Cape adjusts city’s 50% rule baseline
Five-year ‘cumulative impact regulation’ removed to make Ian-related repairs, re-builds, easier
The city of Cape Coral hit a rules reset button for properties that suffered serious damage in Hurricane Ian, making it easier for homeowners to rebuild or repair damaged structures.
Cape Coral City Council unanimously passed an ordinance Wednesday that removes the city’s “five-year cumulative impact regulation” to reduce burdens on storm-damaged residences that are close to triggering a federal rule that requires rebuilding to current floodplain standards when damage is extensive.
This new ordinance will assist homeowners near the 50 percent threshold from going above that line because of improvements not necessitated by Hurricane Ian, such as a roof or storm windows installed before the storm.
The 50 percent rule is federally mandated by FEMA. Structures that do not meet current floodplain standards may be affected by the 50 percent rule if the damage is 50 percent or more than the structure’s market value.
If damage is 50 percent or more than that value, the structure must be rebuilt to the new required elevation if it is within the Special Flood Hazard Area and below current elevation requirements.
That’s most properties built before 1981, but also any property that has been upgraded with a substantial pre-storm improvement.
“It affects those with 55 percent damage and what put them over the top was a new roof that the insurance company required them to have,” said Wyatt Daltry, planning team coordinator for the city. “We’ve had 23,900 reroofs in the last five years. That’s a lot of roofs that no longer count. Many would be upset if they went over 50 percent from the storm plus something forced on them by the insurance company.”
Several people spoke during the public hearing, many of whom either asked Council to pass the ordinance or had some questions regarding the measure.
Richard Durling, president of Marvin Homes speaking on behalf of the CCCIA, said he was in favor of the ordinance.
“As a building industry it is important for us to have consistency with regards to the 50 percent rule across the board,” Durling said. “Residents have been greatly impacted by this event and some are near not being able to restore their homes.”
Councilmember Tom Hayden said many people are going to choose to rebuild for their love of the community.
“They’re going to whether they are below the 50 percent or not. This is the one thing a city can do to eliminate the cumulative impact so you’re not assessed by what you did over the last five years,” Hayden said.
Councilmember Bill Steinke said he supported the ordinance, but added the city may have to revisit down the road because there could be unintended consequences for not having a “look back.”
“The reason for the 50 percent rule is because of repetitive claims years ago. Homes that were too close to riverbanks kept getting flooded and damaged,” Steinke said. “Insurance would pay and a few months later the house would get flooded again and they would pay again.”
Repairs would get done and, to remain in compliance with FEMA’s 50 percent rule, property owners would only do what they needed to stay below 50 percent and wait until the following year, and the next and the next. This is “daisy chaining” and it could impact everyone’s insurance rates.
The ordinance passed with Council agreeing the benefits for residents who need it now should be prioritized and that the issue could be revisited in the next few years.
Resident John Melilli said the ordinance is going to help a lot of people get back into their homes, but there should be a sunset provision in it.
“In order for us to get affordable homeowner and flood insurance, eventually all the cities will have to comply and bring houses above the base flood elevation,” Melilli said.
“Houses at some point become obsolete and the land becomes worth more than the building.”
To reach CHUCK BALLARO, please email news@breezenewspapers.com