This is in response to a letter from your office dated June 6, 2016, which transmitted the referenced second appeal on behalf of the Borough of Lavallette (Applicant). The Applicant is appealing the Department of Homeland Security’s Federal Emergency Management Agency’s denial of estimated replacement costs for the Applicant’s improved project to restore its Municipal and Police Buildings. As explained in the enclosed analysis: the floodplain administrator incorrectly determined the buildings met the definition of substantially damaged; FEMA correctly excluded elevation costs in its application of the 50 Percent Rule; and the Applicant has not demonstrated that applicable codes or standards require elevation. Accordingly, estimated costs to replace, rather than repair, the buildings are not eligible. Therefore, I am denying this appeal. Please inform the Applicant of my decision. This determination is the final decision on this matter pursuant to 44 C.F.R. § 206.206, Appeals.