For Pinellas residents trying to rebuild after the devastation of Hurricanes Helene and Milton, navigating the permitting process has been a confusing and time-consuming ordeal. One of the biggest hurdles is the Federal Emergency Management Agency’s (FEMA) “50% rule,” which mandates that any home requiring repairs or renovations exceeding half of its value must be fully updated to current housing codes.

State Rep. Linda Chaney (R–St. Pete Beach) aims to change the law to make it easier for homeowners to comply with this rule. “I had residents coming to me saying that there were situations where they were being limited from securing their homes from storms,” she said.

These concerns prompted Chaney to commission a study from Florida’s Office of Insurance Regulation on permitting for storm recovery and mitigation. Based on the study’s findings, she is proposing a change to state law that would create a maximum “lookback” period for interpreting the 50% rule across communities in Florida. This change could impact resiliency, construction, and flood insurance rates statewide.

Pinellas Residents Face Permit Challenges After Hurricanes Helene and Milton

“Lookbacks” are relevant for homeowners covered by the National Flood Insurance Program (NFIP), which underwrites flood coverage for nearly every insured home in Florida. A lookback includes any work done on the house within a specified period (up to 5+ years) when determining what counts towards the 50% rule.

For example, a homeowner with a one-story house valued at $200,000 could make $100,000 of improvements before triggering the “50% rule.” However, in a community with a 5-year lookback, spending $20,000 on impact windows two years before a flood would leave only $80,000 available for repairs before triggering the rule.

For the approximately 40% of Pinellas County homes in the Coastal High Hazard Area, triggering the 50% rule would mean raising or rebuilding houses so their primary living space is at least 10 feet above sea level. This process can cost hundreds of thousands of dollars and take over a year to complete, potentially forcing families to sell their homes for lot value.

Chaney cited the example of a house flipper who renovates a property and sells it to a family. In communities with a long lookback period, that family might be unable to get permits for improvements like hurricane-impact windows if the previous owner’s renovations approached the 50% mark.

The OIR study found that 14.5% of homeowners have been denied permits due to a lookback period. Many homeowners are unaware of this issue before pulling permits, as the impact of previous renovations is not disclosed during the homebuying process.

Changing the law carries risks. The NFIP’s Community Rating System (CRS) offers flood insurance discounts for communities that comply with stringent storm mitigation and reconstruction standards, including the lookback period. Unincorporated Pinellas County, with a 1-year lookback, receives a 40% discount on NFIP flood insurance; St. Petersburg, with no lookback, offers a 25% discount.

However, Chaney’s study with the OIR suggests minimal impact from changing lookback policies. Only 12 Florida communities would see a 5% discount reduction, costing homeowners an average of $36 annually. Chaney noted that these communities could mitigate this by improving building codes or other resiliency measures.

“The CRS rating system has 19 different elements that earn community discounts for flood insurance,” she said. “It could be as simple as educating your community or more complex solutions like creating more green space.”

Community advocates support the plan. “Lookback periods should be ZERO, but the limit should be one year after a calamity event,” said realtor and Shore Acres Civic Association President Kevin Batdorf, noting that 90% of homes in his neighborhood suffered major damage in 2024.

He pointed out that in St. Petersburg, which uses a 49% standard like unincorporated Pinellas, there is no lookback period. The threshold only applies to permits opened simultaneously. Once a permit is closed, a new one can be opened, and the threshold resets.

Republican County Commission Chair Kathleen Peters agreed with Chaney’s proposal. “Many cities have no lookback, and others are removing it,” she noted.

Rep. Lindsay Cross (D–St. Petersburg) said she would likely support such a bill, questioning why those who improved their homes should be held to a higher standard than those who did not. However, she cautioned against finding ways to skirt the rules without ensuring continuous improvements in community resiliency.

Chaney hopes to present her proposals to the Legislature in the 2025 session as a starting point for additional homeowner support. She is currently canvassing support from her colleagues for the change.

“We all want more resilient communities. But we also have to let property owners make their own decisions. That’s their property. That’s the largest investment of their life,” she said.

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(Image created with Google Imagen 3 AI)