equal or exceed 50 [or optional lower number] percent
of the market value of the structure before the damage occurred.
Substantial improvement – Any combination of reconstruction, rehabilitation, addition, or other
improvement including those considered ordinary maintenance and minor work of a structure taking place
over a number of [years] year period, the cumulative cost of which equals or exceeds fifty (50) [or optional
lower number] percent of the market value of the structure before the "start of construction" of the
improvement. The period of accumulation includes the first improvement or repair of each structure is
permanent subsequent to [date]. This term includes structures which have incurred "substantial damage,"
regardless of the actual repair work performed. The term does not, however, include either:
a) Any project for improvement of a structure to correct existing violations of State or local health,
sanitary or safety code specifications which have been identified by the local code enforcement
officer and which are the minimum necessary to assure safe living conditions; or
b) Any alteration of a "historic structure", provided that the alteration will not preclude the structure's
continued designation as a "historic structure.
To make the substantial damage determination, we compare the cost of the repairs to the market value of
the building (excluding land, accessory structures, and landscaping). If the resulting ratio equals or exceeds
50 percent [or lower threshold], the existing building must be brought into compliance with the floodplain
management requirements for new construction. If additional work is being completed in addition to the
repairs to bring the structure to its before damaged condition, this work is added to the cost of repairs and
may trigger the substantial damage threshold. Additionally, since [Community Name] tracks substantial
damages and improvements cumulatively, this value is added to any previous cost of improvement or
damage that the building may have when calculating this percentage.
Please note:
•
You must provide an estimate of the cost to perform the proposed improvements or repairs. If
your building has been damaged, the cost estimate must include all work required to repair the
building to its pre-damage condition. The cost estimate must include all labor and materials. If the
work will be done by a contractor, the contractor’s overhead and profit must be included. If the
Cost of Improvement or cost to Repair to Pre-Damage Condition
------------------------------------------------------------------------------------
≥
50% (or lower %)
Market Value of Building
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work will be done by the owner or volunteers, market rates must be used to estimate the cost of
materials and the value of labor. Attached to this notice is a list of costs that must be included and
costs that are excluded. After we review the cost estimate, we may require that it be broken down
to show all materials and labor estimates.
•
We will use the tax assessment value of your building as the estimate of the market value of the
building before the work is performed. If you feel that this is not an appropriate evaluation of your
structure’s market value, you must provide a market value appraisal of the building that is prepared
by a professional appraiser according to standard practices of the profession. We will review the
appraisal to determine that it accurately describes your building and does not include the value of
the land, accessory buildings, and landscaping.
If you have any questions regarding this information, please contact [Include FPA’s Contact information].
Attachments:
•
Requirements for Applications for Permits for Substantial Improvements and Repair of Substantial
Damage
•
Costs for Substantial Improvements and Repair of Substantial Damage
•
Owner’s Affidavit
•
Contractor’s Affidavit
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Requirements for Applications for Permits for Substantial Improvements and Repair of
Substantial Damage
Please contact _____________ if you have questions about the substantial improvement and substantial
damage requirements. Your building may have to be brought into compliance with the floodplain
management requirements for new construction.
Applications for permits to work on existing buildings that are located in Special Flood Hazard Areas must
include the following:
•
Current photographs of the exterior (front, rear, sides)
•
If your building has been damaged, include photographs of the interior and exterior; provide pre-
damage photos of the exterior, if available
•
Detailed description of the proposed improvement (rehabilitation, remodeling, addition, etc.) or
repairs
•
Cost estimate of the proposed improvement or the cost estimate to repair the damaged building
to its before-damage condition
•
Current elevation certificate or elevation survey
•
A deed restriction for any proposed enclosure that is greater than 6 feet in height that
•
A non-conversion agreement with inspection language if included in the ordinance or other zoning
rules.
•
A V zone Certificate signed and sealed by a New Jersey Licensed Architect or Engineer.
•
A Breakaway Wall Certification signed and sealed by a New Jersey Licensed Architect or Engineer.
•
(For non-residential structures proposed for floodproofing only) A Floodproofing Certification
signed and sealed by a New Jersey Licensed Architect or Engineer.
•
You may submit a market value appraisal prepared by a licensed professional appraiser If you
disagree with the most recent tax assessment value of the building
•
Owner’s affidavit (signed and dated)
•
Contractor’s affidavit (signed and dated)
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Costs for Substantial Improvements and Repair of Substantial Damage
Included Costs
Items that must be included in the costs of improvement or costs to repair are those that are directly
associated with the building. The following list of costs that must be included is not intended to be
exhaustive, but characterizes the types of costs that must be included:
•
Materials and labor, including the estimated value of donated or discounted materials and owner
or volunteered labor
•
Site preparation related to the improvement or repair (foundation excavation, filling in basements)
•
Demolition and construction debris disposal
•
Labor and other costs associated with demolishing, moving, or altering building components to
accommodate improvements, additions, and making repairs
•
Costs associated with complying with any other regulation or code requirement that is triggered
by the work, including costs to comply with the requirements of the Americans with Disabilities Act
(ADA)
•
Costs associated with elevating a structure to an elevation that is lower than the BFE
•
Construction management and supervision
•
Contractor’s overhead and profit
•
Sales taxes on materials
•
Structural elements and exterior finishes, including:
o Foundations (e.g., spread or continuous foundation footings, perimeter walls, chainwalls,
pilings, columns, posts, etc.)
o Monolithic or other types of concrete slabs
o Bearing walls, tie beams, trusses
o Joists, beams, subflooring, framing, ceilings
o Interior non-bearing walls
o Exterior finishes (e.g., brick, stucco, siding, painting, and trim)
o Windows and exterior doors
o Roofing, gutters, and downspouts
o Hardware
o Attached decks and porches
•
Interior finish elements, including:
o Floor finishes (e.g., hardwood, ceramic, vinyl, linoleum, stone, and wall-to-wall carpet over
subflooring)
o Bathroom tiling and fixtures
o Wall finishes (e.g., drywall, paint, stucco, plaster, paneling, and marble)
o Built-in cabinets (e.g., kitchen, utility, entertainment, storage, and bathroom)
o Interior doors
o Interior finish carpentry
o Built-in bookcases and furniture
o Hardware
o Insulation
•
Utility and service equipment, including:
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o HVAC equipment
o Plumbing fixtures and piping
o Electrical wiring, outlets, and switches
o Light fixtures and ceiling fans
o Security systems
o Built-in appliances
o Central vacuum systems
o Water filtration, conditioning, and recirculation systems
Excluded Costs
Items that can be excluded are those that are not directly associated with the building. The following list
characterizes the types of costs that may be excluded:
•
Clean-up and trash removal
•
Costs to temporarily stabilize a building so that it is safe to enter to evaluate required repairs
•
Costs to obtain or prepare plans and specifications
•
Land survey costs
•
Permit fees and inspection fees
•
Carpeting and recarpeting installed over finished flooring such as wood or tiling
•
Outside improvements, including landscaping, irrigation, sidewalks, driveways, fences, yard lights,
swimming pools, pool enclosures, and detached accessory structures (e.g., garages, sheds, and
gazebos)
•
Costs required for the minimum necessary work to correct existing violations of health, safety, and
sanitary codes
•
Plug-in appliances such as washing machines, dryers, and stoves
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Owner’s Affidavit: Substantial Improvement or Repair of Substantial Damage
Property Address:
Parcel ID Number:
Owner’s Name:
Owner’s Address/Phone:
Contractor:
Contractor’s License Number:
Date of Contractor’s Estimate:
I hereby attest that the description included in the permit application for the work on the existing building
that is located at the property identified above is all of the work that will be done, including all
improvements, rehabilitation, remodeling, repairs, additions, and any other form of improvement. I further
attest that I requested the above-identified contractor to prepare a cost estimate for all of the work,
including the contractor’s overhead and profit. I acknowledge that if, during the course of construction, I
decide to add more work or to modify the work described, that the [insert community] will re-evaluate its
comparison of the cost of work to the market value of the building to determine if the work is substantial
improvement. Such re-evaluation may require revision of the permit and may subject the property to
additional requirements.
