Friday, 30 September 2011

FEMA budget crunch makes Des Moines home buyout plan uncertain

 By Jason Pulliam
String of disasters limits federal money for long-term relief
 The city of Des Moines bought the home at 2348 E. 36th Court, next door to Randy Johnson’s, after flooding in 2010. / BILL NEIBERGALL/The REGISTER
A federal freeze on money for some forms of disaster relief has clouded prospects for a $7.8 million buyout plan that nearly 60 flood-weary homeowners along Des Moines’ Four Mile Creek are counting on.
Hurricane Irene and a recent string of other natural disasters have drained the Federal Emergency Management Agency’s coffers. And ongoing congressional budget battles make it unclear when FEMA will have money to help finance long-term disaster relief projects like the one in Des Moines.
Since city officials are unsure of when they will be able to cement buyout plans, homeowners like Randy Johnson are left to wait and wonder when they can finally put the historic 2010 flood behind them.
“There’s more stress and more uncertainty,” said Johnson, who was among more than 60 homeowners who this month received letters from the city saying buyout plans were on hold. “This is really outside Des Moines’ hands … Unfortunately at the moment, that’s just how the federal government is operating, and we just kind of have to deal with it.”
The situation revives many of the same worries and frustrations that dozens of homeowners suffered during the 2010 floods that caused over $3.6 million in property damage.
Many of those same homeowners also experienced major floods in 1993, 1998 and 2008.
That’s why there was new hope and optimism in November when city officials told residents FEMA grant money was available to buy properties in Four Mile Creek’s 100-year flood plain.
Those plans came to an abrupt halt in August when the cumulative impact of Missouri River flooding, tornadoes, droughts, wildfires and Hurricane Irene put a squeeze on FEMA’s disaster relief budget.
The agency went into “immediate needs funding” mode, meaning it would dedicate its resources to help meet immediate needs of survivors of those disasters. Longer-term disaster recovery projects such as reconstruction of public buildings, roads and bridges fell under the funding freeze.
The agency is doing its utmost to stretch resources and ensure immediate needs of recent disaster victims are met, said Rachel Racusen, FEMA’s public affairs director.
Currently, FEMA has about $150 million for disaster relief. That account will need to be back up over $1 billion before the agency can move forward with longer-term disaster relief projects, including Des Moines’ flood buyout plan.
The U.S. Senate earlier this week approved a short-term budget bill that included $2.65 billion for FEMA. That bill is still subject to approval in the U.S. House. Philosophical disagreements over whether the increase for FEMA should be matched by cuts to other parts of the federal budget continue to make the outlook uncertain.
If the $2.65 billion for FEMA is approved, more dust in the federal bureaucracy will have to settle before FEMA officials know how that money will be allocated to them.
Des Moines Mayor Frank Cownie said he is frustrated by the holdup. The buyouts will help affected property owners get back on their feet and minimize the area’s long-term flood risks, he said.
“A lot of these folks are in very tough situations and we need to help them,” Cownie said. “It is unfair that there are political games being played around this in Washington, which inhibits the work of FEMA to take care of these projects. … We need to move forward and not play games with people’s lives.”
Properties in the Four Mile Creek flood plain account for the overwhelming majority of those in the buyout plan.
Buyouts of two flood-prone mobile home parks that were hit with heavy damage in 2010 are not affected by the freeze. That process is nearly complete because the city tapped a different, $7.1 million pot of money from the state.
To qualify for a buyout, the properties had to have “substantial” flood damage, defined as equal to 50 percent or more of the estimated market value of the home. The program is voluntary.
If Des Moines receives the buyout money, it could then take about a year to get all of the properties acquired and demolished, said Phil Wageman, the city’s real estate manager. The $7.8 million would cover costs for property acquisitions, demolitions and other administrative costs.
City officials want parts of the flood plain where homes are located to revert to green space so the area has a stronger natural defense against future floods.
Twelve properties were bought out in the Four Mile area after the 2008 floods.
Johnson, the east-side homeowner, is among those who volunteered to participate in the buyout program. The floodwaters that spilled out of Four Mile Creek’s banks midway through August 2010 filled the first floor of Johnson’s home.
Johnson said the cleanup took a couple of months after the water receded.
“Once the water left, that is when things got really nasty,” Johnson said. “The first floor was covered with mud and silt. Trying to clean that up took a lot of effort. It was difficult to get back to a place where you could live there.”
He moved back in October and stayed there until July, when he closed on a new house about 10 minutes away. The reason Johnson decided to buy a new house was because of how difficult it was to live in his heavily damaged former home, he said.
“In general, I think most people are patient and are hoping that the buyouts won’t drag out for too long,” Johnson said. “The fear some have is that the buyouts won’t happen at all or will be forgotten about until the next flood.”
U.S. Rep. Leonard Boswell, a Democrat whose district includes Des Moines, expressed optimism that the buyouts will move ahead.
“I am confident that with a budget compromise reached this week, the initiative to buy out properties on the Four Mile Creek flood plain will move forward and these homeowners will finally get the peace of mind they deserve,” Boswell said.
Ruby Leaming has lived near Four Mile Creek since 1952. There was a bad flood in 1954, but nothing like the one from last year, Leaming said. “It was scary,” she said. “The water came up so fast there wasn’t anything we could do.”
She had six feet of water in her basement and the cleanup took several weeks. She said that she looks forward to a buyout so she can move.
“You don’t know how long you are going to have to sit here before they decide to approve the money,” she said. “That part is stressful.”
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