The Impact of Floodplain Buyouts: Helping or Hurting American Homeowners?

TLDRFEMA has funded around 45,000 to 50,000 home buyouts since 1989, with an estimated cost of $4 billion. Floodplain buyouts aim to relocate homeowners in high-risk areas, but opinions on their effectiveness vary. Some see them as successful in moving people out of harm's way, while others question their impact on the housing crisis. The process involves the local government offering to buy damaged homes, homeowners deciding whether to sell, and the government demolishing the properties. Funding for buyouts comes from a cost-share between the federal government and state or local government, or the homeowner. However, the scale of buyouts falls short of the growing number of homes at risk of flooding, and the financial burden on local governments can be a challenge. Checkerboarding, where some homeowners accept buyouts while others don't, can lead to community fragmentation and blight. Additional incentives, such as lower mortgage rates and bundling homes, can improve buyout programs. Disclosure laws and increasing flood risk awareness are also essential.

Key insights

🏘️FEMA has funded around 45,000 to 50,000 home buyouts since 1989, with an estimated cost of $4 billion.

🌊Floodplain buyouts aim to relocate homeowners from high-risk areas to safer locations.

🏚️Opinions on buyouts are divided, with some considering them successful in moving people out of harm's way and others questioning their impact on the housing crisis.

💰Buyouts are funded through a cost-share between the federal government, state or local government, or the homeowner.

🧩Checkerboarding, where some homeowners accept buyouts while others don't, can lead to community fragmentation and blight.

Q&A

How many home buyouts has FEMA funded?

—FEMA has funded around 45,000 to 50,000 home buyouts since 1989.

What is the estimated cost of FEMA's home buyout program?

—The estimated cost of FEMA's home buyout program is around $4 billion.

What are floodplain buyouts?

—Floodplain buyouts involve relocating homeowners from high-risk flood areas to safer locations.

Are floodplain buyouts effective?

—Opinions on floodplain buyouts vary. Some consider them successful in moving people out of harm's way, while others question their impact on the housing crisis.

How are buyouts funded?

—Buyouts are funded through a cost-share between the federal government, state or local government, or the homeowner.

Timestamped Summary

00:00Since 1989, FEMA has funded around 45,000 to 50,000 home buyouts at an estimated cost of $4 billion.

02:20Floodplain buyouts aim to relocate homeowners from high-risk areas to safer locations.

06:10Opinions on floodplain buyouts are divided. Some consider them successful in moving people out of harm's way, while others question their impact on the housing crisis.

06:30Buyouts are funded through a cost-share between the federal government, state or local government, or the homeowner.

11:10Checkerboarding, where some homeowners accept buyouts while others don't, can lead to community fragmentation and blight.

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