I also understand that I am subject to enforcement action and/or fines if inspection of the property reveals
that I have made or authorized repairs or improvements that were not included in the description of work
and the cost estimate for that work that were the basis for issuance of a permit.
Owner’s Signature:
Date:
Notarized:
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Contractor’s Affidavit: Substantial Improvement or Repair of Substantial Damage
Property Address:
Parcel ID Number:
Owner’s Name:
Owner’s Address/Phone:
Contractor:
Contractor’s License Number:
Date of Contractor’s Estimate:
I hereby attest that I have personally inspected the building located at the above-referenced address and
discussed the nature and extent of the work requested by the owner, including all improvements,
rehabilitation, remodeling, repairs, additions, and any other form of improvement.
At the request of the owner, I have prepared a cost estimate for all of the improvement work requested by
the owner and the cost estimate includes, at a minimum, the cost elements identified by the [community]
that are appropriate for the nature of the work. If the work is repair of damage, I have prepared a cost
estimate to repair the building to its pre-damage condition. I acknowledge that if, during the course of
construction, the owner requests more work or modification of the work described in the application, that
a revised cost estimate must be provided to the [insert community], which will re-evaluate its comparison
of the cost of work to the market value of the building to determine if the work is substantial improvement.
Such re-evaluation may require revision of the permit and may subject the property to additional
requirements.
I also understand that I am subject to enforcement action and/or fines if inspection of the property reveals
that I have made or authorized repairs or improvements that were not included in the description of work
and the cost estimate for that work that were the basis for issuance of a permit.
Owner’s Signature:
Date:
Notarized:
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Sample Letter to Notify Property Owners of a Determination That Work Constitutes Substantial
Improvement
[Community Letterhead]
Date
TO:
Property Owners
Address
FROM:
Local Official
Address
SUBJECT
Substantial Improvement Determination
Dear Property Owner:
We have reviewed your recent application for a permit to [describe proposed improvement/addition] your
existing home that is located in a mapped Special Flood Hazard Area. As required by our floodplain
management regulations and/or building code, we have determined that the proposed work constitutes
substantial improvement of the building. This determination is based on a comparison of the cost estimate
of the proposed work to the market value of the building (excluding land value). When the costs equal or
exceed 50 percent or lower percent of the market value of the building, the work is substantial
improvement. Additionally, since [Community Name] tracks substantial damages and improvements
cumulatively, this value is added to any previous cost of improvement or damage that the building may
have when calculating this percentage.
As a result of this determination, you are required to bring the building into compliance with the flood
damage-resistant provisions of [Community Name]’s Flood Damage Prevention Ordinance.
We are available to meet with you and your designated representative (architect/builder) at a time
convenient to you to discuss how to bring your home into compliance. There are several aspects that must
be addressed to achieve compliance. The most significant requirement is that the lowest floor must be
elevated to the Local Design Flood Elevation (LDFE) which is calculated using the methodology described in
the Flood Damage Prevention Ordinance. Please note that any enclosure greater than 6 feet in height can
only be used for parking, storage, and access and must be deed restricted to these uses. You may wish to
contact your insurance agent to understand how raising the lowest floor higher than the minimum required
elevation can reduce NFIP flood insurance premiums.
Please resubmit your permit application along with plans and specifications that incorporate compliance
measures. Construction activities that are undertaken without a proper permit are violations and may result
in stop work orders, fines, or other legal action.
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Sample Letter to Notify Property Owners of a Determination That Work Constitutes Repair of
Substantial Damage
[Community Letterhead]
Date
TO:
Property Owners
Address
FROM:
Local Official
Address
SUBJECT
Substantial Damage Determination
Dear Property Owner:
We have reviewed your recent application for a permit to repair your existing home that was damaged by
[insert cause of damage]. The building is located in a mapped Special Flood Hazard Area. As required by our
floodplain management regulations and/or building code, we have determined that the building has been
substantially damaged. This determination is based on a comparison of the cost estimate of the work
required to restore the building to its pre-damage condition to the market value of the building (excluding
land value). When the cost to repair equals or exceeds 50 percent or lower percentage of the market value
of the building, the work is repair of substantial damage. Additionally, since [Community Name] tracks
substantial damages and improvements cumulatively, this value is added to any previous cost of
improvement or damage that the building may have when calculating this percentage.
As a result of this determination, you are required to bring the building into compliance with the flood
damage-resistant provisions of [Community Name]’s Flood Damage Prevention Ordinance.
We are available to meet with you and your designated representative (architect/builder) at a time
convenient to you to discuss how to bring your home into compliance. There are several aspects that must
be addressed to achieve compliance. The most significant requirement is that the lowest floor must be
elevated to the Local Design Flood Elevation (LDFE) which is calculated using the methodology described in
the Flood Damage Prevention Ordinance. Please note that any enclosure greater than 6 feet in height can
only be used for parking, storage, and access and must be deed restricted to these uses. You may wish to
contact your insurance agent to understand how raising the lowest floor higher than the minimum required
elevation can reduce NFIP flood insurance premiums.
If the damage was caused by flooding and if you have a flood insurance policy from the National Flood
Insurance Program, you should contact your adjuster to discuss the Increased Cost of Compliance (ICC)
coverage. This coverage may provide a claim payment to help pay for work required to bring your home
into compliance. Your adjuster can explain that the ICC claim may also be used to pay certain costs
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associated with demolishing and rebuilding your home, or moving your home to a site outside of the
floodplain.
Please resubmit your permit application along with plans and specifications that incorporate compliance
measures. Construction activities that are undertaken without a proper permit are violations and may result
in stop works, fines, or other legal action.
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Sample Letter to Notify Property Owners of a Determination That Work Does NOT Constitute
Repair of Substantial Damage
[Community Letterhead]
Date
TO:
Property Owners
Address
FROM:
Local Official
Address
SUBJECT
Substantial Damage Determination
Dear Property Owner:
We have reviewed your recent application for a permit to repair your existing building that was damaged
by [insert cause of damage]. The building is located in a mapped Special Flood Hazard Area. As required by
our floodplain management regulations and/or building code, we have determined that the work proposed
to repair the damage does not constitute repair of substantial damage. This determination is based on a
comparison of the cost estimate of the work required to restore the building to its pre-damage condition
to the market value of the building.
Please be advised that we will make another determination if you elect to perform work other than what
is necessary to repair the damage, such as additional renovations or upgrades or building an addition.
Construction activities that are undertaken without a proper permit are violations and may result in stop
work orders, fines, or other legal action.
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APPENDIX 6 – Sample Press Release
RESIDENTS IN [Community Name] WITH DISASTER DAMAGE REMINDED OF PERMIT
REQUIREMENTS
This will need to be adjusted depending on the situation after the disaster. Remove any language that is
not applicable and add anything important that is missing. Work with the community public information
officer to finalize language.
Residents of [Community Name], hopefully this message finds you and your family out of harms way. This
press release is intended to provide information useful to all community members.
Firstly, community members should be aware of the following safety hazards [fill in safety hazards here].
Additionally, there is a [County Name] curfew in effect after [time].
