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County backs inventory and legal review of FEMA and USDA‑transferred parcels before new leases

Fayette County Commission · January 8, 2026
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Summary

After staff flagged inconsistent lease types and potential lease violations on parcels won via FEMA buyouts and USDA transfers, Fayette County commissioners directed a countywide inventory and legal review to determine which parcels are subject to FEMA vs. USDA restrictions and paused signing new leases until the review is complete.

Commission staff reported inconsistencies in the county’s recordkeeping for properties acquired through FEMA buyouts and USDA/Department of Agriculture transfers. Counsel explained that different restrictions attach depending on the funding source: FEMA transfers carry public recreation‑use restrictions while USDA dispositions may impose other, sometimes more stringent, conservation limits.

Commissioners heard that the county has been issuing FEMA leases for properties that may actually be USDA‑restricted and that some tenants have constructed improvements that could violate lease terms. Staff and counsel recommended compiling a definitive database (tax map/parcels, start/stop dates) separating FEMA parcels from USDA parcels, reviewing existing leases and updating standard lease forms so future agreements match the governing restrictions.

The commission approved a motion to assess ownership and lease status, compile the database and require staff to use the appropriate lease template in future renewals. Where existing leases already bind the county, staff was told to notify tenants that new, more stringent terms may apply upon renewal.