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    50 percent rule

    50 percent rule

    New postby billcook on Tue Nov 24, 2009 3:53 pm

    When a structure has damage greater than fifty percent and must be brought up to current code in its entrity if damage is greater than fifty percent....What is the criteria to determine what one hundred percent is, to be able to see what the fifty percent is?
    Thanks
    Bill cook
    billcook
     
    Posts: 2
    Joined: Mon Nov 23, 2009 11:40 am

    Re: 50 percent rule

    New postby Jerry Peck - Codeman on Tue Nov 24, 2009 8:12 pm

    Hi Bill,

    billcook wrote:What is the criteria to determine what one hundred percent is, to be able to see what the fifty percent is?


    - For improvements and repairs - the value before the improvement or repairs are started.
    - For damaged buildings and restoration - the value before the damage occurred.

    But that is only half way to knowing what is needed, all the above does is establish the 100% mark and the 50% mark, not what counts toward that cost. Now it gets complicated in determining what costs are, and are not, included to determine the cost of the improvement or restoration.

    Being as you are in Florida, the reference starts with the Florida Building Code, Existing Buildings:
    - CHAPTER 2
    - - DEFINITIONS
    - - - SECTION 202
    - - - - GENERAL DEFINITIONS
    - - - - - SUBSTANTIAL IMPROVEMENT. See Section 3109.2 of the Florida Building Code, Building

    Which takes us to the Florida Building Code, Building:
    - SECTION 3109.2
    - - SUBSTANTIAL IMPROVEMENT. See definition in Section 161.54(12), Florida Statutes.

    Which now takes us to 161.54(2) F.S.:
    - (12) "Substantial improvement" means any repair, reconstruction, rehabilitation, or improvement of a structure when the actual cost of the improvement or repair of the structure to its pre-damage condition equals or exceeds 50 percent of the market value of the structure either:
    - - (a) Before the improvement or repair is started; or
    - - (b) If the structure has been damaged and is being restored, before the damage occurred.
    - - The total cost does not include nonstructural interior finishings, including, but not limited to, finish flooring and floor coverings, base molding, nonstructural substrates, drywall, plaster, paneling, wall covering, tapestries, window treatments, decorative masonry, paint, interior doors, tile, cabinets, moldings and millwork, decorative metal work, vanities, electrical receptacles, electrical switches, electrical fixtures, intercoms, communications and sound systems, security systems, HVAC grills and decorative trim, freestanding metal fireplaces, appliances, water closets, tubs and shower enclosures, lavatories, and water heaters, or roof coverings, except when determining whether the structure has been substantially improved as a result of a single improvement or repair.
    - - For the purposes of this definition, "substantial improvement" is considered to occur when the first alteration of any wall, ceiling, floor, or other structural part of the building commences, whether or not that alteration affects the external dimensions of the structure. The term does not, however, include either any project for improvement of a structure to comply with existing state or local health, sanitary, or safety code specifications which are solely necessary to assure safe living conditions or any alteration of a structure listed on the National Register of Historic Places or the State Inventory of Historic Places.
    Jerry Peck - CodeMan
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    Re: 50 percent rule

    New postby billcook on Wed Nov 25, 2009 12:11 pm

    billcook wrote:When a structure has damage greater than fifty percent and must be brought up to current code in its entrity if damage is greater than fifty percent....What is the criteria to determine what one hundred percent is, to be able to see what the fifty percent is?
    Thanks
    Bill cook

    Thanks Jerry
    You have reponded to the fifty percent criteria in a jouneyman fashion. My question was in regard how should one establish the 100 percent part of of the equation.
    Bill Cook
    billcook
     
    Posts: 2
    Joined: Mon Nov 23, 2009 11:40 am

    Re: 50 percent rule

    New postby Jerry Peck - Codeman on Wed Nov 25, 2009 8:23 pm

    Hi Bill,

    billcook wrote:
    billcook wrote:When a structure has damage greater than fifty percent and must be brought up to current code in its entrity if damage is greater than fifty percent....What is the criteria to determine what one hundred percent is, to be able to see what the fifty percent is?
    Thanks
    Bill cook

    Thanks Jerry
    You have reponded to the fifty percent criteria in a jouneyman fashion. My question was in regard how should one establish the 100 percent part of of the equation.
    Bill Cook


    Not sure if that is saying that I did, or did not, answer your question ... ??

    Jerry Peck - Codeman wrote:Hi Bill,

    billcook wrote:What is the criteria to determine what one hundred percent is, to be able to see what the fifty percent is?


    - For improvements and repairs - the value before the improvement or repairs are started.
    - For damaged buildings and restoration - the value before the damage occurred.


    Maybe you are looking for something like what was in the old South Florida Building Code, Dade County Edition?
    ****************************************
    0104.5 VALUE DETERMINATION:
    ****************************************
    The value of a building or structure shall be the estimated cost of constructing a new building of like size, design and materials at the site of the original structure, assuming such site to be clear. Cost of additions, alterations and repairs shall be construed as the total cost of labor, materials and services based on current prices for new materials.


    Previous to that the presume valuation was that which was stated on the tax roll in the tax assessors office, which actually turned out to be an artificially low number, which caused the 100% value to be low, causing the 50% to be easily reached.

    The 100% value of the structure was the appraised value, less the land value, less a value for architectural fees, arriving at a value for the structure only. The 50% value was the actual estimated construction cost, not including architectural fees, permits fees, and other fees and costs not actually part of the cost of the construction of the structure.

    An example I used to give was similar to this:
    A property had an appraised value of:___ $170,000.
    Less the appraised land value of:________ $50,000.
    Less architectural and other fees of:______$20,000.
    Leaving a 100% valuation of:___________$100,000.
    The 50% substantial damage trigger was:__ $50,000.
    Jerry Peck - CodeMan
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    Construction Litigation Consultants, LLC.
    ConstructionLitigationConsultants.com
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