TO: Mayor and Members of City Council
THRU: Adam Lindsay, Assistant City Manager
FROM: Sheila Thomas-Ambat, Public Services Director
DATE: April 7, 2025
RE:
Title
Hazard Mitigation Grant Program Funding Opportunity for Structure Elevation or Buyout of Damaged Properties
end
COUNCIL DISTRICT(S):
Council District(s)
All
b
Relationship To Strategic Plan:
Goal 3: High Quality Built Environment
Goal 4: Desirable Place to Live, Work and Recreate
Executive Summary:
Staff are seeking Council consensus to pursue Hazard Mitigation Grant Program funding to mitigate losses to Repetitive Loss Structures in Fayetteville. By mitigating the losses on these flood-prone properties the City can reduce future disaster risks and increase resilience.
Background:
The Hazard Mitigation Grant Program (HMGP) is a FEMA-funded program designed to reduce or eliminate future damage and loss following a disaster. HMGP is federally funded but managed by the North Carolina Department of Public Safety’s Division of Emergency Management. The City has previously been successful in receiving HMGP funding for both infrastructure improvements (Neville Street Drainage Improvements) and property acquisition & elevation (post-Hurricane Matthew).
The North Carolina Department of Public Safety’s Division of Emergency Management have recently released two Notice of Funding Availability (NOFA) for the grant program.
HMGP DR-4827-NC (Tropical Storm Helene) and HMGP DR-4837-NC (Potential Tropical Cyclone-8), both attached in this CCAM for reference, are open State-wide with priority given to those counties declared as a part of the disaster area.
Mitigation projects that are eligible for this grant include the acquisition or elevation of residential and non-residential properties that experience flood damage.
Currently, there are 44 repetitive loss structures in Fayetteville that staff feel could benefit from receiving mitigation assistance. A repetitive loss structure can be defined as an NFIP-insured structure that has had at least two paid flood losses of more than $1,000 each in any 10-yr period.
Issues/Analysis:
Although priority will be given to the counties that are in the declared disaster area, this funding opportunity is open Statewide. In addition to Statewide eligibility, there is an unprecedented amount of funding being allocated to North Carolina with the funding amount at approximately $1.5B. This windfall in funding creates the opportunity for non-declared disaster counties to be allocated mitigation funds.
Targeting the 44 repetitive loss structures is a way for the City to assist with flood mitigation for these property owners with two primary options being acquisition and elevation of these structures.
Acquisition can be defined as the purchase or buyout of a flood prone home using FEMA and State funds from a willing homeowner. The homeowner is offered pre-disaster market value for their structure, if qualified, as determined by a certified appraiser. Once the home and property are acquired, the home is demolished, and the land is deeded to the local government with an open space restriction into perpetuity to restore or conserve natural floodplain functions.
Elevating a home is the physical raising (elevation and foundation replacement) of an existing structure to an elevation 2 feet higher than the Base Flood Elevation (BFE) or higher if required by FEMA or local ordinances. The project pays for engineering to determine if the home is feasible to raise, then elevates and rebuilds the foundation.
Additional considerations to note are that through the HMGP program, the State would pay the local match, not the homeowner or community. There is no cap on the price of homes that can be acquired or elevated, however, collectively the benefit cost ratio must be above a 1.
This program is completely voluntary for property owners and if they elect to participate, they can withdraw their application at any time.
In the event structures were acquired by the City, perpetual maintenance for these properties would be assumed once the structures are removed and no future inhabitable structure is allowed on the property.
If Council elects to direct staff to peruse, the first step in the process would be to reach out directly to repetitive loss property owners to notify them of this funding opportunity. The property owner would then have to complete an application and submit it to the City. Once all the applications are received by the City, staff will evaluate the benefit cost ratio and prepare a single application for consideration. At this time, staff will provide the Council with a more detailed update on the actual grant submittal to gain further consensus before submitting a Letter Of Interest no later than October 31, 2025.
Budget Impact:
There is no impact to the general fund. Any mitigation assistance funding would be provided by FEMA with the State contributing the sponsor portion. Due to the complexity of the application process and short amount of time for submittal, a Consultant would be retained to assist staff in collecting, evaluating, and submitting the LOI. It is estimated that this service would cost approximately $50,000 and be funded by the Stormwater Enterprise Fund.
Options:
1. Council provide consensus to move forward with pursuing Hazard Mitigation Grant Program funding for repetitive loss structures in Fayetteville.
2. Do not provide consensus on pursuing HMGP funding and provide guidance to staff.
Recommended Action:
Staff request the Council provide consensus to move forward with pursuing Hazard Mitigation Grant Program funding for repetitive loss structures in Fayetteville.
Attachments:
2025.04.07_Hazard Mitigation Grant Program Presentation
HMGP DR-4837-NC NOFA
HMGP DR-4827-NC NOFA