The following resources are available to those in need as far as resources, shelters and food. [Location] has
been set up as a temporary shelter. Food will be provide at [location] during the hours of [times].
The following are updates for utilities. Electricity is still out, and the [power company] is doing all they can
to restore power. It can be expected to be restored [anticipated time if available, if not indicate it is still
unknown]. The drinking water is currently [safe/unsafe] for consumption [if unsafe indicate when will be
restored if known].
As property owners in [Community Name] contemplate clean up and repairs following recent [disaster],
the [Floodplain Administrators and Construction Official’s Offices] is reminding residents to obtaining local
permits before repairing or rebuilding flood-damaged structures.
The permits are required as part of local government participation in the National Flood Insurance Program,
providing eligibility for flood insurance, flood disaster assistance, state and federal grants and loans, and
buyout funds for flood-prone property.
Local floodplain management ordinances require that permits be obtained for any construction or
development activity in a floodplain area, including the repair or reconstruction of structures damaged by
a disaster.
Special conditions apply to substantially damaged buildings - those in which the total cost of repairs is [50
percent or more, update to reflect your community’s ordinance] of the structure’s pre-disaster market
value. If a building is found to be substantially damaged, regulations require that repairs not begin until
compliance with the local floodplain ordinance is demonstrated and will have the same building
requirements as new construction. In some cases, that may require repairs that include elevating or flood-
proofing the structure to reduce the potential for future flood damage.
The cost to repair must be calculated for full repair to "pre-damaged" condition, even if the owner elects
to do fewer repairs. The total cost to repair includes structural and finish materials as well as labor. If labor
and materials have been donated, they must still be assigned a value. If local building codes require the
structure to be repaired according to certain standards, these additional costs must be included in the full
repair cost for the structure.
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If you are filing a flood insurance claim, you need to report your losses to your insurance agent or company.
An adjuster will be assigned to estimate your damages and advise you how to prepare “Proof of Loss”
documentation. Adjusters may authorize advance partial payments to help owners start making repairs.
After the adjuster and owner agree on the damage estimate, the adjuster sends documentation to the
owner’s insurance company and the claim is settled (paid), unless the claim is denied by FEMA. Often times
NFIP claims can be paid quickly and ahead of a community’s effort to determine building permit
requirements. Makes sure you acquire the necessary permits for any work performed to avoid violating
the building code and Flood Damage Prevention Ordinance. The National Flood Insurance Program Claims
Handbook
can
be
found
here:
https://www.fema.gov/sites/default/files/2020-
05/FINAL_ClaimsHandbook_10252017.pdf
Information on how to start your claim can be found here: https://www.fema.gov/flood-
insurance/resources-practitioners/file-your-claim
If you disagree with your insurance clam, you can file an appeal with your insurance company. The
policyholder must submit the appeal within 60 days after the date of the insurance company’s written
denial
letter.
Information
on
this
process
can
be
found
here:
https://www.fema.gov/sites/default/files/2020-09/fema_appealing-flood-insurance-claim-en_fact-
sheet_jun2020.pdf
State and federal assistance may be available to property owners to reduce the chances of future flood
damage. Mitigation assistance may cover costs of relocation, or for elevating or purchasing flood-damaged
structures. If damage is caused by a flood, flood insurance may also provide up to $30,000 to protect a
structure from future flooding through a claims process known as ICC (Increased Cost of Compliance). The
property owner must have had NFIP flood insurance prior to the flood event for ICC to become available.
Property owners and residents with [disaster name]-damaged buildings should contact [local building and
zoning administrator] for more information on repair and reconstruction permits.
Any other questions or concerns can be directed to [contact information].
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APPENDIX 7 – SAMPLE NOTICES
Appendix 7 Contents:
•
Door Hanger Example
•
Notice of Damage and Permits Required
•
Notice of Occupancy
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Door Hanger Example
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Notice of Damage and Permits Required
Add or adjust language to be fitting for your community. Add a community seal if desired.
NOTICE!
Your structure is located in a floodplain and was
damaged by [Event name/type].
A damage assessment must be conducted by
[Community Name].
Before occupying this building or beginning any
repairs you must call the [contact, FPA,
permitting office] to schedule an inspection.
They can be reached at the following contact
information [contact].
Failure to obtain reconstruction approval may
result in a Stop Work Order.
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Notice of Occupancy
Add or adjust language to be fitting for your community. Add a community seal if desired.
UNSAFE STRUCTURE
NOTICE!
This structure has been deemed unsafe for
human occupancy.
No individual is to occupy this building until the
structure is rendered safe and secure.
Before occupying this building or beginning any
repairs you must call the [contact, FPA,
permitting office].
They can be reached at the following contact
information [contact].
Failure to obtain reconstruction approval may
result in a Stop Work Order.
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APPENDIX 8 – FIELD WORKSHEET FOR SUBSTANTIAL DAMAGE
ESTIMATES AND GUIDANCE FOR ESTIMATING PERCENT DAMAGE FOR
RESIDENTIAL AND NON-RESIDENTIAL STRUCTURES
Appendix 8 Contents:
•
Blank SDE Damage Inspection Worksheets – Single, Town, or Row House or Manufactured House
•
Blank SDE Damage Inspection Worksheets – Non-Residential Structures
•
Checklist 1 – Post-Disaster Planning
•
Checklist 2 – Field Preparations
•
Photo Log
•
Guidance for Estimating Percent Damage for Residential Structures
•
Guidance for Estimating Percent Damage for Non-Residential Structure
Source: FEMA P-784 - Substantial Damage Estimator User Manual and Field Workbook
https://www.fema.gov/sites/default/files/2020-07/sde_3.0_user_manual_field_workbook_0.pdf
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Blank SDE Damage Inspection Worksheets – Single, Town, or Row House or Manufactured House
Residential
SDE DAMAGE INSPECTION WORKSHEET
Single-Family, Town or Row House (Site Built Residences), or Manufactured House
Address:______________________________________________________________________________
SDE ADDRESS Tab
Subdivision / Community Information
Subdivision___________________________________________ Parcel Number: ___________________
Lot Number: _____________ Elevation of Lowest Floor: _________________ Datum: ________________
Community Information
NFIP Community ID: ___________________ NFIP Community Name: _____________________________
Latitude: __________________________________ Longitude: __________________________________
Building Address
Owner First Name: ___________________________ Owner Last Name: __________________________
Street Address: ________________________________________________________________________
City: _________________________________________________ State: __________________________
County/Parish: _________________________________________ Zip: ____________________________
Phone: ___________________________________ Cell Phone: __________________________________
Mailing Address
Check here if same as building address: ________
Owner First Name: ___________________________ Owner Last Name: __________________________
Street Address: ________________________________________________________________________
City: _________________________________________________ State: __________________________
County/Parish: _________________________________________ Zip: ____________________________
Phone: ___________________________________ Cell Phone: __________________________________
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SDE STRUCTURE / DAMAGE / NFIP INFO Tab
Structure Attributes / Information
Residence Type:
_____Single Family _____Town or Row House _____Manufactured House
Foundation:
_____Continuous Wall w/Slab (Standard) _____Basement _____Crawlspace
_____Piles _____Slab-on-Grade _____Piers and Posts
Superstructure:
_____Stud-Framed (Standard) _____Common Brick _____ICF _____Masonry
Roof Covering:
_____Shingles – Asphalt, Wood (Standard) _____Clay Tile
_____Standing Seam (Metal) _____Slate
Exterior Finish:
_____Siding or Stucco (Standard) _____Brick Veneer _____EIFS
_____None – common brick, structural
HVAC System:
_____Heating and/or Cooling _____None
Story:
_____One Story (Standard) _____Two or More Stories
Structure Information
Year of Construction: _________________________
Quality of Initial Construction: _____Low _____Budget _____Average _____Good _____Excellent
Residence Information (if needed): ________________________________________________________
_____________________________________________________________________________________
_____________________________________________________________________________________
Inspector / Damage Information
Inspector’s Name: __________________________________ Inspector’s Phone: ____________________
Date of Inspection (mm/dd/yyyy): _________________________________________________________
Date Damage Occurred (mm/dd/yyyy): _____________________________________________________
Cause of Damage:
_____Fire _____Flood _____Flood and Wind _____Seismic _____Wind
_____Other
Cause of Damage (if “Other” is selected):________________________________
_________________________________________________________________
_________________________________________________________________
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SDE STRUCTURE / DAMAGE / NFIP INFO Tab
Damage Undetermined: ______ (check here and check the reason below):
