The Steps of a Buyout

Homeowners do not apply to FEMA for a buyout. Buyouts are not part of the disaster application process and are not part of disaster assistance.

  1. An application for assistance is prepared by local officials with input from the community and those homeowners with destroyed or severely damaged properties. The local officials will have been notified by the State of what the State's priorities are or other special restrictions decided upon by State officials.
  2. The State receives and reviews the application and submits those deemed appropriate to FEMA for approval. FEMA reviews the applications to ensure they follow the rules, are environmentally sound, and are a cost-effective use of funds.
  3. Once FEMA gives its approval, the State begins the acquisition process. The communities actually conduct the purchase and title transfer. Then the buildings are removed or destroyed by the community, and the land is cleared.

Since a buyout is not a simple matter and requires a great deal of education and community input- it does not happen overnight. It may take months for a State and the affected communities to submit and agree to buyout proposals. Once a homeowner accepts a buyout offer, though, the average closing takes about 45 days.

Next: Costs the Community Will Pay

Last Modified: Thursday, 07-Dec-2006 10:27:23 EST