I-1 October 1998
INTRODUCTION
Your community has experienced a destructive flood that has caused
considerable damage to property, and major social and economic
disruption to the well-being of your community. Property owners probably
are concerned with living in the floodplain and are asking how they
can avoid future risk and damage.
HAZARD MITIGATION GRANT PROGRAM
Presidential-declared disasters provide considerable funds to States and
communities via the Hazard Mitigation Grant Program (HMGP). The
HMGP assists States and local communities in implementing long-term
hazard mitigation measures. The HMGP can be used to fund projects that
protect public or private property. Examples of projects include:
q Retrofitting, such as floodproofing and elevating, to protect structures
from future damage;
q Development of State or local standards to protect new and substantially
improved structures from disaster damage;
q Development of comprehensive hazard mitigation programs with
implementation as an essential component;
q Acquisition and relocation of structures from hazard-prone areas; and
q Acquisition and demolition of structures.
FEMA has regulatory oversight of the HMGP. However, the States are
responsible for administering the HMGP, and prioritizing and selecting
project applications from communities. States then forward project
applications to FEMA for final approval.
The window of opportunity for applying for HMGP funds is relatively
small. Communities that have experienced disaster damage compete for
limited available funds. The effort communities must expend to complete
all requirements for submitting an application that will meet both
State and FEMA approval is considerable. Nevertheless, that effort is
worthwhile.
To Buy or Not to Buy PHASE I
I-2 October 1998
FLOOD MITIGATION ASSISTANCE PROGRAM
Your HMGP application might be fully approved. However, if your
application is not approved and your community participates in the
National Flood Insurance Program (NFIP), the effort you have expended
to apply for funds under HMGP puts you in an excellent position to
apply for funds under FEMAís Flood Mitigation Assistance (FMA) program.
FMA is a mitigation program that is not directly related to a disaster
event. FMA provides funding to assist States and communities in implementing
measures to reduce or eliminate the long-term risk of flood
damage to buildings, manufactured homes, and other structures insured
under the NFIP. FEMA annually provides funds to the States to conduct
FMA projects. The States then can offer two types of FMA grants to their
communities:
q Planning grants to develop or update flood mitigation plans. Plans
must assess flood risk and identify actions to reduce those risks.
q Project grants to implement mitigation measures such as:
n Elevation
n Dry floodproofing
n Acquisition
Only communities with structures and real property insured under the
NFIP are eligible to receive a project grant under the FMA program. In
addition, communities that have a State-approved mitigation plan might
be in a better position to compete for HMGP funds.
Good Idea
Preparing an acquisition plan and conducting
hazard mitigation planning can help a community
obtain a favorable entry under the Community
Rating System (CRS) and possibly reduce flood
insurance costs to citizens of the community. See
Glossary for more information.
42 U.S.C. 4101
44 CFR Part 78
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I-3 October 1998
GOOD I BOX
CONTENTS OF THIS PHASE
This phase comprises two chapters:
q Chapter 1 ó The Basics. Chapter 1 provides basic information about
property acquisition and FEMAís requirements for a project. Its purpose
is to build your knowledge base so you can successfully complete the
steps you see depicted on the poster.
q Chapter 2 ó Getting Started. Chapter 2 guides you through activities
that will help you decide whether or not property acquisition is
feasible for your community. The knowledge imparted by the first
chapter and the activities of the second put you in the best position
to decide whether to buy or not to buy.
q Part 1 of the Toolkit contains the following tools referred to in this
phase:
n Tool I-1, Examples of Mitigation Options
n Tool I-2, SHMO1 Shopping List
n Tool I-3, Sample Job Description
n Tool I-4, Town Meeting Checklist
n Tool I-5, Conducting Town Meeting Checklist
n Tool I-6, Sample Agenda
n Tool I-7, Sample Presentation Notes
q Part 2 of the Toolkit contains the following forms:
n Form I-1, Hazard Mitigation Project Strategy
n Form I-2, Property Owner Questionnaire I
n Form I-3, Self-assessment Worksheet
1See Glossary and Acronyms
To Buy or Not to Buy PHASE I
I-4 October 1998
CHAPTER 1 ó THE BASICS
Since the devastating floods of 1993, States with flood-prone communities
have generally opted to accept and forward to FEMA a large percentage
of community applications outlining acceptable property
acquisition projects. Generally, property acquisition, which forever
removes vulnerable property owners from the floodplains, is the best
and most cost-effective mitigation alternative.
This handbook is designed to help communities through the property
acquisition process ó from formulating a potentially successful application,
through implementing and closing out a project, to managing and
maintaining acquired open space. But, first, you must decide ó
Is property acquisition the best and most cost-effective
mitigation alternative for my community?
This phase of the handbook, Phase I ó To Buy or Not to Buy, will help
you make that decision.
This first chapter gives you a basic understanding of property acquisition.
It presents ó as far as possible in laypersonís terms ó the laws,
regulations, and policies that drive the property acquisition process.
CRITERIA FOR PROJECTS FUNDED UNDER
HMGP
n Minimum criteria
The Robert T. Stafford Disaster Relief and Emergency Assistance Act
(Public Law 93-288) is the statute governing the HMGP. Its implementing
regulations are located in Title 44 of the Code of Federal Regulations
(CFR).