_____ No Physical Damage Sustained _____ Vacant / Property _____ Resident Refused Inspection
_____ Address Does Not Exist _____ Other (Explain)
_____________________________________________________________________________________
_____________________________________________________________________________________
_____________________________________________________________________________________
Duration of Flood: ____________________ Hours ______________________Days
Depth of Flood Above Ground (estimated to nearest 0.5 foot):
Depth of Flood Above Lowest Floor (estimated to nearest 0.5 foot):
NFIP / Community Information
FIRM Panel Number: ___________ Suffix: ____________ Date of FIRM Panel (mm/dd/yyyy): __________
FIRM Zone: _____________________ Base Flood Elevation: ____________________________
Regulatory Floodway: _____Yes _____No _____Possible
Community Information (if needed): _______________________________________________________
_____________________________________________________________________________________
_____________________________________________________________________________________
_____________________________________________________________________________________
_____________________________________________________________________________________
_____________________________________________________________________________________
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COST Tab
Select appropriate diagram of structure footprint and enter structure dimensions and the number of
stories:
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COST Tab
Square Footage
Base Cost per Sq Ft.: ________________________ Total Square Footage: _________________________
Geographic Adjustment: ________________________
Cost Adjustments
Single-Family House
Quantity
Units
Unit Cost
Item Cost
Roofing
Sq. Ft.
Heating/Cooling
Each
Appliances
Each
Fireplaces
Each
Porch/Breezeways
Sq. Ft.
Garage
Sq. Ft.
Manufactured House
Quantity
Units
Unit Cost
Item Cost
Expando
Sq. Ft.
Carport
Sq. Ft.
Open Porch
Sq. Ft.
Enclosed Porch
Sq. Ft.
Decks
Each
Skirting
Sq. Ft.
Fireplaces
Each
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COST Tab
Additional Cost Adjustments
Adjustments
Quantity
Unit Cost
Item Cost
Cost Data Reference (source or name): _____________________________________________________
______________________________________________________________________________
______________________________________________________________________________
Cost Data Date: _________________________________________________________________
Note: The computed Actual Cash Value (ACV) for the structure will be calculated once the square footage,
base cost, cost adjustments, costs add-ons, and depreciation percentage are entered into the SDE tool.
Depreciation Rating:
_____1. Very Poor Condition _____2. Requires Extensive Repairs _____3. Requires Some Repairs
_____4. Average Condition _____5. Above Average Condition _____6. Excellent Condition _____7. Other
Depreciation Percentage (if ‘Other’ selected for Depreciation Rating): _____________________________
Depreciation Explanation (if ‘Other’ selected for Depreciation Rating): ____________________________
_____________________________________________________________________________________
______________________________________________________________________________
______________________________________________________________________________
______________________________________________________________________________
______________________________________________________________________________
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ELEMENT PERCENTAGE Tab
Note: The inspector needs only enter the % Damaged data here. The data in the Element %, Item Cost,
and Damage Values columns will be populated based on the selected attributes once all the data are
entered into the SDE tool.
Residence Type: _____Single-Family (SF) House _____Townhouse _____Manufactured House (MH)
Item
% Damaged
Element %
Item Cost
Damage Values
Foundation (Not
required for MH)
Superstructure
Roof Covering
Exterior Finish
Interior Finish
Doors and Windows
Cabinets and
Countertops
Flood Finish
Plumbing
Electrical
Appliances
HVAC
Skirting/Forms Piers
(MH Only)
SDE OUTPUT SUMMARY Tab – Optional User Entered Data
Professional Market Appraisal: ____________________________________________________________
Tax Assessed Value: _______________________ Tax Factor Adjustment: __________________________
Adjusted Tax Assessed Value: _____________________________________________________________
Contractor’s Estimate of Damage: _________________________________________________________
Community’s Estimate of Damage: ________________________________________________________
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Blank SDE Damage Inspection Worksheets – Non-Residential Structures
Non-Residential
SDE DAMAGE INSPECTION WORKSHEET
Address: _____________________________________________________________________________
SDE ADDRESS Tab
Subdivision / Community Information
Subdivision___________________________________________ Parcel Number: ___________________
Lot Number: _____________ Elevation of Lowest Floor: _________________ Datum: ________________
Community Information
NFIP Community ID: ___________________ NFIP Community Name: _____________________________
Latitude: __________________________________ Longitude: __________________________________
Building Address
Owner First Name: ___________________________ Owner Last Name: __________________________
Street Address: ________________________________________________________________________
City: _________________________________________________ State: __________________________
County/Parish: _________________________________________ Zip: ____________________________
Phone: ___________________________________ Cell Phone: __________________________________
Mailing Address
Check here if same as building address: ________
Owner First Name: ___________________________ Owner Last Name: __________________________
Street Address: ________________________________________________________________________
City: _________________________________________________ State: __________________________
County/Parish: _________________________________________ Zip: ____________________________
Phone: ___________________________________ Cell Phone: __________________________________
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SDE STRUCTURE / DAMAGE / NFIP INFO Tab
Structure Attributes / Information
Year of Construction: __________
Number of Stories: _____1 Story _____2 to 4 _____5 or more
Structure Use: _________________________________________________________________________
Sprinkler System: _____Yes _____No
Conveyance: _____Yes _____No
Quality of Initial Construction: _____Low _____Budget _____Average _____Good _____Excellent
Structure Information (if needed): _________________________________________________________
_____________________________________________________________________________________
_____________________________________________________________________________________
_____________________________________________________________________________________
Inspector / Damage Information
Inspector’s Name: ______________________________________________________________________
Inspector’s Phone: _____________________________________________________________________
Date of Inspection (mm/dd/yyyy): _________________________________________________________
Date Damage Occurred (mm/dd/yyyy): _____________________________________________________
Cause of Damage: _____Fire _____Flood _____Flood and Wind _____Seismic _____Wind _____Other
Cause of Damage (if ‘Other’ is selected): ______________________________________________
______________________________________________________________________________
Damage Undetermined: ______ (check here and check the reason below):
_____ No Physical Damage Sustained _____ Vacant / Property
_____ Resident Refused Inspection _____ Address Does Not Exist _____ Other (Explain)
_____________________________________________________________________________________
_____________________________________________________________________________________
_____________________________________________________________________________________
Duration of Flood: _______________________Hours _______________________Days
Depth of Flood Above Ground (estimated to nearest 0.5 foot): ___________________________________
Depth of Flood Above Lowest Floor (estimated to nearest 0.5 foot): ______________________________
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SDE STRUCTURE / DAMAGE / NFIP INFO Tab
NFIP / Community Information:
FIRM Panel Number: ___________ Suffix: ____________ Date of FIRM Panel (mm/dd/yyyy): __________
FIRM Zone: _____________________ Base Flood Elevation: ____________________________
Regulatory Floodway: _____Yes _____No _____Possible
Community Information (if needed): _______________________________________________________
_____________________________________________________________________________________
_____________________________________________________________________________________
_____________________________________________________________________________________
_____________________________________________________________________________________
_____________________________________________________________________________________
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COST Tab
Select appropriate diagram of structure footprint and enter structure dimensions and the number of
stories:
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COST Tab
Square Footage
Base Cost per Sq Ft.: ________________________ Total Square Footage: ________________________
Geographic Adjustment: ________________________
Cost Adjustments
Adjustments
Quantity
Units
Unit Cost
Item Cost
Additional Cost Adjustments
Adjustments
Quantity
Unit Cost
Item Cost
Cost Data Reference (source or name): _____________________________________________________
_____________________________________________________________________________________
Cost Data Date: ________________________________________________________________________
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Note: The computed Actual Cash Value (ACV) for the structure will be calculated once the square footage,
base cost, cost adjustments, costs add-ons, and depreciation percentage are entered into the SDE tool.
