New Orleans Repair Update

In response to a Servicer's inquiry, Michael Centineo, Director for the Department of Buildings, City of New Orleans, responded with the following: 

Question: If a property is substantially damaged (> 50%) will the city issue a building permit?
Repsonse:  The city will issue a permit to renovate if a Single Family Dwelling (SD) property is at or above the required BFE (Base Flood Elevation); we will also issue an SD property a permit to elevate or demolish.

Question: Does the city require proof that the property will be elevated, if it is required?
Response:Yes

Question: What is an "emergency permit" and what work does it allow the mortgagor to perform?
Response: The emergency permit allows general repairs to replace damaged materials from Katrina or Rita.

Question: What are the consequences if a property owner does not obtain a building permit (for any amount of damage)?
Response: They can be fined and denied utilities.

Question:  What are the consequences if a property is required to be elevated and the property owner completes the repairs without elevating the structure?
Response: They can be fined and if the building is over 50% repaired and they are not at the required BFE, the city can request that they be denied flood insurance and utilities. 

Question: Is it possible for a structure that is substantially damaged (> 50%) to be "grandfathered" in and not required to be elevated?
Response:  Only if they are a designated historical landmark, on a list of historic places through the State, or if they are at the required BFE.