Public Town Hall Post Disaster Relocation and Buyout Program · • For the relocation home: o Owners have up to 18 months after the buyout home settlement to close on the relocation

Public Town HallPost Disaster Relocation and Buyout Program

July 23, 2020

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AgendaWhy Have a Relocation and Buyout Program?

Why This Neighborhood, Home or Property?

What Will I Get for My Property and What Assistance Will the County Provide?

What Is the Process?

What Are Next Steps?

Questions/Comments

Guidelines can be found at www.HarrisRecovery.org

http://www.harrisrecovery.org/


Flooding Costs• Hurricane Harvey flooded 154,000 homes and caused $125 billion in

damages in Harris County.

• Repetitively flooded areas, such as those targeted for mandatorybuyout, create significant safety hazards for both the residents andemergency workers trying to rescue them. During Harvey, there were36 flood-related deaths.

• Over 40 years, each program buyout area has flooded an average of 12times.



Harvey’s Cost to You

• FEMA estimated $2.8 million in damage but provided only $1.4 million in assistance• Average of $4,277 per buyout area owner• 144 of 336 applicants received $0 • Only 2 received maximum benefit of $32,000

• Flood insurance paid $1 million in claims • Average of $3,130 per buyout area owner


Harvey’s Cost to You

• Flood insurance costs rising substantially and becoming the owner’s largest housing cost

• FEMA and HUD now requiring owners who have received assistance to maintain flood insurance or they will not be eligible for any future disaster assistance.


Program Summary• Buyout programs help property owners, tenants, and

businesses whose lives are in danger because of severeand repetitive floods, and whose homes/property are indanger of future flooding.

• Harris County purchases property from owners, andhelps residents move to comparable housing andbusinesses re-establish in safer areas.

• Each property owner is given an eligibility specialist whowill work with them one-on-one.



Program Summary

• After property is purchased, and buildings aredemolished, land is returned to a natural floodplain,changed into flood detention ponds, or turned into apublic green space.

• Buyout programs support flood preparedness andresiliency by moving people who are in danger of life-threatening flooding.



Why This Home/Property?• Every buyout area is dangerously deep

within the floodplain.

• Many homes and businesses have been flooded multiple times in the past ten years.

• Every property is highly likely to suffer severe flooding in the future.


Why This Home/Property?

• Homes and property selected for this program have met at least two of these criteria:o In the floodway - areas where flood water is

likely to be deepest and fastest, and thus the most dangerous.

o In the 10-year floodplain - areas that have a 10% or greater chance of flooding every year.

o Over 2 feet deep in the 100-year floodplain -areas that have a 1% chance of being flooded by at least 2 feet of water every year.


Why This Home/Property?


• After you have completely moved out of your home or the property, any building or structure will be demolished/removed.

• The property will be given in perpetuity to the Harris County Flood Control District, and cannot be used for development.

• The Harris County Flood Control District will convert the property into a natural floodplain, detention pond, or other flood control project.

• Some property may also be developed for multi-use greenspace like parks and trails.

• These projects reduce the risk and damage of future floods for everyone in Harris County.

What Will Happen to My Property?


Properties Subject To The Buyout



Eligibility Requirements

You must be a legal occupant, property owner, or tenant (residential or commercial).

To receive relocation benefits, you must be a U.S. Citizen or legal resident.

Property types to be acquired: All property in the identified areas, including homes, apartments, businesses and vacant land.


Program ServicesCase managers and relocation specialists assigned to each owner and tenant.

One-on-one meetings with each owner and renter to discuss the program and the assistance available.

A call center where owners and tenants can ask questions

Virtual relocation fairs to provide advice from professionals and experts.

Resource referrals to community services such as homebuyer counseling, real estate agents and lenders, legal services, and community aid.


Valuation

• Property will be appraised by Harris County Engineering Department’s Real Property Division’s third-party firms.• Owners will have the right to appeal this

value.

Owners will be offered pre-flood fair market value for their property.

Owners who purchased their property post flood will be offered current fair market value for their property


Benefit ScenariosIn buying out and relocating impactedproperty owners, the Program will ensurethat each participant exits the program withtheir mortgage debt for the relocation homeno higher than the debt from their previousmortgage and any liens on their buyouthome. It can be lower, but not higher.

In other words, we want to either maintainor improve your financial circumstancerelative to your home debt.


Example 1:

If you buy a home for $180,000, and you don’t have an existing mortgage balance, your Uniform Relocation Act (URA) assistance is $40,000.

