Substantial Damage Estimator Overview

Chapman 2008

Introductions And HousekeepingMy name is _________________ .

I work for __________________ .

My experience with floodplain management, building inspection or appraisal includes _________________________________.

And I know more about computers than Steve does.

Discussion Topics

• Background about the SDE software

• When to perform damage estimations

• Where to perform damage estimations

• Using the SDE software for damage • Using the SDE software for damage estimations

• Resolution of conflicts with damage estimation

Time For The movie!

Rossville 2005

FEMA Building Science Servicehttp://www.fema.gov/building-science#1

If you need additional information contact the Building Science Helpline at (866) 927-2104 or email

FEMA-Buildingsciencehelp@fema.dhs.gov.Please allow up to 5 business days for a response.

Substantial Damage Estimation Only In The 1% Annual Chance Flood Zones

112

When To Do Damage Estimations?

Local officials that participate in the NFIP must determine whether proposed work qualifies as substantial improvement or qualifies as substantial improvement or

repair of substantial damage.

Definitions

• "Substantial-Damage" means damage of any origin sustained by a structure whereby the cost of restoring the structure to pre-damaged condition would equal or exceed 50 percent of the market value of the structure before the damage occurred.

• "Substantial-Improvement" means any reconstruction, rehabilitation, addition, or other improvement of a structure, the cost of which equals or addition, or other improvement of a structure, the cost of which equals or exceeds 50 percent of the market value of the structure before "start of construction" of the improvement. This term includes structures, which have incurred "substantial-damage," regardless of the actual repair work performed. The term does not, however, include either (1) any project for improvement of a structure to correct existing violations of state or local health, sanitary, or safety code specifications that have been identified by the local code enforcement official and which are the minimum necessary to assure safe living conditions, or (2) any alteration of a "historic structure," provided that the alteration will not preclude the structure's continued designation as a "historic structure."

Substantial Damage Can Be Done For Only One Structure

Or Multiple Structures

Coffeyville 2007

Value/Repairs = Percentage Of Damage

• Fair Market Value prior to the damage.

• Compared with Cost of Repairs to return structure to the same condition prior to the damage.damage.

• Percentage of Damage Equal or Greater than 50% is Substantial Damage.

Structure’s Pre-Damaged Value

The structure’s value is the fair market valueof the structure only, excluding the land

• Tax Assessment Records• Bill of Sale • Bill of Sale • Insurance Settlement• Appraisal

Cost of Repairs

• Materials Used• Must Use Fair Market Value• Also Applies to Materials Donated•Includes Repairs People Choose Not To Make

Cost of Labor

• Marshall & Swift Book•Also Applies to Volunteer Labor• Exclusions

-Debris Removal-Clean-up-Building Plans-Permit Fees

Dispute Resolution

• Alternatives that can be accepted.– Licensed General Contractor Estimate

– Professional Estimator

– Insurance Adjustment – Insurance Adjustment

– Disaster Damage Estimate Groups

– Licensed Appraiser

Written Administrative Procedures

Substantial Damage Estimator

FEMA P-784 the SDE CD contains

• Read Me-Installation Guide

• SDE User’s Manual and Workbook• SDE User’s Manual and Workbook

• SDE and Your Community (Video)

• Substantial Improvement/Substantial Damage Desk Reference FEMA P-758.

Windows VISTA and 7

• If you are having problems it is suggested that you read SDE Software Installation Guide that is on the CD. If you are using Windows 7 or Vista please read the special note on page 4.

• Note to Vista and Windows 7 users: Replace the default installation path with C:\Users\<user name>\Substantial Damage Estimator 1.0, where <user name> is your user name on the computer.where <user name> is your user name on the computer.

• Even if the software appears to be installed correctly it won’t save data properly for you. If you are unable to save data go the installation instructions. You’ll need to tell your computer a new path to save to as the administrator. If you do not have administrative authority for your computer you may have to do the exercises in class without saving. There will be some things you can’t do today until you return to your office and get with your IT administrator.

Old version software, called RSDE, was only for damage estimations of residential structures. The new SDE now works for many types of non-residential structures. See the instructions for list of approved

types of non-residential structures.

Click on the SDE icon.Select “Stand Alone” and Save

• Icon can be on the desk top

• File for saving

• Tools to Import

Create/Add a Record. Select Residential for Class Today.

New Screen OpensBegin With Address Tab

Where does information come from?

