To be eligible for federal funding, local governments must commit to using eminent domain to remove houses with a likelihood of flooding and risk of danger to the occupants.
All Americans have seen the images of communities devastated by flooding. The United States Army Corps of Engineers is the federal agency in charge of preventing that flooding. For years, the Army Corp has been seeking to remove homes that are prone to flooding. Now, with the threat of climate change, the Army Corp is taking a more aggressive posture. Rather than purely voluntary programs, the Corp is demanding that localities commit to using eminent domain to cause the removal of homes.
This New York Times article details that new program. “Local governments seeking federal money to help people leave flood zones must first commit to push out people who refuse to move.” "The Corps’ mission includes protecting Americans from flooding and coastal storms. It does that in different ways, including building sea walls, levees and other protections, and elevating homes. The Corps generally pays two-thirds of the cost, which can stretch into billions of dollars. The local government usually pays the rest.
As that risk grows because of climate change, the Corps has shifted toward paying local governments to buy and demolish homes at risk of flooding. The logic is that the only surefire way to guarantee the homes won’t flood again is if they no longer exist. But it also uproots people and can destroy communities.”
While it may make sense to remove homes that are likely to flood, resulting in the potential loss of life, to build infrastructure to protect others, the offers are not being made based upon real estate appraisals. “The Corps applies a relatively simple formula to decide which houses should be condemned, officials said: It estimates how much damage a house is likely to suffer in the next 50 years, then compares that to what it would cost to buy and tear down the house, plus moving expenses for the owner. If the buyout costs less, the homeowner is asked to sell for the assessed value of the home. That price is not negotiable, and neither is the offer.”
The impacted localities are here. They are almost all in coastal communities like Texas, Florida, and Puerto Rico.
Please feel free to contact me if you have any questions about eminent domain issues. Clark Hill has offices in some of the impacted locations, particularly Texas, and we may be able to help if you are approached about vacating your home.