Vermont establishes voluntary buyout program for flood prone properties

Vermont's Senate Government Operations Committee has taken a significant step towards addressing flood-prone properties by establishing a new voluntary buyout program. This initiative, outlined in a recent meeting, aims to provide municipalities with the ability to apply for funding to purchase flood-prone properties at fair market value. The program mandates that acquired properties be designated as open space, ensuring they cannot be developed in the future. This requirement is crucial for maintaining eligibility for Federal Emergency Management Agency (FEMA) funding, which can cover a portion of the buyout costs.

The committee discussed the existing buyout programs, noting that while there are already two funds in place—the Flood Reside Communities Fund and the Community Mitigation and Disaster Recovery Fund—this new program specifically focuses on voluntary buyouts. The distinction is important as it aims to streamline the process and clarify funding sources for municipalities.

Additionally, the meeting highlighted the need for a municipal grand list stabilization program. This program will reimburse municipalities for property taxes on flood-prone properties that are acquired through the buyout initiative. This financial support is essential for local governments to manage the economic impact of removing these properties from their tax rolls.

Overall, the establishment of the voluntary buyout program and the stabilization initiative reflects Vermont's commitment to enhancing community resilience against flooding. As municipalities prepare to implement these programs, the state aims to provide clearer pathways for funding and support, ultimately benefiting residents in flood-prone areas.