Home buyouts must reflect real economy
Minot’s flood-related home buyout policy remains a work in progress – and it should remain so until it is constructed in such a way as to ensure fair treatment for homeowners.
“Fair treatment” in this case translates into appropriate purchase prices for their homes.
Discussion of changes to the policy was tabled this week so that the city could look into options. It’s important to get this right, so it is understandable for the city to take its time before adopting a policy to complete the process.
There is no simple market solution to the problem. Many homeowners rebuilt at then-current rates in the wake of the 2011 flood, investing in properties with a much higher value ceiling then. That market is considerably down now and the city has based offers on current values. This leaves some homeowners in position where the current market value is less than the what’s owed on the property. Other homeowners, it should be noted, also may have inflated opinions of the values of their properties.
The city did not act in bad faith by not initially gauging the scope of necessary buyouts. It’s a rational argument that it would take some time to come to this decision. Furthermore, all signs point to the city very much wanting to make sure this process is done fairly.
Property owners are urged to work in conjunction with the city to come to a resolution as opposed to oppositionally. The reality is that there is no simple, existing formula for compensation and any delay on the part of the city is a sign that officials are looking for the best, most fair plan.
Similarly, city officials must make sure that their continued discussions end in a plan that recognizes the effects of the changing market and the experiences of homeowners. There is a reasonable fear that a cookie-cutter solution won’t adequately address homeowners’ varying experiences. A final plan must address this concern or else the home buyout issue will end up in litigation that serves no one’s real interest.
A solid, fair resolution that takes a little more time is preferable to a rushed one.