1
MEMORANDUM
DATE:
May
4,
2004
SUBJECT:
Percentage
Thresholds
for
Building
(
and
Other)
Code
Applicability
to
Existing
Structures
FROM:
Lisa
Sutton,
EC/
R
Incorporated
Graham
Fitzsimons,
EC/
R
Incorporated
TO:
Dave
Svendsgaard,
EPA/
OAQPS/
ITPID
Pam
Long,
EPA/
OAQPS/
ITPID
1.
INTRODUCTION
EC/
R
Incorporated
conducted
an
expedited,
preliminary
investigation
of
building
codes
in
use
by
State
and
local
agencies
to
identify
information
you
requested
as
you
consider
potential
cost
thresholds
in
New
Source
Review
rules.
We
conducted
an
Internet
search
to
identify
regulations
that
include
a
percentage
threshold
for
improvements
to
existing
buildings
that
triggers
applicability
of
a
jurisdiction's
building
code
(
or,
in
some
instances,
its
fire
or
flood
code).
Typically,
the
threshold
is
the
value
of
a
building's
improvement
(
or
similar
term)
as
a
percent
of
the
value
of
the
existing
building.
We
found,
for
example,
that
many
cities
include
in
their
building
code
a
requirement
that
an
existing
building
must
be
made
to
conform
to
the
most
current
building
code
if
it
undergoes
a
"
substantial
improvement"
(
that
is,
if
the
building
improvements
cost
more
than
50
percent
of
the
value
of
the
existing
building).

Section
2
provides
background
information
collected
in
our
Internet
search
on
the
applicability
of
building
codes,
including
definitions
of
relevant
terms.
Section
3
presents
information
collected
on
specific
code
applications.
A
summary
of
the
results
of
our
investigation
is
presented
in
Section
4.

2.
BACKGROUND
INFORMATION
ON
BUILDING
CODE
APPLICABILITY
The
International
Code
Council
(
ICC)
was
established
in
1994
with
the
goal
of
developing
one
comprehensive
and
coordinated
set
of
model
construction
codes
for
U.
S.
and
international
use.
While
44
States
use
the
International
Building
Code
as
a
model
according
to
the
ICC1,
at
present,
there
is
no
true
national­
level
code
for
construction
in
the
United
States.
Instead,
primary
responsibility
for
codes
governing
building
construction
appears
to
reside
with
local
governments.
2
States
may
adopt
broad
levels
of
codes,
but
they
generally
delegate
the
permitting
and
inspecting
authority
to
counties
and
cities.
Many
jurisdictions
use
a
nationally
developed
model
code
but
then
tailor
it
to
local
conditions;
they
may
not
adopt
revisions
on
as
frequent
a
basis
as
that
on
which
the
model
code
is
updated.

A
code
may
include
a
percentage
threshold
for
determining
what
constitutes
a
building
"
improvement,"
and
thus
applicability
of
the
current
code
version.
Some
codes
differentiate
between
types
of
improvements,
with
separate
requirements
for
each
type.
For
example,
a
particular
building
code
may
apply
an
improvement
threshold
to
a
building's
"
rehabilitation,"
"
reconstruction,"
"
addition,"
"
restoration,"
"
repair,"
"
alteration,"
"
remodeling,"
or
"
modification."
Several
commonly
used
terms
and
their
meanings
are:

Rehabilitations
­
improvements
made
to
an
existing
structure
which
do
not
affect
the
external
dimensions
of
the
structure
Memorandum
Percentage
Thresholds
for
Building
(
and
Other)
Code
Applicability
to
Existing
Structures
May
4,
2004
2
Additions
­
improvements
that
increase
the
square
footage
of
a
structure
Reconstructions
­
cases
where
an
entire
structure
is
destroyed
by
damage
or
is
purposefully
demolished
or
razed
and
a
new
structure
is
built
on
the
old
foundation
or
slab.

