Prof. Salkin: NY Appellate Court (3rd Dept A.D.) Finds Improvements to Property Following Flood Were Substantial, Triggering Compliance with Local Flood Plain Law « LAW OF THE LAND

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NY Appellate Court (3rd Dept A.D.) finds Improvements to Property Following Flood Were Substantial, Triggering Compliance with Local Flood Plain Law.  In reviewing the National Flood Insurance Program regulations which define “substantial improvement,” the Court noted that it is considered substantial if the repairs would equal or exceed 50% of the pre-flood market value of the home. To determine whether the defendants made a substantial improvement, the Town used the current tax assessment to calculate the market value of the structure. The defendants argued that the Town had to use an independent professional appraisal, but the court said this was not true as the regulation was silent as to how value was to be determined. The Court noted that FEMA‘s written guidelines allow for both approaches, but that the defendants did not submit any alternate property appraisal to the Town or to the Court for consideration.

See Prof. Salkin’s complete analysis here.

Read full text of decision here.