City of Orange Beach Community Development Department
P.O. Box 2432 4101 Orange Beach Blvd. Orange Beach, AL 36561
Office 251.981.2610 www.orangebeachal.gov
2019/07
SUBSTANTIAL DAMAGE / IMPROVEMENT WORKSHEET
The City of Orange Beach codes make reference to the requirement that all new construction
and substantial improvements within the Special Flood Hazard Area to be elevated to meet
freeboard and/or the design flood elevation requirement. As defined by the City of Orange
Beach, substantial improvement is a cumulative amount. Any subsequent improvement project
valuation shall be added to the costs for the initial improvement project. At the end of a five
year period from the initial improvement project, an updated valuation for the structure can be
used for the next time period. This term includes structures which have incurred “repetitive loss”
or “substantial damage”’ regardless of the actual repair work performed. Substantial
improvement does not include the following:
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 official and which are the minimum necessary to assure safe living
conditions, or
b. Any alteration of a “historic structure” provided that the alteration would not preclude the
structure's continued designation as a “historic structure”.
City regulations have established that if the cost of the improvement exceeds 50% of the value
of the structure before the improvement, then the improvement will be considered substantial
and the entire structure must be elevated to meet freeboard and/or the minimum-elevation
requirement. This requirement is consistent with minimum standards associated with the
National Flood Insurance Program (Chapter 44, U.S. Federal Code of Regulations).
Attached to this memorandum are worksheets that are required to be completed by the permit
applicant or applicant’s representative.
If you have any questions regarding this information, contact the Floodplain Administrator /
Building Official for the City of Orange Beach:
Landon K. Smith, CBO, CFM
lsmith@orangebeachal.gov
251/981-2610
City of Orange Beach Community Development Department
P.O. Box 2432 4101 Orange Beach Blvd. Orange Beach, AL 36561
Office 251.981.2610 www.orangebeachal.gov
2019/07
NOTICE TO PROPERTY OWNERS
Rebuilding your Home after the storm? Adding on, renovating, or remodeling your home?
Here’s information YOU need to know about the 50% Rule.
If your home or business is below the Design Flood Elevation, the City of Orange Beach has flood
damage control prevention regulations that may affect how you remodel, renovate, or add-on to
your building. If your home or business sustained structural and/or interior damage, these
regulations may affect how you rebuild. These laws are required in order for the City to
participate with the National Flood Insurance Program, which assists in recovery from a future
flood event. These laws must be enforced in order for federally-backed flood insurance to be
made available to City of Orange Beach residents and property owners.
Save yourself time, aggravation, and money. Please read the following information:
SUBSTANTIAL DAMAGE: Means damage of any origin sustained by a structure whereby the cost
of restoring the structure to itsbefore damage condition would equal or exceed 50 percent of
the market value of the structure before the damage occurred. Substantial Damage also means
flood related damages sustained by structure on two 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. (NOTE:
The cost of the repairs must include all costs necessary to fully repair the structure to its before
damage condition).
SUBSTANTIAL IMPROVEMENT: Means any reconstruction, rehabilitation, addition, or other
improvement of a structure, taking place during a five year period, in which the cost of which
equals or exceeds 50 percent of the market value of the structure before the “start of
construction” of the improvement.
If a building is “substantially damaged” or “substantially improved”, it must be brought into
compliance with City of Orange Beach flood damage control regulations, including elevating the
building above the 100- year flood elevation.
City of Orange Beach Community Development Department
P.O. Box 2432 4101 Orange Beach Blvd. Orange Beach, AL 36561
Office 251.981.2610 www.orangebeachal.gov
2019/07
The City of Orange Beach, following National Flood Insurance Program (FEMA) requirements, has
the responsibility to determine “substantial damage” and “substantial improvement” and has
implemented the following procedures to do so:
The City of Orange Beach will estimate Market Value by using the tax assessment value of
your structure (excluding the land).
If you disagree with this estimate of Market Value, you may hire a state licensed appraiser
and submit a comparable property appraisal.
You must submit to the City of Orange Beach a detailed and complete cost estimate for the
addition, remodeling, reconstruction or repair of all the damages sustained by your home, which
has been prepared and signed by a licensed general contractor or design professional. The
contractor must sign an affidavit indicating that the cost estimate submitted includes all
damages or all improvements to your home. (See attached form.)
The City of Orange Beach will evaluate the cost of improvements or repairs and determine if
they are fair and reasonable and in accordance with the cost of construction with the Building
Valuation Data published by the International Code Council. For damage repairs, pre-storm
prices and rates will be utilized. The cost of improvements or repairs does not include items not
considered a permanent part of the structure (i.e., plans, surveys, permits, sidewalks, pools,
screens, sheds, gazebos, fences, etc.). (See attached form.)
If your home is determined to have “substantial damage” or is proposed to be “substantially
improved”, then an Elevation Certificate must be submitted to the City of Orange Beach to
determine the lowest floor elevation.
