GALVESTON — Wallace Martin’s house is one of only six on Wincrest Drive that is red — the color of substantial damage — on the city’s damage assessment maps.
While most of his neighbors are beginning to make repairs to their houses, Martin might have to pay thousands of dollars and go through the lengthy process of elevating his house before he can begin putting it back together, something he doesn’t want to do.
Julia Hatcher’s house is one of thousands all across the city that is green on the city’s assessment map.
But rather than celebrating and hiring a contractor, Hatcher spent the past two weeks trying to figure out how to go from green to red, the key to getting the extra insurance money she needs to elevate her house.
Martin, Hatcher and hundreds of other property owners unhappy with the city’s assessment can appeal and perhaps get a change that suits their rebuilding plans.
Some say the ability to appeal makes the assessments subjective and proves the process wasn’t worth going through in the first place.
But officials say the flexibility is designed to give residents due process and a role in determining what happens to their properties.
Even if many of the assessments are eventually changed, the system is still doing its job to protect property from future storm damage, they say.
Red To Green
Less than two weeks after Hurricane Ike flooded 75 percent of the island’s houses and left a trail of destruction along much of the upper Texas coast, the city asked the Federal Emergency Management Agency to send assessment teams to review the damage building by building.
Structures needing repairs costing more than 50 percent of their value were colored red on the city’s assessment map.
Officials estimate about 300 structures were substantially damaged.
Martin’s house had 56 percent damage, according to the assessment.
Under the city’s floodplain ordinance, drafted to comply with National Flood Insurance Program rules, substantially damaged structures must be raised above the base flood elevation, about 11 feet above sea level on most of the island.
At the city’s request, the assessment teams added 5 percent to values set by the Galveston Central Appraisal District and used that number to calculate damage.
But appraisal district values all across Texas are historically lower than market value, forcing many property owners to fight a substantial damage ruling they would not have received if the starting value had been accurate.
Martin argues the appraisal district undervalued his house by about $50,000. He plans to hire an independent appraiser to prove it. If he’s right, the damage would total only about 40 percent of the value.
He said he was reasonably confident he would be able to switch his house from red to green and get permission to rebuild.
Green To Red
While many people are hoping to escape the elevation requirements by getting out of a substantial damage ruling, Hatcher wants to raise her house, which sits near English Bayou, to prevent future flooding.
But two weeks ago, the city gave her the green light to make repairs.
The federal assessment team estimated she could fix her storm damage for less than $25,000, a lowball assessment, she said.
Without a substantial damage ruling, Hatcher cannot claim extra money in her insurance policy that would help pay for elevation costs.
The National Flood Insurance Program will give property owners an extra $30,000 to elevate, move or demolish properties, but only when they are substantially damaged.
Hatcher is one of 10 property owners who have so far appealed to get a substantial damage ruling.
She submitted a contractor’s estimate to the city, showing the repairs would cost much more than $25,000.
On Thursday, officials told her the property was substantially damaged.
Due Process
Although Hatcher got the ruling she wanted, and Martin likely will get the ruling he wants, the system is working, said George Currin, a federal damage specialist.
The appeal process is pretty typical, he said, especially for a community with the number of damaged structures Galveston has, he said.
Communitywide assessments are designed to prevent property susceptible to flooding from getting damaged again during the next storm.
But not all of the substantially damaged properties will have to be elevated, and next time around, they could flood again.
No matter how many properties are eventually lifted out of flood-prone areas, the city will have done its job as long as the process was uniform, consistent and administered properly, said Diana Herrera, a federal floodplain specialist.
Appeals aren’t a way to manipulate the system, said Brandon Wade, assistant city manager.
“Without the appeal process, people would have no due process,” he said.
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Appeals process
Ways to appeal substantially damaged property
1. All property owners appealing a substantial damage ruling must obtain a certified pre-storm appraisal, not more than a year old, which indicates the house value is higher than the Galveston Central Appraisal District value.
2. In conjunction with a certified pre-storm appraisal, submit a complete project bid from a registered contractor to repair the structure and the insurance adjustment determination, if the structure was insured. Property owners who plan to do the work themselves can submit a cost estimate for the materials needed to do the work, but city officials must add a cost estimate for labor to the total to make it consistent with other estimates.
3. Submit an elevation certificate, completed by a licensed Texas surveyor, verifying the structure is located at or above the base flood elevation and complies with current National Flood Insurance Program rate maps. The maps can be viewed online at www.fema.gov.
4. Elevate the structure to the minimum elevation requirement for your area.
5. Move the structure to a property that conforms to the flood plain regulations.
6. Demolish the structure and rebuild according to the current regulations.
Ways to have property ruled substantially damaged
1. Submit a complete project bid from a registered contractor to repair the structure.
2. Submit the insurance adjustment determination, if the structure was insured.
3. Request the damage report from the city and make sure basic information, like square footage, is accurate.
