FEMA 50% Rule: Agency relents on Lee County Property Appraiser values

Kate Cimini, Fort Myers News-Press
·4 min read

One week after FEMA sent a letter to the various cities, towns and governments in Lee County threatening the removal of any property owners from the National Flood Insurance Program who used potentially inaccurate appraisals by the Lee County Property Appraiser, the federal agency has backtracked.

It said skyrocketing flood insurance rates or removal from the National Flood Insurance Program in its entirety could result if properties relied on inaccurate appraisals, and “strongly recommend using methods other than the product created by the Lee County Property Appraiser.”

Now, following a meeting with Lee County officials, FEMA will once again allow homeowners the use of Lee County Property Appraiser-assessed values –– although it left room for itself to reverse course.

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The volunteers of the Ryan & Katrena Crew have been replacing the Fort Myers Beach street signs lost to Hurricane Ian. They meet every Saturday to make their colorful, handmade signs.
The volunteers of the Ryan & Katrena Crew have been replacing the Fort Myers Beach street signs lost to Hurricane Ian. They meet every Saturday to make their colorful, handmade signs.

Property owners are dependent on the “50% rule,” a National Flood Insurance Program rule. The rule states that if your home sustained substantial damage in a disaster, determined by whether repairs to bring your home back to pre-damage condition cost more than 50% of the pre-disaster value of your home, you must come into compliance with current codes.

That could mean elevating your home, or tearing it down and rebuilding in accordance with current code.

If you violate that rule, you can be kicked out of the National Flood Insurance Program, a Congress-created program that reduces the socio-economic impact of floods. That can result in difficulty getting a mortgage, or even mean the next time your home is damaged in a natural disaster, you cannot rebuild but must instead demolish it.

Not all jurisdictions across Lee County issued new guidance for property owners based on the Feb. 14 FEMA letter, but some like Fort Myers Beach did, lowering the amount that residents could use to calculate their repairs or rebuilds. Residents and officials alike feared it could price out less-wealthy residents who have been there for generations.

Going into a meeting last Friday, Lee County officials were seeking clarity and a solution to a confusing and frustrating situation, one that had residents up in arms.

However, Property Appraiser Matt Caldwell, who was joined on the call by County Manager Roger Desjarlais, Interim Fort Myers Beach Town Manager Keith Wilkins, Lee County Commissioner Brian Hamman, Sanibel City Manager Dana Souza, and Florida Director of Emergency Management Kevin Guthrie, among others, "did a masterful job" explaining how his office assesses properties, Desjarlais said in an email to Lee County commissioners.

Wilkins added that Guthrie was a major help to the situation, as well.

FEMA reverses course

A food truck on Fort Myers Beach feeds patrons at Times Square on Feb. 10, 2023. In the wake of Hurricane Ian, food trucks have popped up on the island to feed the masses that are showing up on the beach.
A food truck on Fort Myers Beach feeds patrons at Times Square on Feb. 10, 2023. In the wake of Hurricane Ian, food trucks have popped up on the island to feed the masses that are showing up on the beach.

On Monday, FEMA acknowledged the property appraiser's authority and duties and pledged to "coordinate with the Lee County Property Appraiser to better understand the methodology used to determine the property valuations issued after Hurricane Ian."

During the meeting, FEMA representative Jason Hunter advised that if county officials are confident in the values assessed by Caldwell's office, they should continue issuing building permits, Desjarlais said.

Still, Desjarlais noted in his email the letter is "not as definitive as we would like," but, he continued, "it appears they (have) a better understanding of the methodology and agree to continue working with Lee County officials on the issue."

'A week wasted'

Wilkins called it "a week wasted" but added that it was still a victory for residents.

"Fewer people will have to tear down their house and elevate," Wilkins said. "That's a huge cost. Now that we have established the higher values and the (county property) appraiser has the authority to establish those values, people will be in a better spot.

"It meant a lot for (FEMA) to back up," Wilkins said.

"They agreed to use our numbers going forward and they agreed to work with us if they had any additional questions," Caldwell said. "The residents will be able to rely on our tax value letter the same way they have been able to shortly after the storm. We go back to the process we all agreed to, which is extraordinarily helpful, in my opinion, to the constituents. It gives them the most flexibility to figure out the situation as they face it.

"It certainly is frustrating," he said. "It could have all been avoided with some simple phone calls on their part. But at the end of the day, we seem to have come to the correct resolution, and that's all that really matters."

This article originally appeared on Fort Myers News-Press: FEMA relents, allows use of Lee County Appraiser property values