FEMA will restore an eligible facility to its pre-disaster design. Restoration is divided into two categories: Repair or Replacement. If a facility is damaged to the point where the applicant thinks the facility should be replaced rather than repaired, the following calculation, known as the “50% Rule,” should be used to determine whether replacement is eligible. The repair cost does not include codes and standards upgrades, demolition, site work, or applicable project management costs.

IF          Repair Cost1

Replacement Cost2

     Repair Cost1

IF   Replacement Cost2

<    50% THEN only the repair cost is eligible

≥   50% THEN the replacement cost is eligible

1. Repair cost includes  only those repairs,  including non-emergency mold remediation, associated  with the damaged components and the codes and standards that apply to the repair of the damaged components.

The cost does not include upgrades of other components triggered by codes and standards, design associated  with upgrades, demolition of the entire facility, site work, or applicable project management costs. The cost of contents and hazard  mitigation measures  is not included in the repair cost.

2. Replacement cost includes  the costs for all work necessary to provide a new facility of the same size or design capacity and function as the damaged facility in accordance with all current applicable codes and standards. The cost does not include demolition, site work, applicable project management costs, cost of contents, and hazard  mitigation measures.

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