FEMA’s 50% Rule for Substantial Improvement/Damage Repair


Resolved that the National Association of Home Builders (NAHB) urge Congress and FEMA, in implementing the 50% Rule, to limit the calculation of project cost to only those structural elements necessary to the structural integrity of the building;

Further resolved that NAHB urge FEMA to:

  1. Allow local floodplain managers and others tasked with administering FEMA’s 50% Rule to exclude interior finish and utility service equipment costs in calculations supporting implementation of the 50% Rule; and
  2. Discourage local jurisdictions from counting multiple projects to trigger the 50% threshold.

Resolution originally adopted: 2017.6, Resolution No. 7

Committees with primary jurisdiction:
  • Construction, Codes & Standards Committee
  • Federal Government Affairs Committee
Full Resolution The full text of this resolution is available for download