Needing More Work, Minot’s Flooded Home Buyout Policy on Hold

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A proposed change to Minot, N.D.’s home buyout policy following the devastating 2011 Souris River flood is on hold for more refinement.

The City Council is considering providing extra compensation to homeowners who have houses at an appraised value below the amount needed to pay off the mortgage because of investments made to restore their damaged homes, the Minot Daily News reported.

In such cases, the city would be able to authorize an administrative settlement, which would count against any additional payment typically given to the homeowner to help acquire more expensive, equivalent replacement housing. But a federal waiver would still allow the homeowner to receive the replacement housing payment.

Adoption of the policy would aid residents facing buyouts as part of the city’s National Disaster Resilience Program.

The city has identified three areas to purchase and create recreation green space that can be used for storing water in case of another flood.

A resident from one of the affected areas, Patty Bender, said market-value offers from the city are unfair, because residents did home restorations at inflated prices during a time when Minot didn’t plan to buy them out.

“How can you justify doing that to us?” she said.

Mayor Chuck Barney said the city is looking at ways to address resident concerns, and that the city’s determining of areas needing buyouts have been ongoing since not all areas could be identified right after the flood.