§ 3606-01."
RCNY § 3606-01
(d)Calculation of market value. To determine the market value of a structure, the applicant shall use either of the two calculation methods below: (1) Assessment roll option. Applicants shall utilize dollar amounts provided by the Department of Finance's most recent "Final Assessment Roll" by multiplying the total market value by the ratio (market value of structure to total market value): Market Value of Structure = Estimated Market Value (Total) × Actual AV (Total) - Actual AV (Land)Actual AV (Total) (See Example 1) or Market Value of Structure = Estimated Market Value (Total) × 6-20% Limitation (Total) - 6-20% Limitation (Land) 6-20% Limitation (Total) (See Example 2) or Market Value of Structure = Estimated Market Value (Total) × 8-30% Limitation (Total) - 8-30% Limitation (Land) 8-30% Limitation (Total) (See Example 3) or, at the option of the owner, or where the assessment roll method would not reflect the market value of structure because more than one building occupies a single tax lot, (2) Appraisal option. Applicants shall utilize dollar amounts obtained from an appraisal performed by a New York State licensed Real Estate Appraiser and performed within one year of the filing of the alteration application: Market Value of Structure = Appraised Market Value (Land and Structure) = Appraised Market Value (Land) (e) Calculation of cost. To determine the cost of repairs, reconstructions, rehabilitations, additions or improvements of a building or structure, the applicant shall add together: (1) The costs for the given application, regardless of the time it takes to complete the work, plus (2) The cost of all other work to be performed during the same period, including work filed under separate application(s) and including any minor alterations and ordinary repairs.
(f)Determination of substantial improvement. Work will be deemed a substantial improvement if the cost as calculated in paragraph (e) equals or exceeds 50% of the market value of a structure as calculated in paragraph (d). A substantial improvement also includes work performed to a structure that has sustained substantial damage, as such term is defined in Section BC 202. In determining whether a structure has sustained substantial damage, the market value must be calculated in accordance with paragraph (d) of this rule.
(g)Application for construction document approval. For an alteration that is not a substantial improvement with a cost exceeding the greater of (1) $40,000 or (2) 25% of the market value of the structure as calculated in subdivision (d) of this section, the applicant shall include calculations of the market value of the structure and costs as outlined in this rule, and shall include any relevant backup documentation including either the online printout of the Department of Finance Final Assessment Roll or a copy of the real estate appraisal.
(h)Examples of calculation of market value. The Assessment Information for the following examples is based on information from the Final Assessment Roll as provided by the Department of Finance.
(1)Example 1; Actual A/V. For the purposes of this example, the assessed values for both the land and the total for the property are indicated as follows: DESCRIPTIONLAND TOTAL ESTIMATED MARKET VALUE814,000ACTUAL AV135,000366,300ACTUAL EX AV0136,080TRANS AV135,000363,150TRANS EX AV0136,080 The example property assessment roll indicates that the ESTIMATED MARKET VALUE is $814,000 for both the land and the structure. Using the values in the prescribed formula, the market value of only the structure is calculated as follows: Market Value of Structure = Estimated Market Value (Total) × Actual AV (Total) - Actual AV (Land) Actual AV (Total) Market Value of Structure = $814,000 × 366,300 - 135,000 366,300 = $814,000 × 63.15% = $514,041 (2) Example 2; 6-20% Limitation. For the purposes of this example, the assessed values for both the land and the total for the property are indicated as follows: DESCRIPTIONLAND TOTAL ESTIMATED MARKET VALUE144,0006-20% LIMITATION2,0405,702ACTUAL EX AV1,5701,570 The example property assessment roll indicates that the ESTIMATED MARKET VALUE is $144,000 for both the land and the structure. Using the values in the prescribed formula, the market value of only the structure is calculated as follows: Market Value of Structure = Estimated Market Value (Total) × 6-20% Limitation (Total) - 6-20% Limitation (Land)6-20% Limitation (Total) Market Value of Structure = $144,000 × 5,702 - 2,040 5,702 = $144,000 × 64.22% = $92,481 (3) Example 3; 8-30% Limitation. For the purposes of this example, the assessed values for both the land and the total for the property are indicated as follows: DESCRIPTIONLAND TOTAL ESTIMATED MARKET VALUE391,0008-30% LIMITATION13,05030,427ACTUAL EX AV00 The example property assessment roll indicates that the ESTIMATED MARKET VALUE is $391,000 for both the land and the structure. Using the values in the prescribed formula, the market value of only the structure is calculated as follows: Market Value of Structure = Estimated Market Value (Total) × 8-30% Limitation (Total) - 8-30% Limitation (Land) 8-30% Limitation (Total) Market Value of Structure = $391,000 × 30,427 - 13,050 30,427 = $391,000 × 57.11% = $223,302 (i) Notice of a department-issued substantial damage determination. Where the department determines that a building or structure is substantially damaged after a department assessment performed following a natural disaster, the department will send a notice by regular mail to the owner of the property at which the substantial damage occurred and will post such notice on the property, where physically possible. The notice will indicate the procedure to challenge the determination and the bases for such challenge.
(j)Appeal of a department-issued substantial damage determination. An appeal of a department-issued substantial damage determination must be submitted in accordance with the timeframe and submission requirements of this section. No work may be performed on a building deemed by the department as substantially damaged, except emergency work in accordance with items 1-3 and 5 of § 28-105.4.1 or Article 215 of the Administrative Code or section BC G102.1, item (8), until the department has made a determination regarding the appeal. Where the department has granted an appeal, the applicable provisions of BC G102.1 for a non-substantial improvement will apply to work on such building. Where an appeal is denied, the applicant may file for a variance at the Board of Standards and Appeals in accordance with section BC G105.1 or file an appeal of the department’s determination to the Board in accordance with § 28-103.4 of the Administrative Code.
(2)Appeals must be prepared using either (i) the latest version of the substantial damage estimator (SDE) issued by the Federal Emergency Management Agency (“FEMA”) and include an Individual Structure Detailed Report prepared in accordance with FEMA P-784, Substantial Damage Estimator User Manual and Field Workbook and the requirements of FEMA P-758, Substantial Improvement Substantial Damage Desk Reference, or (ii) an alternative, methodology acceptable to the department that provides documentation and calculations sufficient to verify the pre-damage market value of the structure as well as the cost to restore the structure to pre-damage condition, which may include an appraisal of the structure prepared in accordance with paragraph (2) of subdivision (d) of this section, in order to determine whether the structure meets the definition of substantial damage in section 202 of the Building Code.
(3)Any alternative methodology must include at a minimum: (i) an itemized repair cost breakdown, (ii) the basis for any pricing assumptions, (iii) pictures documenting the condition of each room, space or portion of the building subject to flooding or other type of damage and (iv) any other reports specified by the department.
(4)Appeals must be submitted on forms provided by the department, within 24 months of the date of a department-issued substantial damage determination. The department is authorized to grant one 12-month extension upon a finding of reasonable cause, provided an application for extension is submitted prior to the expiration of the 24-month appeals period.
(5)Appeals must be submitted in a form and manner established by the department and include signatures from the building owner and preparer of the appeal. The preparer submitting the appeal must sign an attestation on forms provided by the department confirming the accuracy of such application. The falsification of an appeal by a preparer may result in disciplinary action against the preparer including but not limited to prohibiting future dealings with the agency. (Amended City Record 6/30/2015, eff. 7/30/2015; amended City Record 2/19/2026, eff. 3/21/2026)
