The Department of Buildings revised and clarified 1 RCNY 3601-01, a rule that addresses application requirements for buildings located in flood zones. The intent of 1 RCNY 3601-01 is to determine whether the work performed in flood zones constitutes a substantial improvement, which is defined as job applications whose total equals 50% or more of a building’s market value. It also sets parameters for when a job application for a properties in a flood zone is required to submit market value calculations.

The revised 1 RCNY 3601-01 relieves some applicants from having to submit calculations proving market value of the property. Previously the DOB applied a flat application value trigger of $40,000 (the sum total of all ongoing applications) to require the market value documentation. For buildings with an extremely high value, $40,000 may not buy substantial construction work. Conversely, inexpensive homes may never see a $40,000 alteration. In order to apply a more fair application of 1 RCNY 3601-01, as well as to properly utilize their own resources, the DOB edited 1 RCNY 3601-01 to include an either/or scenario.

For applications in flood zone buildings totaling over $40,000 and whose total equals more than 25% of the market value but less than 50% (substantial improvement), documentation regarding the value of the property must be submitted with the application.

The DOB aims to achieve transparency in determining market value of properties in flood zones while avoiding bogging itself down with additional paperwork. Market value of properties in flood zones is significant when there is a high value of open applications. If open applications total 50% or more of property value and another application is opened, buildings in flood zones will have to abide by the stringent requirements of Appendix G.

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