By Federal law and regulation, any property acquisition project using
HMGP funds must, at a minimum:
44 CFR ß206.434 (b)
PHASE I To Buy or Not to Buy
I-5 October 1998
q Conform to the Stateís Section 409 Hazard Mitigation Plan
q Conform to 44 CFR Part 9, Floodplain Management and Protection of
Wetlands, and 44 CFR Part 10, Environmental Considerations
q Independently solve or be a functional part of a solution to a problem
q Prove to be cost-effective and a substantial reduction of future risk
because it:
n Addresses a problem that is repetitive or poses a significant risk
to health and safety
n Is the most practical, effective, and environmentally sound
alternative among a range of alternatives
n Is or contributes to a long-term solution to a problem
n Considers long-term changes to the areas it protects
n Costs less than its anticipated benefits
COST VS BENEFITS BOX
Costs and Benefits
FEMA or State financial analysts will perform a benefitcost
analysis (BCA) to determine if your project is cost
effective. A project is cost-effective if its benefits are
equal to or higher than its costs. The BCA compares the
present-day cost of a project to its long-term benefits.
Benefits simply are future damages that do not occur because
a project has been implemented. Because acquisition
projects permanently eliminate flood risks for purchased
properties, their benefits continue far into the future.
See the Appendix to
this phase for an
explanation of
44 CFR Parts 9 & 10
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I-6 October 1998
n Property acquisition and relocation requirements
Any community implementing a property acquisition project using
HMGP funds:
q Must dedicate and forever maintain acquired property as open
space.
q Must provide assurances that certain restrictions will be conveyed in
the deed to acquired property.
q May not apply for or receive additional disaster assistance for acquired
property. (However, farmers are still eligible for Federal Crop Insurance.)
q Must acquire properties only from property owners who voluntarily
agree to sell their properties, and notify property owners in writing
that it will not use its power of eminent domain to acquire properties
if a voluntary agreement is not reached.
n Other criteria
Through the implementation of property acquisition projects over the
past several years, FEMA has established guidance policies to manage
the finer details of project implementation and comply with other
federal laws and regulations relating to property acquisition. Those
policies include the following:
q Structures relocated from acquired property must be placed outside
the 100-year floodplain.
q Structures must be demolished or removed from acquired property
within 90 days of closing. (In extraordinary circumstances, States may
allow exceptions to this requirement.)
q Ownership of acquired property may not be conveyed to private
citizens or entities; ownership may be conveyed to other public
entities or nonprofit organizations with the approval of the State and
FEMA.
44 CFR ß206.434 (d)
FEMA Policy
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q Communities should assist FEMA in coordinating with their State
Historic Preservation Officer (SHPO) regarding any structures that are
50 years old or older, or have historic significance.
q Communities may not use FEMA funds to acquire properties that are
contaminated by hazardous materials (other than general household
hazardous materials such as lead paint and asbestos). If a property
contains hazardous materials, it must be cleaned up before it can be
acquired.
q Flood-prone communities receiving HMGP funds must participate in
the National Flood Insurance Program (NFIP). However, if your
community has not been mapped, contact your Stateís floodplain
management official; you may be eligible to receive HMGP funds.
(For communities not participating at the time of the disaster, the State
may consider and forward to FEMA their HMGP applications if they
enter the NFIP within six months of the disaster declaration.)
q Because of the voluntary nature of acquisition, homeowners are not
entitled to assistance under the Uniform Relocation Assistance and
Real Property Acquisition Policies Act (URA). However, displaced
tenants are entitled to assistance under the URA, and additional
relocation assistance might be available to low-income homeowners
living in floodplains.
q Communities must subtract from the purchase price of every property
the total value of other disaster-related repair assistance paid to the
owner to avoid duplicating benefits, unless the property owner can
provide receipts showing that the benefits were used for their intended
purposes (e.g., home repair). This policy is known as duplication
of benefits (DOB), and is explained in detail in Phase II2. To
summarize, DOB avoids using tax dollars to provide the same
benefits to one citizen twice. This deduction applies if the community
uses pre-flood fair market value. The deduction does not apply if
the community uses post-flood market value.
q Communities must accept responsibility for monitoring and enforcing
the proper use of acquired property as open space.
2Only federal disaster-related assistance paid for the repair or replacement of structures
is considered DOB.
To Buy or Not to Buy PHASE I
I-8 October 1998
ALLOWABLE OPEN SPACE BOX
MONEY MATTERS
n Project costs
HMGP funds help communities pay some of the project and administrative
costs of implementing an acquisition project. Project costs include,
but are not limited to:
q The fair market value (FMV) of each property
q Costs of conducting appraisals, lot surveys, title searches, closings,
demolitions, and relocations
q Tenant relocation assistance
q Legal fees relating to contract review and settlement
n Cost Share
Under the HMGP, FEMA may contribute up to 75 percent of your
project costs. Your community must formally agree to provide a local
match in the amount of the remaining project costs (at least 25 percent).
However, sources may be available to help you meet those project
costs, such as:
What is allowable open space use?
