III. THE FEMAHAZARDMITIGATION GRANT PROGRAM: “BUY-OUTS” OF HOMES IN HIGH HAZARD AREAS
The Hazard Mitigation Grant Program (HMGP) provides grants to state and local
governments to implement long-term hazard mitigation measures after a major disaster declaration. Authorized under Section 404 of the Stafford Act and administered by FEMA, HMGP was created to reduce loss of life and property due to natural disasters. The program allows communities to engage in mitigation measures in the immediate aftermath and recovery period of a disaster.
HMGP funding is only available to state and local governments, Native American
tribes, and certain non-profits within a presidentially declared disaster area. Individual homeowners do not apply directly to HMGP. A homeowner, landlord, or business interested in the program should speak directly to community leaders about their interest in participation in the program as soon as possible after the disaster.
HMGP funds may be used for projects that will reduce or eliminate the losses
from future disasters. Projects must provide long-term solutions to problems, like elevating a home several feet to reduce the risk of flood damages rather than buying sandbags and pumps to fight a flood. In addition, a project’s potential savings must be more than the cost of implementing the project. Funds may be used to protect either public or private property or to purchase property that has been subjected to, or is in danger of, repetitive damage. Of particular interest to homeowners is the “buy-out” of real property for willing sellers. The local government may apply to FEMA for funding to purchase a willing seller’s home based on its pre-disaster value in order to demolish the structure and turn the property into open space use in perpetuity.
In order to participate in the buy-out program, the project (i.e., this particular property acquisition and demolition) must meet five criteria:
The project conforms to Vermont’s Hazard Mitigation Plan. The project provides a beneficial impact on the disaster area. The application meets environmental requirements. The project solves a problem independently. The project is cost-effective.
Local jurisdictions develop and submit written project applications. Vermont
Emergency Management and the state mitigation project selection committee, which includes FEMA representatives, prioritize and select project applications that best suit the five criteria mentioned above. These applications are then forwarded to FEMA Region 1 in Boston for eligibility review. Since funding is not unlimited, local communities, the
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