The
New
Jersey
Rehabilitation
Subcode
specifies
that
a
project
(
which
may
include
a
combination
of
repair,
renovation,
and
alteration
work)
becomes
a
"
reconstruction"
when
both
(
1)
the
area
where
the
project
is
taking
place
cannot
be
occupied
while
the
work
is
in
progress,
and
(
2)
a
new
certificate
of
occupancy
is
required
before
the
area
can
be
reoccupied.

How
percentages
are
used
in
code
applicability
determinations
varies.
In
examples
we
found,
percentages
are
applied
on
the
basis
of
market
value,
repair
value,
floor
area
(
e.
g.,
renovated
or
added),
and
assessed
value,
among
others.
A
"
nonconforming"
structure,
as
referred
to
in
numerous
building
codes,
means
a
structure
that
does
not
conform
to
the
terms
and
requirements
of
a
jurisdiction's
current
regulations.

Until
the
late
1970'
s,
three
model
building
codes
used
a
formula
called
the
"
25/
50
rule"
to
guide
determination
of
the
extent
to
which
a
proposed
rehabilitation
of
an
existing
building
would
trigger
applicability
of
current
code
requirements
to
the
building.
By
this
rule,
the
estimated
cost
of
rehabilitation
work
was
calculated
as
a
percentage
of
the
total
value
of
the
building.
If
the
Percentage
of
Value
(
PV)
was
lower
than
25%,
the
local
building
official
had
the
flexibility
to
determine
the
extent
to
which
rehabilitation
work
must
conform
to
building
codes.
If
the
PV
was
between
25%
and
50%,
then
the
entire
scope
of
the
rehabilitation
work
had
to
conform
to
building
codes.
If
the
PV
was
greater
than
50%,
then
the
entire
building
had
to
be
brought
up
to
current
building
codes.
However,
this
25/
50
rule
generally
discouraged
the
renovation
and
re­
use
of
existing
structures.
In
many
instances,
property
owners
wanted
to
rehabilitate
certain
aspects
of
their
buildings
but
had
to
abandon
their
plans
because
the
25/
50
rule
would
have
forced
them
to
rehabilitate
the
entire
buildings.
As
a
result,
these
buildings
remained
unused
and
deteriorated
over
time.
3
To
counter
the
effect
of
the
rules
that
governed
rehabilitation
before
the
1970'
s
(
which
was
to
encourage
new
construction
rather
than
re­
use
of
the
existing
building
stock),
in
1998
the
State
of
New
Jersey
developed
its
own
code
specific
to
building
rehabilitations.
Subsequently,
the
U.
S.
Department
of
Housing
and
Urban
Development
(
HUD),
requested
the
National
Association
of
Home
Builders'
Research
Center
(
NAHBRC)
to
develop
a
national
version
of
a
code
for
rehabilitation
based
on
the
one
developed
by
New
Jersey.
4
For
work
in
existing
buildings
(
including
additions),
the
New
Jersey
Rehabilitation
Subcode
generally
replaces
provisions
of
other
subcodes.
Its
requirements
generally
are
based
upon
the
type
of
work
being
done
rather
than
on
the
extent
of
the
work.
However,
in
the
case
of
reconstruction
work
(
as
defined
in
the
subcode),
there
are
some
requirements
that
must
be
met
when
the
project
is
a
large
one
in
floor
area.
5
The
definitions
of
several
key
terms
relevant
to
that
application
of
building
codes,
including
"
substantial
improvement,"
appear
in
rules
promulgated
by
the
Federal
Emergency
Management
Agency
(
FEMA).
However,
as
noted
by
the
City
of
Palo
Alto,
California,
"
although
published
by
Memorandum
Percentage
Thresholds
for
Building
(
and
Other)
Code
Applicability
to
Existing
Structures
May
4,
2004
3
FEMA
as
guidelines
for
use
after
a
disaster,
the
criteria
for
determining
substantiality
­
and
its
consequences
­
are
applicable
to
non­
disaster
situations
as
well."
6
Two
terms
that
relate
to
building
improvements
are
defined
by
FEMA
at
44
CFR
59.1:

Substantial
damage
means
damage
of
any
origin
sustained
by
a
structure
whereby
the
cost
of
restoring
the
structure
to
its
before
damaged
condition
would
equal
or
exceed
50
percent
of
the
market
value
of
the
structure
before
the
damage
occurred.

