The quest for better buyouts

Mayor Ron Corbett is trying to get better buyouts for owners of flood-damaged properties in Cedar Rapids. Others on the City Council are endorsing the effort.

Cheers to them.

For 19 months, owners of some 1,300 homes heavily damaged in the 2008 flood have been waiting for the buyout process to yield results. Purchases of about 100 homes closest to the river are expected to begin in February.

Meanwhile, many owners have become increasingly stressed as they struggle to manage their property damage costs while paying for living expenses elsewhere.

Our new mayor has led the charge to step up the level of assistance. Last week, he proposed that the city provide “hardship advances” to those who are at high-risk financially and need a buyout soon. The money could come from the local-option sales tax that voters approved in March; 90 percent is supposed to meet flood recovery needs where state and federal programs don't.

We think that's an appropriate use of LOST.

Wednesday, the council approved the plan to administer the buyout program, as required by state and federal officials. It included city assistance, again funded by LOST, if those receiving buyout offers want to get their own appraisal of their property. There also was considerable support for the hardship advance.

However, the buyout rate in the plan was left at 100 percent of pre-flood value., at least for now. A year ago, the City Council concluded that the city-assessed value of those homes at that time was equal to the fair-market value. But recently, reports of other cities in Iowa getting 110 percent or more of assessed value stirred Corbett to see if there's any wiggle room. Wednesday, he told the council that Gen. Ron Dardis, who heads the Rebuild Iowa Office, confirmed that the Cedar Rapids plan could be amended - if the city makes a strong enough case.

Here's what Corbett is thinking: Before the flood, the national economic recession was under way and market prices for housing were dropping. Since then, the market has improved. So, can the city argue that the damaged properties would have been worth more by now if not for the flood?

The city assessor is researching data to see if that argument can be supported.

Corbett also points out that, historically, when the government buys property, it usually pays above appraised value because it's needed for a specific public use. In this case, to clear the way for flood protection improvements.

Even if those strategies fail, property owners now can appeal the city's appraisal and request a new one that might help land a higher “starting point” for the buyout.

The mayor and council are going to bat for victims of our worst-ever disaster. Keep at it. You may just hit a home run or two.