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A Review of Funding Mechanisms for US Floodplain Buyouts

Author

Listed:
  • Kelsey Peterson

    (Institute for the Environment, University of North Carolina at Chapel Hill, Campus Box #3140, Chapel Hill, NC 27599, USA)

  • Emily Apadula

    (Institute for the Environment, University of North Carolina at Chapel Hill, Campus Box #3140, Chapel Hill, NC 27599, USA)

  • David Salvesen

    (Institute for the Environment, University of North Carolina at Chapel Hill, Campus Box #3140, Chapel Hill, NC 27599, USA)

  • Miyuki Hino

    (Department of City and Regional Planning, University of North Carolina at Chapel Hill, Campus Box #3140, Chapel Hill, NC 27599, USA)

  • Rebecca Kihslinger

    (The Environmental Law Institute, 1730 M St. NW #700, Washington, DC 20036, USA)

  • Todd K. BenDor

    (Institute for the Environment, University of North Carolina at Chapel Hill, Campus Box #3140, Chapel Hill, NC 27599, USA
    Department of City and Regional Planning, University of North Carolina at Chapel Hill, Campus Box #3140, Chapel Hill, NC 27599, USA)

Abstract

Increases in extreme weather events have caused extensive flooding across the United States. In response, federal, state, and local governments have broadened their flood mitigation strategies to include acquisition and demolition of flood-damaged homes (“buyouts”). Little work has documented or analyzed the range of strategies for funding buyouts. Federal programs provide the bulk of funding, but these programs are often slow. Also, state and local governments struggle to meet cost-match requirements. We present and analyze a nationwide census of buyout funding programs (n = 34), which draw on five primary funding mechanisms. We find that state and local governments are using a range of traditional and innovative financial mechanisms, including municipal/green bonds, revolving loan funds, local option sales taxes, and stormwater utility fees, as viable tools for funding buyouts. These tools may promote more autonomy from federal government mitigation programs, and ultimately, faster buyout processes.

Suggested Citation

  • Kelsey Peterson & Emily Apadula & David Salvesen & Miyuki Hino & Rebecca Kihslinger & Todd K. BenDor, 2020. "A Review of Funding Mechanisms for US Floodplain Buyouts," Sustainability, MDPI, vol. 12(23), pages 1-20, December.
    • Handle: RePEc:gam:jsusta:v:12:y:2020:i:23:p:10112-:d:456010
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    References listed on IDEAS

    as
    1. Andreas Karpf & Antoine Mandel, 2018. "The changing value of the ‘green’ label on the US municipal bond market," Nature Climate Change, Nature, vol. 8(2), pages 161-165, February.
    2. Jerry Zhirong Zhao & Camila Fonseca & Raihana Zeerak, 2019. "Stormwater Utility Fees and Credits: A Funding Strategy for Sustainability," Sustainability, MDPI, vol. 11(7), pages 1-15, March.
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    1. Curran-Groome, William & Hino, Miyuki & BenDor, Todd K. & Salvesen, David, 2022. "Complexities and costs of floodplain buyout implementation," Land Use Policy, Elsevier, vol. 118(C).
    2. Simone Rusci & Diego Altafini & Valerio Di Pinto, 2021. "Urban Demolition: Application of Blight Elimination Programs and Flood Buyout Programs to the Italian Case," Sustainability, MDPI, vol. 13(16), pages 1-21, August.
    3. Linda Shi & Anjali Fisher & Rebecca M. Brenner & Amelia Greiner-Safi & Christine Shepard & Jamie Vanucchi, 2022. "Equitable buyouts? Learning from state, county, and local floodplain management programs," Climatic Change, Springer, vol. 174(3), pages 1-20, October.
    4. Elyse Zavar & Sherri Brokopp Binder & Alex Greer & Amber Breaux, 2023. "Using the past to understand future property acquisitions: an examination of historic voluntary and mandatory household relocations," Natural Hazards: Journal of the International Society for the Prevention and Mitigation of Natural Hazards, Springer;International Society for the Prevention and Mitigation of Natural Hazards, vol. 116(2), pages 1973-1993, March.
    5. William Curran-Groome & Hallee Haygood & Miyuki Hino & Todd K. BenDor & David Salvesen, 2021. "Assessing the full costs of floodplain buyouts," Climatic Change, Springer, vol. 168(1), pages 1-23, September.
    6. Landry, Craig & Syphers, Steven & Keeler, Andrew, 2022. "Preferences for Post-storm Coastal Adaptation," 2022 Annual Meeting, July 31-August 2, Anaheim, California 322385, Agricultural and Applied Economics Association.

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