City Council Approves Plan for More Voluntary Property Acquisitions

On January 20, 2010, the Cedar Rapids City Council approved the administrative plan for the voluntary property acquisitions funded by Community Development Block Grants. The City’s buyout process is similar to programs offered in other communities. Last night, the City Council added a “most-favored-nation” provision that will ensure a more favorable or greater level of assistance for flood survivors in Cedar Rapids as may be offered in other flood-impacted cities using the same funding program.

“Cedar Rapids flood survivors deserve to receive the same benefits that flood survivors are receiving in other cities,” said Mayor Ron Corbett. “We will continue to look for ways to improve our buyout process to make sure our residents receive the assistance they truly need.” 

In addition, the City Council decided to provide some additional financial assistance for residents registered for a buyout, including:

• The City will provide an incentive payment in an amount equal to the flood insurance premiums actually paid by the current property owner for a National Flood Insurance Policy for structure coverage. The credit to the current property owner shall equal the premiums paid for a maximum of five years prior to the Flood of 2008.
• If the property owner chooses to appeal the City’s offer to purchase, the City will pay up to a maximum cost of $500 if the certified appraised pre-flood valuation exceeds the assessed value provided in the City’s offer.  If the valuation does not exceed the assessed value provided in the offer letter, the City will pay 50% or up to $250 of the actual cost of the appraisal.

 
To date, 1,179 property owners are registered for a buyout through the City of Cedar Rapids Voluntary Property Acquisition process. Any Cedar Rapids resident that owns flood-impacted property is eligible for this program. To register, the property owner must callJCG Land Services, the City’s contractor, at (319) 362-3507, extension 210, or (319) 286-5521, extension 210. The property owner must alsosign a “statement of voluntary transaction” form. Property owners already registered for a buyout are receiving a monthly letter that provides updated information about the process.

The Voluntary Property Acquisition process includes three flood-affected areas of Cedar Rapids and two federal funding sources. As of January 21, 2010, the following progress has been made on these programs:

1. Greenway Acquisition Area– Buyouts in this area are funded by FEMA’s Hazard Mitigation Grant Program. Each stage of this program is outlined below:

• Eligible Properties: 117
• Properties not Participating: 11
• Purchase Offers Mailed to Owners: 99
• Signed Purchase Agreements: 78
• Closings Begin in February 2010

2. Construction/Study Area and properties beyond reasonable repair in the Neighborhood Revitalization Area– Buyouts in this area are funded by HUD’s Community Development Block Grant Program.

• In November 2009, the City received notice of a funding award from the Iowa Department of Economic Development.
• On January 20, 2010, the Cedar Rapids City Council approved the administrative plan to administer the funds for this program according to HUD regulations.

Each individual land transaction will take at least four months and up to nine months to complete, including clearing title objections and legal documentation. This program is voluntary. Property owners may choose to withdraw from the transaction anytime prior to signing the legal documents at the closing. To learn more about this program, callJCG Land Services, the City’s contractor, at (319) 362-3507, extension 210, or (319) 286-5521, extension 210. 

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