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Substantial and Development Improvement Permits

DEVELOPMENT REQUIREMENTS:

Any development in the floodplain requires a building permit according to Article IV of the City of Margate Land Use Ordinance, Chapter 175 (Development  Requirements and Standards).  To obtain a flood zone determination, contact the City of Margate Zoning Officer at 609-822-5438.

*** 2/1/2023*** Click Here to Access the City of Margate Floodplain Development Permit Application 

*** 2/1/2023 ***Click Here to Access the City of Margate Substantial Improvement Itemization Package

SUBSTANTIAL IMPROVEMENTS:

The City of Margate requires that if the cost of reconstruction, rehabilitation, addition, or other improvements to a building equals or exceeds 50% of the building’s assessed tax value, the building must meet the same construction requirements as a new building. Substantially damaged buildings must also be brought up to the same standards (e.g., a residence damaged so that the cost of repairs equals or exceeds 50% of the building’s value before it was damaged must be elevated above the base flood elevation). The assessed value of the structure shall be determined before the improvement is started, or if the structure has been damaged and is being restored, before the damage, or destruction occurred.

Substantial improvement means any reconstruction, rehabilitation, addition, or other improvement of a structure,  the cost of which equals or exceeds 50 percent of the market value of the structure before the ”start of construction’’ of the improvement. This term includes structures that have incurred “substantial damage," regardless of the actual repair work performed.

To make the substantial improvement determination, we compare the cost of the proposed improvement or repairs to the market value of the building (excluding land, accessory structures, and landscaping). If the resulting ratio equals or exceeds 50 percent, the existing building must be brought into compliance with NFIP requirements to elevate to or above the Base Flood Elevation (BFE).

Substantial Damage/Improvement is the ratio of the cost to repair/improve a building to the market value of the building:

Percent Damaged/Improved     =     Cost of Repairs/Improvements

                                                                   Market Value of Building

Note:  When determining the cost of repair, donated or discounted materials must be included at their full market value and estimated as if they were purchased during a normal market transaction. When determining labor costs, self or volunteer labor must be estimated at prevailing wages for the appropriate type of construction wage scale. The only costs that may be excluded are the cost for plans, specifications, survey, and building permits.

The following approaches have been identified to determine the value of the building:

1.         A detailed estimate of the Actual Cash Value as determined by the SDE.

2.         A detailed estimate of the Market Value.

a)         Property appraisals used for Adjusted Tax Assessment purposes.

b)        Independent appraisals by a Professional Appraiser.

c)         Qualified estimates based on sound professional judgment made by the staff of the local building department or local or  State Tax Assessor’s office.

Items included in a Substantial Improvement Determination:

  • Materials and labor, including the estimated value of donated or discounted materials and owner or volunteer labor
  • Site preparation related to the improvement or repair (e.g. foundation excavation or 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 regulations or code requirement that is triggered by the work, including costs to comply with the requirements of the Americans with Disabilities Act
  • Costs associated with elevating a structure when the proposed elevation is lower than the Base Flood Elevation
  • Construction management and supervision
  • Contractor’s overhead and profit
  • Sales taxes on materials
  • Structural elements and exterior finishes including:
  • Foundations (e.g. spread or continuous foundation, footings, perimeter walls, chain walls, pilings, columns, posts, etc.)
  • Monolithic or other types of concrete slabs
  • Bearing walls, tie beams, trusses
  • Joists, beams, subflooring, framing, ceilings
  • Interior non-bearing walls
  • Exterior finishes (e.g. brick, stucco, siding, painting, and trim)
  • Windows and exterior doors
  • Roofing, gutters, and downspouts
  • Hardware
  • Attached decks and porches
  • Interior finish elements, including:
  • Floor finishes (e.g. hardwood, ceramic, vinyl, linoleum, stone, and wall-to-wall carpet over subflooring)
  • Bathroom tiling and fixtures
  • Wall finishes (e.g. drywall, paint, stucco, plaster, paneling, and marble)
  • Built-in cabinets (e.g. kitchen, utility, entertainment, storage, and bathroom)
  • Interior doors
  • Interior finish carpentry
  • Built-in bookcases and furniture
  • Hardware
  • Insulation
  • Utility and service equipment, including:
  • Heating, ventilation, and air conditioning (HVAC) equipment
  • Plumbing fixtures and piping
  • Electrical wiring, outlets, and switches
  • Light fixtures and ceiling fans
  • Security systems
  • Built-in appliances
  • Central Vacuum systems
  • Water Filtration, conditioning, and recirculation systems
  • It should be noted that this guidance document also contains a list of costs that may be excluded from Substantial Improvements and Substantial Damage Determinations on page 4-7 which includes but is not limited to:
  • Landscaping
  • Irrigation
  • Sidewalks
  • Driveways
  • Fences
  • Yard lights
  • Swimming pools
  • Pool enclosures
  • 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.

           FEMA P-784, Substantial Damage Estimator (SDE) Tool (2017):

FEMA developed the SDE tool to assist State and local officials in estimating Substantial Damage for residential and non-residential structures in accordance with the requirements of the National Flood Insurance Program (NFIP) as adopted by the communities. The tool can be used to assess flood, wind, wildfire, seismic, and other forms of damage. It helps communities provide timely Substantial Damage determinations so that reconstruction can begin quickly following a disaster.

Click here to obtain a copy of the City of Margate's Substantial Improvement Affidavit.

Click here for Instructions and to access the Substantial Damage Estimator (SDE) Tool (2017)

Click here to View/Download FEMA’s Substantial Improvement and Substantial Damage Rule (UNIT 8)