Substantial
improvement
means
any
reconstruction,
rehabilitation,
addition,
or
other
improvement
of
a
structure,
the
cost
of
which
equals
or
exceeds
50
percent
of
the
market
value
of
the
structure
before
the
"
start
of
construction"
of
the
improvement.
This
term
includes
structures
which
have
incurred
"
substantial
damage,"
regardless
of
the
actual
repair
work
performed.
The
term
does
not,
however,
include
either:
(
1)
Any
project
for
improvement
of
a
structure
to
correct
existing
violations
of
state
or
local
health,
sanitary,
or
safety
code
specifications
which
have
been
identified
by
the
local
code
enforcement
official
and
which
are
the
minimum
necessary
to
assure
safe
living
conditions
or
(
2)
Any
alteration
of
a
"
historic
structure,"
provided
that
the
alteration
will
not
preclude
the
structure's
continued
designation
as
a
"
historic
structure."

In
its
publication,
"
Answers
to
Questions
About
Substantially
Damaged
Buildings,"
FEMA
addresses
why
its
substantial
improvement
threshold
is
set
at
50
percent:
7
"
The
50%
threshold
was
chosen
as
a
compromise
between
the
extremes
of
(
1)
prohibiting
all
investment
to
structures
in
flood
hazard
areas
which
does
not
meet
minimum
FEMA
floodplain
management
requirements
and
(
2)
allowing
structures
to
be
improved
in
any
fashion
without
regard
to
the
hazard
present.
In
the
first
alternative
there
is
the
potential
for
causing
hardship
to
those
who
have
located
in
flood
hazard
areas
without
knowledge
of
the
risk
because
the
structure
was
constructed
prior
to
the
designation
of
the
area
as
flood
prone.
These
individuals
could
not
improve
their
structures
as
damage
or
age
contributed
to
their
deterioration.
The
second
alternative
provides
no
mechanism
to
ensure
that
increased
investment
in
flood
hazard
areas
will
receive
needed
protection
from
the
flood
risk,
thus
contributing
to
the
increased
peril
to
life
and
property.
The
threshold
is
thus
a
compromise
at
a
half­
way
point
and
was
chosen
because
it
conforms
with
similar
building
code
and
zoning
standards
that
also
use
a
50%
threshold."

3.
SUMMARY
OF
READILY
AVAILABLE
INFORMATION
COLLECTED
Table
1,
"
Example
Criteria
for
`
Substantial
Improvements'
That
Trigger
Application
of
Current
Building
and
Other
Codes
to
Existing
Structures,"
summarizes
regulations
and
guidance
found
on
the
Internet
that
relate
to
a
percentage
threshold
for
improvements
to
an
existing
building.

Represented
in
Table
1
are
building
codes
for
four
States
(
Oregon,
New
Jersey,
Rhode
Island,
Texas),
two
counties
and
15
cities.
The
cities
are
scattered
among
California,
Michigan,
New
York,
North
Dakota,
Pennsylvania,
South
Carolina,
Texas,
Virginia,
Washington,
Wisconsin,
and
Memorandum
Percentage
Thresholds
for
Building
(
and
Other)
Code
Applicability
to
Existing
Structures
May
4,
2004
4
Wyoming.
The
selection
of
these
jurisdictions
was
purely
a
result
of
the
Internet
search
criteria
used
and
is
not
necessarily
representative
of
code
applicability
nationwide.

Several
California
cities
include
a
percentage
threshold
for
building
improvements.
A
similar
percentage
threshold
for
building
improvements
may
be
part
of
the
California
Code
of
Regulations
(
CCR),
Title
24,
also
known
as
the
California
Building
Standards
Code,
but
we
were
not
able
to
verify
this
through
the
Internet.
Title
24
is
"
available
for
purchase
or
available
to
the
public
at
no
cost
through
depository
libraries,"
8
and
we
can
pursue
this
further
if
necessary.

