No, the strap does not restore the joist's strength.
Here's why:
Code Violation: The International Residential Code (IRC) Section R502.8.1 governs notches in wood floor joists. For a 2x10 joist (actual depth ~9.25 inches), the maximum allowable notch depth is 1/3 of the joist depth, which is approximately 3.08 inches. While the 3-inch notch is technically within this limit, the location is critical.
Critical Location: The notch is cut in the middle third of the span (7 feet from either end on a 14-foot span). IRC R502.8.1 explicitly prohibits notches in the middle third of the span because this area experiences the highest tensile stress during loading.
Steel Strap Insufficiency: A steel strap, even if properly installed, cannot adequately restore the tensile strength lost by removing the bottom fibers in the tension zone. The strap would need to be engineered (size, thickness, attachment) to transfer the tensile forces that the wood fibers originally carried. Standard straps are not designed for this purpose.
Correct Solution: The proper fix is to sister a new joist alongside the damaged one, or install a properly sized and engineered steel beam/plate that spans the entire notch area and is anchored to transfer loads effectively.
Conclusion: This installation violates the IRC and compromises the structural integrity of the floor system. A licensed structural engineer or contractor should assess and repair the joist properly.