Depreciation Rating:
_____1. Very Poor Condition _____2. Requires Extensive Repairs _____3. Requires Some Repairs
_____4. Average Condition _____5. Above Average Condition _____6. Excellent Condition _____7. Other
Depreciation Percentage (if ‘Other’ selected for Depreciation Rating): _____________________________
Depreciation Explanation (if ‘Other’ selected for Depreciation Rating): ____________________________
_____________________________________________________________________________________
_____________________________________________________________________________________
ELEMENT PERCENTAGES Tab
Note: The inspector needs only enter the % Damaged data here. The data in the Element %, Item Cost,
and Damage Values columns will be populated based on the selected attributes once all the data are
entered into the SDE tool.
Item
% Damaged
Element %
Item Cost
Damage Values
Foundation
Superstructure
Roof Covering
Plumbing
Electrical
Interiors
HVAC
SDE OUTPUT SUMMARY Tab – Optional User Entered Data
Professional Market Appraisal: ____________________________________________________________
Tax Assessed Value: _______________________ Tax Factor Adjustment: __________________________
Adjusted Tax Assessed Value: _____________________________________________________________
Contractor’s Estimate of Damage: _________________________________________________________
Community’s Estimate of Damage: ________________________________________________________
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Checklist 1 – Post-Disaster Planning
#
Need
Completed Item
1.
Brief all elected officials as soon as possible after the event regarding
the NFIP requirements for Substantial Damage determinations.
Source:
•
FEMA P-758, Substantial Improvement/Substantial Damage
Desk Reference, Chapter 7 (May 2010)
2.
Select an SDE Manager.
Source:
•
FEMA P-784, SDE User Manual and Workbook, Section 7.1
(August 2017)
3.
Review NFIP requirements for Substantial Damage and Substantial
Improvement.
Sources:
•
NFIP Regulations
•
FEMA P-758, Substantial Improvement/Substantial Damage
Desk Reference (May 2010)
•
FEMA 213, Answers to Questions About Substantially
Damaged Buildings (May 1991)
4.
Review SDE tool and User Manual to understand the SDE data
requirements.
Sources:
•
FEMA P-784, SDE User Manual and Workbook, Sections 3 and
4 (August 2017)
•
FEMA SDE Best Practices (August 2017)
•
FEMA Substantial Damage Estimator Tool Frequently Asked
Questions
5.
Identify Flood Insurance Rate Maps (FIRMs) or other floodplain maps
to review the boundaries of the SFHA.
Data may include FIRMs, FBFMs, FIS reports, community maps
showing previously flooded areas, and flood studies by State or other
Federal agencies.
Source:
•
FEMA P-784, SDE User Manual and Workbook, Section 8.1
(August 2017)
•
Community NFIP coordinator
6.
Identify type, location, and community contacts for tax or GIS data for
structures within the SDE inventory area that are potentially
Substantially Damaged.
Any or all of the following data will be useful: owner name, building
address, type of house, non-residential building use, year of
construction, square footage, number of stories, adjusted building
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values, number of years since last tax adjustment, and dates of
additions or renovations.
Source:
•
FEMA P-784, SDE User Manual and Workbook, Section 8.1
(August 2017)
7.
Identify community street, address, or tax maps for delineating the
boundaries of the SFHA.
This will help delineate the maximum limits of the SDE inventory area
while also showing addresses or lot locations.
Source:
•
FEMA P-784, SDE User Manual and Workbook, Section 7
(August 2017)
8.
Transfer SFHA boundaries from floodplain map to a base map that
includes streets, addresses, or a tax map.
Using the effective FIRM for the community, transfer the SFHA
boundaries to a base map with named streets and either addresses or
lot boundary lines. This will delineate the maximum limits of the SDE
inventory to narrow the focus of the inspections while avoiding areas
outside the SFHA.
Source:
•
FEMA P-784, SDE User Manual and Workbook, Sections 8.1
and 9.3 (August 2017)
9.
Perform a curbside review of structures within the SDE inventory area.
This helps the SDE Manager understand the scope and extent of the
inventory area as well as the initial construction quality, size, and type
of structures that will require inspections.
Source:
•
FEMA P-784, SDE User Manual and Workbook, Sections 7.3
and 9.5 (August 2017)
10.
Identify the property and structure access procedures for locked or
unoccupied structures.
These procedures should be written and well defined; the elected
officials and community legal counsel should then review and approve
them to ensure that the procedures are legal and defensible. As a
minimum, these procedures should include guidance on
owner/resident interaction, and requirements for entering open
property and structures when owners/residents are not present or
when occupants are present but refuse entry to the structure or
property. In addition, inspectors with permission to enter a structure
need to verify that the structure is structurally stable and safe to
enter.
Source:
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•
FEMA P-784, SDE User Manual and Workbook, Sections 8.2
and 9.1 (August 2017)
11.
Pre-load available property data into the SDE tool.
These data must be cross-referenced to a FIRM, address, or tax map
so that the inspectors know which structure and property record are
being inspected. Once the data are uploaded into the SDE tool, it will
create property records. After the inspection is complete and the field
data are entered, the records become SDE assessments.
Source:
•
FEMA P-784, SDE User Manual and Workbook, Sections 3.7,
7.5, and 8.1 (August 2017)
12.
Identify the number and names of inspectors required for the
inventory and form the inspection teams.
The number of inspectors and inspection teams will determine the
potential daily rate of completed inspections and a target completion
date.
Source:
•
FEMA P-784, SDE User Manual and Workbook, Section 8.2
(August 2017)
13.
Identify inspection areas that may require permission or special
access.
Industrial parks, factories, private or gated subdivisions, islands,
airports, school campuses, and other areas may require permission or
other advance coordination to gain access to the property and
structures.
14.
Identify the proposed sequence of SDE inspections.
Decide which subdivisions, neighborhoods, or areas will be inspected
first, then next, and so on. The sequence will depend on the number
of inspectors, their availability during the inspection process, the
number of structures to inspect, and the proposed completion date of
the inspections. The sequence may be revised as issues arise due to
other post-disaster activities that may restrict or limit the inspection
teams.
Source:
•
FEMA P-784, SDE User Manual and Workbook, Section 8.2
(August 2017)
15.
Prepare a list of local contacts for all project personnel and local
agencies.
This list should include, as a minimum, the SDE Manager, a responsible
community official, inspectors, office staff, and the police, fire, and
emergency management contacts.
