Success Story: Local Buyouts Program

• In the early 1990s, the City of Charlotte; Towns of Cornelius, Davidson, Huntersville, Matthews, Mint Hill and Pineville; and Mecklenburg County established the Charlotte-Mecklenburg Storm Water Services. The new utility became responsible for managing stormwater and restoring floodplains. The entity developed a more extensive approach to stormwater management. 
• In 1999, the utility launched its Floodplain Buyout Program. The program purchases and removes buildings in the floodplain, returning the properties to open space. 
• Program staff focus on a few neighborhoods each year, coordinating acquisitions and other flood management projects. 
• The utility offers a grant program for retrofitting at-risk properties when buyouts are not feasible. 
• The utility’s “damages avoided” newsletter covers the successes of the buyout program. The newsletter illustrates what could have happened to local properties in a major flooding event if they were not bought out.

• The Floodplain Buyout Program began with two full-time equivalent planners. 
• Charlotte-Mecklenburg Storm Water Services funds buyouts with stormwater fees, hazard mitigation funds from the Federal Emergency Management Agency, stormwater mitigation funds from state government and local funds.

Elected officials and municipal and county stormwater utilities from the City of Charlotte; Towns of Cornelius, Davidson, Huntersville, Matthews, Mint Hill and Pineville; and Mecklenburg County

• Between 1999 and 2022, Charlotte-Mecklenburg Storm Water Services purchased more than 450 floodplain properties. These purchases allowed for the transition of over 185 acres of developed properties to undeveloped public space. In addition, the program relocated more than 700 residents out of harm’s way. Eligible residents received relocation assistance (Urban Land Institute, 2021). 
• The utility estimates that buyouts have avoided $25 million in losses and will ultimately avoid over $300 million in future losses (Urban Land Institute, 2021). 
• The buyout program and other flood reduction measures earned Mecklenburg County a Class 3 rating through the National Flood Insurance Program’s Community Rating System (Class ratings range from 9 to 1, with 1 being best). The rating allows the program to provide a 35% discount on flood insurance, which saves residents $1 million each year.

Program Manager Tim Trautman emphasizes the value of planning buyouts holistically. He suggests designing a buyout program in a way that respects public interests and benefits (Urban Land Institute, 2021)​. For example, converting purchased properties into well-maintained local parks is beneficial to the community.

One challenge with the program is agreeing to a fair price for the flood-prone businesses and housing. About 75% of participating property owners are relieved to walk away from high-risk properties, but each participant has a different perception of a fair price (Urban Land Institute, 2021). To help ease the transition for all sellers, staff try to complete the land’s open space conversion quickly, so previous residents can enjoy the new open space.

Urban Land Institute. (2021, August 26). Charlotte-Mecklenburg Floodplain Buyout Program. Retrieved from ULI Developing Urban Resilience: https://developingresilience.uli.org/case/charlotte-mecklenburg-floodplain-buyout-program/