13337 SW HALL BLVD-2 ADDRESS:
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Federal Emergency Management Agency
a Disaste,.•Field Office, FEMA-1099-DR-OR
1795 1P Street S.W., Salem, OR 97302
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(503)364-5666
April 29, 1996
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Mr. Richard Bewersdorff
Community Development
13125 SW Hall Blvd
Tigard, OR 97223
Dear Mr. Bewersdorff:
Attached is a list of flood insurance claims data ent tied "Preliminary Damage
Assessments." It was obtained from one insurance company th::t writes flood
insurance in the State of Oregon, and shows preliminary figures that denote
possible substantial damage cases in several areas.
All local governments that participate in the National Flood Insurance Program must
r9quire substantially damaged structures to be elevated to or above the 100-year
flood level (one foot above as required by the State Structural Specialty Code).
Substantially damaged structures are those for which the cost of repair equals or
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exceeds 50 percent of the structure's pre.-flood market value.
The case on the attached list clearly shows the potential for being classified as a
substantial damage case:
• 13337 SW Hall Blvd, Tigard
in the column "Building Damage Amount," only the replacement cost of repairs can
be used. These figures show an insurance adjuster's estimates of what it would
cost to repair damage, excluding land cost, landscaping, decks, and other
uninsurable items. As an aftmative, an individual can be required to present a
licensed cont;,actor's estimate to repair damages, as long as the estimate is within
the guidanca you have been provided.
On the other hand, the figures in the column "Building Replacement Cost Value,"
cannot be used in the substantial damage equation. This is b9cause they are an
estimate of replacement cost value (derived through the Marshall-Swift technique),
and your ordinance requires that this figure be based on market value. Generally,
market value is lower than replacement cost.
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You can use several methods to obtain market value. Among them is use of
assessed value, as adjusted to current value. You car also require the applicant to
hire a professional appraiser to provide a pre-flood fair market value appraisal.
Inese and other methods are discussed in the document "AnF•vers to Questions
about Substantially Damaged Buildings," which is the guidance referenced above,
and was provided to you earlier.
You are remin,'ed that it is imperative that those buildings which were substantially
damaged or destroyed and are located in flood Zone A (Zones A, A0, AH, AE or I
Al-A30), must be rebuilt according to the standards of your adopted floodplain
management ordinance. Failure to do this could jeopardize your eligibi!;ty in the
National Flood Insurance Program. w
%Nhile he funding to support the elevation of a substantially damaged budding may
cove from various sources, disaster loans for reconstruction are available from the
U.S. S•nall Business Administration (SBA); however, these loans will not be
availab;e unless elevation is cited by local officials as being required by cede.
Likewise, an Individual and Family Grant (IFG) :;annot be provided co those who do
not qua'ify for a loan, unless the conditicn is cited as a code requirement f
tThe above funding source. 0,-T not always a certainty, and there are other sources
of funding that sometimes can be brought to bear in a particular situation. FEMA
personnel are available to meet with you or conduct workshops in our area. Our
workshops usually include a discussion of reconstruction techniques, requirements
aand available means of financing reconstruction projects. Please let me know if we
can help; my number at the Salem Disaster Field Office is (503) 364-6100.
As we receive more lists of substantially damaged buildings from other companies,
we will send them to you with an identical letter. Thanks for your role in assuring
that floodplain management objectives are being met. Your conscientiousness will
ensure your community's continuing eligibility in the Naticnal Flood Insurance
Program.
Sincerely,
Charles L. Steele, Deputy
Federal Coordinating Officer nor Mitigation
cc: Honorat,le Mayor ,lim Nicoli
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