Generally, allowable open space uses for acquired
property include, but are not limited to, recreation;
preservation; cultivation; grazing; camping
(if adequate warning and evacuation time is available);
non-commercial, temporary, open storage
of vehicles that are easily moveable (such as
recreational vehicles); and unimproved permeable parking
lots. See Phase IV for more detail on
allowable use of acquired property.
44 CFR ß206.432 (c)
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I-9 October 1998
q Your State. Ask your SHMO if your State has made funds available
and in what percentage or amount.
q Department of Housing and Urban Development (HUD) Community
Development Block Grant (CDBG). You can use existing and
supplemental appropriation CDBG funds toward your local match.
q Donated funds. Monetary donations from individuals and organizations
(e.g., a local civic organization) can be applied toward the
local match.
q In-kind services. Donated services (e.g., demolition) also can be
applied toward the local match. (Often in such cases, a community
will grant the demolition company salvage rights.)
q Property Owners. Property owners can use their own funds or donate
25 percent of the FMV of their properties. Property owners also can
apply their Increased Cost of Compliance (ICC) claims toward the
local match because the purpose of ICC is to assist property owners in
implementing mitigation measures.
INCREASED COST OF COMPLIANCE BOX
Increased Cost of Compliance
(ICC)
When a structure covered by a standard
flood insurance policy under the NFIP sustains
a flood loss and is declared to be substantially
or repetitively damaged, ICC helps
pay property owners for the cost of mitigation
measures, to include elevation, demolition,
and relocation, up to $15,000. ICC
claims apply to structures only.3 See FEMA
301, Increased Cost of Compliance Coverage,
for more information.
3See Glossary for more information on substantial damages
To Buy or Not to Buy PHASE I
I-10 October 1998
n Administrative costs
In addition, FEMA currently contributes administrative costs on a sliding
scale based on your total project costs. Administrative costs include the
extraordinary costs your community incurs to administer your sub-grant
such as the cost of preparing reports, overtime, and incidental expenses.
Sliding Scale
SLIDING SCALE COSTS.EPS
For example, if your total project costs are $6,000,000, FEMA will
provide no more than $4,500,000 (75 percent) of your project costs and
$66,000 of your administrative costs:
ADMINISTRATIVE COSTS.EPS
Since administrative costs are provided on a sliding scale, other ìindirect
costsî (e.g. overhead) are not allowed.
s t s o C t c e j o rP tn e c r e P
0 0 0 , 0 0 1 $ t s r if %3
0 0 0 , 0 0 9 $ t x en %2
0 0 0 , 0 0 0 , 4 $ t x en %1
0 0 0 , 0 0 0 , 5 $ r e v o s t s oc %½
44 CFR ß206.439 (b)
s t s o C t c e j o rP el a c S
e v i t a r t s i n i m d A
s t s o C
0 0 0 , 0 0 0 , 6$ %3 x 0 0 0 , 0 0 1$ 00 0 , 3 $
0 0 0 , 0 0 0 , 6 $( - 00 0 , 0 0 9 , 5 $ ) 0 0 0 , 0 0 0 1$ %2 x 0 0 0 , 0 0 9$ 00 0 , 8 1 $
0 0 , 0 0 9 , 5 $( - 00 0 , 0 0 0 , 5 $ ) 0 0 0 , 0 0 9$ %1 x 0 0 0 , 0 0 0 , 4$ 00 0 , 0 4 $
0 0 , 0 0 0 , 5 $( - 00 0 , 0 0 0 , 1 $ ) 0 0 0 , 0 0 0 , 4$ %½ x 0 0 0 , 0 0 0 , 1$ 00 0 , 5 $
s t s o C e v i t a r t s i n i m d A l a t oT 00 0 , 6 6 $
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TYPES OF PROPERTY ACQUISITION
Generally, we can divide property acquisitions into two broad categories:
basic acquisition and acquisition and relocation of structures.
n Basic acquisition
A basic acquisition project simply acquires land and strucures, and
demolishes the structures located on the land. It is conducted like any
other real estate transaction, and is the easiest type of acquisition
project to implement and manage.
n Acquisition and relocation of structures
An acquisition and relocation project is a basic acquisition that acquires
land, but offers an alternative to demolishing structures: moving them
out of harmís way, outside the floodplain. Relocation might mean
simply moving a structure to another lot, or reestablishing an entire
neighborhood at a new site within the community. A structure can be
relocated on the same property if a portion of it is outside the floodplain.
Relocation often is a good way to protect historic structures.
RHINELAND CASE STUDY BOX
Relocating a Neighborhood:
Village of Rhineland, Missouri
Rhineland, Missouri has a history of repetitive flooding, including
four flood events in 1993 alone. Rhineland also has an old heritage
and sense of community; its citizens have family ties and roots in
the community dating back generations. Although mitigation for
Rhineland means its survival, preserving its sense of community is
just as important. As a result of the 1993 floods, Rhineland has used
HMGP funds to move 32 homes from flood-prone bottomland to a
bluff above the floodplain. It has used HUD CDBG funds and local
bonds to build new roads and infrastructure to re-establish the neighborhood
on the bluff. The local power company donated installation
of new lines. As a result, the relocated homes have quadrupled
in value.