Source:
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•
FEMA P-784, SDE User Manual and Workbook, Section 8.1
(August 2017)
16.
Research, obtain, or develop base costs for determining reasonable
structure values for residential and non-residential structures in the
community.
Resources include industry-accepted cost-estimating guides, building
permit data, discussions with local contractors or realtors, adjusted tax
data, guidance from adjacent communities, or personal experience
with residential and nonresidential cost estimating.
Sources:
•
FEMA P-784, SDE User Manual and Workbook, Sections 3.11,
8.1, and 8.4 (August 2017)
17.
Prepare a Letter of Introduction on community letterhead.
The letter will be handed to occupants by the inspectors as they
prepare to enter a new property. This should include, as a minimum, a
brief discussion of the intent and scope of the SDE inspections, the
normal work hours and days, the option of the structure owner or
resident to refuse entry to the property or the structure, and the
name, telephone number, and e-mail address of the SDE Manager or
local official in charge of the SDE inventory.
Source:
•
FEMA P-784, SDE User Manual and Workbook, Appendix C
(August 2017)
18.
Make Substantial Damage determinations for structures located in the
SFHA.
Sources:
•
FEMA P-784, SDE User Manual and Workbook, Sections 3.11
and 9 (August 2017)
19.
After Substantial Damage determinations are complete, issue permits
for repair and reconstruction.
Source:
•
FEMA P-758, Substantial Improvement/Substantial Damage
Desk Reference, Chapter 7 (May 2010)
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Checklist 2 – Field Preparations
#
Need
Have
Item
1.
Flood maps such as FIRMs, FBFMs, FEMA Flood Recovery maps, or other
floodplain or flood risk maps
2.
Tax or address map with 100-year flood boundaries
3.
Route or area map showing proposed areas and sequence for data
collection
4.
Tax data, including structure owner name, address, and zip code, mailing
address and zip code, number of stories, and dimensions or habitable
square footage (if available)
5.
Copies of blank SDE Damage Inspection Worksheets
6.
Copies of blank photo logs (if needed)
7.
Photo ID badges for inspectors
8.
Letter of Introduction with community point of contact (name and
telephone number)
9.
Clip boards, pens/pencils, steno pad or notebook, highlighter
10.
100 ft tape measure (to obtain or verify structure dimensions)
11.
Address board and dry erase markers
12.
Hard hat, gloves, safety glasses and vest, steel-toe and steelshank shoes,
safety vest, and flashlight
13.
Cell phones or walkie-talkies
14.
Digital camera, primary and alternate memory cards, and extra batteries
15.
Verification that police, fire, and emergency management agencies have
been advised of SDE inspections
16.
Laptop computers or tablets with SDE tool installed and power cords
with plug adaptors for use and re-charging in field vehicles
17.
Rain or cold-weather gear
Procedures to review with inspectors prior to the start of data collection
#
Need
Have
Item
1.
Field safety procedures for dealing with extreme temperatures, wild
and domestic animals, driving, parking, and accidents
2.
SDE data collection and recording requirements
3.
Guidance for entering locked, occupied, or unoccupied structures
4.
Guidance on identifying initial construction quality for both residential
and non-residential structures
5.
SDE inspection procedures for residential structures
6.
SDE inspection procedures for non-residential structures
7.
Guidance on selecting the depreciation rating
8.
Data collection routes and sequence
9.
Guidelines for interaction with structure owners and occupants
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Photo Log
Team ID Name/Number: ________________________________ Date (mm/dd/yyyy): _______________
Memory
Stick No.
Photo No.
Address/Description
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APPENDIX 9 –HANDOUTS FOR PROPERTY OWNERS AND LOCAL
OFFICIALS
FEMA Help After a Disaster Brochure
https://www.fema.gov/sites/default/files/2020-08/fema_help-after-disaster_english_trifold.pdf
National Flood Insurance Program Factsheet
https://www.fema.gov/pdf/media/factsheets/2011/mit_natl_flood_ins.pdf
Increased Cost of Compliance Fact Sheet
https://www.fema.gov/sites/default/files/2020-08/fema_increased-cost-of-compliance_fact-sheet.pdf
Myths and Facts About Flood Insurance
https://www.fema.gov/es/blog/facts-and-myths-about-flood-insurance
Factsheet: Mold: Problems and Solutions
https://www.fema.gov/press-release/20201016/fact-sheet-mold-problems-and-solutions
After the Flood: Advice for Salvaging Damaged Family Treasures
https://www.fema.gov/sites/default/files/2020-06/Flood_FIMA_Fact_Sheet_advice_salvaging.pdf
The Benefits of Flood Insurance Versus Disaster Assistance
https://insurance.ky.gov/ppc/Documents/NFIP3.pdf
Flood Insurance 101 - Talking Points for Community Officials
https://www.santa-clarita.com/home/showdocument?id=11700
Examples from Past Disasters:
Fact Sheet – Rebuilding after Sandy
https://www.state.nj.us/dep/special/hurricane-sandy/docs/rebuilding-after-sandy-factsheet.pdf
Fact Sheet - NFIP “Substantial Damage” What does it mean?
https://www.fema.gov/news-release/20200220/fact-sheet-nfip-substantial-damage-what-does-it-mean-0
You got a Substantial Damage Determination Letter, Now what?
https://www.fema.gov/fact-sheet/you-got-substantial-damage-determination-letter-now-what
Cleaning Flooded Buildings – Hurricane Sandy Recovery Factsheet 1
https://www.fema.gov/sites/default/files/2020-08/sandy_factsheet1_cleaning_flooded_bldgs.pdf
Community Rating System
FEMA B573 – NFIP Community Rating System Brochure
https://www.fema.gov/sites/default/files/documents/fema_community-rating-system_local-guide-flood-
insurance-2018.pdf
Examples from other States
Key West Substantial Improvement Brochure
https://www.cityofkeywest-fl.gov/DocumentCenter/View/2322/Substantial-Improvement-Brochure
Kansas Local Elected Officials Mitigation Factsheet
https://www.agriculture.arkansas.gov/wp-
content/uploads/2020/05/Substantial_Damage_Fact_Sheets_Local_Elected_Officials.pdf
Montana DNRC Substantial Damage Fact Sheet
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http://dnrc.mt.gov/divisions/water/operations/floodplain-management/training/flood-
coordination/Substantial_Damage_BrochureFinal.pdf
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APPENDIX 10 – INTENT TO RAISE, DEMOLISH OR FLOODPROOF FORM
[Community Letterhead]
LETTER OF INTENT TO RAISE or DEMOLISH
Property Address:
Block:
Lot:
Owner’s Name:
Date of Substantial Damage/ Substantial Improvement (Circle One) Determination:
According to FEMA all structures substantially damaged by [disaster name/type] shall be raised, demolished
or floodproofed (floodproofing is only for non-residential structures) as soon as possible, keeping in mind
the six year eligibility of ICC funds. I intend to bring the structure into compliance, at the above-referenced
property, by [date] in order to comply with the [Community Name] Flood Damage Prevention Ordinance
and FEMA requirements. I understand that no improvements can be made to the structure, that the
structure can only be raised, floodproofed, or demolished and rebuilt and brought into compliance with
the [Community Name] Flood Damage Prevention Ordinance. I understand that failure to comply with the
required Floodplain regulations may result in penalties from [Community Name] and/or FEMA.