Suggest you enter as much data as you can in the office before going to a property. Here are some potential sources of information.– Elevation Certificates– Elevation Certificates

– Permit Files

– County Appraiser

– Nationally Recognized Cost Estimation Guides

– Flood Maps

– Field Inspections

Photo Of House From Parcel Search

FIRMette of Flood Map

Lat and Long from GIS Dept.

Important Clarification

Substantial Damage Estimation is only done on a property in the special flood hazard area. The house in the previous photo is close to, but not actually in, the floodplain. We had information about this house because a LOMA was recently about this house because a LOMA was recently submitted for it. This house also belongs to a person on staff at DWR. That person has agreed to allow information about his house to be used in the class. For purpose of this class we will pretend the structure is inside of the floodplain.

Field Inspections Provide Water Depthand Element Percentages.

Water Line

-Year Built-Square Footage-Grade Factor-Building Value

Information From Appraiser Website

Use Information To Fill Out This Page From Address Tab.

What if You Make a Mistake?

Help Tab Will Open the Users Manual.

Completed Page Should Look Like This.

Structure Damage/NFIP Info Tab

Cost Tab Next

Calculate Square Footage

Start With the RectangleRectangle

Have you tried turning it off and turning it on again?

Enter Square Footage Manually is Simplest

Calculate Square Feet

Don’tForget

Save

Click the Rectangle a second time to add the Wing

Save the Total Square Footage and Close

Geographic Adjustment Factor

Notice this is not 1.0 any more. You can use an industry standard guide to determine your geographic adjustment factor.

Depreciation RatingNo longer based on age of structure.

Where did $101.72 come from?

• Land -BaseFin -sqft grade &above-sale price -sqft sp w/o lnd

• 8240 1120 134500 $ 112.73

• 8150 884 100500 $ 104.47

• 15680 1512 167000 $ 100.08

• 17540 Fbla 1375 170000 $ 110.88

Table of 13 new home sales from County Appraiser.

• 17540 Fbla 1375 170000 $ 110.88

• 21150 Fbla 1683 199900 $ 106.21

• 4820 1365 111000 $ 77.79

• 15600 Fbla 1697 195000 $ 105.72

• 15600 Fbla 1586 202500 $ 117.84

• 16400 Fbla 1751 208000 $ 109.42

• 13330 Fbla 1484 176000 $ 109.62

• 21800 Fbla 1460 170000 $ 101.51

• 3510 1270 70000 $ 52.35

• 20610 Fbla 1972 245000 $ 113.79

$ 101.72 Avg $ 106.21 Median

Cost Estimation Guides

RS Means Marshall Swift

Element Percentages

Based on actual damages and maynot include costs to bring up to current code when there is a citation or letter for the code violation.

Open User Manual and go to Table 4-5. Central Air unit is outside the house. Would it be included in damage assessment?

Element Percentage Costs

Must Include:

• Labor

• Materials

• Demolition

May Include:•Trash Removal•Permit Fees•Plug-in Appliances

• Demolition

• OverheadAppliances•Survey Costs

Go to page 4-5 of the Substantial Improvement Substantial Damage Desk

Reference FEMA P-758.

Output Summary

Try entering a value for Professional Market Appraisal. Notice how the button for Professional Market Appraisal can be clicked on now under Value of Building. Building.

File save.

Tab For Files and PhotosSelect Photo/File to add photo.

Back To Output SummarySave first with “File” at top. Then click on “Print Summary Report”

This one page summary has a place for signatures and is easy to send in a letter to the property owner.

Special for Field Trip

Field Trip Classes. Class will break and reconvene at a field trip property. The entire class will do a walk through with a questions and answers session. We will then break up into groups. Each group must have one working lap top. Open the SDE software on the laptop. Use file to select “Recent Assessments” and look for your property. If that doesn’t select “Recent Assessments” and look for your property. If that doesn’t work then try this method. In the search add residential as structure type. “Submit” the search. Double click on the gray area where you see your name as the inspector. That will open the record on the “Address” tab. Open the “Element Percentages” tab. During the field trip enter the new percentages that your group feels are appropriate. Save your new entries. Go to the “Output Summary” tab. We will compare over all percentages between the groups.

• Connie Wisniewski, FEMA VII, 816-283-7013

• Tom Morey, State NFIP Coordinator, 785-296-5440.

• Dane Bailey, Flood Hazard Identification Manager, 785-296-7769

Contact Information

• Erika Stanley, Mapping Specialist, 785-296-2513

• Robert Butler, FEMA VII, 816-283-7980

• Ally Bishop, NFIP Bureau and Statistics Agent, 913-837-5220

• Steve Samuelson, NFIP Specialist, 785-296-4622