Application deadlines loom to seek funds for Cedar Rapids buyouts & renovations

Time is running out for owners of flood-damaged properties to apply for a city buyout or to renovate a flood-damaged residence using public funds.

Now, almost three years since the June 2008 flood, the City Council is expected on Tuesday to set a deadline of June 30 for people to apply to have their property bought out using existing funds from the federal government or from the city's local-option sales tax revenue. A similar deadline is expected to be set for home renovation programs, though the deadline will by May 31 to apply for renovations using federal dollars through the state's Jumpstart program.

The proposed deadlines, in part, will give the council a clearer picture of how much of the revenue from the city's existing local-option sales tax - which is expected to bring in about $80 million over 63 months for flood-related matters - might be left to use for the other purpose spelled out in ballot language approved by voters in March 2009. The language calls for sales-tax revenue to be used for the acquisition and rehabilitation of flood-damaged housing and also as money to match federal dollars coming to the city for flood recovery and flood protection.

Currently, the council has obligated $68.7 million of the $80 million for flood-related matters, though the council now expects it will spend less on the current obligations than it had anticipated.

According to reports to the council from city staff, to date:

Owners of 1,353 property parcels have registered for a buyout, with 850 buyouts complete as of April 22, using federal Community Development Block Grant funds.

Owners of another 94 parcels in the 100-year flood plain have been bought out using Federal Emergency Management Agency funds with another two expected to be. Owners of 21 other eligible parcels have opted out of the program.

Owners of 734 properties received funds for housing rehabilitation.

238 applicants received down payment assistance on a replacement residence as well as interim mortgage assistance on their flooded property awaiting buyout. Another 108 received down payment assistance only and another 137 interim mortgage assistance only.

Owners of 476 rental units at 215 sites have obtained federal funds for housing renovation.

Of the more than $30 million spent to date from local-option sales tax revenue, two-thirds of the spending has gone directly to flood victims to replace personal possessions lost in the flood. Some 1,900 owners have received grants of up to $10,000 and some 700 renters have received grants of up to $4,000.

Another $5 million in sales-tax revenue has been used to renovate 300 rental units to date.