Deanne Criswell, former Administrator of the Federal Emergency Management Agency (center in blue cap), visited a flooding site in Barre in July 2023. From left, Senator Sanders, Representative Balint, Criswell, Governor Phil Scott and Senator Welch. Courtesy photo.
Federal Emergency Management Agency Acquisition and demolition of flood-prone residential properties, or “buyouts,” helps communities restrict the land as open space in perpetuity to preserve the natural benefits of a floodplain. Keeping the property as open green space not only gets people out of harm’s way but also enhances community resilience, keeping flood waters away from neighbors.
FEMA does not buy directly from property owners but supports projects administered by the state and local communities. The state and local communities work together to identify areas where acquisition of properties make the most sense. Individuals do not apply directly to the state. The community must sponsor an application on behalf of the property owner.
Based upon the estimated amount of disaster assistance provided for the July 2023 flooding, Vermont has access to over $66 million to support mitigation efforts statewide, which includes funding to acquire flood prone properties.
Currently, FEMA has provided the state with over $31 million for property acquisitions in Vermont through two programs. Over $21 million has been obligated through the Hazard Mitigation Grant Program and more than $10 million through Flood Mitigation Assistance (FMA) Swift Current Grants
Mitigation funding is made available to the State following a Presidential Disaster Declaration.
- Vermont Emergency Management (VEM) will help towns determine which funding program may be the best fit. Factors such as: whether the property is developed, within a FEMA Special Flood Hazard Area, and under a certain cost threshold will determine which specific funding program is the best fit.
- The purchase price of the property is based on pre-disaster or current market value and determined by a third-party appraiser.
- Initiated and managed locally, property acquisitions are historically some of the most-requested project types for funding through FEMA’s Hazard Mitigation Assistance programs. FEMA normally provides 75 percent of the cost share with the state and local sources covering the remaining amount.
- Participation is voluntary. Property owners may change their mind up to the official closing.
The Process
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The process of having one’s home acquired can take more than a year.
- State and local officials, along with individual homeowners, play a pivotal role in the process.
- The town works with interested property owners and VEM to complete an application.
- Once a grant is awarded from the state, the town uses the money to procure an appraiser and conduct other pre-purchase tasks, such as any environmental or archeology assessments, title searches and gathering of closing documents.
- Deciding to participate in the program can be difficult for homeowners and takes time. They must choose between returning to a flood-prone area to repair and rebuild their home with costly mitigation measures or participate in an acquisition and move from a community they have come to love.
- After closing and the purchase of the property, the town uses grant funds to procure contractors for demolition and site work. The town tracks expenditures and provides quarterly reports to VEM.
Contact Information
- Property owners interested in additional information on buyouts can go to VEM’s website page with FAQs.
- Those interested in a participating in the program should contact their town manager, administrator, or Selectboard to express interest.
- Towns with interested property owners should reach out to [email protected] to learn more about the application process.
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