4.
RESULTS
OF
REVIEW
For
jurisdictions
that
specify
a
"
substantial
improvement"
threshold
in
their
building
codes
to
determine
if
an
activity
triggers
the
applicability
of
current
codes
to
an
entire
building,
a
threshold
of
50
percent,
based
on
value
(
cost)
of
the
improvement
as
compared
to
the
pre­
improvement
building
value,
is
by
far
the
most
common.

Some
jurisdictions
have
additional
conditions
on
the
50­
percent
cost
threshold.
Examples
of
such
additional
conditions
are:


A
requirement
that
the
improvement
costs
are
summed
over
a
specified
length
of
time

Threshold
allows
substantial
improvements
only
if
the
improvements
are
made
necessary
by
a
disaster

Threshold
allows
improvements
only
to
restore
an
unsafe
building
or
to
relocate
a
building.

As
noted
more
fully
in
section
2
of
this
memorandum,
a
threshold
based
on
cost
of
improvements
has
been
found
to
be
a
potential
disincentive
to
re­
use
of
existing
buildings.
As
a
result,
jurisdictions
have
developed
building
code
that
is
specific
to
rehabilitation
of
existing
structures.
The
State
of
New
Jersey
Rehabilitation
Subcode
includes
percentage
thresholds
based
not
on
improvement
cost
but
rather
on
the
work
area
(
area
comprising
all
or
part
of
a
reconstruction
project)
as
a
percent
of
the
building's
floor
area.
Similarly,
the
State
of
Rhode
Island
Rehabilitation
Code
includes
a
threshold
of
50
percent
based
on
the
area
of
the
building
being
altered.

One
jurisdiction
prohibits
improvements
to
a
nonconforming
building
that
exceed
the
50­
percent
cost
threshold.

Some
jurisdictions
specify
a
60­
percent
cost
threshold.
Other
jurisdictions
use
a
combination
of
thresholds
based
on
improvement
cost.
For
example,
the
City
of
Beverly
Hills,
California,
an
occupancy
damaged
as
a
result
of
disaster
may
be
repaired
to
pre­
disaster
condition
if
the
estimated
value
of
repair
does
not
exceed
10%
of
the
replacement
value
of
the
structure.
If
the
estimated
value
of
repair
is
above
10%
but
under
50%,
the
damaged
elements
must
be
brought
into
conformance
with
current
code.
If
the
estimated
value
of
repair
equals
or
exceeds
50%,
the
entire
structure
must
be
brought
into
conformance
with
current
code.
Memorandum
Percentage
Thresholds
for
Building
(
and
Other)
Code
Applicability
to
Existing
Structures
May
4,
2004
5
We
note
that
this
data
collection
effort
focused
on
those
building
codes
that
utilize
a
percentage
threshold,
so
we
cannot
report
what
percentage
of
building
codes
nationwide
might
use
such
a
threshold.
We
further
note
that
by
the
nature
of
our
data
collection
approach,
which
used
Internet
search
engines,
our
data
did
not
capture
any
particular
geographical
distribution,
nor
is
it
necessarily
representative
of
building
code
applicability
determinations
nationwide.

***

1.
International
Code
Council.
http://
www.
iccsafe.
org/
cs/
adoptions/
adoption.
html.
Accessed
March
4,
2004.

2.
About,
Inc.
http://
homerepair.
about.
com/
cs/
buildingcodes/
a/
codes_
national1.
htm
Accessed
March
8,
2004.

3.
"
Implementing
a
Building
Rehabilitation
Code
in
Michigan,"
Matt
Syal
and
Chris
Shay,
Construction
Management
Program,
Michigan
State
University,
August
2001.
http://
www.
msu.
edu/~
cua/
pubs%
20hsg%
20report/
syal%
20rehab%
20hsg%
20reportI.
htm
Accessed
March
9,
2004.