Signature:
Printed Name:
Notarized:
Version 09.28.2022
APPENDIX 11 – VARIANCE LANGUAGE FROM ORDINANCE
Double check the following language to make sure it is consistent with what is in your communities Flood
Damage Prevention Ordinance
SECTION 107 VARIANCES
107.1 General. The {body to hear variances} shall hear and decide requests for variances. The {body to
hear variances} shall base its determination on technical justifications submitted by applicants, the
considerations for issuance in Section 107.5, the conditions of issuance set forth in Section 107.6, and
the comments and recommendations of the Floodplain Administrator and, as applicable, the
Construction Official. The {body to hear variances} has the right to attach such conditions to variances
as it deems necessary to further the purposes and objectives of these regulations.
107.2 Historic structures. A variance is authorized to be issued for the repair or rehabilitation of a
historic structure upon a determination that the proposed repair or rehabilitation will not preclude the
structure's continued designation as a historic structure, the historic structure is eligible for the
exception in the section in Chapter 12 of the Existing Building Code applicable to historic structures in
flood hazard areas, and the variance is the minimum necessary to preserve the historic character and
design of the structure.
107.3 Functionally dependent uses. A variance is authorized to be issued for the construction or
substantial improvement necessary for the conduct of a functionally dependent use provided the
variance is the minimum necessary to allow the construction or substantial improvement, and that all
due consideration has been given to use of methods and materials that minimize flood damage during
the base flood and create no additional threats to public safety.
107.4 Restrictions in floodways. A variance shall not be issued for any proposed development in a
floodway when any increase in flood levels would result during the base flood discharge, as evidenced
by the applicable analysis and certification required in Section 105.3(1) of these regulations.
107.5 Considerations. In reviewing requests for variances, all technical evaluations, all relevant
factors, all other portions of these regulations, and the following shall be considered:
(1) The danger that materials and debris may be swept onto other lands resulting in further injury
or damage.
(2) The danger to life and property due to flooding or erosion damage.
(3) The susceptibility of the proposed development, including contents, to flood damage and the
effect of such damage on current and future owners.
(4) The importance of the services provided by the proposed development to the
community.
(5) The availability of alternate locations for the proposed development that are not subject to
flooding or erosion and the necessity of a waterfront location, where applicable.
(6) The compatibility of the proposed development with existing and anticipated
development.
(7) The relationship of the proposed development to the comprehensive plan and floodplain
management program for that area.
(8) The safety of access to the property in times of flood for ordinary and emergency
vehicles.
(9) The expected heights, velocity, duration, rate of rise and debris and sediment transport of the
floodwater and the effects of wave action, where applicable, expected at the site.
(10) The costs of providing governmental services during and after flood conditions including
maintenance and repair of public utilities and facilities such as sewer, gas, electrical and water
systems, streets, and bridges.
107.6 Conditions for issuance. Variances shall only be issued upon:
(1) Submission by the applicant of a showing of good and sufficient cause that the unique
characteristics of the size, configuration or topography of the site limit compliance with any
provision of these regulations or renders the elevation standards of the building code
inappropriate.
Version 09.28.2022
(2) A determination that failure to grant the variance would result in exceptional hardship due
to the physical characteristics of the land that render the lot undevelopable.
(3) A determination that the granting of a variance will not result in increased flood heights,
additional threats to public safety, extraordinary public expense, nor create nuisances, cause
fraud on or victimization of the public or conflict with existing local laws or ordinances.
(4) A determination that the variance is the minimum necessary, considering the flood
hazard, to afford relief.
(5) Notification to the applicant in writing over the signature of the Floodplain Administrator that
the issuance of a variance to construct a structure below the base flood level will result in
increased premium rates for flood insurance up to amounts as high as $25 for
$100 of insurance coverage, and that such construction below the base flood level increases risks
to life and property.
Version 09.28.2022
APPENDIX 12 – [COMMUNITY NAME] MUTUAL AID/SHARED SERVICES
AGREEMENTS
Include any mutual aid agreements that your community has here, or the location of where they can be
easily found.
Version 09.28.2022
APPENDIX 13 – [COMMUNITY NAME] MINIMUM PROCUREMENT
THRESHOLDS
Confirm and update this table if DRRA contractor procurement is anticipated below the minimum
procurement thresholds.
Version 09.28.2022
THE NEW JERSEY DEPARTMENT OF ENVIRONMENTAL PROTECTION IS PROVIDING THIS SPREADSHEET FOR INFORMATIONAL PURPOSES ONLY
FEDERAL AND STATE REGULATIONS MAY CHANGE AND TREASURY CIRCULARS MAY BE AMENDED OR RETRACTED
ALL POLICIES AND REGULATIONS MUST BE CONFIRMED BY ANY CONTRACTING ENTITY BEFORE ENTERING INTO NEGOTIATIONS FOR ANY CONTRACT
Procurement Types
Description
Bid Threshold
Amounts
Conditions
Guidance Documents /
Regulations
Force Account Labor
Communities, including State entities, can
submit for reimbursement of hourly employees
and equipment costs. Reimbursement for full
time employees may be possible provided that
the work project is not considered to be a part
of their regular work duties.
N/A
Force Account Labor includes any labor hired directly by the
community. It is not subject to Davis Bacon and Related Acts
regulations. Employees must be paid fairly under the Fair Labor
Standards Act.
Public Assistance Program
and Policy Guide Version 4
(fema.gov)
Pages 68-71.
State Bid Threshold –
Local Governments
with no Qualified
Purchasing Agent
Contracts below this amount can be awarded
by communities without advertising but
through a competitive contracting process.
Contracts above this amount must have an
open and competitive process.
$17,500
Threshold for communities without a Qualified Purchasing Agent
Note that 40:11-4 3k. may allow competitive contracting in lieu of
public bidding for procurement of specialized goods and services that
exceed the bid threshold for the following purposes:
k. The operation, management or administration of other services,
with the approval of the Director of the Division of Local Government
Service (NOTE: This would need a determination from DCA DLGS that
this type of contracting is necessary to maximize FEMA funds during
the emergency period)
N.J.S.A. 40A:11-3 and
Local Finance Notice
2011-15 NJ Department
of Community Affairs
State Bid Threshold –
Local Governments
with a Qualified
Purchasing Agent
Contracts below this amount can be awarded
by communities without advertising but
through a competitive contracting process if
they have a Qualified Purchasing Agent.
Contracts above this amount must have an
open and competitive process.
$44,000
Threshold for communities with a Qualified Purchasing Agent
Note that 40:11-4 3k. may allow competitive contracting in lieu of
public bidding for procurement of specialized goods and services that
exceed the bid threshold for the following purposes:
k. The operation, management or administration of other services,
with the approval of the Director of the Division of Local Government
Service (NOTE: This would need a determination from DCA DLGS that
N.J.S.A. 40A:11-3 NJ
Division of Purchase and
Property - Adjustment to
Public Bidding Threshold
(state.nj.us)
Version 09.28.2022
this type of contracting is necessary to maximize FEMA funds during
the emergency period)
Bids by Local
Governments above
the State Bid
Threshold
Contracts above the bid threshold (dependent
upon whether a Qualified Purchasing Agent is
employed by a community)
Above
$17,500 (no
QPA) or Above
$44,000 (with
QPA)
40:11-4 Contracts required to be advertised...(when over the
$17.5K/$44K bid threshold)
a. Every contract awarded by the contracting agent for the provision or
performance of any goods or services, the cost of which in the
aggregate exceeds the bid threshold, shall be awarded only by
resolution of the governing body of the contracting unit to the lowest
responsible bidder after public advertising for bids and bidding
therefor, except as is provided otherwise in this act or specifically by
any other law. The governing body of a contracting unit may, by
resolution approved by a majority of the governing body and subject
to subsections b. and c. of this section, disqualify a bidder who would
otherwise be determined to be the lowest responsible bidder, if the
governing body finds that it has had prior negative experience with the
bidder.
