(1) Freeboard. To elevate at least two feet above the minimum required base flood elevation, make the following changes:

(2) Determining BFEs in Unnumbered A Zones. Replace “may” with “shall” in the second paragraph of CMC 16.16.020(3) to read: “NOTE: A base flood elevation shall....”

(3) Determining Market Value of Existing Structures. Replace the “Market value” definition in Chapter 16.08 CMC with:

“Market value” shall be determined by estimating the cost to replace the structure in new condition and adjusting that cost figure by the amount of depreciation which has accrued since the structure was constructed.

1. The cost of replacement of the structure shall be based on a square foot cost factor determined by reference to a building cost estimating guide recognized by the building construction industry.

2. The amount of depreciation shall be determined by taking into account the age and physical deterioration of the structure and functional obsolescence as approved by the floodplain administrator, but shall not include economic or other forms of external obsolescence.

Use of replacement costs or accrued depreciation factors different from those contained in recognized building cost estimating guides may be considered only if such factors are included in a report prepared by an independent professional appraiser and supported by a written explanation of the differences.

(4) Increased Cost of Compliance (ICC) Coverage – Repetitive Loss Provisions. This provision allows communities the opportunity for flood insurance policy holders to have ICC coverage made available in repetitive loss situations.

Modify the definition of “Substantial damage” in Chapter 16.08 CMC as follows:

“Substantial damage” means:

1. 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; or

2. Flood-related damages sustained by a structure on two separate occasions during a 10-year period for which the cost of repairs at the time of each such event, on the average, equals or exceeds 25 percent of the market value of the structure before the damage occurred. This is also known as “repetitive loss.”

(5) Nonconversion of Enclosed Areas Below the Lowest Floor. Insert/add the following section as CMC 16.16.020(10):

A. Nonconversion of Enclosed Areas Below the Lowest Floor.

To ensure that the areas below the BFE shall be used solely for parking vehicles, limited storage, or access to the building and not be finished for use as human habitation without first becoming fully compliant with the floodplain management ordinance in effect at the time of conversion, the Floodplain Administrator shall:

1. Determine which applicants for new construction and/or substantial improvements have fully enclosed areas below the lowest floor that are 5 feet or higher;

2. Enter into a “NON-CONVERSION AGREEMENT FOR CONSTRUCTION WITHIN FLOOD HAZARD AREAS” or equivalent with the City. The agreement shall be recorded with the Los Angeles County Recorder as a deed restriction. The non-conversion agreement shall be in a form acceptable to the Floodplain Administrator and County Counsel; and

3. Have the authority to inspect any area of a structure below the base flood elevation to ensure compliance upon prior notice of at least 72 hours.