FUNDING SOURCES FOR HOME BUYOUTS
The graphic below is intended to assist you in understanding the funding process for home buyout programs in the United States, including the home buyout program led by the Flood Control District. The level of activity in the Flood Control District’s buyout program is influenced heavily by the availability of federal funds to leverage the Flood Control District's funds that support it.
By pursuing FEMA grants, the Flood Control District leverages each dollar it spends into as much as two to four dollars to acquire and demolish homes that are at high risk of flooding in the future. Federal funding for home buyout has historically required local matching funds of at least 25%, although some grant programs are now paying up to 100% of eligible costs. In addition to matching funds, the Flood Control District also funds certain expenses (such as some relocation costs) that are not covered by the FEMA grants.
It is important to note that, although some grant funds are made available 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. Buyouts are intended to prevent future flood damages.