Substantial Damage and Improvement

What is Substantial Damage?

When the cost to repair any damaged structure to its previous condition would equal or exceed 50% of the market value of the structure before the damage occurred.

What is Substantial Improvement?

When the cost of any reconstruction, rehabilitation, addition, or other improvement of a structure would equal or exceed 50% of the market value of the structure before "start of construction". This term includes structures which have incurred "substantial damage" regardless of the actual repair work performed.

What is the 50% Rule Determination?

The Town of Hilton Head Island has the responsibility to determine "substantial-damage" and "substantial improvement" using the following procedures:

• Review the permit application and compare the value of construction to the value of the structure according to the Beaufort County Tax Assessor's Office at http://sc-beaufort-county.governmax.com/svc/
  OR
• Permit applications may be accompanied by a certified appraisal of the structure minus depreciation

• If the cost of improvements exceeds 40% of the assessed value or the appraised value minus depreciation, a detailed cost estimate must be submitted.

Existing buildings that are deemed substantially damaged or improved must be brought to compliance with the current building code to include being elevated to the base flood elevation plus one foot.

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