City to explore grant to buy homes on oft-flooded east side

Dec. 06--FREEPORT -- An overflow crowd gathered at St. Paul Missionary Baptist Church on Wednesday to learn about a grant that could help the city of Freeport buy properties in areas prone to flooding.

Next week, the city will apply for the grant from the Illinois branch of the Federal Emergency Management Agency. If the grant is awarded, the city would be eligible for up to $4 million to cover the costs associated with the purchase of properties, the current owners' moving expenses and the demolition of the structures.

"We're trying to get people information about the pre-disaster flood mitigation grant that we're applying for so people can make an informed decision as we go forward," City Manager Lowell Crow said.

About 200 homes, 32 businesses and 30 vacant lots on Freeport's east side are within the Pecatonica River floodway and would be eligible for the grant funding. There is one property in the Yellow Creek floodway that also would be eligible. The grant can be applied to churches and public housing facilities, but not to schools.

The grant would allow property owners with flood insurance to receive the assessed value of the property, plus five times the cost of flood insurance. For those without flood insurance, the city would be able to offer the owner the assessed value of the home and up to an additional $31,000. Abandoned and condemned properties, as well as vacant lots, would be eligible for the assessed value of the property.

Property value assessments would be conducted by an assessor from FEMA. A property's value would be assessed by looking at similar homes that are outside of the floodway, Crow said.

East side residents expressed a number of concerns during the meeting, including the inability of elderly residents to qualify for a mortgage to buy a new home and whether the city has plans to help sellers find a new place to live.

"First of all, you can't get a loan at 65," said Henry Shipp, 71, who has lived in Freeport for 53 years. "You can't go to a bank and get a loan."

Residents also questioned what would happen to those who choose to remain on the east side and whether the grant money would be used appropriately.

"Our concern has always been that the grant dollars have never come to this side of town after they've come into town," said Windy Pearson.

Crow said the errors of the past are part of the reason why the city's voters chose to transition to the city manager form of government. He assured residents he is trying to make a difference.

"It took the politics out of it with a professional here," Crow said. "This is the second full meeting I've been (to) over here and I've met with the community leaders over here. I actually invited them, for the first time ever, to go with me to talk with the Army Corps of Engineers."

Once the city and an owner close on a sale, the city is mandated to demolish the property within 90 days. The property would then remain a green space forever, unless otherwise designated by FEMA. Homeowners would have the option to negotiate the relocation of the home.

Before the meeting, 11 homeowners and three business owners signed up to signify their interest in selling their properties. Owners can back out at any time, and neither the state nor the city will use its eminent domain authority to acquire properties if owners choose not to participate in the grant program, or if negotiations to sell the home break down.

If the city receives the grant, the money would be available in November. City leaders would then have three years to use the money. The city is required to provide a 25-percent match on any purchases made through the grant.

Derrick Mason: 815-232-0133; [email protected]; @derrickhmason

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