A facility is considered repairable when disaster damages do not exceed 50 percent of the cost to restore the facility to its pre-disaster condition. This is referred to as the “50 Percent Rule.” The comparison of repair costs with replacement costs results in a fraction that expresses repair as a percentage of replacement. The numerator of the fraction is the cost of repairing disaster damage only and includes costs associated with codes and standards upgrades that apply to the repair of the damaged elements only. The denominator of the fraction is the cost of replacing the facility on the basis of its predisaster design and in accordance with applicable codes and standards. FEMA properly included elevation costs in the denominator of the fraction and excluded them from the numerator of the fraction. The recalculation of replacement costs does not satisfy the 50 Percent Rule; therefore, the Facility is not eligible for replacement.

FEMA finds that the Facility is eligible for repair and not replacement under the 50 Percent Rule. In addition, the Applicant has not demonstrated that additional funding is eligible. Therefore, the appeal is denied.

Stafford Act § 406. 44 C.F.R. §§ 206.223(a)(1), 206.226(d), 206.226(f). Response and Recovery Policy (RRP) 9524.4, Repair vs. Replacement of a Facility under 44 CFR § 206.226(f) (The 50 Percent Rule), (June 1, 1995); and further clarified in FEMA Recovery Policy 9524.4, Repair vs. Replacement of a Facility under 44 CFR § 206.226(f) (The 50 Percent Rule) – Policy Clarification and Cost Estimating and Review Requirements, (September 14, 2015)).