4.
Ibid.

5.
State
of
New
Jersey
Rehabilitation
Subcode.
http://
www.
state.
nj.
us/
dca/
codes/
rehab/
text/
rehab_
5­
03.
pdf.
Accessed
March
10,
2004.

6.
Website
for
City
of
Palo
Alto,
California,
Public
Works
Engineering,
Floodzones.
http://
www.
cityofpaloalto.
org/
floodzones/
damage.
html.
Accessed
March
4,
2004.

7.
"
Answers
to
Questions
About
Substantially
Damaged
Buildings
­
National
Flood
Insurance
Program,
Community
Assistance
Series,"
Federal
Emergency
Management
Agency,
May
1991.
FEMA
­
213.
p.
3.
http://
www.
fema.
gov/
hazards/
floods/
lib213.
shtm.

8.
California
Building
Standards
Code.
http://
www.
bsc.
ca.
gov/
title_
24.
html
Accessed
March
4,
2004.
Memorandum
Percentage
Thresholds
for
Building
(
and
Other)
Code
Applicability
to
Existing
Structures
May
4,
2004
6
Table
1.
Example
Criteria
for
"
Substantial
Improvements"
That
Trigger
Application
of
Current
Building
and
Other
Codes
to
Existing
Structures
Source
Relevant
Code
Value
Triggering
Code
Detail
City
of
Beverly
Hills,
CA
Building
10%
and
50%

of
value
­
An
occupancy
damaged
as
a
result
of
disaster
may
be
repaired
to
pre­
disaster
condition
if
estimated
value
of
repair
does
not
exceed
10%
of
replacement
value
of
building
or
structure.
If
estimated
value
of
repair
is
above
10%
but
under
50%,
the
damaged
elements
must
be
brought
into
conformance
with
current
code.
If
estimated
value
of
repair
equals
or
exceeds
50%,
entire
building
or
structure
must
be
brought
into
conformance
with
current
code.

­
For
repair
of
unreinforced
masonry
structures
and
buildings
that
are
damaged,
building
may
be
repaired
to
pre­
disaster
condition
if
estimated
value
of
repair
does
not
exceed
10%
of
replacement
value
of
building
or
structure.
If
estimated
value
of
repair
equals
or
exceeds
10%
but
does
not
exceed
50%,
the
entire
building
must
be
repaired
and
strengthened
to
comply
with
Ch.
5
requirements.
If
estimated
value
of
repair
exceeds
50%,
the
entire
building
or
structure
must
conform
with
Ch.
1
structural
requirements.

City
of
Brisbane,
CA
Building
Either
50%
of
value
or
50%
of
floor
area
When
additions
or
alterations
to
a
building
or
structure
are
made
within
a
5­
year
period
and
exceed
either
(
1)
50%
of
market
value
of
pre­
existing
building
or
structure
or
(
2)
50%
of
floor
area
of
pre­
existing
building
or
structure,
then
the
pre­
existing
building
or
structure
must
be
brought
into
conformity
with
standards
for
new
construction,
as
the
building
official
may
determine
to
be
necessary.

City
of
Cedarburg,
WI
Building
50%
of
value
If
alterations
or
repairs
exceed
50%
of
fair
market
value
of
an
existing
building
within
any
12­
month
period,
the
entire
building
must
conform
to
new­
building
requirements.

City
of
Davis,

CA
Building
50%
of
value
"
Substantial
improvement"
means
repair,
reconstruction,
or
improvement
of
a
structure
where
cost
equals
or
exceeds
50%
of
market
value
of
structure.
Term
excludes
(
1)
improvement
of
structure
to
comply
with
existing
specifications
that
are
solely
necessary
to
assure
safe
living
conditions
or
(
2)
alteration
of
structure
listed
as
an
historical
place.
Table
1.
Example
Criteria
for
"
Substantial
Improvements"
That
Trigger
Application
of
Current
Building
and
Other
Codes
to
Existing
Structures
(
cont'd)

Memorandum
Percentage
Thresholds
for
Building
(
and
Other)
Code
Applicability
to
Existing
Structures
May
4,
2004
Source
Relevant
Code
Value
Triggering
Code
Detail
7
City
of
Erie,
PA
Building
50%
of
value
In
flood­
prone
area,
any
modification,
alteration,
reconstruction,
or
improvement
to
an
existing
structure
to
an
extent
of
50%
or
more
of
its
market
value
must
be
undertaken
in
full
compliance.

