Important Buyout Information

----- Original Message -----
Sent: Friday, June 20, 2008 3:31 PM
Subject: http://www.fema.gov/government/grant/resources/acqhandchap.shtm fema buyout handbook online
PROPERTY ACQUISITION HANDBOOK FOR LOCAL COMMUNITIESA SUMMARY FOR STATES Page 1 October 1998 HOW THIS HANDBOOK CAME TO BEAcross the nation, more and more flood-inundated communities arechoosing property acquisition as a hazard mitigation option. Besidesbeing a permanent solution to a hazard-related problem, propertyacquisition achieves many other objectives, such as protecting criticalhabitat, providing opportunities for recreation, providing flood storage,or enhancing other natural or cultural resources. Since the devastating floods of 1993, Hazard Mitigation Officers fromflood-inundated States and FEMA Regions have developed guidelines toassist communities through the property acquisition process. Hundredsof acquisition projects have tested the effectiveness of those guidelines.The Property Acquisition Handbook for Local Communities bringstogether into one document the best practices from States that havesuccessfully fostered property acquisition projects. FEMA and its cadreof Region, State, and local subject-matter experts and potential usersdesigned the handbook to: Bring as much nationwide uniformity as possible to the propertyacquisition process, while respecting each Stateís and FEMA Regionísdiversity. Make the process more user-friendly for the communities, regardlessof their size, expertise, and human and technical resources. PROPERTY ACQUISITION HANDBOOK FOR LOCAL COMMUNITIES STATE SUMMARYPage 2 October 1998 Reduce the amount of time between the disaster and the receipt of acheck by the property owner by streamlining the process to thegreatest extent possible. The Handbook’s Mission The handbookís goal is to empower communities with knowledge andbest practices that will enable them to: Determine if property acquisition is the most viable mitigationalternative for them before investing too much time and too manyresources. Plan property acquisition projects so the projects are well directedfrom the beginning. Develop sub-grant applications that have the best possible chance ofbeing approved and funded. Submit applications that are right the first time, precluding the needfor revision cycles that can slow the process. Manage property acquisition projects efficiently. Administer sub-grant funds according to laws and regulations,general accounting principles, and good business practices. Use acquired properties in ways that make sense for the community. Maintain acquired properties as open space. THE CHALLENGEOur biggest challenge was writing guidance that would be meaningfulto thousands of communities, all of which face their own uniquechallenges. Consequently, we have taken care to describe genericprocedures and advise communities to seek specific guidance from theirStates. For the benefit of all communities, but especially for those thathave limited resources, we have provided a Toolkit containing furtherguidance and forms to assist communities throughout the propertyacquisition process. PROPERTY ACQUISITION HANDBOOK FOR LOCAL COMMUNITIESSTATE SUMMARYPage 3 October 1998 CONTENTS OF THE HANDBOOKWe provide each State with hard copies of the Property AcquisitionProcess poster and Property Acquisition Handbook for Local Communitiesto distribute to their communities. A three-ring binder contains: q Property Acquisition Handbook for Local Communities.q Property Acquisition Handbook Toolkit, Part 1 of 2, Tools.q Property Acquisition Handbook Toolkit, Part 2 of 2, Forms.q Poster. The subsections below explain the poster and the binderís contents indetail. POSTERThe wall poster presents a ìroad mapî for communities considering andimplementing property acquisition projects. It depicts the four phases ofthe process, using a distinct color for each, and the major steps of eachphase, using an icon and a short caption for each. The handbook isdivided into sections according to the phases, icons, and captions onthe poster. The icons appearing on the poster also appear in the margins of thehandbook where the steps are fully explained. For example, each phasehas at least one town meeting, which is represented by an icon of abuilding with a banner reading ìtown meeting.î A communityís projectstaff will soon associate that picture with a town meeting and know ìata glanceî when within the process town meetings should be held andwhere within the handbook they can learn how to prepare for andconduct town meetings. The poster also uses ìroad signsî such as ìstopî and ìwaitî to guideproject staff through contingencies. In addition, it provides space forstaff to note important dates, such as the deadline for submitting applicationsto the State. PROPERTY ACQUISITION HANDBOOK FOR LOCAL COMMUNITIESSTATE SUMMARYPage 4 October 1998 The steps identified on the poster and the order in which they arepresented represent generic property acquisition steps and a logicalprogression for completing them. NOTE HEREThe arrows between the icons show the progression or ìflowî of thesteps. Where the arrows separate into two ìpathsî those steps can beperformed concurrently. For example, in Phase I, the arrow leading fromìIdentify Project Teamî divides into two arrows, one leading to ìOutlineProject Strategyî and the other to ìPrioritize Target Properties.