N.J.S.A. 40:11-4 Local
Public Contracts Law
State Agency and
Authority Bid
Thresholds and Policy
The State Treasurer specifies the Delegated
Purchasing AuthorityDPA) Thresholds, which
may vary by entity (see link).
Additionally, in a Governor-declared disaster,
thresholds may be increased if certain
conditions are met. However, if the entity is
seeking reimbursement of Federal funds under
the Stafford Act, compliance with Federal
procurement regulations is necessary to ensure
full reimbursement as this threshold is set at
$250K and is below the maximum $1M
threshold set by the State Treasurer. For
example, while the State may waive bid
advertisement, for a contract estimated to cost
Bid Threshold
Amount
Varies by
Agency (see
link)
Effective January 18, 2022, the Delegated Purchasing Authority (DPA)
threshold was increased from $44,000 to $150,000 for goods and
services for most entities (see link in next column). In the event the
Governor declares an emergency through Executive Order, the
Department of Treasury’s Director of Division of Purchase and
Property (DPP) may increase the DPA threshold to $1,000,000 for
necessary supplies and services related to the declared emergency,
and purchased during the declared emergency period. A DPA purchase
is defined as a transaction that cannot be procured through one of the
following four primary contracting methods:
1) a current State contract, including contracts acquired through
Waivers of Advertising;
2) the State Distribution and Support Services Center (“DSS”);
3) the Bureau of State Use Industries (“DEPTCOR”); or
4) the Central Non-profit Agency CNA/ACCSES NJ (“CNA").
State Bid Thresholds -
NJ Division of Purchase
and Property - Adjustment
to Public Bidding
Threshold (state.nj.us)
Governor-Declared
Emergency Bid Policy –
OMB Circular 22-09-DPP
CIRCULAR (nj.gov)
Version 09.28.2022
$300K, the Federal government requirement to
advertise would apply because the Federal
threshold for advertisement is set at $250K.
AND is within an agency’s current DPA threshold
Federal Micro-
purchase
Micro-purchases may be awarded without
soliciting competitive price or rate quotations if
the non-State entity considers the price to be
reasonable based on research, experience,
purchase history or other information and
documents it files accordingly. All New Jersey
Communities would be able to use the Federal
Micro-Purchase regulations up to $10,000
provided they use competitive contracting in
accordance with Local Public Contracts law and
ensure that they follow any State and local
thresholds. State entities must follow
applicable State procurement thresholds and
Office of Management and Budget (OMB)
Circulars.
$10,000
§ 200.67 Micro-purchase.
Micro-purchase means a purchase of supplies or services using
simplified acquisition procedures, the aggregate amount of which does
not exceed the micro-purchase threshold. Micro-purchase procedures
comprise a subset of a non-Federal entity's small purchase procedures.
The non-Federal entity uses such procedures in order to expedite the
completion of its lowest-dollar small purchase transactions and
minimize the associated administrative burden and cost. The micro-
purchase threshold is set by the Federal Acquisition Regulation at 48
CFR Subpart 2.1 (Definitions). It recently was raised to $10,000 to
adjust for inflation.
2 CFR 200.67
Purchasing Under a FEMA
Award: OMB Revisions
2020-17468.pdf
(govinfo.gov)
Local Government and
State Agency Increases
in the Micro-Purchase
Threshold
Self-Certification must be done annually and
documentation must be made available. A
justification is necessary. This would increase
the federal threshold from $10K to $17.5K for
communities without a QPA and from $10K -
$44K for local governments with a QPA. To
increase the amount to the full $50K, DCA
Division of Local Government Services (DLGS)
approval would have to be obtained and the
community would have to follow a competitive
contracting form of procurement and
document all decision-making. Non-state
entities must also ensure that they follow any
applicable State or local thresholds and keep
documentation of any threshold increase by
DLGS.
Up to $50,000
2 CFR 320(a)1iv Non-Federal entity increase to the micro-purchase
threshold up to $50,000. Non-Federal entities may establish a
threshold higher than the micro-purchase threshold identified in the
FAR in accordance with the requirements of this section. The non-
Federal entity may self-certify a threshold up to $50,000 on an annual
basis and must maintain documentation to be made available to the
Federal awarding agency and auditors in accordance with § 200.334.
The self-certification must include a justification, clear identification of
the threshold, and supporting documentation of any of the following:
(A) A qualification as a low-risk auditee, in accordance with the
criteria in § 200.520 for the most recent audit;
(B) An annual internal institutional risk assessment to identify,
mitigate, and manage financial risks; or,
2 CFR 200.320(a)1iv
Purchasing Under a FEMA
Award: OMB Revisions
2020-17468.pdf
(govinfo.gov)
Version 09.28.2022
State entities must follow applicable State
procurement thresholds and Office of
Management and Budget (OMB) Circulars.
(C) For public institutions, a higher threshold consistent with
State law.
Federal Simplified
Acquisition Threshold
The simplified acquisition threshold has a
higher limit than is allowed by the Municipal
Public Contracts law. Contracts of this size
must be competitively bid in New Jersey unless
approval is given by DCA Division of Local
Government Services.
Federal Small Purchase requirements apply for
bids between $10,000 and $250,000 but
contracts over a community’s approved Local
Public Contracts Law bid threshold (either
$17.5K or $44K) must be advertised and
competitively bid. State entities must follow
applicable State procurement thresholds and
Office of Management and Budget (OMB)
Circulars.
$250,000.00
Federal Small Purchase Requirements - The procuring entity must get
rate quotations from an “adequate” number of qualified sources (not
defined, but generally more than one). No cost or price analysis is
required (see 2 CFR § 200.323(a)), and public notice is not
required. Price or rate quotations can be either verbal or written. The
community must send a request for quotes to potential vendors with a
detailed description of the services needed. Each quote should
include pricing information that allows the community to compare
costs across bidders and ensure cost reasonableness. Documentation
of quotes should be maintained by the town. Contract award should
be based on the lowest price from a responsible bidder who submits a
responsive bid/quote. Communities must follow all other federal
procurement requirements, including the competition requirements
set forth at 2 CFR 200.319. The firm that prepares the description of
services needed is not allowed to bid on the work.
2 CFR 200.320(b)
Federal Procurement
over $250,000
All contracts above $250K must be advertised
and competitively bid with a cost and price
analysis. Sealed bids or Proposals with a fixed
price (not to exceed) or cost-reimbursement
type contract. Non-competitive bids can only
be used in narrow circumstances. Contracts
over a community’s approved Local Public
Contracts Law bid threshold (either $17.5K or
$44K) must be advertised and competitively
bid. . State entities must follow applicable
State procurement thresholds and Office of
Management and Budget (OMB) Circulars. If
State entities are seeking reimbursement under
the Stafford Act, Federal requirements for
contracts in excess of $250K take precedence
Contracts
greater than
$250,000
2 CFR 320(b)
2 CFR 320(b)
Version 09.28.2022
even if the State OMB circular does not require
State-level compliance with regulations such as
bid advertisement and fair and open
competition.
Other Considerations:
Recordkeeping:
-
Force Account Labor – recordkeeping, timekeeping, and equipment usage must be in accordance with NJOEM Public Assistance reimbursement requirements.
-
All contractors must pass Federal Debarment/ Suspension checks (SAM.gov | Entity Information) and State Debarment/Suspension Checks (State of NJ - NJ Treasury - DORES) before the
contract is awarded.
-
Communities must document that professional services rates and hours allocated per task that are submitted for reimbursement are cost-reasonable.
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