Horry
County,

SC
Building
50%
of
value
Substantial
improvement
of
a
nonconforming
building
is
prohibited.
Substantial
improvement
is
any
combination
of
repairs,
reconstruction,
alteration,
or
improvements
to
a
building,
taking
place
during
a
5­
year
period,
in
which
the
cumulative
cost
equals
or
exceeds
50%
of
market
value
of
the
building.

City
of
Issaquah,
WA
Building
25%
of
value
for
maintenance;

75%
of
value
for
change
­
Maintenance
may
be
performed
on
a
nonconforming
"
situation"
(
including
structures
and
uses)
if
the
value
of
work
and
materials
in
a
12­
month
period
does
not
exceed
25%
of
the
value
of
the
structure,
using
International
Conference
of
Building
Officials
(
ICBO)

construction
tables.
Exception
is
if
rehabilitation
expands
the
number
of
dwelling
units
or
physically
expands
the
square
footage
of
the
structure.
Undergoes
a
"
Level
0"
review.

­
Reconstruction
of
a
damaged,
nonconforming
structure
undergoes
a
"
Level
0"
review
if
reconstruction
costs
are
less
than
75%
of
structure's
value.
Otherwise,
reconstruction
undergoes
a
"
Level
2"
review.
Reconstruction
permit
must
be
submitted
within
1
year
of
damage,
or
the
project
will
be
required
to
comply
with
all
codes.

­
Change
of
a
nonconforming
situation
(
including
reconstruction,
repair,
remodeling,
or
alteration
of
a
building
or
site)
undergoes
a
"
Level
0"
review
if
the
cost
of
change
is
less
than
75%
of
structure
value.
Otherwise,
the
change
"
shall
decrease
the
degree
of
nonconformity"
and
undergoes
a
"
Level
2"
review.
Table
1.
Example
Criteria
for
"
Substantial
Improvements"
That
Trigger
Application
of
Current
Building
and
Other
Codes
to
Existing
Structures
(
cont'd)

Memorandum
Percentage
Thresholds
for
Building
(
and
Other)
Code
Applicability
to
Existing
Structures
May
4,
2004
Source
Relevant
Code
Value
Triggering
Code
Detail
8
City
of
Jackson
Hole,
WY
Building
50%
of
value
­
Voluntary
restoration:
A
nonconforming
structure
which
has
been
willfully
modified
or
dismantled
to
an
extent
greater
than
50%
of
fair
market
value
of
the
structure
during
any
2­
year
period
must
be
restored
in
conformity
with
standards
of
the
Land
Development
Regulations.

­
Damage­
triggered
repair/
reconstruction:
If
a
structure
is
damaged
by
less
than
50%
of
the
fair
market
value
during
any
2­
year
period,
it
may
be
repaired
and
reconstructed
to
its
prior
nonconforming
condition,
provided
repair
or
reconstruction
is
commenced
within
12
months
after
date
of
damage.

Town
of
Menasha
­

Neenah,
WI
Building
25%
and
50%

of
value
­
If
a
building
is
altered
or
repaired
at
a
cost
of
greater
than
50%
of
the
assessed
value
of
the
building,
it
must
conform
to
current
building
code.

­
If
a
building
is
damaged
to
an
extent
in
excess
of
50%
of
the
assessed
value
of
the
building
prior
to
damage,
then
the
building
must
be
made
to
conform
to
current
building
code.