î Theplacement of these icons indicates that the local community can accomplishthose steps concurrently. For example, a community can outline itsproject strategy as it prioritizes target properties to acquire, or canassign certain members of the project team to do one, while othermembers do the other. CONVENTIONS USED WITHIN THE HANDBOOKThe handbook uses the following conventions to present information ina user-friendly format. q Shaded text boxes, which are used to present general notes andsupplemental information that warrant emphasis or do not easily fitinto the main body of text. The note above is an example. Shadedtext boxes also present ìGood Ideas,î which are practices successfullyused by communities around the country, and case studies,which are success stories from around the country. NoteWe understand that many of you already have in place proceduralsteps that might vary from the steps depicted on theposter. If a certain step does not apply to your State or ifyour State requires an additional step, simply explain thosedifferences to your communities. PROPERTY ACQUISITION HANDBOOK FOR LOCAL COMMUNITIESSTATE SUMMARYPage 5 October 1998 q Marginal notes, such as references to the Code of Federal Regulationor to other FEMA publications. q Icons, which correspond to the poster and direct the user to theplace within the handbook where a step is explained in detail. PROPERTY ACQUISITION HANDBOOK FOR LOCAL COMMUNITIES MAIN TEXTThe first wire-bound book within the three-ring binder is the main bodyof text. It is the ìhow toî guidance. In addition to a table of contentsand preface, it contains the following six tabbed sections: q To Buy or Not to Buyq Applicationq Implementationq Open Space Managementq Glossary and Acronymsq Index To Buy or Not to BuyThis part of the handbook describes Phase I of the property acquisitionprocess. It provides general information and then guides the communitythrough deciding whether or not property acquisition is an appropriatemitigation alternative. To Buy or Not to Buy is divided into an introduction,two chapters, and an appendix: q Introduction. The Introduction briefly describes and contrasts theHazard Mitigation Grant Program (HMGP) and Flood MitigationAssistance Program, and identifies the contents of Phase I. q Chapter 1 ñ The Basics. Chapter 1 is a tutorial on property acquisitionand the HMGP. It explainsóas far as possible in laypersonístermsóthe federal laws, regulations, and policies that drive the PROPERTY ACQUISITION HANDBOOK FOR LOCAL COMMUNITIESSTATE SUMMARYPage 6 October 1998 property acquisition process. As a result, it builds the communityísknowledge base and lays a foundation for the rest of the guidance.Chapter 1 also discusses the importance of managing the propertyownersí expectations, and building and maintaining lines of communicationwith the property owners. This chapter is divided into fivemajor subsections: n Criteria for Projects Funded under HMGPn Money Mattersn Types of Property Acquisitionn Methods of Property Acquisitionn Property Acquisition and the Property Owner q Chapter 2 ñ Getting Started. Chapter 2 is the beginning of theproperty acquisition process itself. At this point, the contents of boththe poster and handbook are parallel. This chapter guides communitiesthrough the decision-making steps and is divided into 10 subsections: n Evaluate Your Mitigation Optionsn Determine Your Stateís Priorities and Proceduresn Identify Project Teamn Outline Project Strategyn Prioritize Target Propertiesn Conduct Town Meetingn Community Wants Buyout?n Examine Ability to Complete Projectn Examine Projectís Impact on Communityn Community has Resources and Consensus to Proceed? PROPERTY ACQUISITION HANDBOOK FOR LOCAL COMMUNITIESóSTATE SUMMARYPage 7 October 1998 q Appendix. This Appendix is a brief explanation of federal regulationsaddressing floodplain management and wetland protection, and whatthose regulations mean to communities pursuing property acquisition. It is divided into two major subsections: n 44 CFR Parts 9 & 10n What do 44 CFR Parts 9 & 10 Mean to My Community?n Application Phase II, guides the community through completing and submitting aproperty acquisition application that has the best possible chance ofbeing approved by the State and FEMA. This part is divided into an introduction and three chapters as follows: q Introduction. The Introduction