To Buy or Not to Buy PHASE I
I-12 October 1998
METHODS OF PROPERTY ACQUISITION
n Fee-simple acquisition
Fee-simple acquisition simply means acquiring title to land and
structure(s). By law, restrictions must be attached to the deed
(see Form II-11). Restrictions include the following:
q The property shall be dedicated and maintained in perpetuity for uses
compatible with open space, recreational, or wetlands management
practices.
q No new structure(s) will be built on the property except for the following:
n A public facility open on all sides and functionally related to a
designated open space or recreational use;
n A public rest room that is wet floodproofed; or
n A structure compatible with open space, recreational, or wetlands
management use and proper floodplain management
policies and practices, which FEMAís Director approves in
writing before construction of the structure begins.
n Acquisition of a conservation easement
Conservation easements are practical in agricultural areas where the
owner wants to retain title to and continue farming his or her property. It
also is practical where acquiring a large parcel of property is cost
prohibitive. Simply defined, an easement is a right of passage over
someone elseís land. However, an easement can be used to prevent the
owner from doing certain things. A conservation easement is an easement
that prevents the property owner from developing the property.
The property owner retains title to his or her property and can transfer
title. However, the terms of a conservation easement acquired using
HMGP funds carry the same restrictions as fee-simple acquisition, and the
property is forever subject to those terms, regardless of who has title.
44 CFR ß206.434(d)(1)
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I-13 October 1998
PROPERTY ACQUISITION AND THE PROPERTY
OWNER
Among the biggest challenges of property acquisition is managing the
property ownersí expectations. The best ways to meet these challenges
are to understand and communicate with the property owners.
n Understand the property owners and what motivates
them.
You might find that some property owners are eager to sell their property.
Others may be reluctant, apprehensive, or undecided. Others might
be absolutely against the idea. Many factors influence a property ownerís
decision whether or not to sell. Examples include:
q Personal finances
q Degree of damage and amount of personal property lost
q Value of property
q Age of household
q Size and makeup of household
q Personal acceptance of risk
q Neighborsí decisions
q Familyís and friendsí opinions
q Quality of life offered in a new neighborhood, whether it is a relocated
neighborhood or simply the area in which the property owner
chooses to buy after selling his or her property to the community
Property owners are influenced by those factors in different ways. For
example, one elderly couple whose children are grown might be eager
to sell their large home with its large yard and move to a smaller home
or condominium outside the hazard area. On the other hand, another
elderly couple might be reluctant to sell the home where they raised
their children, despite the risks of future disasters.
To Buy or Not to Buy PHASE I
I-14 October 1998
n Communicate with the property owners.
Misconception also influences property ownersí decisions and continued
support of a project. Therefore, one of the most important tasks you
can do is communicate with the property owners. It also is one of the
easiest; all it requires is accessibility, honesty, and consistency. Some of
the means of communication you can use include:
q Point of contact (POC). Provide a single POC who the property
owners can get to know, and to whom they have regular and consistent
access.
q Informational materials. FEMA and your State probably have brochures
and pamphlets on hand that you can use. Ask your SHMO.
q Public announcements and notices. Use local radio and television
stations to air public service announcements (PSAs). Publish public
notices in local newspapers, community newsletters, and other local
publications; and post them in houses of worship, community and
shopping centers, and other places where people tend to gather. If
your community comprises ethnic groups who speak other languages
in addition to or instead of English, use those languages in your
announcements and notices. If you do not, you risk excluding some
property owners and violating anti-discrimination laws, as well as
undermining the success of your project.
q Public meetings. Nothing can substitute face-to-face contact and
open forums that allow for two-way exchange. This handbook
contains details on how to conduct at least one town meeting during
each phase of the process. If necessary, provide foreign and sign
language interpretors at town meetings.
q Hotlines. If your community has the resources, establish a hotline
that property owners can call to receive basic information and/or ask
questions.
Feedback and timeliness also are important to communication. Listen to
what property owners have to say, and respond to their questions as
quickly and accurately as possible.
PHASE I To Buy or Not to Buy
I-15 October 1998
n Manage property ownersí expectations.
The property owners must understand from the beginning that property
acquisition, despite its mitigation effectiveness, might not make them
whole again. However, they will receive fair compensation for their
property. Property acquisition presents a good opportunity for them to
recoup a large part of their investment in property that probably has lost
some, if not most, of its value; but it will not compensate for their entire
emotional and financial losses. In addition, they must understand that
property acquisition takes time. No matter how dedicated your community,
State, and FEMA regional staff are, property acquisition requires a lot
of work . . . work that simply cannot be completed in just a few weeks
time no matter how large your staff is nor how many hours they work.
The good news is lessons learned and applied during the 1990s continually
help speed the process and increase its efficiency. Under the best
circumstances, property acquisition, from disaster occurrence to real
eState closing, might take at least 7 to 18 months to complete.
To Buy or Not to Buy PHASE I
I-16 October 1998
CHAPTER 2 ó GETTING STARTED
GOOD IDEA BOX
You now have a basic understanding of property acquisition under the
HMGP. This chapter gets you started in the property acquisition process
itself. It guides you through the important steps of making a decision ìto
buy or not to buy.î
EVALUATE YOUR MITIGATION OPTIONS
Your first step is to look at the mitigation options that might benefit your
community. This serves two purposes: first, it enables you to determine
which is best for your community; second, it helps collect data for your
application. Remember ó to receive funding, you must prove that your
proposed project is the best alternative among a range of options considered.