If the lowest floor is below the design flood elevation, the building must be elevated to or
above that design flood elevation. Likewise, all electrical and mechanical equipment (heating
and cooling, etc.), bathrooms and laundry rooms must be elevated above the design flood
elevation. Only parking, building access, and limited, incidental storage is allowed below the
design flood level (velocity zones and regulatory floodways have further restrictions).
If the lowest floor, electrical and mechanical equipment, laundry and bathrooms are already
above the design flood elevation, the building can be repaired and reconstructed without further
modifications.
Building plans must be prepared to show how the building is to be elevated. If located in a
velocity zone or regulatory floodway, or if the building is to be floodproofed, additional
requirements and certifications exist. These plans must be prepared and certified by a registered
professional engineer or architect. (Certificates for this purpose are available from the
Community Development Department).
City of Orange Beach Community Development Department
P.O. Box 2432 4101 Orange Beach Blvd. Orange Beach, AL 36561
Office 251.981.2610 www.orangebeachal.gov
2019/07
SUBSTANTIAL IMPROVEMENT/DAMAGE
ITEMS TO BE INCLUDED IN ESTIMATING COST:
All structural elements including but not limited to:
• Spread or continuous foundation footings and pilings
• Monolithic or other types of concrete slabs
• Bearing wall, tie beams and trusses
• Wood or reinforced concrete decking or roofing
• Floors and ceilings
• Attached decks and porches
• Interior partition walls
• Exterior wall finishes (e.g. brick, stucco, or siding) including painting and decorative
moldings
• Windows and doors
• Re-shingling or retiling of roof, and
• Hardware
All interior finish elements, including but not limited to:
• Tiling, linoleum, stone, wood or carpet over sub-flooring
• Bathroom tiling and fixtures
• Wall finishes, e.g. drywall, painting, stucco, plaster, paneling, marble, or other
decorative finishes
• Kitchen, utility and bathroom cabinets
• Built-in bookcases, cabinets, and furniture, and
• Hardware
All utility and service equipment, including but not limited to:
• HVAC equipment and duct work
• Repair or reconstruction of plumbing and electrical services
• Light fixtures and ceiling fans
• Security systems
• Built-in kitchen appliances
• Central vacuum systems, and
• Water filtration, conditioning or recirculation systems
Also:
• Labor and other costs associated with demolishing, removing or altering building
components
• Overhead and profit
City of Orange Beach Community Development Department
P.O. Box 2432 4101 Orange Beach Blvd. Orange Beach, AL 36561
Office 251.981.2610 www.orangebeachal.gov
2019/07
SUBSTANTIAL IMPROVEMENT/DAMAGE
ITEMS TO BE EXCLUDED IN ESTIMATING COST:
• Plans and specifications
• Survey costs
• Permit fees
Debris removal (e.g. removal of debris from building or lot, dumpster rental, transport fees to
landfill, and landfill tipping fees)
• Clean-up (e.g. dirt or mud removal and building dry out)
Items not considered real property such as throw rugs (carpeting over finished floors),
furniture, refrigerators, and stoves not built-in, etc.
Outside improvements, including:
• Landscaping
• Sidewalks
• Fences
• Yard lights
• Swimming pools
• Screened pool enclosures
• Sheds
• Gazebos
• Detached structures (including garages)
• Landscape irrigation systems
City of Orange Beach Community Development Department
P.O. Box 2432 4101 Orange Beach Blvd. Orange Beach, AL 36561
Office 251.981.2610 www.orangebeachal.gov
2019/07
ITEMS REQUIRED TO DETERMINE
SUBSTANTIAL DAMAGE/IMPROVEMENT
Applicant must submit the following (make sure to have extra copies for your files):
1. Complete the attached application.
2. Detailed Cost of Improvement/Reconstruction. (Estimate and Affidavit, signed by a
general contractor or licensed design professional and a copy of the license).
3. Elevation Certificate or Elevation Survey.
4. Current photos, or photos before and after the storm (if available).
5. Floor plan drawing (if available).
6. Owner’s affidavit- signed and dated.
7. Contractor’s affidavit- signed and dated.
GUIDELINES TO COMPLETE THE ATTACHED
RECONSTRUCTION/IMPROVEMENT COST ESTIMATE
Reconstruction/Repair Ratio Percentage of item that must be repaired or reconstructed.
(Example: The home has 2 windows; only 10 were damaged and are being replaced; the ratio
should equal 50%.)
ITEMS
COST
(LABOR & MATERIAL)
RECON/REPAIR
RATIO OF WORK
OFFICIAL
USE
Concrete, Form, etc. $4,500.00 40%
Carpentry Material $9,004.00 100%
Doors/Windows, Shutters $2,046.00 50%
City of Orange Beach Community Development Department
P.O. Box 2432 4101 Orange Beach Blvd. Orange Beach, AL 36561
Office 251.981.2610 www.orangebeachal.gov
2019/07
ESTIMATED COST OF RECONSTRUCTION/IMPROVEMENT
PLAN REVIEW#: ____________________________________________________________________
ADDRESS: _________________________________________________________________________
This Cost Estimate of Reconstruction/Improvement must be prepared and signed by a
General Contractor or Home Builder licensed in the State of Alabama.