describes the contents of Phase II.q Chapter 1 ñ First Things First. The first chapter guides communitiesthrough preliminary application-related tasks per the major subsectionsbelow. These tasks alert property owners and the State to acommunityís intention to submit an application and begin collectingthe information required on the application. n Submit Notice of Pre-Applicationn Conduct Town Meetingn Start Project Planning q Chapter 2 ñ Ready, Set, Apply. Chapter 2 leads communitiesthrough completing and submitting a property acquisition applicationand is divided into the two major subsections below. This chapterexplains the detailed information required on an application, andsuggests how to compile and present that information. n Complete Project Applicationn Submit Application to State PROPERTY ACQUISITION HANDBOOK FOR LOCAL COMMUNITIESóSTATE SUMMARYPage 8 October 1998 NOTE HERE q Chapter 3 ñ While You Wait. For communities that are confident offunding, Chapter 3 describes what can be done to prepare for thereceipt of grant funds. The chapter leads them though some activitiesto prepare for receipt of those funds, enabling them to quickly gettheir project started once funds are received. Individual communitiescan decide how much preparation they want to do before theimplementation phase, and how much they want to delay untilreceipt of funds. This chapter is divided into two subsections, withemphasis on the second. n Follow Upn Prepare to Receive a Sub-Grantn Implementation This part of the handbook explains Phase III of the property acquisitionprocess. It guides communities through implementing property acquisitionshould their applications be approved and funded. It leads themthrough actually acquiring properties, and managing their sub-grantfunds and files. This part comprises an introduction and five chapters asfollows: q Introduction. The Introduction identifies the contents of Phase III.q Chapter 1 ñ Before You Do Anything Else. Chapter 3 of Phase IItransitions into Chapter 1 of Phase III, and assumes the communityísapplication is approved and funded. This chapter instructs communitiesto complete any preparation activities not yet completed, and to NoteThis part uses a generic application to illustrate the minimuminformation and level of detail required by FEMA. We recognizethat individual States might have their own forms andadditional requirements, and caution communities to use theirStateís forms if they exist. PROPERTY ACQUISITION HANDBOOK FOR LOCAL COMMUNITIESóSTATE SUMMARYPage 9 October 1998 familiarize themselves with their sub-grant and related documents. Itis divided into three subsections: n Complete Activities from Phase II, Chapter 3n Carefully Review Your Sub-grant Agreementn Gather copies of Applicable Regulations and Procedures q Chapter 2 ñ Set Up Your Sub-grant Administration System. Thischapter is a tutorial on sub-grant administration. It also helps communitiesset up a system for managing their sub-grant funds, records,and files. Chapter 2 is divided into three subsections: n Set Up Your Financial Record-Keeping Systemn Set Up Your Property Acquisition Project Filing Systemn Budget Your Administrative Costs q Chapter 3 ñ Finish What You Started. Chapter 3 helps communitiesperform the tasks that earlier chapters have helped them prepare. Itis divided into the following major subsections: n Implement Policies & Proceduresn Submit Press Release & Conduct Town Meetingn Procure Necessary Services q Chapter 4 ñ Acquire Those Properties! Chapter 4 ìwalksî communitiesthrough the interactions, real estate transactions, and inspectionsrequired for acquiring property. The major subsections, listedbelow, comprise a ìto do listî for communities. n Meet with Property Ownern Conduct Title Search & Appraisaln Determine Duplication of Benefitsn Make Offer to Property Ownern Request Funds from State PROPERTY ACQUISITION HANDBOOK FOR LOCAL COMMUNITIESóSTATE SUMMARYPage 10 October 1998 n Conduct Closingn Clear & Inspect Land q Chapter 5 ñ Conduct Sub-grant Closeout. This short chapter explainshow to officially ìclose the booksî once a community hascompleted its property acquisition project. n Open Space Management This part, Phase IV of the process, summarizes some of the ìbestpracticesî used by communities throughout the country that haveimplemented property acquisition projects and converted acquiredproperty into open space as required by law. It comprises an introductionand three chapters as follows: q Introduction. The Introduction reiterates the federal law requiring allproperty acquired with HMGP funds to be forever maintained asopen space and identifies the contents of the phase. q Chapter 1 ñ Open Space Use Questions & Answers. Chapter 1 is abasic discussion of open space and its contribution to a community.The chapterís major subsections answers the following three questions. n How May We Use Our