Why Buyouts Take So Long

In the private sector, it can take just days to buy a home. In the public sector, it can take years. Here’s why buyouts take so long.

Major Steps in Process

Graphic provided by Harris County Flood Control District (HCFCD). For specific information about the Buyout Process for Eligible Qualified Buyers, see this video.

The graphic above outlines the major steps in the buyout process. The linked video provides more detail.

The Forest Cove Townhomes illustrate some of the problems encountered along that timeline.

Exceptional Sense of Community Makes People Want to Stay

According to Jennifer Parks who lived on Timberline, her townhome flooded eight times in five years. Despite that, she, like most who lived there, loved the secluded neighborhood. It was close to nature, beautiful and quiet. Neighbors looked out for each other. They bonded over backyard barbecues. They enjoyed an exceptional sense of “community.” Then came Harvey. It made the homes uninhabitable. People immediately scattered to find new housing.

Dealing with Chaos and Confusion

When the initial shock wore off, they began exploring options. Could the homes be repaired? Would CenterPoint restore power? Could the sand-filled storm drains and streets be cleared? Which way was the herd moving? One family could fix its home; but if the other neighbors in a building didn’t, their investment would be ruined. This is important because in Harris County, buyouts are voluntary. One holdout in a building with a dozen units could undermine others.

Meanwhile, HCFCD assessed damage county wide to identify eligible properties. Harvey damaged so many, that it took nine months for the flood control district to even issue its final report on the storm.

Assessment Necessary; Not All Properties Eligible

Identifying eligible properties requires looking at them from several different perspectives. For instance:

  • Have people requested the buyouts?
  • Are properties subject to repeat flooding? Is it life threatening?
  • Will buyouts serve a larger strategic purpose that reduces flooding? For instance, restoring green space near a river. Or creating community parks.
  • Who will maintain the property long term?
  • Are interest and community support high?
  • Will buyouts create a checkerboard pattern that creates maintenance issues or will there be full public ownership of an area?
  • Can HCFCD secure grants to fund all interested sellers?

Of the 154,170 homes flooded in the county during Harvey, only 4,000 property owners volunteered for buyouts and of those, only 1,100 were eligible (0.71% of all flooded homes).

Qualifying for Buyout

To learn more about the HCFCD buyout process, see this document: Voluntary Buyout Guidance.

Buyouts reduce flood damages in areas where structural projects (i.e. channel modifications or stormwater detention basins) are not cost-effective and/or beneficial. 

Harris County FLOOD CONTROL DISTRICT

Buyout candidates were simply built in the wrong place, prior to the knowledge we have today

HCFCD’s Home Buyout Program does not provide immediate flood recovery assistance – its primary function is to help prevent future flood damages. 

To see where HCFCD is interested in buyouts, check this map of Buyout Areas, last updated in July.

Funding and Closing

After identifying and qualifying candidates comes the difficult process of securing grant funding. That usually takes about 8-18 months. It’s a multi-tiered process. Austin collects and screens grant applications for Washington. Assuming Washington approves, money then flows back through Austin.

Finally, with money in hand, HCFCD must appraise property to confirm its value (which can be pre-flood). HCFCD must then reach an agreement to buy the property and determine relocation benefits. Of the initial 1,100, 349 are in the closing phase now and 560 have already closed.

A little fixer-upper

HCFCD says that roughly a half dozen homes remain to be bought out. Those remain “problem” cases. In one, an out-of-state investor bought property at auction AFTER Harvey. But terms of HCFCD’s Harzard Mitigation Grant specify that the grant cannot be used in cases like that. Otherwise people would buy up flooded properties and resell them to FEMA at pre-flood valuations.

In other cases, sometimes people have walked away from flooded properties leaving lenders holding the bag. That puts property in legal limbo. No one has authority to sell without going through a foreclosure process.

Such problem properties can delay demolition.

Public-Policy Concern

In multi-family housing (such as the Forest Cove Townhomes), EVERY family in a building must have completed a buyout before the building can be demolished.

The last point raises a public-policy concern. We are now starting YEAR FOUR AFTER HARVEY! Units in six Forest Cove Townhome Buildings still need to be purchased. Those buildings look like the one above and drag down property values in an entire community.

So, should construction of new multifamily units be allowed in such flood-prone areas?

It’s one thing to repair properties built BEFORE flood problems became apparent; another to permit new construction AFTER. And developers keep throwing up new units faster than flooded ones can be bought out.

For More Information

For general information about HCFCD’s buyout program, see this video.

For the portal to the buyout section of HCFCD’s website, click here.

Posted by Bob Rehak on 9/3/2020

1101 Days after Hurricane Harvey

The thoughts expressed in this post represent opinions on matters of public concern and safety. They are protected by the First Amendment of the US Constitution and the Anti-SLAPP Statute of the Great State of Texas.

Going Up the Down Escalator – As HCFCD Demolishes West Fork Townhomes, Developer Builds More

Have you ever walked up a down escalator? I’m sure that’s what it must feel like to work for the Harris County Flood Control District at times. As you work to improve public safety, you sometimes fight others eroding it in the process of making a buck. Consider this comparison.

Forest Cove Buyouts V. Wanbridge New Construction

Flood Control just bought out and demolished a six-townhome complex on Timberline Drive in Forest Cove. It was the culmination of a three-year process.

Meanwhile, a short distance downstream, Wanbridge is building 14 more – even closer to the same river that destroyed the Forest Cove Townhomes. Wanbridge even designed its townhomes on the same principles used in Forest Cove (garage and storage on ground floor/living space two stories up). Let’s see how that worked out for Forest Cove property owners.

Forest Cove Complex Torn Down after Floods and Fire

Here’s what the Forest Cove complex looked like before being demolished recently.