In fact, you should describe at least three alternatives (one of
which is ìno actionî) on your application. Mitigation options include, but
are not limited to, those described in Tool I-1 in the Toolkit.
Good Ideas
1 Conduct damage assessments as soon as possible.
Both the NFIP and HMGP require accurate
assessments.
2 Identify and declare substantially damaged
buildings as quickly as possible. (Substantially
damaged means the cost of restoring a structure
to its pre-disaster state would equal or
exceed 50 percent of its pre-disaster market
value.4)
Tool I-1
4See FEMA 311, Guidance on Estimating Substantial Damage for more information
PHASE I To Buy or Not to Buy
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Your State Hazard Mitigation Officer (SHMO) and regional and local
planners and engineers can help you identify and evaluate which alternatives
are viable for your community. Alternatives that may not be funded
by the HMGP might be funded by other Federal or State agencies. If your
community wants to pursue an alternative that is not eligible under
HMGP, ask your SHMO to help you find other sources of funding.
DETERMINE YOUR STATEíS PRIORITIES AND
PROCEDURES
After evaluating your mitigation options, if you decide that you want to
further explore property acquisition, your next step is to talk with your
SHMO. Your State has developed and continues to maintain planning
documents known as the State Section 409 Hazard Mitigation Plan, or
simply the 409 Plan, and the State Section 404 Administrative Plan for the
Hazard Mitigation Grant Program, or simply the State 404 Plan. Those
plans, to some degree, create the context of all mitigation projects conducted
within your State and establish procedures all communities must
follow. In addition, your State might have established guidance for many
of the decisions you are about to make, such as prioritizing properties for
acquisition. So, before you go any further, you should contact your
SHMO. You will find a ìSHMO Shopping Listî (Tool I-2) in the Toolkit.
Use this tool as a checklist to ensure you ask for and get everything you
need.
IDENTIFY PROJECT TEAM
Ideally, the same project team should see the project through, from this
decision-making phase through application to implementation. Also,
ideally, your project team leader will be qualified and available to serve
as your local sub-grant administrator as you implement your project.
Tool I-2
To Buy or Not to Buy PHASE I
I-18 October 1998
Alternatively, your team leader can lead your team through the decision-
making and application phases, and then turn the project over to
the local sub-grant administrator for implementation. Once you have
submitted your application, you can search for a local sub-grant administrator
pending approval of your application.
You will find a sample job description for a local sub-grant administrator
in the Toolkit (Tool I-3).
n What does the project team do?
The project team does everything discussed in this Handbook from this
point forward in Phases I, II and III (see poster).
n What should I look for in a team leader?
Planning a project and completing an application is a lot of work and
requires input from many sources. The project leader will be the primary
point of contact (POC), representing your community to the State
and property owners. Consequently, look for someone who is:
q A strong, responsible leader
q Able to delegate tasks to match team membersí skills and interests
q A good verbal and written communicator
q Organized, reasonable, and even-tempered
q Able to work with and gain the respect of team members, State and
local officials, and (most important) property owners and tenants
q Able to work with people who are under considerable stress
q Able to troubleshoot problems and defuse tense situations
q Knowledgeable of local, regional, and State governments; and their
departments, activities, and personnel
Tool I-3
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n Who should be on my project team?
Anyone who is willing to help or serve as a resource should be on the
team. You will need a mix of people who support the project and want it
to succeed and who can:
q Interact with property owners and tenants, both in large groups and
one-on-one
q Interact with State and local officials and government personnel
q Conduct research
q Speak in public
q Write well
q Prepare a budget
q Organize and maintain a filing system
q Provide clerical support
Your project team can comprise local and regional employees, paid
consultants, and volunteers (to include property owners and tenants). At
some point during your project planning or while developing your
application or implementing your project, you may need technical
assistance from legal counsel, appraisers, tax assessors, surveyors,
engineers, budget analysts, grant specialists, building inspectors, zoning
administrators and other experts. You likely will be able to find people
who can provide this assistance among current local, regional, or State
employees; contractors or consulting firms; independent consultants;
citizen groups; colleges and universities; private organizations; etc. Those
experts who provide technical assistance can be either members of the
team or simply available to the team on an as-needed basis. Services
provided by those experts on a voluntary basis during implementation
might count as donated in-kind services toward your local match.
To Buy or Not to Buy PHASE I
I-20 October 1998
n What about a team to develop my open space plan?
Since you must maintain any property you acquire as open space, begin
planning how best to use that property as early as possible. You probably
will find greater efficiency if you build an open-space team separate
from your project team. The two teams can work in parallel and
share data.
OUTLINE PROJECT STRATEGY
With the information provided by your SHMO as your framework and
your team in place, you now are ready to start strategizing a potential
project. Your strategy must work within the context of your Stateís hazard
mitigation goals and objectives. Ultimately, your strategy will become the
foundation for the communityís Hazard Mitigation Plan.