Open Space?n What is Prohibited on Open Space?n How Can Open Space Benefit My Community? q Chapter 2 ñ Planning. Chapter 2 guides communities through basicopen space planning activities. It is divided into these subsections: n Identify Open Space Workgroupn Involve Communityn Prepare Open Space Concept Plan PROPERTY ACQUISITION HANDBOOK FOR LOCAL COMMUNITIESóSTATE SUMMARYPage 11 October 1998 q Chapter 3 ñ Implementation & Long-term Management. This chapterhelps communities turn their open space plans into reality andmaintain their open spaces for the long term. It is divided into thesefour major subsections: n Obtain Fundingn Obtain Technical Assistance Resourcesn Implement Your Open Space Plann Manage & Maintain Open Space Propertyn Glossary and Acronyms The Glossary and List of Acronyms contains the meanings of words,terms, and acronyms used in the handbook, as well as other commonwords, terms, and acronyms that community project staff might hear orsee as they interact with others involved in disaster recovery and hazardmitigation. n Index The index enables community project staff to quickly find informationon a specific subject (e.g., duplication of benefits) by identifying whererelated information is within the handbook and toolkit. PROPERTY ACQUISITION TOOLKIT,PART 1 OF 2, TOOLS The two-part Toolkit provides tools to help communities maneuverthrough the property acquisition process and complete activities. Thefirst part of the Toolkit contains tools such as checklists, town meetingbriefing tips, sample letters, etc. Tools provide information succinctlyand simply, illustrate a point, or ease the communityís workload. Alltools are numbered sequentially according to the phase during whichthey are first mentioned (e.g., Tool I-1, Tool II-1, etc.) and are referencedin the margin of the handbookís main text. PROPERTY ACQUISITION HANDBOOK FOR LOCAL COMMUNITIESóSTATE SUMMARYPage 12 October 1998 PROPERTY ACQUISITION TOOLKIT,PART 2 OF 2, FORMS The unbound reproducible forms found behind the wire-bound books inthe binder comprise the second part of the Toolkit. These forms aretemplates communities may use ìas isî or customize to State andcommunity specifications. Like the Tools, they also are numberedsequentially (Form I-1, Form II-1, etc.) and are referenced in the margin. Forms are provided on disk as well as hard copy. PROPERTY ACQUISITION HANDBOOK FOR LOCAL COMMUNITIESóSTATE SUMMARYPage 13 October 1998 DISTRIBUTING & USING THE HANDBOOK You may distribute the handbook right away to familiarize communitieswith property acquisition before the next disaster strikes; or, after adisaster as part of the recovery effort. We provided a tab labeled ìStateî at the back of the binder to enableyou to insert State-specific policies, procedures, and forms beforedistributing the handbook to your communities. The handbook cautionscommunities to refer to and use materials provided by their States. Inseveral instances, it also directs communities to contact their StateHazard Mitigation Officers if they have questions or require furtherinformation. The handbook is a flexible tool, and we encourage you to use it in theway that makes sense for you and your communities. If you have anyquestions, please call your FEMA regional office or FEMAís HazardMitigation Directorate in Washington, DC.




Table of Contents
i October 1998
TABLE OF CONTENTS
Preface ................................................. v
PROPERTY ACQUISITION AT WORK ...................................................... vi
USING THIS HANDBOOK ..................................................................... viii
PHASE I ó To Buy or Not to Buy
INTRODUCTION ..........................................I-1
HAZARD MITIGATION GRANT PROGRAM ............................................ I-1
FLOOD MITIGATION ASSISTANCE PROGRAM .....................................I-2
CONTENTS OF THIS PHASE ................................................................ I-3
CHAPTER 1 ó THE BASICS ..............................I-4
CRITERIA FOR PROJECTS FUNDED UNDER HMGP ............................... I-4
MONEY MATTERS ..............................................................................I-8
TYPES OF PROPERTY ACQUISITION .................................................. I-11
METHODS OF PROPERTY ACQUISITION............................................ I-12
PROPERTY ACQUISITION AND THE PROPERTY OWNER ...................... I-13
CHAPTER 2 ó GETTING STARTED ...................... I-16
EVALUATE YOUR MITIGATION OPTIONS ......................................... I-16
DETERMINE YOUR STATEíS PRIORITIES AND PROCEDURES ............... I-17
IDENTIFY PROJECT TEAM................................................................ I-17
OUTLINE PROJECT STRATEGY......................................................... I-20
PRIORITIZE TARGET PROPERTIES .................................................... I-22
