Voluntary Property Acquisition Program

Updated: April 2009

Voluntary Property Acquisition Process & Participation Steps

The City’s Voluntary Property Acquisition process includes several steps and approximately 1,300 properties.  Each voluntary acquisition is a legal property transaction which includes clearing title objections and legal documentation. This process may take up to nine months to complete on an individual property.

In April 2009, the City contacted all property owners in the Construction/Study and Neighborhood Revitalization Areas to begin the acquisition registration process. Property owners will be asked to participate in the following steps of the process :

1. Consultation:

• Conducted one-on-one consultations with the Greenway Acquisition Area property owners in December 2008 and January 2009

• Conducted one-on-one consultations for properties located in the Construction/Study Area and the Neighborhood Revitalization Area in May and July 2009. The registration period expired on July 17, 2009.

2. Offer to Purchase:

• When the City receives funding for voluntary property acquisitions, the City will request a Duplication of Benefits determination from the State for each property and begin drafting documentation.  This is estimated to take one to two months.
• The official Offer to Purchase will be drafted and presented to you.
• The offer will include the pre-flood assessed value of the property with the following types of funds subtracted because of Duplication of Benefits restrictions:
  • National Flood Insurance Program - proceeds for the value of the structure, not the contents
  • FEMA Individual Assistance – funds for housing, not rental assistance   
  • SBA Loan – buyout proceeds will be applied to the balance of the SBA loan
• Once the Offer to Purchase has been made, preparation for the closing on the property may take up to nine months, depending on the status of your property title. (Titles with liens, objections, judgments, etc. will take longer to process.)
• If after the presentation of the offer, the seller believes the offer price is incorrect due to factual errors and/or can present information directly relating to the pre-flood market value, the City will provide an appeal process. The seller will assume the responsibility and cost of securing an appraisal (at pre-flood value) from a certified appraiser.
• The City strongly advises property owners to wait until you have received the Offer to Purchase before expending your own money for an appraisal.

3. Closing:

• After an Offer to Purchase has been accepted and approved by the City Council, the City will proceed with the title and legal work necessary to acquire the property.
• A closing date will be scheduled and conducted just like any other property transaction.

NOTE: This is a voluntary property acquisition process. You may choose to withdraw from the transaction anytime prior to signing the legal documents at the closing.