Benefit Scenario – Home Paid Off

Homeowner Mortgage Balance 0

Appraisal/Offer $140,000

Relocation Home Cost $180,000

Relocation Benefit $40,000


Benefit Scenario – Mortgage on HomeHomeowner Mortgage Balance $80,000

Liens $10,000

Total Debt on Buyout Home (Debt Limit) $90,000


Less Debt on Buyout Home ($90,000)

Homeowner Balance From Sale $50,000


Less Proceeds from Sale of Buyout Home ($50,000)

Amount Needed for Relocation Home $130,000

Less Homeowner Debt Limit – (Acceptable New Home DebtAmount)

($90,000)

Gap = Amount of Housing Replacement Assistance $40,000

If the homeowner buys a home for $180,000 and they have a mortgage/lien balance of $90,000, they get $50,000 from the sale of the buyout home plus $40,000 from the Post Disaster Relocation and Buyout Program, to maintain a $90,000 debt limit.


Benefit Scenario – Mortgage Low-Value HomeHomeowner Mortgage Balance $20,000

Liens $10,000

Total Debt on Buyout Home (Debt Limit) $30,000


Less Debt on Buyout Home ($30,000)

Homeowner Balance From Sale $40,000


Less Proceeds from Sale of Buyout Home ($40,000)

Amount Needed for Relocation Home $90,000

Less Homeowner Debt Limit – (Acceptable New Home DebtAmount)

($30,000)

Gap = Amount of Housing Replacement Assistance $60,000

If the homeowner buys a home for $130,000 and they have a mortgage/lien balance of $30,000, they get $40,000 from the sale of the buyout home plus $60,000 from the Post Disaster Relocation and Buyout Program, to maintain a $30,000 debt limit.


Relocation Assistance

• Help with locating new housing• Referral to advisory services (e.g. legal, real

estate)• Payment for moving and related expenses• Business re-establishment services• Rental assistance payments• Down payment assistance

Relocation assistance and payments including:


Relocation Assistance• Financial assistance is available for

replacement housing. • If comparable replacement housing is

more expensive than the original property, additional funding will be available.


What is “comparable housing”?

• Functionally equivalent to your current home

• Decent, safe, and sanitary• Structurally sound, weather tight, and in

good repair• Hot and cold running water• Connections for stove, refrigerator, and

sewage• Adequate space for you and your family

Program Assistance


What is “comparable housing”?

• Property is available to buy / rent• You have reasonable access to your job• Easy access to schools and shopping• Accessible for wheelchair, walker, etc. if

needed• In an area of reduced flood risk

Program Assistance


Businesses• A relocation specialist will work with you

to move and re-establish your business at a replacement site.

• Re-establishment assistance:o Businesses are entitled to actual and

reasonable moving and related expenses, or a fixed payment not to exceed $40,000.

o Re-establishment costs not to exceed $25,000, and reasonable search costs.


Businesses

• Examples include:

o Moving expenses for current inventory

o Marketing materials with a new address


Renters• Eligible for relocation assistance and

payments including:

o Rental assistance payments

o Down payment assistance if chose to purchase instead of renting

o Moving and related expenses

o Advisory services

• Will be provided a relocation specialist


Renters• Legal rights

o Community resource referrals will be available to assist with maintaining tenant rights and legal and additional unmet needs that are not provided under the program.


The Program’s Process

General Information Notice (GIN)Town Hall Meeting

Appraisals Ordered and Offer Developed

Closing

Offer Madeto Owner

Yes

No

Adjudication

Yes

Property Returned to Green Space

Disbursement of Funds

File Submitted to GLO for Preliminary

Approval

AcceptOffer Counter Offer

No

One-on-One Meetings with Owners to Gather

Documents

Eminent DomainSigned Contract


The Program’s Process• For the buyout home:

o The county is beginning immediately to meet with homeowners to gather documentation.

o Plan to have made offers to all owners by December 15, 2020.

o Owner has 30 days from receipt of the offer to accept or reject the offer.

o If accepted, owner has a minimum of 90 days from acceptance date to move out of the buyout home.


The Program’s Process• For the relocation home:

o Owners have up to 18 months after the buyout home settlement to close on the relocation home.

o If they choose to move to temporary lodging before getting the relocation home, the housing costs would be at their own expense.

o The program will pay up to 12 months of storage for personal property.

o The program will pay moving expenses only one time.

o Relocation expenses are generally reimbursed but advance payment may be made and will be considered on a case-by-base basis.


What are the Next Steps?

You will receive a General Information Notice in the mail.

Your case manager will contact you directly to discuss the program.

Harris County will hold digital Relocation Fairs where you can get advice and help from professionals and experts.

Sign up online to receive regular email updates and communication at www.HarrisRecovery.org.



Questions and Comments

This is Harris County’s Post Disaster Relocation and Buyout Program. Our staff is ready to assist you. To schedule an appointment with a case manager, call or email us at:

[email protected]
