The Haines Borough is moving ahead with the first step in a long process that could result in a federally funded buyout of a Beach Road property affected by the deadly December 2020 storm.
The borough assembly Tuesday authorized borough staff to apply for a grant to develop a buyout plan for Steve and Vanessa Wishstar’s house, which is located in a hazard zone below a crack in bedrock that caused a landslide two years ago, killing two residents and damaging several homes.
That plan would lay the groundwork for applying for one of two FEMA programs that could pay for a buyout of the Wishstar property.
Although several properties are in the hazard zone, the Wishstars are the only residents who responded to a letter from borough manager Annette Kreitzer soliciting interest in applying for a buyout, according to Kreitzer. Affected residents in the past have voiced frustration with limited options and bureucratic hurdles for receiving government aid.
The assembly Tuesday approved spending $16,000 to hire a contractor to apply for a FEMA Scoping and Planning Capacity and Capability Building grant. With that grant the borough would work with the state to develop a buyout program and determine whether the Wishstars are eligible for a buyout. Once that process is completed, borough staff could apply for two bigger FEMA grants that could pay for a buyout — which could take between three and eight years.
“A buyout is what it sounds like — government purchasing a home that is within a risk area — that will not be rebuilt,” Kreitzer said in a memo to the assembly. A FEMA buyout would result in the demolition of the Wishstars’ home, and none of its parts could be re-used, sold or traded, Kreitzer said. The borough would be tasked with upkeeping the property as perpetual green space, according to Kreitzer’s memo.
She said FEMA’s buyout eligibility requirements are strict. An eligible property needs to be a primary residence with a structure and a mortgage that’s current and paid through the buyout.
Steve Wishstar said the bank approved a forbearance on his family’s mortgage payments after the disaster and that he would be able to refinance, if the buyout is approved, in such a way that would make them eligible
“I’ve presented this to FEMA. But it is still a bit unclear. We think (the Wishstars) would qualify for a buyout, but it’s not absolutely certain,” Kreitzer said.
Even if the Wishstars are eligible, FEMA could deny a buyout based on a cost/benefit analysis, Kreitzer said.
A buyout could be accomplished either through FEMA’s Building Resilient Infrastructure in Communities (BRIC) program or Hazard Mitigation Grant Program (HMGP), Kreitzer said. The former is a national grant competition and requires a 25% borough match, while the latter is administered by the state of Alaska and does not require a local match.
Steve Wishstar said he hopes the borough applies for a HMGP grant in part because that program has a shorter timeline. “This application process takes a long time. I’m not even sure if our bank will be willing to do a forbearance program for that long. I’m hoping that the state approach might be a quicker approach,” Wishstar said. “It takes a lot of stamina to stick with it this long.”