Every time there is a flood, the federal government springs into action, whether it is by helping the affected areas recover or subsidizing flood insurance. But a new report has discovered another measure the government takes: buy out flood-prone properties.
Over the last 30 years, the federal government has spent $5 billion to purchase homes that are regularly threatened by floods.
From CNBC:
Over the past three decades, federal and local governments have poured more than $5 billion into buying tens of thousands of vulnerable properties across the country, according to an Associated Press analysis of data from the Federal Emergency Management Agency and the Department of Housing and Urban Development.
The AP analysis shows those buyouts have been getting more expensive, with many of the costliest coming in the last decade after strong storms pounded heavily populated coastal states such as Texas, New York and New Jersey. This year’s record flooding in the Midwest could add even more buyouts to the queue.
The purchases are happening as the climate changes. Along rivers and sea coasts, some homes that were once considered at little risk are now endangered due to water that is climbing higher and surging farther inland than historic patterns predicted.
Regardless of the risks, the buyouts are voluntary. Homeowners can renew taxpayer-subsidized flood insurance policies indefinitely.
Well, Washington would be better off if it abolished National Flood Insurance instead of buying these homes.
If homeowners had to buy their own property insurance, the insurance provider would charge astronomical premiums, suggesting that these are risky areas to live. This sends the signal that the homeowners should leave.
John Stossel did a special report on this topic a few years ago:
Leave a Comment