­
If
cost
of
alterations
or
repairs
is
between
25%
and
50%
of
physical
value
of
the
building,
the
Building
Official
determines
the
degree
to
which
the
altered/
repaired
portions
must
conform
to
requirements
for
new
buildings.

­
If
cost
of
alterations
or
repairs
is
below
25%
of
physical
value
of
building,
it
may
be
restored
to
its
previous
condition.

City
of
Mill
Creek,
WA
Building
60%
and
100%
of
value
­
Their
building
code
for
fire­
extinguishing
sprinklers
treats
as
new
construction
(
1)
additions
exceeding
60%
of
value
of
building
or
structure
or
(
2)
alterations
and
repairs
to
any
portion
of
a
building
or
structure.

­
A
different
part
of
their
building
code
for
fire­
extinguishing
sprinklers
treats
as
new
construction
(
1)
additions
exceeding
60%
of
the
building
or
structure
or
(
2)
alterations
and
repairs
to
any
portion
of
a
building
or
structure
within
a
12­
month
period
that
exceed
100%
of
the
value
of
the
building
or
structure.
Table
1.
Example
Criteria
for
"
Substantial
Improvements"
That
Trigger
Application
of
Current
Building
and
Other
Codes
to
Existing
Structures
(
cont'd)

Memorandum
Percentage
Thresholds
for
Building
(
and
Other)
Code
Applicability
to
Existing
Structures
May
4,
2004
Source
Relevant
Code
Value
Triggering
Code
Detail
9
City
of
New
York,
NY
Building
30%
and
60%

of
value
If
the
cost
of
making
alterations
to
an
existing
building
in
any
12­
month
period
are
between
30%
and
60%
of
the
value
of
the
building,
only
those
altered
portions
of
the
building
must
comply
with
code.
If
the
cost
exceeds
60%,
the
entire
building
must
be
made
to
comply
with
code.

Oregon
Legislative
Assembly
Building
50%
of
value
Applies
to
relocated
buildings.
When
relocating
a
building,
its
heating,
plumbing,
and
electrical
systems
must
meet
standards
for
new
construction
if
the
cost
of
rehabilitation
exceeds
50%
of
the
value
of
the
structure
before
rehabilitation.

City
of
Rockford,
MI
Building
60%
of
value
If
a
nonconforming
building
or
structure
is
destroyed
to
an
extent
of
more
than
60%
of
its
replacement
value,
exclusive
of
the
foundation,
it
must
be
reconstructed
in
conformity
with
ordinance.

Shenandoah
County,
VA
Building
50%
of
value
Applies
to
restoration
of
unsafe
buildings.
If
the
damage
or
cost
of
reconstruction
or
restoration
exceeds
50%
of
replacement
value
of
a
condemned
building
or
structure,

exclusive
of
foundations,
building
must
comply
with
State
building
code.

City
of
Wichita
Falls,
TX
Building
50%
of
value
Allows
reconstruction
of
a
nonconforming
structure
if
structure
has
been
damaged
to
the
extent
of
not
more
than
50%
of
replacement
cost
of
structure
on
the
date
of
damage.

Village
of
Woodville,
WI
Building
50%
of
value
­
An
existing,
nonconforming
building
can
be
altered
only
if
it
has
not
deteriorated
by
more
than
50%
of
the
equalized
value
of
the
building
or
structure.
Otherwise
it
must
be
demolished.

­
An
existing
structure
must
comply
with
code
if
the
cost
of
altering
or
repairing
it
exceeds
50%
of
the
equalized
value
of
the
structure,
said
value
to
be
determined
by
the
Village
Assessor.
Table
1.
Example
Criteria
for
"
Substantial
Improvements"
That
Trigger
Application
of
Current
Building
and
Other
Codes
to
Existing
Structures
(
cont'd)

Memorandum
Percentage
Thresholds
for
Building
(
and
Other)
Code
Applicability
to
Existing
Structures
May
4,
2004
Source
Relevant
Code
Value
Triggering
Code
Detail
10
City
of
Beverly
Hills,
CA
Fire
50%
of
value
An
existing
building
has
to
install
fire­
extinguishing
system
if
additions,
alterations,
or
repairs
are
made
within
a
12­
month
period
that
exceed
50%
of
the
value
of
the
existing
building.

