Voluntary Property Acquisition Program
Updated: April 2009
The City of Cedar Rapids will begin a Voluntary Property Acquisition registration program on Monday, April 27, 2009. This program affects an estimated 1,300 significantly flood-damaged properties along the Cedar River. The City does not have enough money to pay for all $175 million worth of property acquisitions at this time. Click on the links below for more information about the Voluntary Property Acquisition program.
Voluntary Property Acquisition Plan Overview
The City’s Voluntary Property Acquisition process includes several steps and approximately 1,300 significantly flood-damaged properties. The City needs approximately $175 million in funding to acquire all of those properties.
This process may take up to nine months to complete on an individual property.
Voluntary Property Acquisition Strategy – Adopted in December 2008, this strategy outlines three specific categories of flood-impacted properties:
- Greenway Acquisition Area
- 192 eligible parcels
Located in unprotected area between the river and flood management system- 167 parcels submitted for acquisition through FEMA Hazard Mitigation Grant Program (HMGP) in January 2009
- Parcels must remain open space forever
- Construction/Study Area
- 554 eligible parcels
- Size and location of the area is based on the US Army Corps of Engineers’ experience with similar flood management projects
- Plus area needed for relocation of City streets and utilities
- Not all properties will be directly impacted by construction activities
- Neighborhood Revitalization Area
- 6,452 total parcels located throughout the flood-impacted Neighborhood Revitalization Area
- 600 of those parcels estimated to be damaged beyond reasonable repair
- Beyond Reasonable Repair = not financially or structurally feasible to repair
Funding for Voluntary Property Acquisitions – The City does not have enough money to pay for all $175 million worth of property acquisitions.
- Greenway Acquisition Area
- FUNDING: FEMA’s Hazard Mitigation Grant Program (HMPG)
- 167 parcels submitted and awaiting grant award in summer 2009
- Preliminary Estimated Cost: $27 million for Acquisition, Relocation, Demolition and Administration
- Construction/Study & Neighborhood Revitalization Areas (properties beyond reasonable repair)
- FUNDING: Local Option Sales Tax (approximately $15 million per year)
- This will provide flexible funding for gaps caused by federal requirements
- Preliminary Estimated Cost: $148 million for Acquisition, Relocation, Demolition and Administration
- POSSIBLE FUNDING: HUD Community Development Block Grant (CDBG)
- Anticipate potential allocation of funds to State in July 2009
Voluntary Property Acquisition Process – The follow steps apply to the properties in the Construction/Study Area and the properties beyond reasonable repair in the Neighborhood Revitalization Area. This process may take up to nine months to complete on an individual property.
Pre-Acquisition Steps:
- April 2009 – Letters sent to property owners in the Construction/Study and Neighborhood Revitalization Areas
- May 2009 – Begin scheduling individual property owner consultations
- July 2009 - Complete consultations
Acquisition Steps:
- Acquisitions begin when funding is available
- Document Preparation
- Offer to Purchase – based on pre-flood assessed value of property
- Closing – transfer ownership of property to the City
