Rebuilding a Neighborhood

The flood effectively made obsolete the street maps of many Valley communities. Homes, streets, even entire neighborhoods have disappeared since the waters receded. Whether the lost homes are victims of redefined flood plains or simply the fact that the owner could not afford to repair his or her house, the result was the same - what had been "home" for many years was gone.

EAST GRAND FORKS EDHA

New Construction Incentive Program

These programs are available to residents whose homes are acquired by the City of East Grand Forks and who want to rebuild in East Grand Forks. The income limit for both of the following loans will be $56,000. These loans are no-interest loans, forgiven if the homeowner lives in the home for ten years and repayable from sale proceeds if the home is sold before ten years.

Lot Incentive Loan
Residents who meet the income limit are eligible for a no-interest $7500 deferred loan toward the purchase of replacement lot within the city of East Grand Forks.

Affordability Gap Loan
Residents who meet the income limit will be eligible for an additional no-interest deferred loan up to $15,000 toward the purchase of a newly constructed home in East Grand Forks if there is a gap between the mortgage the household can qualify for and the total cost of the home. The maximum house price is $130,000, including land and special assessments.

The household must reinvest the proceeds from insurance and they buyout into the new property, must apply for an SBA loan, and must carry reasonable debt based on FHA underwriting standards.

For further information about these programs, call 218-773-8939.

East Grand Forks EDHA
218-773-8939

East Grand Forks flyer concerning interest-free loans to residents who would replace their lost homes in the city. The flood sparked a construction boom in the Valley, and a competition among cities seeking to keep -- or gain -- residents.

The flooded home at 302 Lincoln Drive in Grand Forks awaits demolition --
the small cross on the lawn is marked "R.I.P. 302".
Photo from the Northwest Minnesota Historical Center flood collection.

Meanwhile, in the new "Congressional" subdivisions on the west side of the city, new homes are going up. At first, sales of the new homes were slower than expected, but after the city offered incentives to buyers, sales picked up in mid-1999.
Photo from the Northwest Minnesota Historical Center flood collection.

In south Moorhead, several houses along River Haven Drive were flooded and removed to allow an extension of the diking system. Here, a wild turkey reclaims its habitat,
standing on the filled foundation of a demolished home.
Photo from the Northwest Minnesota Historical Center flood collection.

Deadline Set for Voluntary Buyout

For the past ten months, the city of Grand Forks has been buying flood-damaged homes to help residents move along on the road to recovery. The program is voluntary - residents don't have to take part if they choose not to. But the time they have to make that decision is running out. The Grand Forks City Council has approved an October 1, 1998 deadline for residents in the Phase I and Phase II buyout program. That means they have until October 1 to sign a purchase agreement with the city, or the offer from the city will be withdrawn. Phase I homes are those closest to the river that suffered the worst damage from the flood, while Phase II homes are located within the 100 year flood plain and suffered more than 50 percent damage. The city has not set a deadline for homes in Phase IA, Phase III or Phase IV.

To date, more than 525 flood damaged homes have been purchased by the city. "We think it's an effective way to deal with the problem," said Grand Forks Urban Development Director John O'Leary. "Without a voluntary buyout program, residents would get little or nothing for their property."

Community Development Block Grant funds are used to pay for the homes. Homeowners are offered the pre-flood value of their homes, regardless of the condition of the structure Everyone eligible for a Phase I or Phase II buyout was sent an offer several months ago. Residents had three options: they could accept, reject or appeal the offer. At the time, no deadline was mentioned, but council members felt it was time to bring that part of the Voluntary Buyout Program to a conclusion. "We need to put these phases of the recovery behind us," said Duane Hafner, chairman of the Flood Response Committee. "This should encourage residents to complete this part of their recovery that will allow them to get on with their lives."

The Grand Forks Public Information Center will be responsible for following up with residents who received buyout offers, but have yet to take any action. "We want to make sure residents have every opportunity to take advantage of the Voluntary Buyout Program, if they choose," said Kevin Dean, Public Information Officer. "Our office will help answer questions residents may have about the program, so they still have plenty of time to make an informed decision."

If you would like more information about the Voluntary Buyout Program, contact the Grand Forks Public Information Center at 746-2736. The office is open from 8 a.m. to 5 p.m. Mondays, Wednesdays and Fridays. On Tuesdays and Thursdays, the Public Information Center is open from 8 a.m. to 7 p.m.

EBB TIDE: Recovery From the 1997 Flood

Rebuilding a Neighborhood