Some communities in northwest Iowa hit by massive flooding this summer are now able to apply for FEMA money to purchase damaged homes. Rock Valley has sent its application today, asking for funding to buy 110 homes.
If approved, an eligible homeowner will get paid the value of their property before the natural disaster. To qualify, a home must be in an area that has flooded before this year.
“You can drive around town, just the devastation some of these houses have had, but for this program just pure damage does not qualify you,” said Rock Valley City Administrator Tom Van Maanen. “It has to have a flood history.”
More than 500 homes in Rock Valley were damaged by June’s flooding. Van Maanen said the process to get federal funding for buyouts is very competitive. “The financial impact to some of these property owners who do not get a buyout is going to be devastating,” Van Maanen said. “At that point, there’s really not any more programs that the city can utilize to assist them.”
If approved, FEMA pays for 75% of buyouts, the State of Iowa covers 10% and the city involved pays the rest. The estimate for Rock Valley’s share is between $4.5 million and $6 million. Rock Valley also sent in a separate request for funding to purchase 30 homes that had flood insurance.
The City of Spencer is also looking at doing buyouts. The mayor of Correctionville isn’t sure if his town will submit a request for buyouts due to finances and the fact that once a home is bought out, no development can take place on the land.
(By Sheila Brummer, Iowa Public Radio)