CONDUCT TOWN MEETING ............................................................. I-24
COMMUNITY WANTS BUYOUT? ...................................................... I-26
EXAMINE ABILITY TO COMPLETE PROJECT...................................... I-27
EXAMINE PROJECTíS IMPACT ON COMMUNITY ................................ I-28
COMMUNITY HAS RESOURCES AND CONSENSUS TO PROCEED? ........ I-30
APPENDIX ............................................. I-31
44 CFR PARTS 9 & 10 ................................................................... I-31
WHAT DO 44 CFR PARTS 9 & 10 MEAN TO MY COMMUNITY? .... I-32
Table of Contents
ii October 1998
PHASE II ó Application
INTRODUCTION ........................................ II-1
CONTENTS OF THIS PHASE .............................................................. II-1
CHAPTER 1 ó FIRST THINGS FIRST ................... II-4
SUBMIT NOTICE OF PRE-APPLICATION............................................II-4
CONDUCT TOWN MEETING ..............................................................II-5
START PROJECT PLANNING ............................................................ II-10
CHAPTER 2 ó READY, SET, APPLY! ................... II-14
COMPLETE PROJECT APPLICATION .................................................. II-14
SUBMIT APPLICATION TO STATE.................................................. II-22
CHAPTER 3 ó WHILE YOU WAIT .................... II-24
FOLLOW UP ................................................................................... II-24
PREPARE TO RECEIVE A SUB-GRANT .............................................. II-24
PHASE III ó Implementation
INTRODUCTION ....................................... III-1
CONTENTS OF THIS PHASE ............................................................ III-1
CHAPTER 1 ó BEFORE YOU DO ANYTHING ELSE . . . III-4
COMPLETE ACTIVITIES FROM PHASE II, CHAPTER 3 .................... III-4
CAREFULLY REVIEW YOUR SUB-GRANT AGREEMENT...................... III-4
GATHER COPIES OF APPLICABLE REGULATIONS AND PROCEDURES.. III-5
CHAPTER 2 ó SET UP YOUR SUB-GRANT
ADMINISTRATION SYSTEM ......................... III-6
SET UP YOUR FINANCIAL RECORD-KEEPING SYSTEM ................... III-6
SET UP YOUR PROPERTY ACQUISITION
PROJECT FILING SYSTEM .................................................... III-11
BUDGET YOUR ADMINISTRATIVE COSTS ...................................... III-16
CHAPTER 3 ó FINISH WHAT YOU STARTED .........III-19
IMPLEMENT POLICIES & PROCEDURES .......................................... III-19
SUBMIT PRESS RELEASE & CONDUCT TOWN MEETING ................ III-19
PROCURE NECESSARY SERVICES .................................................. III-23
Table of Contents
iii October 1998
CHAPTER 4 ó ACQUIRE THOSE PROPERTIES! ..........III-26
MEET WITH PROPERTY OWNER ................................................... III-26
CONDUCT TITLE SEARCH & APPRAISAL ....................................... III-28
DETERMINE DUPLICATION OF BENEFITS..................................... III-28
MAKE OFFER TO PROPERTY OWNER ............................................ III-30
PROPERTY OWNER ACCEPTS OFFER ..............................................III-31
REQUEST FUNDS FROM STATE ................................................... III-33
CONDUCT CLOSING ..................................................................... III-33
CLEAR AND INSPECT LAND .......................................................... III-34
CHAPTER 5 ó CONDUCT SUB-GRANT CLOSEOUT .......III-35
PHASE IV ó Open Space Management
INTRODUCTION ........................................ IV-1
CONTENTS OF THIS PHASE .............................................................. IV-1
CHAPTER 1 ó OPEN SPACE USE
QUESTIONS & ANSWERS............................ IV-3
HOW MAY WE USE OUR OPEN SPACE? ......................................... IV-3
WHAT IS PROHIBITED ON OPEN SPACE? ........................................ IV-4
HOW CAN OPEN SPACE BENEFIT MY COMMUNITY? ....................... IV-4
CHAPTER 2 ó PLANNING .............................. IV-8
IDENTIFY OPEN SPACE WORKGROUP .............................................. IV-8
INVOLVE COMMUNITY.................................................................... IV-11
PREPARE OPEN SPACE CONCEPT PLAN ............................................ IV-13
CHAPTER 3 ó IMPLEMENTATION & LONG-TERM
MANAGEMENT .....................................IV-17
OBTAIN FUNDING ........................................................................ IV-17
OBTAIN TECHNICAL ASSISTANCE RESOURCES ............................. IV-18
IMPLEMENT YOUR OPEN SPACE PLAN............................................ IV-18
MANAGE & MAINTAIN OPEN SPACE PROPERTY ............................. IV-19
Glossary ............................................ G-1
Table of Contents
iv October 1998
List of Acronyms .................................. A-1
Index ...........................................Index-1