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Substantial Damage / Substantial Improvement


Substantial Damage: Damage of any origin sustained by a structure whereby the cost of restoring the structure to its before damaged condition would equal or exceed fifty (50) percent of the market value of the structure before the damage occurred. This term also includes Repetitive Loss.

Substantial Improvement: Any reconstruction, rehabilitation, addition, or other improvement of a structure taking place during a twelve (12) year prior in which the cumulative cost equals or exceeds fifty (50) percent of the market value of the structure before the “start of construction” of the improvement. This term includes structures, which have incurred “repetitive loss” or “substantial damage”, regardless of the actual repair work performed. This term does not, however, include those improvements of a structured required to comply with existing state or local health, sanitary, or safety code specifications which are the minimum necessary to assure safe living conditions, which have been identified by the Code Enforcement Official. This term does also not include any alteration of a historic structure, provided that the alteration will not preclude the structure’s continued designation as a historic structure.