Voluntary Property Acquisition Program

Updated: April 2009

Frequently Asked Questions

1.       What is the Voluntary Property Acquisition process?

The City’s Voluntary Property Acquisition process includes several steps and approximately 1,300 properties. Owners of properties in the Greenway Acquisition and Construction/Study Areas, as well as owners of properties beyond reasonable repair in the Neighborhood Revitalization Area, have shown interest in participating in the Voluntary Property Acquisition process.

Right now, City staff is refining a Voluntary Property Acquisition Plan. However, the actual property acquisition process cannot begin until federal funding is available.

To date, the City has taken the following actions:

 

2.       What will all these buyouts cost?

In total, the City needs $175 million to purchase all of the properties in the Greenway Acquisition Area, the Construction/Study Area and the properties beyond reasonable repair in the Neighborhood Revitalization Area. This will likely require funding from multiple sources at the local, state and federal levels to provide a consistent and comprehensive voluntary property acquisition program.

Here’s the breakdown of the estimated property acquisition costs:

 

3.       How will these buyouts be paid for?

FEMA’s Hazard Mitigation Grant Program (HMGP) is expected to provide funding for the Greenway Acquisition Area properties. The City is seeking funding through HUD’s Community Development Block Grant (CDBG) program to provide funding for the Construction/Study Area properties and the properties in the Neighborhood Revitalization Area that are beyond reasonable repair. Local option sales tax revenues may also be used to fund acquisitions that do not meet federal requirements or other identified funding gaps. These are the only funding sources available for property acquisition at this time.

 

4.       When will these buyouts take place? What is the timeline?

The Voluntary Property Acquisition process cannot begin until funds are made available from multiple federal agencies, because the City does not have enough money to pay for all of the buyouts.

The City contacted owners of properties in the Construction/Study and Neighborhood Revitalization Areas to register interested property owners and then schedule individual consultations. This preparation prior to securing funding will provide property owners with information specific to their situation and speed up the property acquisitions when funding becomes available

Once the City receives the funding, the process will include the following activities:

 

5.       What will I get paid to buyout my property?

The City will offer property owners the pre-flood assessed value to purchase their flood-damaged properties included in the Voluntary Property Acquisition process. These owners must have owned the property at the time of the flood. This applies to properties in the Greenway Acquisition and Construction/Study Areas, as well as properties beyond reasonable repair in the Neighborhood Revitalization Area. Please note that the recent post-flood reassessments do not impact the pre-flood assessed value.  

 

6.       Will my buyout payment be affected by other government funding I’ve received?

By law, federal Community Development Block Grant (CDBG) dollars cannot duplicate funds received from other government sources, such as FEMA repair assistance, flood insurance benefits or property acquisition funds. This is often referred to as Duplication of Benefits restrictions. These restrictions have not been established for funding received through the Jumpstart program yet. See Attached Duplication of Benefit Explanation.

All current housing and business funding assistance programs require a Duplication of Benefits verification to check for other assistance received. This verification will be completed at the State level before the Offer to Purchase can be presented.

 

7.       Is the City going to force me to sell my property?

No. This is a VOLUNTARY property acquisition process. When using FEMA Hazard Mitigation Grant Program (HMGP) and Community Development Block Grant (CDBG) funds, the City cannot use eminent domain to acquire properties.

 

8.       When will the City’s flood management system (floodwalls & levees) be finalized by the Army Corps of Engineers?

The US Army Corps of Engineers is expected to finalize and approve its feasibility study for the City’s Flood Management System (floodwalls and levees) in 2012. Construction of the floodwalls and levees is expected to begin in another five to eight years.

 

9.       Is such a large Construction Area necessary for the floodwalls and levees as currently planned?

Yes. The City worked with the US Army Corps of Engineers to designate a general area typically impacted by the construction of a flood management system, based on similar flood management projects. This area was expanded to include potential relocation of City streets and utilities. Not all of the properties within the Construction/Study Area will be impacted.

 

10.   Is it true that the City of Cedar Rapids will hire a firm that specializes in property acquisition?

Yes. In order to perform the property acquisitions in a timely manner, the City must contract with a firm experienced in land transactions.  The selected firm must have demonstrated high quality customer service in similar projects.

 

11.   Do I still have to pay taxes on my flood-damaged property?

Yes.  All property owners are obligated to pay taxes and keep their property in compliance with City Codes, until the sale of the property is finalized and ownership changes hands. This is true for all flood-affected properties throughout the City.