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#2055964 - 12/29/15 02:53 PM Dilapidated Shed
ahkcompliance Offline
Diamond Poster
Joined: Sep 2008
Posts: 2,470
Midwest
This is the first time we have considered using the detached structure exemption. We have a determination stating the residence is not in a flood zone but there are 2 outbuildings that are. The outbuildings are an old dilapidated shed and silo. Neither structure is used. I know with the new exemption is goes by intended use. Can we use the exemption on these outbuilding?

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Flood Compliance
#2056059 - 12/29/15 06:53 PM Re: Dilapidated Shed ahkcompliance
David Dickinson Offline
10K Club
David Dickinson
Joined: Nov 2000
Posts: 18,762
Central City, NE
You post some good questions that we don't have solid answers to. You say it is a shed and silo. A silo definitely sounds like a farm building, but I assume you want to say "it's not used for farming anymore, therefore, we ought to be able to exempt it."

ยง339.4(c)(1) doesn't just say the building can't be "used primarily for agricultural, commercial, industrial, or other business purposes". It also says the detected structure must also be "used primarily for personal, family, or household purposes." So in your example, how is the shed and silo being used for personal, family or household purposes? It sounds like they aren't being used at all - which is the gray area we all face.

You can choose an aggressive view and say "since it's not being used for ag/commercial purposes, it's therefore used for personal reasons" or you could choose the conservative approach and say "since it's not being used for personal purposes, it can't be exempt". It depends on your risk tolerance and appetite. We really don't have any further guidance.
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David Dickinson
http://www.bankerscompliance.com

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#2056346 - 12/31/15 02:15 PM Re: Dilapidated Shed ahkcompliance
ahkcompliance Offline
Diamond Poster
Joined: Sep 2008
Posts: 2,470
Midwest
Thanks Dave! Always value your input.

Those comments are in line what I was thinking. I think with this transaction we are going to take the aggressive approach and say that since they are not used for ag/commerical purposes and generate no income, they are deemed for consumer purposes.

Thanks again! Happy New Year!

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