City
of
Mill
Creek,
WA
Flood
50%
of
value
­
They
define
"
substantial
damage"
and
"
substantial
improvement"
like
FEMA.

­
For
floodways,
reconstruction
of
residential
structures
is
only
allowed
if
the
cost
of
repairs,
reconstruction,
or
improvements
does
not
exceed
50%
of
the
market
value
of
the
structure.
Work
done
on
structures
to
comply
with
existing
health,
sanitary,
or
safety
codes
or
to
structures
identified
as
historic
places
shall
not
be
included
in
the
50%.

City
of
Fargo,

ND
Flood
50%
of
value
"
Substantial
improvement"
means
any
repair,
reconstruction,
or
improvement
of
a
structure,
the
cost
of
which
equals
or
exceeds
50%
of
the
market
value
of
the
structure,

either
(
1)
before
the
improvement
or
repair
is
started,
or
(
2)
before
the
damage
occurred,

if
the
structure
has
been
damaged
and
is
being
restored.
Substantial
improvements
to
a
structure
must
conform
to
floodproofing
code.

Town
of
Occoquan,
VA
Flood
50%
of
value
They
define
"
substantial
damage"
and
"
substantial
improvement"
same
as
FEMA.
A
modification,
alteration,
repair,
reconstruction,
or
improvement
of
any
kind
to
a
structure
to
an
extent
of
50%
or
more
of
its
market
value
must
comply
with
building
code.

Texas
Department
of
Licensing
and
Regulation
Industrialized
Housing
and
Buildings
50%
of
value
If
the
cost
of
altering
an
"
industrialized
building"
(
modular
commercial
building)
exceeds
50%
of
the
value
of
the
modules
or
modular
components
used
in
construction
of
the
building,
the
entire
building
must
comply
with
code;
otherwise,
only
the
modified
or
altered
portion
of
the
building
must
comply
with
code.
Table
1.
Example
Criteria
for
"
Substantial
Improvements"
That
Trigger
Application
of
Current
Building
and
Other
Codes
to
Existing
Structures
(
cont'd)

Memorandum
Percentage
Thresholds
for
Building
(
and
Other)
Code
Applicability
to
Existing
Structures
May
4,
2004
Source
Relevant
Code
Value
Triggering
Code
Detail
11
State
of
New
Jersey
Rehabilitation
Subcode
Rehabilitation
of
Buildings
Typically
20%,
25%,

and
50%
of
floor
area
­
If
the
"
work
area"
(
reconstruction
project
comprising
repair,
renovation,
alteration,
or
any
combination
thereof)
exceeds
a
threshold
percent
of
the
floor
area
of
the
building
(
in
some
cases
the
gross
enclosed
floor
area,
in
other
cases
the
occupied
floor
area),
then
code
requirements
(
building,
fire,
elevator)
are
triggered.
Typical
thresholds
are:
25%
for
fire
alarm
systems;
50%
for
vertical
opening
protection;
20%
for
smoke
and
heat
detection
devices;
20%
for
elevator
emergency
control
devices;
20%
for
standpipes;
and
50%
for
elevator
devices.

­
We
found
one
application
of
a
cost
threshold:
If
a
building
is
required
by
the
barrier
free
code
to
be
accessible
and
its
entrance
steps
are
being
replaced,
an
accessible
entrance
must
be
provided
if
it
does
not
add
more
than
20%
to
the
cost
of
replacing
the
steps.

[
5:
23­
6.6
Alterations]

State
of
Rhode
Island
Rehabilitation
Code
Rehabilitation
of
Buildings
50%
of
[
floor]

area
When
the
total
area
of
all
rehabilitation
work
areas
included
in
an
alteration
exceeds
50%

of
the
area
of
the
building,
the
work
is
considered
reconstruction
and
must
comply
with
code.