Outlining your strategy begins with an assessment of how things are and a
vision of how things can be. Use Form I-1 in Part 2 of the Toolkit to
capture your project strategy and prioritize target properties, which is
discussed in the next section. If you decide to buy, you can use much
of this data on your application. To begin:
q Record basic data about your community, such as its population,
area size, elevation above sea level, industry and economy, infrastructure,
services, and topography. (Your Stateís economic and
business development, environmental, and housing agencies can
help. Also, check census records.)
q Summarize your communityís disaster history. Go back at least 25
years, and farther if your community has suffered through significant
disaster events. Check public and media records for as much detail
as possible. (Your Stateís department of natural resources should have
much of this data.) Include the year and type of event (e.g., flood), a
description, and the amount of damages expressed in dollars. The
description of the event should include its:
n Cause (e.g., hurricane, melting snow, torrential rains, etc.)
n Type of event (e.g., 100-year flood)
Form I-1
PHASE I To Buy or Not to Buy
I-21 October 1998
n Severity expressed in measurable terms (e.g., floodwaters rose
two feet above the average three-foot flood stage)
n Effects on life and property (e.g., 1 person was killed, 8 were
injured, 52 properties were substantially damaged, and 219
were otherwise damaged)
n Effects of past disasters on property and structures damaged
during this most recent event (e.g., 100 Maple Avenue was
flooded in 1992 and suffered damages totaling $10,000; and
again in 1995 with damages totaling $12,000), as well as the
effects of the recent disaster (e.g., 100 Maple Avenue was
substantially damaged)
n Rescue and recovery efforts (e.g., 500 people were evacuated
from their homes)
q Identify and describe the areas affected by this most recent disaster
and the damages suffered.
q Assess and describe the future risks from natural disasters to lives,
property, infrastructure, and services within your community. Use
historical data and characteristics of the area to extrapolate those
future risks. On your application, you must describe a repetitive
problem that your project would solve. This activity coupled with
the one above will enable you to do that.
q Identify at-risk areas such as floodplains, and describe their vulnerability
in terms of flood elevation and development.
q Identify alternatives to property acquisition. Since you have already
evaluated your mitigation options, you should be well prepared to
identify alternatives to property acquisition. On your application,
you must demonstrate that you have considered at least three viable
alternatives, of which property acquisition is one and no action may
be another. (Your State might require more than three.) Identify and
describe those alternatives now. For each alternative, describe:
n How well it would solve the problem
n How it would address a recurrent or repetitive problem
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n Its implementation and maintenance costs vs. the costs of future
disasters if the alternative is not implemented
n Its advantages and disadvantages
q Begin early to consider how you might use acquired property. Potential
use should coincide with your communityís overall environmental,
conservation, recreational, and floodplain and wetlands management
goals. FEMA does not require you to identify how you will use the
acquired property, only that you make binding promises that you will
maintain it as open space for all time. (This promise usually is in the
form of an assurance on the application.)
PRIORITIZE TARGET PROPERTIES
Prioritizing properties for acquisition will be among your most challenging
decisions. You might not receive enough HMGP funds to purchase
every property you would like to acquire. Furthermore, your State or
FEMA might ask you to explain your selection of properties to acquire.
To prioritize target properties:
q Establish measurable and unbiased criteria by which you can classify
properties
q Rank criteria into priorities
q Group target properties by criteria
n Specific criteria
Identify specific criteria that apply to properties within your community.
For example:
q Properties that have been substantially damaged
q Properties that have suffered repetitive losses
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I-23 October 1998
q Properties that are insured under the NFIP
q Properties that are located in the floodway
q Properties that are located in the floodplain (e.g., identify 10-, 25-,
50-, 100-, 500-year floodplains as they apply to your community)
q Properties that are residential (and further classify such properties as
those that are primary or secondary residences, and those that are
owner- or tenant-occupied)
q Properties that are vacant lots
q Properties that are commercial
q Any other as directed by your State
n Priorities
Based on any priorities established by your State and the criteria applicable
to your community, establish your communityís priorities. For
example:
q Priority 1: Properties that are primary residences and substantially
damaged, located in the floodway, and either insured or uninsured
q Priority 2: Properties that are primary residences and substantially
damaged, located in the floodplain, and insured
q Priority 3: Properties that are primary residences and substantially
damaged, located in the floodplain, but not insured
q Priority 4: Properties that are contiguous lots to priorities 1, 2,
and 3
The actual number of ranked priorities will depend on your Stateís priorities
and your communityís criteria. Describe your priorities as definitively
as possible. Regardless of how detailed your priorities are, briefly explain
why each is a priority and why it is ranked as it is.
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GOOD NEWS BOX
CONDUCT TOWN MEETING
The handbook incorporates a town meeting in each phase. The Toolkit
contains two tools to help you prepare for any town meeting. Tool I-4,
Town Meeting Checklist, is a one-page checklist you can use before each
town meeting to ensure you are adequately prepared. Tool I-5, Conducting
Town Meeting Checklist, will help you complete the checklist the first
time.
