MADEIRA BEACH, Fla. – With all the damage across the Tampa Bay area after Hurricanes Helene and Milton, many homeowners are hearing about FEMA’s 50% rule, which applies in flood prone areas. It’s something many in coastal communities have to deal with, and Madeira Beach residents just got a crash course.
FEMA’s 50% rule limits the cost of home repairs to 50% of it’s market value. Put simply, a home valued at $100,000 can only repair up to $50,000.
Many residents, though, said it’s not enough after Hurricanes Helene and Milton’s devastation.
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“My house might be worth $200,000, but the FEMA letter says I can only spend $82,000 to fix my house… I had five feet of water in my house… there’s no way I can fix it for $82,000.”
If damages from the storms exceed 50%, a few options include elevating the home, demolishing the home or relocating the home. But last week, FOX 13 reported elevating a home could cost more than $200,000.
At a Madeira Beach meeting, officials clarified that they have to follow these regulations, or it will cost them.
“If we do not do this correctly and follow the rules, we risk not being reimbursed for all that we are doing now, from all the debris pick up, and all sand clearing… we’ll be out millions,” said a city official at Wednesday night’s meeting.
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In Madeira Beach, they are sending inspectors out to estimate the value of their homes.
“After we do our walk-throughs, we will email you a letter. That will tell you what we think that value of the structure is and what we think the amount of damage occurred was,” said a city official.
Residents can appeal their estimates if they think it is too low or get a private appraiser. However, FEMA’s 50% rule has many feeling helpless.
“The expense of raising a house or redoing or demolishing it and building a new one is cost prohibitive,” said John Hendricks, a resident. “I’ve talked to a lot of people who won’t be at the beach after this.”
Federal officials said this rule is intended to protect homeowners and future buyers from people who may take advantage of them. It’s also intended to prevent builders and construction crews from cutting corners and allowing people to rebuild in unsafe areas.
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