On May 16, 2013, Governor Chris Christie of New Jersey revealed a plan to spend $300 million of Federal Emergency Management Agency (FEMA) funds to buy out homes in flood-prone areas affected by Hurricane Sandy in October 2012. This program will give homeowners in Central New Jersey the opportunity to move instead of rebuilding in an area that is at high risk to flood again. The plan is based on the idea that the costs of relocating homes away from flood-prone areas will be lower than the cost of continuously rebuild flood- or storm-damaged homes
Called the “Willing Seller” Plan, this program is completely voluntary. In addition, it will target neighborhoods rather than individual homes, so that the bought out land can be razed and become open space. The program is targeting nearly 1000 homes in the central coast area of Jersey and will start with around 350 homes in Sayreville, which is located in the floodplains of the Raritan River.
The timeline for this program is short. Property appraisals will begin in June, and the first round of buyouts are expected to be completed by Labor Day. The entire program is scheduled to take just one year. The New Jersey Department of Environmental Protection (DEP) will handle the purchasing and the State Office of Emergency Management (OEM) will procure funds through FEMA.
This plan is an extension of the state’s Blue Acres Floodplain Acquisitions program, a voluntary buyout program for flood-prone homes that began in 1995, but has been low on funds since 1998 because of a high demand for buyouts. In contrast, demand for New York’s post-Sandy buyout program has been lackluster as most homeowners are choosing to stay and rebuild.
For more information:
State of New Jersey: Press Release
C2ES: Extreme Weather Map
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