Department of Homeland Security

One Federal agency repairs home only to be demolished later

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Community Member

FEMA's acquisition of properties under the Hazard mitigation program (HMGP) of properties for which home repair claims have been paid, results in money being wasted. Billions of dollars will be saved in the future if we take corrective measures now. FEMA Individual Assistance (IA) section pays up to $30,000 to uninsured homeowners to repair their homes immediately following a disaster while the National Flood Insurance Programs (NFIP) pays up to $250,000 in home repair claims to the insured after a flooding event. It is not unusual for these properties to be acquired six to nine months later (after homes have been repaired) through one of many federal, state, and local programs such as HMGP. NFIP and IA may save money if the homeowners are given the option to hold off on receiving home repair funds if their home is located in a SFHA and they want their property acquired. The table below depicts how much money NFIP and IA paid out in claims to property owners in Davidson County in Tennessee whose home are being acquired with HMGP money in 2010/2011 fiscal year. As the table indicates, over seven million dollars ($7M) would have been saved in 2010 in Davidson County alone under DR-1909, if NFIP, IA and HMA had a strategy in place for working with homeowners whose properties are eligible for acquisition and demolition. To avoid duplication of benefit, these homeowners must show that the money was used for the intended repairs else it will be deducted from the acquisition cost at closing.


Davison County IA and NFIP Claims for Home Repair (Dr-1909 TN in 2010)

NFIP Claim

West Hamilton –Hite -----------$1,140,571.00

Benzing Terrace -------------------$2,896,699.00

Delray West Hamilton -----------$2,396,530.00

Total ------------------- $6,433,800.00


Individual Assistance Claims

West Hamilton -Hite -----------$238,733.

Benzing Terrace ----------------------$264,738.00

Delray West Hamilton---------- $356,312.00

Total ------------------------------- $859,783.00

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Idea No. 1237