ITEMS
COST
CONSTRUCTION/REPAIR
RATIO OF WORK
LABOR
MATERIALS
Concrete, Form, etc.
Carpentry Material (rough)
Carpentry Labor (rough)
Roofing
Insulation & Weather Strip
Exterior Finish (stucco)
Doors, Windows & Shutters
Lumber Finish
Carpenter labor (finish)
Hardware (finish)
Hardware (rough)
Cabinets (built-in)
Floor covering (tile/rug)
Plumbing
Shower/Tub/Toilet
Electrical
Light Fixtures
Built-in Appliances
HVAC
Paint
Demolition and Removal
Overhead and Profit
TOTALS:
(Please attach any additional information.)
Contractor’s Name: __________________________________ GC or HBLB Lic #: _____________
Address: ___________________________________________ Phone #: ____________________
Signature: __________________________________________ Date: _______________________
City of Orange Beach Community Development Department
P.O. Box 2432 4101 Orange Beach Blvd. Orange Beach, AL 36561
Office 251.981.2610 www.orangebeachal.gov
2019/07
OWNER
RECONSTRUCTION/IMPROVEMENT AFFIDAVIT
Contractor’s Name: ______________________________________ License #: _______________________
Owner Name: ___________________________________________________________________________
Address: _______________________________________________________________________________
Phone #: _______________________________________________________________________________
I hereby attest to the fact that the repairs/reconstruction and/or remodeling list submitted for the
Substantial Damage/Improvement Review by my contractor are ALL OF THE DAMAGES/IMPROVEMENTS
sustained by this structure and will be done to the existing building and that all additions, improvements,
or repairs on the subject building are included in this estimated construction herewith. No other
contractor has made any repairs or reconstruction or additions or remodeling not included in the
attached list.
I understand that I am subject to enforcement action and/or fines if inspection of the property reveals
that I have made repairs or improvements NOT INCLUDED ON THE ATTACHED LIST OF REAPIRS to MY
HOME or that I have included non-conforming or illegal structures/additions, to the existing structure
without having presented plans for such additions. I understand that any permit issued by The City of
Orange Beach pursuant to this affidavit does not authorize the reconstruction, repair or maintenance of
any illegal additions or non-conforming uses or structures on the subject property.
STATE OF _______________________________
COUNTY OF _____________________________
Before me this day personally appeared _____________________________________________________,
who, being duly sworn deposes and says that he/she has read, understands, and agrees to comply with
all the aforementioned conditions.
___________________________________________ ___________________________________________
Owner’s Signature Co-Owner
Sworn to and subscribed before me this ________ day of _____________________ A.D., Year ________.
___________________________________________
Notary Public Signature
My commission expires: ______________________
City of Orange Beach Community Development Department
P.O. Box 2432 4101 Orange Beach Blvd. Orange Beach, AL 36561
Office 251.981.2610 www.orangebeachal.gov
2019/07
CONTRACTOR
RECONSTRUCTION/IMPROVEMENT AFFIDAVIT
Contractor’s Name: ______________________________________________________________________
Address: _______________________________________________ License #: _______________________
Property Address: _______________________________________ Phone #: ________________________
I hereby attest to the fact that I, or a member of my staff, personally inspected the above mentioned
property and produced the attached itemized list of repairs, reconstruction, and/or remodeling list that
are hereby submitted for a Substantial Damage/Improvement Review. These damages/improvements
are ALL OF THE DAMAGES/IMPROVEMENTS sustained by this structure, and that all additions,
improvements, or repairs proposed on the subject building are included in this estimate.
I understand that I am subject to enforcement and penalties for violation action and/or fines if the
inspection of the property reveals that I have made repairs or improvements NOT INCLUDED ON THE
ATTACHED LIST OF REAPIRS/IMPROVEMENT to THIS STURCTURE or any non-conforming or illegal
structures/addition, or repairs included to the existing structure without having presented plans for such
additions. I understand that any permit issued by The City of Orange Beach pursuant to this affidavit does
not authorize the reconstruction, repair or maintenance of any illegal additions, or non-conforming uses
or structures on the subject property.
See Attached Itemized List
Total Labor & Materials $
Overhead & Profit $
Total Cost $
STATE OF _______________________________
COUNTY OF _____________________________
Before me this day personally appeared _____________________________________________________,
who, being duly sworn deposes and says that he/she has read, understands, and agrees to comply with
all the aforementioned conditions.
___________________________________________ ___________________________________________
Contractor’s Signature Date
Sworn to and subscribed before me this ________ day of _____________________ A.D., Year ________.
___________________________________________
Notary Public Signature
My commission expires: ______________________