Some Rotterdam homeowners had urged local officials to offer a buyback program in the wake of Tropical Storm Irene, but the discussion turned stagnant. Now, the proposal is bubbling up again.
Councilman Robert Godlewski on Monday, Oct. 8, submitted a legislative request to Rotterdam Town Supervisor Harry Buffardi urging the town to participate in the state buyback program for properties damaged by Irene. Godlewski is proposing the town focus on the lowest assessed properties for the program and tap $100,000 from FEMA reimbursements.
“The town could have an opportunity to get rid of these properties because they are an eyesore,” he said. “More importantly, it would help these people get out from a situation where they are trapped.”
The federal government would cover 75 percent of the cost to buy out a home, with the town covering the remainder. The town would be responsible for covering expenses for razing any property, too.
The town can offer participating homeowners up to the fair market value of the property before flood damage. An appraiser hired by the town would determine the fair market value. Any property the town purchases through the buyout program could never be placed back on the tax rolls. The property also could not be redeveloped in any way, Buffardi said.
“That property would never be allowed to be taxed again, ever,” Buffardi said. “There is a larger component here regarding taxes in the future that would forever be a drain on the public.”
Godlewski contended the properties wouldn’t be valuable again.
“The value of those properties are not going to go up again,” Godlewski said. “You got 10 homes you are not going to have any tax revenue from.”
Godlewski said he was “led to believe” additional FEMA reimbursements would be divided out to “other projects.” The town is receiving a total of around $525,000 from FEMA.
Buffardi told The Spotlight last month there was not the “political will” to offer the buyback program, a statement Godlewski referenced during the board’s Wednesday, Sept. 26, meeting, arguing the program was not discussed by the board.
Buffardi clarified his comment and said, “When I meant not having the political will, I had not had anyone come to me and say they thought that was a good idea for us to never have these properties on the tax rolls again.”
Buffardi said the houses eligible for a buyout are not located next to one another, so the town would not be able to create a monument or place “a swing set.” He said this would lead to a patchwork of undevelopable land in Rotterdam Junction. Many of the uninhabitable homes are located in the floodplain, Godlewski said, and nobody would live there again for that risk.
In April, Buffardi estimated 12 homes could be targeted for the program.
Godlewski included in his legislative request the assessment relief approved for 23 properties in the town.
“I would like to say lets make everybody whole, but we have to be realistic,” Godlewski said. “I think we can pare it down to a number that we can work with.”
The 2012 tax bills to those properties fell by 73.5 percent, or $14,200, in the wake of the storm. Three properties had their entire tax bill waived, with six properties reduced between 95 to 85 percent from the original tax bill. The remaining properties were reduced between 55 to 65 percent.
As part of the state Assessment Relief Act, Town Assessor John Macejka Jr. said the town is required to revisit 23 properties annually to determine any changes in property value following repairs or renovations.
Macejka was hesitant to recommend buyouts because condemned properties could hold value again, he said.
“Before we make a decision on buying people out there is always the potential that value can increase,” he said. “We have some sales down there … of properties down there that have been impacted by flooding.”
Some people have sold flood-damaged properties higher than the town’s reduced assessment, according to Macejka.
“There are other indicators than what happened last year that I would have to take into consideration before I could make a conscious proposal to the board that we buy people out based on current values,” Macejka said. “It’s an option, but I don’t think that right now we can establish that the values will never increase.”