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The Vera Cruz Town Hall was a packed room Wednesday evening as 19 local residents and other interested parties met to discuss the acquisition process for properties affected by the 2003 flood.
Kent Park chaired the meeting, which was attended by Manuela Johnson of the Indiana Department of Homeland Security; Sherry Johnson, the Wells County Emergency Management director; Rod Renkenberger of the Maumee River Basin Commission; and Doug Sundling, a Bluffton contractor.
Park noted that he had begun working on grant applications following the flood about four and a half years ago, and expressed his relief that finally, on Sept. 8, the grant was approved. The meeting had been called to update residents on the process that must now be followed, and to answer any questions.
Park said that the first step that must be done is the appraisal of properties affected by the flood.
He said two Wells County appraisers will begin calling affected homeowners within the next week or two to arrange a time to visit their home and make a fair market value appraisal, to determine the value of the home the day prior to the flood. Damage caused by the flood will not be taken into account, as the purpose of this appraisal is to determine the value of the property prior to the damage.
Homeowners will need to be at home at the time of the appraiser’s visit, to help answer any questions that may arise in determining the value of the home and the fixtures.
Once the appraisals have been completed, the assessments will be forwarded to Wells County Attorney Trent Patterson, who will draw up an offer of purchase on behalf of the town of Vera Cruz. The amount offered will be the average of the two appraisals.
If the homeowner is not happy with the amount offered, he or she will have the right to have additional appraisals done. The home-owner, however, must pay for these additional appraisals.
Park noted that for the three affected homeowners who received insurance payouts, there will be additional factors that need to be factored into the offer of purchase, and these will be discussed individually with the homeowners.
Once the offer has been made, the homeowner basically has three options:
— Accept immediately,
— Think about the decision for up to 14 days
— Decline the offer.
Assuming the offer is accepted, details relating to existing mortgages and liens against the property will need to be worked out with each individual homeowner. Park hopes that a closing date of within 30 to 45 days of the acceptance of the offer can be agreed, however this may vary according to whether the homeowner needs to find alternative accommodation.
Park noted that some of the affected homes are vacant, with the owners already living elsewhere, but some are still occupied. He advised that a reasonable time will be allowed, but stressed that he expected this to be a matter of weeks or a couple of months, rather than six months or more.
“My goal is to have this all settled by Christmas,” Park said.
Park also noted that he wants the homes to be dealt with quickly to minimize the number of visits, and the resulting costs to the town, of the demolition contractors. He does not want to be bringing them in to demolish one home at a time, and hopes that if the acquisitions can be completed reasonably quickly, he will be able to arrange multiple demolitions per visit for the contractors.
Park also advised that homeowners will need to maintain their insurance on their property until the date the sale process is fully completed, to ensure they are protected in case someone injures themselves on the property.
Park hopes that with all going well, the process may even be able to be completed as early as the end of November.
It was noted that property taxes would be taken out at the closing of the sale. If Wells County has not yet issued its tax bills, a provisional amount will be assessed. Given that the closing date will probably be around Oct. 30, or maybe later, and tax bills must be sent out before this time, the accurate figures should be available at that time.
In the event that a home has a mortgage of more than the value of the home, Manuela Johnson advised that her office will be able to negotiate a release with the bank. She note that her staff are very adept at persuading the bank to settle for the actual amount and to write off any surplus should they show any initial reluctance, and was confident that arrangements could be made.
She also noted that in these cases, her office would ensure that no negative noting was made on the homeowners’ credit record by the mortgage company as a result of any sales under this grant process, should this situation exist.
Once the process is complete, sewer and wells will be cut off and sealed according to IDEM regulations. Park will arrange demolition of properties that have been sold, and the town board will then have the responsibility of deciding what to do with the vacated land.
Park noted that no resident can be forced to accept the offer, but pointed out that this will probably be the last chance for homeowners to leave their property with sufficient funds to purchase a new home.
He noted that the current value of homes in Vera Cruz is very low due to the high flood risk. He also noted that under this offer, the grant will take care of closing fees, realtors fees and other expenses normally associated with a sale, so accepting this offer will probably give homeowners about $5,000 they would not have in a normal sale.
Johnson advised that while the town of Vera Cruz could technically reapply for another grant at a later date, the state would probably not look on it favorably, as one offer had already been made and turned down.
“What guarantee do we have that you won’t back out of the deal again at the end of the process?” she asked.
It was also noted that once the new flood maps are officially published, insurance premiums for homes in the affected area will be very high. Staying put will therefore be a costly decision for any homeowner.
Sundling advised that new data relating to flood maps had been collected and also rules have been changed, giving government officials more powers with regard to declaring properties unfit for habitation in the case of severe or repetitive flood damage.
Should another flood occur, a resident who has not accepted this buyout offer may be forced out of his or her home, and not only be unable to sell the home, but find themselves responsible for demolition costs.
Sundling stressed that Vera Cruz has been presented with an ideal opportunity to establish a flood plain, and the affected homeowners would be well advised to take advantage of the opportunity.
Johnson also noted that with development that has occurred all over Indiana, there is more water than ever being pumped into rivers, and therefore the risk of another flood in Vera Cruz is even higher now than before.
She advised any homeowners considering turning down the offer to consider this factor in their decision.
Park stressed that if any homeowners have questions regarding the proposals, or the process, they should contact him. He also encouraged them to talk with local realtors, should they think they are better served to hold on to their home for a later sale.
He was confident that they would not receive an optimistic response.
Park also noted that at this time, a buyer’s market exists, so if homeowners are going to get a good deal on a new home, this is a good time to try.
“This offer will not make you rich,” he advised, “but it will help you get out and move into another home.”
frank@news-banner.com
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