Local Buyout & Acquisition

The Local Buyout and Acquisition Program will provide $275 million to remove homes from harm’s way.

This program will be administered by local units of government (cities and counties) and entities with the power of eminent domain authority. Each council of governments (COG) developed a local a method of distribution (MOD) for the following funds for its cities and counties:

Given the size of the impacted area and how Hurricane Harvey impacted each region differently, local control through a regional approach is vital to long-term recovery. The GLO will provide training, written guidance, and forms to communities allocated funds under the local buyout and acquisition program. The city of Houston and Harris County will develop their own programs through their direct allocation.

1. COG requirements for the development of local MODs

   • Each COG will facilitate a MOD process with support of the GLO;
   • Establish objective criteria for allocation of funds to eligible entities or activities (distribution based on, but not limited to, unmet need);
   • Citizen participation process:
   • Develop a Citizen Participation Plan
   • Conduct a minimum of two (2) public hearings prior to finalizing the MOD
   • One (1) public hearing shall be a “Public Planning Meeting”
   • Ensure a public comment period,
   • Implement a minimum of $1,000,000 in CDGB-DR funds to any local entity receiving funding through the MOD;
   • Ensure a minimum percentage of funds are allocated to most impacted counties and zip codes;
   • Facilitate local prioritization through the MOD;
   • Reallocation of funds from de-obligated funds and/or cost savings from completed projects will be the discretion of the GLO within the region;
   • A plan to meet the 70 percent low- and moderate-income benefit requirement; and
   • Establish any additional parameters for eligibility beyond what is required by HUD or the GLO.
      

2. Program guidelines:

   • Each subrecipient will develop guidelines in accordance with CDBG-DR requirements and regulations to set maximum assistance amounts, target area locations, and additional eligibility requirements.
   • Guidelines must be posted for public comment before use.
      

3. Eligible Activities: 

   • Buyouts;
   • Acquisition;
   • Relocation Assistance with buyout or acquisition activities;
   • Down-payment Assistance with buyout or acquisition activities;
   • Demolition with buyout or acquisition activities;
   • Housing incentives
   • Activities designed to relocate families outside of floodplains;
   • Public service within the 15 percent cap (e.g., housing counseling, legal
     counseling, job training, mental health, and general health services);
   • FEMA Hazard Mitigation Grant Program (HMGP) cost share. Each subrecipient will develop guidelines in accordance with CDBG-DR requirements and regulations to set maximum assistance amounts, target area locations, and additional eligibility requirements.