Part of six-unit Forest Cove Townhome flooded by Harvey and then burned on July 4th, 2019. Photo taken July 11, 2020.
Here’s what that site looks like today, 1100 days after Harvey FIRST destroyed the complex.

Finally, a vacant lot that can return to nature!

Six Down, But Fourteen Up

Meanwhile Wanbridge is building six new units in Kings Harbor even closer to the river. That is in addition to three units just completed in the upper left, and five just completed in the lower left (some of which are out of frame).

Forest Cove Townhome Buyouts Part of a Much Larger Project

The six-unit building recently demolished in Forest Cove is part of much larger buyout project. It comprises approximately 80 homes. So far, HCFCD has demolished the following Forest Cove townhome buildings:

  • 1030 Marina Dr.
  • 1040 Marina Dr.
  • 1050 Marina Dr.
  • 1060 Marina Dr.
  • 1102 Marina Dr.
  • 803/805 Timberline Ct.
  • 707 Timberline
  • 930 Aqua Vista  

However, the following buildings still have privately-owned units that HCFCD is trying to purchase ASAP:

  • 1106 Marina Dr.
  • 1110 Marina Dr.
  • 1020 Marina Dr.
  • 960 Marina Dr.
  • 980 Aqua Vista (mostly destroyed)

HCFCD has now bought out and demolished eight out of 14 buildings (see map below).

Map to Forest Cove Townhome buyouts. This once-thriving complex housed approximately 80 families before Harvey.

Five Buildings Still Left Standing…Kinda

Building sheared in half by 240,000 cubic feet per second at peak of Harvey. Residents reported feeling lucky to escape with their lives.
How Harvey chewed up the inside of Forest Cove Townhomes
Floodwaters reached well into the second stories of these units.
Note how the water pressure destroyed garage doors. Also note abandoned scooter.

As I edited pictures from this morning’s photoshoot, I noticed the little girl’s scooter perched precariously on the collapsing porch. A child lived here! It was her family’s home. Their dream. And I’m sure the scooter was the girl’s cherished possession. Perhaps a birthday or Christmas present.

For whatever reason, that scooter got to me. It made me realize the futility and danger of going up the down escalator.

Public Policy Implications

From a public policy point of view, it seems like it would be safer and cheaper to buy up properties near rivers and turn them into parkland – before people build on them.

Parks generally improve the value of surrounding properties. In contrast, the inevitable eyesores created by repeat flooding cost us all. Consider:

  • Taxpayer subsidies for flood insurance.
  • Multiple payouts on insurance claims, also subsidized by taxpayers.
  • Eventual buyouts, paid for by taxpayers.
  • Demolition, paid for by taxpayers.
  • Eventual restoration of the green space, at taxpayer expense.
  • Salaries of public employees to manage this process in Washington, Austin and Houston.

Leaving these spaces green would have cost little compared to the ultimate financial and emotional costs of repeat flooding. But some people like going up that down escalator.

Posted by Bob Rehak on 9/2/2020

1100 Days since Hurricane Harvey

The thoughts expressed in this post represent opinions on matters of public concern and safety. They are protected by the First Amendment of the US Constitution and the Anti-SLAPP Statute of the Great State of Texas.

Three Years Later, Pretending Harvey Never Happened

Now that we’re past the third anniversary of Hurricane Harvey, some developers would like to pretend the storm never happened. Where money can be made, they have memory loss in abundance and common sense in short supply.

New Townhomes Feet from West Fork in Kings Harbor

I previously blogged about new townhomes under construction in Kingwood’s Kings Harbor. Technically, these townhomes may meet most of the requirements of the City of Houston. They have garages and the equivalent of indoor/outdoor living spaces on the ground floor (which are already walled off from garages). The main “living floor” starts about ten to twelve feet up. (See below and Chapter 19 of the City’s Floodplain Ordinances.)

These new townhomes are just feet from the floodway of the West Fork in the background.

Detention Pond Just Feet From the Water

The barren area to the left of the six-unit complex is a detention pond. Only problem: it’s virtually in the floodway. See additional shots below.
A retaining wall separating this property from water cuts in from the left edge of the picture (see shot below also). Flood experts advise against putting detention ponds so close to a river because they fill up quickly in a flood and fail to hold water back, which is their purpose.
The retaining wall mentioned above.

Currently In 1% Annual-Chance Floodplain

The new construction currently lies within the 1% annual chance (100-year) floodplain. When the new flood maps are updated based on Atlas-14, both the floodway and floodplains will likely expand.

Source: FEMA National Flood Hazard Layer Viewer. Aqua color equals 1% Annual Chance Flood Zone (aka 100-year flood plain). Red circle indicates location of new townhomes.

Are 164 More Units On the Way?

The developer, Wanbridge, claims to have purchased the grassy area in the middle of the photo below as a “land bank” for 164 condos. A previous iteration of the developer’s website claimed it would be a multistory complex.

But why does Wanbridge claim to own that 2.2 acre grassy patch, when Harris County Appraisal District says it belongs to Rocky Lai’s Sunrise Kings Harbor LP? And if Wanbridge had a contract to purchase the land, why did Lai recently put it up for sale and post a sign on the property?

Other Problems

  • How will you evacuate people in the middle of the night if the next flood comes without warning like Harvey did?
  • How do you reconcile building just feet from a river that flooded homes and businesses more than two miles inland?
  • Why is there no building permit displayed at this site?
  • Why is there no stormwater pollution prevention permit displayed at this site?
  • Why are there no silt fences around the dirt work?

Posted by Bob Rehak on 9/1/2020

1099 Days since Hurricane Harvey

The thoughts expressed in this post represent opinions on matters of public concern and safety. They are protected by the First Amendment of the US Constitution and the Anti-SLAPP Statute of the Great State of Texas.