A Non-Structural Alternative The housing boom in Harris County that followed World War II up and through the early 1980s led to thousands of houses being built in areas along bayous and creeks that were later determined to be in a floodplain, when the first detailed FEMA Flood Insurance Rate Maps were issued. Many of the floodplains in the county are relatively shallow, 1 to 2 feet deep, and much of the time the appropriate flood damage reduction tool is to construct a structural project to reduce expected flood levels. In other cases where houses were built hopelessly deep in floodplains that are several feet deep, the appropriate tool in the flood damage reduction toolbox is a non-structural one, and that is to purchase an affected house, remove the house from harm's way and move the people to higher ground.
An Effective Tool The purchase or "buyout" of houses that are flood-prone has proven to be one of the most cost-effective tools in the Harris County Flood Control District's flood damage reduction toolbox, when used under the correct conditions. The problem is not necessarily the bayou or creek occasionally wanting to occupy its floodplain. As mentioned, the problem is the house... and where it was built.
Buying and removing these flood-prone structures is the best way to ensure that they are not damaged by floods in the future.
Why should the government buy flooded homes? People's lives are at risk, and the flood losses drain government and community resources that affect all taxpayers. When compared to the high costs of larger channels, stormwater detention basins or other flood damage reduction options, a buyout can be the most cost-effective method of addressing the risk to people and their property.
The Home Buyout Program is in Full Swing Between 1989 and Tropical Storm Allison in June 2001, the District, acting alone and in partnership with other agencies, purchased 440 of the most repetitive flood loss homes in Harris County for a total cost of about $44 million.
Since Tropical Storm Allison, and as a direct result of the disaster Allison caused, the District, in partnerships with FEMA and the State of Texas, has purchased an additional 2,000 severely at risk and flood damaged houses for a total cost of approximately $170 million.
Aside from homes flooded by Tropical Storm Allison, the District also maintains a file of properties that are candidates for buyout when funds become available. The District currently is seeking funds for the voluntary purchase of homes that were flooded in October 2002 and for homes that have flooded repeatedly.
Federal Funds Increase the Buyout Program's Effectiveness The level of activity in the Home Buyout Program is influenced heavily by the availability of federal funds to leverage the District's funds that support it. The Federal Emergency Management Agency (FEMA), through the Texas Division of Emergency Management, has provided substantial federal funding for the purchase of flooded homes through FEMA's Flood Mitigation Assistance program (FMA), the Pre-Disaster Mitigation (PDM) program, and the Hazard Mitigation Grant Program (HMGP). Federal funding for home buyout usually requires local matching funds of at least 25%. It is important to note that, although some grant funds are made available only after a disaster declaration, these buyout grants do not provide immediate flood recovery assistance. These programs typically take eight to twelve months after the flood event to even get started, and then may take place over a period of many years following a flood event.
Not All Buyouts are the Same The guidelines and procedures for buyout activities after a flood event may differ, depending on the requirements of the specific funding source. In general, homes are appraised at fair market value by certified independent appraisers, homeowners are screened for eligibility for relocation assistance and/or moving expenses, negotiations are carried out with the Harris County Right-of-Way Division, and homeowners meet with Harris County Flood Control District staff counselors before the transaction is complete.
Potential buyout structures are generally ranked using a formula that considers the risk, severity and history of flooding. When Harris County Flood Control District funds are leveraged with other funds, the ranking priority of the financial partner may supercede that of the District. However, most rankings are based on similar considerations, with the ultimate objective of reducing damage and losses caused by flooding.
So, How Does the Buyout Program Work? After funding for a buyout has been identified, a typical buyout transaction begins when a potential seller (who must meet the eligibility criteria to participate in the specific buyout program) completes a Harris County Flood Control District Data Collection Form. The steps required to complete the transaction vary with the funding source, but these can usually be completed in 16-20 weeks from the time a Data Collection Form is received by the District. Title issues or other complications could extend this timeline. The biggest unknown factor in the amount of time required for voluntary acquisition of a property is the amount of time it takes for a seller to accept an offer. Once the home is purchased, demolition of the structure is scheduled soon thereafter, and the structure is removed, including the slab or supports.
Demolition of a house
What Happens to Buyout Open Space? The District works with communities, civic associations and neighborhoods, and individual neighboring property owners to determine what uses are feasible for the land that remains after a structure is removed. The goal is to have open space land become a community amenity, with possibilities ranging from a community garden to a park, or to an area that is left to return to nature. The District also works with a buyout property's neighboring owners so that they may use an adjacent lot as yard space in exchange for mowing and maintaining the land, which continues to be owned by the District.
The Buyout Program's Success Ensures Continuation Because FEMA recognizes the direct financial benefit to the National Flood Insurance Program (NFIP) from buying repetitive flood loss houses, they continue to be a major funding partner with the District to continue the buyout efforts in Harris County. Under the newly organized federal Pre-Disaster Mitigation program, the District is applying for additional FEMA funds to offer owners of qualifying flood prone homes the opportunity to move to higher ground.
For More Information on the Home Buyout Program For questions about the Home Buyout Program, including eligibility criteria, grant application status, the buyout process, and environmental justice relocation assistance, click here for contact info, or call the Home Buyout Hotline at 713-684-4020 or 713-684-4035.
