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Engineering - Flood-Prone Property Buyout Program

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1. What is the purpose of the program?

The purpose of the program is to reduce flood losses within the City and to provide relief to those property owners whose homes are frequently damaged by flooding.  This would be achieved through voluntary acquisition of residential properties where initiated by affected property owners.

2. How do I apply for the program?

Fill out the application that can be found at https://www.garlandtx.gov/3957/Flood-Prone-Property-Buyout-Program

3. What properties are eligible for the program?

The voluntary FPBP is available to any residential property that meets the following minimum requirements and may be amended to match the Federal Emergency Management Agency (FEMA) and Texas Water Development Board (TWDB) grant program’s minimum eligibility requirements:

1. For the purposes of this program, a residential property shall be defined as single family, single family attached or duplex.
2. Property must be located within the effective FEMA 100-year floodplain or floodway, as identified on the most current Flood Insurance Rate Maps (FIRM) for Dallas and Collin Counties.
3. Property must be current on County/City Property Taxes.
4. Property must have a clear title without liens (mortgage liens excluded).
5. Property must have an active flood policy through the National Flood Insurance Program (NFIP).

4. Is this program mandatory?

No, this program is voluntary and must be requested by the property owner.  This program is only available to those property owners who desire to enter the program and who are eligible.  Please note that the application for the program is entitled: “Statement of Voluntary Participation in the Flood-prone Property Buyout Program”.

5. Does this program affect the value of my property?

This program is only offered to those properties that are already designated by FEMA to be in the floodplain or in the floodway.  The FEMA flood map and information is also readily available to property owners, prospective buyers, and property lenders.  A link to the FEMA website is at the top of the web page.

6. If I am not selected, do I have to apply every year?

No, applications that meet the eligibility requirements will be kept on file and do not need to reapply unless a flooding condition has changed. However, applicants shall notify the City in writing if they no longer want to participate in the FPBP.

7. When can applications be submitted?

Applications will be accepted annually from March 1^st through May 31^st. (applications must be received by close of business (5:00 p.m.) on May 31^st or the last Friday of May)

8. What if I change my mind after the application is submitted?

The program is completely voluntary, and the applicant can back out of the program up and until the purchase contract has been signed with the City. The homeowner/applicant will need to notify the City of Garland’s Engineering Department in writing as soon as possible:  ✉ FloodProneBuyout@garlandtx.gov

9. How will the property value be determined?

The fair market value of a property purchased through this program will be determined by an appraisal.  If a property owner is not satisfied with the appraisal result, the property owner may seek their own appraisal.  If the property owner is still not satisfied, the property owner may opt out of the program and not sell the property.

Please note that initially, property values used for the FEMA grant application process will be based on the current year estimated tax appraisal value determined by the Dallas or Collin County Appraisal Districts (CAD).  However, the actual purchase contract, between the City and the property owner, will be based upon the fair market value determined in the appraisal process.

   

10. What if I disagree with the fair market appraisal value provided by the City?

If a property owner is not satisfied with the appraisal result, the property owner may seek their own appraisal.  The property owner, at their own expense may hire a certified independent third-party firm to provide an appraisal of the property. The property owner will present the appraisal to the City along with a receipt for the services.  If the City and property owner come to a mutual agreement on market value for the property, the City may credit the property owner for appraisal fees at closing.  If the property owner is still not satisfied with the appraisal results, the property owner may opt out of the program and not sell the property.

11. Will the City exercise eminent domain to acquire properties for this program?

No, property will only be acquired at the request of the property owner.

12. How long does the buyout process take?

After the application period closes on May 31^st, the buyout process should take between 18-24 months.

13. What if the grant application is not selected by FEMA?

The City will reapply the following year and look for ways to improve the score for the City-wide application.

14. Why does the buyout process take so long?

To maximize taxpayer dollars, the City will be applying for grant funding to assist with the purchase and demolition of the flood-prone properties through the Texas Water Development Board (TWDB) and the Federal Emergency Management Association (FEMA).  The application window through the TWDB is September 30 – January 25.  The application then goes to FEMA whose application and selection process is February through June, with grant funds available in September/October of the following year. 

15. When will the applicant know if their property has been chosen to be a part of the program?

The City will notify property owners in January (8-10 months after City application received from property owner) if their property was chosen to be a part of the grant application to FEMA.

 TWDB will notify the City in June (13-15 months after City application received from property owner) of their grant application status, and then the City will notify all selected applicants of the grant funding availability. 

16. What happens to the property after the buyout process?

Per the FEMA grant program requirements, all existing structures will be demolished/removed, and the property will be deed restricted in perpetuity as open space for the conservation of natural floodplain functions. Potential open space uses include compliance with the City’s Neighborhood Vitality Guidelines, parks for outdoor recreational activities; wetlands management; nature reserves; buffer zones; and other uses consistent with FEMA guidance for open space acquisition.

17. If a homeowner has negative equity on their mortgage, can they participate in the program?

Participation in the program requires a clear title, if a clear title cannot be obtained, then the property does not qualify for the program.

18. Are rental properties eligible for the program?

Yes, residential rental properties that meet all the requirements are eligible to participate in the program

19. Does the property owner receive reimbursement for moving expenses?

No. City Staff will notify owner/tenants of the property a minimum of 90 days prior to the anticipated date of the transfer of ownership (closing). If the property owner agrees to sell the property to the City, the transaction is voluntary and the property owner is not entitled to relocation benefits provided by the Uniform Relocation Assistance and Real Property Acquisition Policies Act of 1970, which are only available to property owners who must sell their properties involuntarily.

20. What if the property owner’s application is rejected by the City?

The City will reject applications that are incomplete or do not meet the FPBP’s eligibility requirements. The property owner will be notified if there was missing information, or which FPBP eligibility requirements were not met. The property owner may then choose to rectify the reasons for rejection and reapply the following year.

21. If my application is accepted by the City, am I guaranteed to be included in the grant application to FEMA?

No. During the City’s review, evaluation, and prioritization period of the applications, a Benefit Cost Ratio (BCR) will be calculated in alignment with the FEMA guidelines. The City-wide grant application to FEMA must have an overall BCR of 1.0 or higher. During the City’s evaluation period (June through August) and the TWDB review process (September through January), applications with a low BCR (especially those with less than a 1.0 value) may not be selected for the FEMA grant application. Additionally, applications that do not meet other technical requirements of FEMA may not be included in the City-wide grant application. The property owner will be notified if their application has not been selected for the FEMA grant application.

22. Can I apply if I do not have an active flood insurance policy through the National Flood Insurance Program (NFIP) or if I previously had a policy but no longer carry it?

No. An eligibility requirement, per FEMA, of the FPBP is to have an active flood insurance policy. We would recommend you contact an insurance agent to learn more about your options. The City of Garland participates in the FEMA NFIP, which means that federally subsidized flood insurance is available to everyone in Garland (rates and requirements are regulated by FEMA). There is a 30-day waiting period before a policy becomes effective. Because the City is a participant in FEMA's Community Rating System (CRS), you are eligible for a CRS discount on your flood insurance policy. Be sure to verify with your insurance agent that the discount is being applied.