State hazard-mitigation official outlines FEMA HMGP eligibility, timelines and buyout/elevation options for Buncombe County

The City Council received a briefing Jan. 14 from the North Carolina Hazard Mitigation Office on the FEMA Hazard Mitigation Grant Program (HMGP), including who may apply, what projects the program funds, and likely timelines and limits for Buncombe County applications tied to the recent storm.

Steve McGugan, assistant director for hazard mitigation at the North Carolina Division of Emergency Management, told the council HMGP funding is available only after a presidential disaster declaration and is intended to "build back better," supporting acquisition (buyouts), elevation, mitigation reconstruction, planning, and certain infrastructure projects. "The grant is only awarded once you have a presidential declaration," he said.

Eligibility and applicants: McGugan explained the state is the applicant to FEMA; local governments (counties and municipalities) and state agencies can be subapplicants. Private nonprofits with an eligible facility may also apply but generally must do so through a local government sponsor. Homeowners do not apply directly to the state; homeowners apply to their local jurisdiction, which includes them in applications the jurisdiction submits to the state.

Buyout and elevation specifics: For homeowner acquisitions, McGugan said the offer is based on the pre-disaster value — "the value of the home the day before the event" — and cautioned property owners to preserve receipts for any interim repairs or assistance because duplication of benefits (other grants or insurance) can reduce a buyout offer. Acquisition properties must be maintained as open space in perpetuity but can be used for compatible community purposes such as community gardens or leased to neighbors under certain arrangements.

Commercial properties can be eligible for acquisition or elevation in some cases, McGugan said, but mitigation reconstruction for commercial structures is more difficult under FEMA cost limits, and elevating a single building in an attached row of businesses can be impractical unless contiguous property owners participate.

Timeline and scale: McGugan said Buncombe County's first HMGP application will include 22 properties; he reported 159 homeowner applications in Buncombe County at the time of the briefing and a little over 800 properties across declared western North Carolina counties in total. He estimated the state's HMGP funding based on early disaster estimates at about $1.5 billion statewide and noted that FEMA's estimates and available funds can increase in the 6- and 12-month estimates. The state-level application deadline to FEMA is Dec. 29, 2025, though McGugan said he expects to request time extensions as needed for a disaster of this size.

State central program and staffing: To reduce the financial strain on communities that otherwise must expend funds up-front, McGugan described a state central program that places state-selected, prequalified contractors and the state's project-management staff on projects after FEMA awards are made; that model reduces the upfront cash burden on local governments and uses prequalified vendors.

Local questions focused on: (1) whether commercial properties can apply (yes, for acquisition and elevation in some circumstances); (2) how long applications take (McGugan cautioned that acquisition and elevation projects can take many months, with elevation of a single home potentially taking about 60 days of construction once a project is funded); and (3) how the state plans to expand outreach and contractor capacity in light of low bid participation in some prior projects. McGugan encouraged the city and county to help recruit contractors and said the state is working to prequalify more firms.

Why it matters: The HMGP funds can pay for buyouts and elevation that permanently reduce flood risk and can also fund larger infrastructure mitigation projects; council members asked how the city can prepare applications and plan projects to capture available federal money.

What happens next: McGugan asked jurisdictions to move quickly in identifying projects and noted the state will work with the city and county on project development and, if desired, use the state's central program to manage construction with state-overseen contractors. Buncombe County and the city will continue intake of homeowner interest and work with the state on application packaging to FEMA.

Quotation highlights are verbatim from the Jan. 14 briefing.