This first town meeting serves two purposes: it presents general information
about property acquisition to property owners and begins to gauge
their interest in participating. Therefore, give them enough information to
enable them to begin thinking about that important decision. During this
town meeting:
q Summarize hazard mitigation. Explain hazard mitigation simply, using
enough detail to define it but not so much that you lose the property
ownerís interest. The property owners are mostly interested in the
details that directly affect them.
q Explain property acquisition. Explain that property acquisition is only
one form of hazard mitigation, but the most permanent form. Describe
how it works. Briefly discuss relocation of structures.
q Explain fair compensation. Knowing they will receive a fair price for
their property is important to them.
Good News
Acquisition of substantially damaged properties in
floodways or floodplains in NFIP-participating communities
generally are cost-effective, and may be
processed more quickly than acquisition of other
properties. Check with your SHMO.
Tools I-4 and I-5
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I-25 October 1998
q Stress the fact that property acquisition requires voluntary participation.
Property owners might be concerned that the government will try
to force them to sell their homes. Assure them that property will be
acquired only from owners who want to sell, and the community will
not use its power of eminent domain to acquire property.
q Identify the types of costs that the community will pay for, and those
that it will not.
q Explain duplication of benefits. During Phase II, the application
phase, you will have an opportunity to explain duplication of benefits
in detail during a town meeting. However, money is an important
issue. Take this opportunity to briefly introduce property owners
to duplication of benefits, and advise property owners to save all
their receipts.
q Explain advantages and disadvantages of property acquisition to the
property owners so they can make an informed decision as to whether
or not they want to sell their property.
q Explain the property ownersí obligations. Create a sense of teamwork.
Explain that the property owners have active roles to play and can
move the process along by:
n Attending town meetings and promptly returning completed
questionnaires
n Evaluating their options and making decisions in a timely manner
n Providing the documentation the community requests of them in
a timely manner
n Keeping their appointments for one-on-one meetings, appraisals,
closings, etc.
q Explain alternatives to property acquisition, and the advantages and
disadvantages of each. Share the knowledge you learned while
evaluating your mitigation options.
q Identify your priorities for targeting properties. Briefly describe each
priority and explain why it is ranked as it is.
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q Answer questions. Solicit questions and answer them as fully as you
can. Have knowledgeable State and local officials and employees on
hand to provide answers. If you cannot answer any given question,
tell the property owner you do not know the answer, but will find it. If
you cannot answer it by the end of the meeting, publicize the answer
later. Do not improvise an answer if you are uncertain.
q Ascertain the property ownersí interest. This is a major purpose of the
meeting. You can only proceed with a property acquisition project if
the property owners are interested in selling. Open the floor to general
discussion, and allow property owners to express their opinions and
ask new questions. Distribute Property Ownerís Questionnaire I (see
Form I-2), and ask property owners to complete it before they leave.
Designate someone to collect the completed questionnaires.
q Pass around a sign-up sheet (use two or more for large groups). Ask
property owners to print their names, addresses, and telephone
numbers regardless of their level of interest. The sign-up sheet will
help document the meeting and establish a mailing list. (You also
can use it to determine if any questionnaires are missing.)
q Compile minutes. Designate a recorder to compile the minutes of
the meeting.
You will find a sample Agenda (Tool I-6) and Presentation Notes (Tool
I-7) for this town meeting in the Toolkit. The Presentation Notes provide
appropriate detail for this meetingís talking points.
COMMUNITY WANTS BUYOUT?
After the town meeting, you reach an important decision point. Immediately,
review and evaluate the property owner questionnaires. What do
they indicate about the property ownerís interest in participating in a
project? What does the meeting itself indicate?
If the property owners are not interested, property acquisition obviously
is not an appropriate mitigation alternative for your community. However,
if they are interested, it might be. You have two more considerations
before you can make a final decision. Those considerations are:
Form I-2
Tools I-6 and I-7
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I-27 October 1998
q Your communityís ability to complete a project
q The impact of a project on your community
EXAMINE ABILITY TO COMPLETE PROJECT
Applying for funds and implementing a project if FEMA approves the
funds requires:
q Coordination among property owners; Federal, State, and local
governments; and contractors and consultants
q Constant and consistent communication with the property owners
q Long-term management of acquired property
n Examine your ability to fulfill those requirements and
successfully complete a project.
q Look carefully at the current and future commitments of your project
team members, and local and regional employees
q Determine what property data (e.g., tax assessments, legal descriptions,
plats, elevations, etc.) are readily available to you, and how
easily you can gather data not readily available
q Determine your ability to provide the local match (at least 25 percent)
q Develop an administrative budget for submitting an application, and
implementing and completing a project
q Estimate time lines for submitting and completing an application
(which is dependent on your Stateís deadlines), and implementing and
completing a project (which might require at least 7 to 18 months)
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n Ask yourself the following questions and carefully
evaluate your answers.
q Does your community have the human and physical resources to see
the project through?
q Is a project manageable considering the existing workloads on local
and regional staffs?
q Will existing workloads suffer if your community implements a
project?
q Does your community have the financial resources to supplement the
administrative costs FEMA will contribute?
q Does your community have the human, physical, and financial
resources to plan, manage, and maintain open space?
Your answers to the above questions will determine your ability to complete
a project.
