Section 3606-01 of Chapter 3600 of Title 1 of the Rules of the City of New York, which governs how the market value of buildings in special flood hazard areas is determined, is amended effective March 21, 2026. While it may seem inconsequential at first glance, the amendment includes a significant change.
The amendment formally codifies the New York City Department of Building’s (DOB’s) existing process for determining whether a structure in a special flood hazard area has sustained “substantial damage” following a natural disaster. It also establishes a clear notice and appeals procedure for affected property owners.
The amendment is designed to align local procedures with the National Flood Insurance Program (NFIP) requirements under 44 C.F.R., ensuring the city remains in compliance with federal floodplain management standards.
The amendment makes three main changes to the existing rule:
- Substantial Damage Determinations. The DOB, acting as the city’s floodplain administrator, is authorized to formally declare a structure substantially damaged following a post-disaster assessment. Any repairs made to such a structure are automatically considered “substantial improvements” under Building Code Section BC 202, meaning they must comply with full flood-resilience standards such as elevation and floodproofing requirements.
- Notice Procedure. When the DOB determines a structure is substantially damaged, it must notify the property owner by regular mail and, where physically possible, post notice directly on the property. The notice must explain the basis for the determination and how to challenge it.
- Appeals Process. Property owners have 24 months from the date of determination to file an appeal, with a possible 12-month extension for reasonable cause. Key rules for appeals include:
- No work other than emergency repairs may be performed on the building while an appeal is pending.
- Appeals for one- or two-family homes must be prepared by a licensed home improvement contractor, a Certified Floodplain Manager, or a registered design professional.
- Appeals for all other buildings must be prepared by a registered design professional.
- Appeals must use either FEMA’s Substantial Damage Estimator (SDE) tool or an alternative well-documented methodology (which may include a property appraisal).
- If the DOB denies an appeal, the owner may escalate to the Board of Standards and Appeals.
Importantly, the notification requirement states that U.S. mail is the primary – and in many cases only – means of notification. In other words, there will be no phone call, email, or even certified mail. With delays and mis-deliveries in regular mail, it is possibly or even likely that owners could miss the notification. We recommend that if your property is at any risk of flood damage, you should be diligent about making sure DOB has a correct mailing address for you and that you check your mail, and, if possible, you or your delegate should visit the property regularly to confirm no physical notice has been left.
If you do receive a notice, it is vital that you note the date of receipt, the date the notice purports to have been sent, and the date 24 months from the sent date (this is your appeal deadline).
The determination of “substantial damage” can affect your property value, insurance claims and premiums, and work you are required to perform on the property, so it’s worth the time and effort to respond to notifications and, if appropriate, file an appeal.
