Building or Rebuilding in a Flood Hazard Area

The National Flood Insurance Program (NFIP) and the Village of Estero have flood damage prevention regulations designed to protect lives, property, and investments from future flood losses.

If your property is located in a flood hazard area, these rules may affect how you remodel, renovate, or rebuild your home or business — especially if it’s been substantially damaged or you plan a major improvement.

Jump to: Substantial Damage | 50% Rule | What to Do if Damaged | Why It Matters | Rebuilding Smart

Substantial Damage & Substantial Improvement

Substantial Damage

A structure is considered substantially damaged when the cost to restore it to its pre-damage condition equals or exceeds 50% of its market value prior to the event.

This determination includes flood, wind, fire, or other damage, and applies even if the repairs are not flood-related.

Buildings that have experienced repetitive flood losses may also be classified as substantially damaged.

Substantial Improvement

A substantial improvement occurs when any combination of repair, reconstruction, rehabilitation, addition, or other improvement equals or exceeds 50% of the building’s market value before the improvement began.

This includes:

  • Major remodeling or additions
  • Conversions (e.g., garage to living space)
  • Structural alterations
  • Cumulative improvements over time (if adopted by ordinance)

If a structure is determined to be substantially damaged or substantially improved, it must be brought into compliance with the Village’s Floodplain Management Ordinance and the Florida Building Code (FBC) — including elevating the structure and utilities to or above the Base Flood Elevation (BFE).

Only parking, building access, and limited storage are allowed below the BFE.

construction

Permit Requirements

Any property owner or agent planning development, repair, or construction within or partly within a flood hazard area must obtain a Floodplain Development Permit before beginning work.
Permits will only be issued after all floodplain and building code requirements are met.

You’ll need to provide:

  • Current exterior and interior photographs (pre- and post-damage)
  • A detailed project description (repairs, additions, elevation, etc.)
  • A comprehensive cost estimate for all materials and labor
  • Market value documentation (from Lee County Property Appraiser or a certified appraisal)
  • Signed Owner’s and Contractor’s affidavits verifying accuracy

⚠️ Important: Work cannot begin until permits are issued. Unauthorized work in flood zones can result in penalties and loss of flood insurance eligibility.

Determining Market Value

Market value applies only to the structure, not the land, detached sheds, or landscaping. It represents the Actual Cash Value (ACV) – the replacement cost of the structure minus depreciation for age, condition, and quality.

Acceptable methods to determine market value include:

  • A qualified independent appraisal (following the Local Official ACV Appraisal Checklist)
  • The Lee County Property Appraiser’s “building value”, adjusted to approximate market value

If the market value provided by the Lee County Property Appraiser is insufficient to meet FEMA’s repair requirements, you may hire a state-certified appraiser to complete either a retrospective (pre-storm) appraisal dated at least one day before the damage occurred, or—if improvements are planned—an appraisal of the structure conducted prior to the start of any construction.

How to Find Your Property Value

  1. Visit Lee County Property Appraiser’s website
  2. Enter your property address under “Quick Property Search”
  3. Select Parcel Details
  4. Use the Tax Roll Value Letter for current year, or if repairs are from a storm, use the value from the year of the storm.
  5. If the Tax Roll Value Letter is not available, click the Current Cost Card icon and use the Structure Value listed in the upper right corner

The 50% Rule

If repair or improvement costs equal or exceed 50% of your building’s market value, the structure must be brought into full compliance with current floodplain standards.

This may include elevating, rebuilding, or relocating the structure to meet NFIP and Florida Building Code requirements.

What Counts Toward the 50% Rule

All costs directly related to the structure must be included in your estimate. These include:

Structural and Construction Costs

  • Foundation, slabs, piers, footings
  • Load-bearing and non-load-bearing walls
  • Roofing, gutters, windows, doors
  • Framing, beams, trusses, joists, ceilings

Interior Finishes

  • Flooring, wall finishes, insulation
  • Cabinets (kitchen, bath, storage)
  • Built-in furniture and bookcases
  • Interior doors, hardware, paint

Systems and Equipment

  • Electrical wiring, outlets, and panels
  • HVAC systems, ducts, and thermostats
  • Plumbing fixtures, piping, and hot water heaters
  • Built-in appliances and water treatment systems

Other Eligible Costs

  • Contractor overhead and profit
  • Sales tax on materials
  • Site preparation and debris removal
  • Construction management and supervision

Costs That May Be Excluded

These do not count toward the 50% calculation:

  • Cleanup and trash removal
  • Permit, plan review, and inspection fees
  • Landscaping, irrigation, fences, driveways, sidewalks
  • Detached garages, pools, sheds, or gazebos
  • Temporary stabilization or safety work
  • Plug-in appliances (washer, dryer, stove)

💡 Include the fair market value of all labor, even if performed by the owner, volunteers, or donated materials.

📘 See FEMA’s Substantial Improvement/Substantial Damage Desk Reference for detailed guidance.

If Your Home Was Damaged

Here’s what you can do:

  1. Remove damaged materials and clean up safely.
  2. Check your building’s market value at leepa.org.
  3. Gather repair estimates (including labor and materials).
  4. File insurance and FEMA claims promptly and apply for disaster assistance.
    1. FEMA
    2. SBA
  5. Consider elevating or rebuilding higher for long-term protection.
  6. Apply for permits if your costs are under 50% of the building’s value.
  7. Contact the Village of Estero Building Department for guidance or questions.

💡 You may also qualify for FEMA’s Increased Cost of Compliance (ICC) coverage if you carry NFIP insurance.

Why Compliance Matters

FEMA requires local governments to enforce floodplain regulations to remain eligible for the National Flood Insurance Program (NFIP).

Non-compliance can result in:

  • Suspension from the NFIP, making all properties ineligible for federally backed flood insurance
  • Loss of access to federal disaster assistance and mitigation grants
  • Restrictions on federally backed mortgages within flood zones
  • Higher insurance premiums and reduced resilience for all residents

These rules protect both residents and the Village by ensuring safer rebuilding and keeping insurance rates affordable.

The Village faces the following risks if suspended from FEMA National Flood Insurance Program:

  • Loss of Mortgage Access: No mortgages will be available from banking institutions insured and regulated by the Federal Deposit Insurance Corporation (FDIC) within Special Flood Hazard Areas (SFHA).
  • Ineligibility for Federal Grants: The Village will not be eligible for any federal grant programs that benefit infrastructure within SFHA zones. Must return federal active grants currently in process that benefit SFHA zones, including the Department of Housing and Urban Development’s (HUD) Community Development Block Grant Disaster Recovery (CDBG-DR) program. This restriction hinders the community’s ability to fund recovery and rebuilding initiatives.
  • Increased Financial Burden on Residents: The combined effects of these limitations will exacerbate the financial strain on residents, particularly due to the rising cost and limited availability of private flood insurance coverage.

Rebuilding Smart

If your home has flooded once, it can flood again.

Rather than simply repairing damage, consider elevating or rebuilding to higher standards. Doing so can:

  • Reduce future flood damage and insurance costs
  • Increase property value and safety
  • Qualify for FEMA mitigation grants or ICC funding

The Village of Estero Floodplain Department in coordination with the Building Department can help you explore options for elevation, floodproofing, or safe demolition/reconstruction.

Things to consider about rebuilding or elevating your home:

If your home flooded during the recent storms, chances are it will happen again. You will likely receive FEMA disaster assistance and/or insurance payments. Consider investing these in raising your home or replacing it. This will likely increase your property value by more than repairing your home at its current elevation.