EXAMINE PROJECTíS IMPACT ON
COMMUNITY
You have one more consideration before you are able to make a fully
informed decision to buy or not to buy; that is, the impact of a project
on your community as a whole. Property acquisition can have both
positive and negative impacts on your community. Generally, the
positive impacts are the same for any community. However, the possible
negative impacts affect every community differently.
n Positive impacts of property acquisition include the
following:
q It provides more complete and permanent protection from future
hazards than other mitigation alternatives because it permanently
removes people from harmís way
q It reduces the financial and emotional costs of future disasters because
every acquired property represents one less area where your community
must direct response, evacuation, rescue, and recovery efforts
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q It is consistent with general environmental, conservation, recreational,
and wetland management goals
q It can help achieve floodplain management objectives because it
helps expand flow-carrying capacity by increasing flood storage areas
q It makes land available for public use
n To evaluate the possible negative impacts of property
acquisition on your community:
q Determine the effect property acquisition may have on property
values and taxes. Consider relocating homes to non-flood-prone areas
of the community.
q Determine the effect of a revised tax base on your communityís ability
to maintain services.
q Based on your identified properties, determine the effect of not acquiring
all properties within a priority or omitting an entire priority (or
priorities).
q Identify potential resources of funds for acquiring properties not
covered by HMGP funds (e.g., FMA), and then evaluate the likelihood
of tapping those resources.
q Identify potential political or socioeconomic implications. For
example, evaluate whether or not property acquisition unfairly
benefits one ethnic group or inadvertently discriminates against
another; or may reduce services or access to a portion of the community.
q Determine the long-term budgetary impact of maintaining acquired
property as open space. Identify potential non-profit partners to assist
with this task.
q Determine, based on available information, if historic buildings
valuable to the community might be affected. Consider relocating or
floodproofing historic structures.
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I-30 October 1998
n Also, evaluate how your project:
q Assists citizens directly affected by the disaster
q Addresses your communityís goals to:
n Ensure a clean, safe, healthy environment
n Attract and retain an adequate workforce
n Provide adequate infrastructure to support development
n Provide adequate housing
n Preserve historic areas
n Promote economic development
n Maintain an adequate tax base
COMMUNITY HAS RESOURCES AND
CONSENSUS TO PROCEED?
The time has come to make a decision. See the Toolkit for a self-assessment
worksheet (Form I-3) that will help you ascertain whether or not
property acquisition is the right mitigation alternative for your community.
If you decide ìto buy,î go on to the next phase of this handbook,
Phase II ó Application.
On the other hand, if you decide ìnot to buy,î reconsider other
mitigation alternatives.
Once youíve made a decision, make a public announcement.
Form I-3
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I-31 October 1998
APPENDIX
44 CFR PARTS 9 & 10
Part 9 of Title 44 implements and enforces Executive Orders (EOs) 11988,
Floodplain Management, and 11990, Protection of Wetlands. In support
of these EOs and the National Environmental Policy Act (NEPA) of 1969,
FEMA:
q Avoids any adverse impact associated with the development or modification
of floodplains, and the destruction or modification of wetlands
q Does not support development on floodplains and in wetlands if a
practicable alternative exists; and generally minimizes the destruction,
loss, or degradation of wetlands
q Reduces the risk of flood loss; and minimizes the impact of floods on
human health, safety, and welfare
q Promotes nonstructural flood protection methods to reduce the risk of
flood loss
q Restores and preserves the natural and beneficial values served by
floodplains
q Preserves and enhances the natural values of wetlands
q Involves the public throughout the floodplain management and
wetlands protection decision-making process
Part 10 further supports the NEPA by ensuring that FEMA and any recipient
of FEMA funds take care to:
q Evaluate effects of actions on the environment
q Protect, restore, and enhance the quality of the environment
q Avoid or minimize negative impacts on the environment
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q Preserve historic, cultural, and natural aspects of our national heritage
and diversity
To this end, FEMA conducts environmental reviews of the projects it
funds to determine their impact on the environment. Exempt from
extensive review under NEPA are projects that FEMA may determine
have:
q Minimal or no effect on environmental quality
q No significant change to existing environmental conditions
q No significant cumulative environmental impact
WHAT DO 44 CFR PARTS 9 & 10 MEAN
TO MY COMMUNITY?
They are meaningful in three ways:
q FEMA must determine whether or not an environmental review is
necessary and to what extent one is necessary. Therefore, provide
enough information on your application for FEMA to make that determination.
This handbook and your SHMO and State environmental
office will help you do that. Barring extraordinary circumstances, a
property acquisition project typically has a positive impact on the
environment and is exempt from the requirement for a more lengthy
environmental assessment under NEPA. However, an acquisition
project that involves FEMA funding of a relocation subdivision might
require a more extensive review.
q FEMA also is required to comply with the requirements of other laws
including, but not limited to, those governing historic buildings,
archeological resources, and hazardous and toxic materials. You will
be asked to provide specific information and assist researching these
issues.
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q You must keep the members of your community involved by keeping
them informed. You can do this through public forums, such as
public announcements and public meetings. Furthermore, you must
give the public opportunities to express their opinions through surveys,
public meetings, etc. Again, this handbook will help you meet
this requirement.