Home Buyouts in Flood Zones to Begin Soon

Buyouts of properties in flood prone areas are expected to begin within a matter of weeks, beginning in Middlesex County and working south into the summer months as residents and their respective town officials make the difficult decision to abandon entire neighborhoods for good.

Though buyout specifics have been limited, Bob Martin, commissioner of New Jersey’s Department of Environmental Protection, said between eight and 10 towns along the coast have inquired about participating in the State’s Blue Acres program, which purchases severe repetitive-loss homes in flood areas and converts the land into open space.

Martin said he wanted to be cautious about naming the municipalities that have inquired about the property buyouts as many have yet to be finalized, but a few towns have been named in the past, including neighborhoods in Sayreville and South River in Middlesex County and Union Beach in Monmouth County, all of which suffered significant property losses during Hurricane Sandy.    

According to a release from the Governor's office, the first closings expected by Labor Day and all of the closings done within one year. The initial targets will include about 350 homes in Sayreville and South River in Middlesex County that were impacted by flooding from the Raritan and South Rivers, and Delaware Bay homes in Lawrence Township in Cumberland County 

Those towns will undoubtedly be joined by others, and soon.

“There are hundreds, even thousands of people that have come to us asking us to buy their homes,” Martin said during an April conference call.

In all, $300 million in Blue Acres funding has been announced. Martin said the program is being floated as widely as possible as a solution for towns with neighborhoods that flood regularly, and that as many as 1,000 Sandy-damaged properties could be purchased with the federal funding.

Gov. Chris Christie has touted Blue Acres as a solution but has promised that it won’t be his administration that forces the issue. As of right now, participation in the Blue Acres program is entirely voluntary and requires an agreement between both the residents of impacted neighborhoods and the town officials.

The program won’t be used to purchase a home here and there in flood prone-neighborhoods, however. In order for the program to be effective, entire neighborhoods will be bought out, their properties turned into floodplains that will not only prevent future property loss, but aid in flood mitigation. 

Christie said he wanted to dispel rumors that have persisted since Sandy caused massive property damage in coastal communities along the shore. The state will not be forcing anyone out of their homes. The decision to abandon a neighborhood and turn it over to Blue Acres will fall to residents and officials at the municipal level, Christie said.

The decision to submit to a buyout could be difficult. Towns would have to accept the loss of ratables as Blue Acres property is restricted from any future development. Residents, of course, would face losing their homes.

Blue Acres is a cornerstone of New Jersey’s recovery following Sandy, Martin said, and applications for buyouts are currently being accepted. Don’t expect much in the way of delays, he said, as buyouts should happen relatively soon.