Prior to Step 5, the Strategic Buyout Program will verify the total amount of disaster recovery assistance you have received in order to calculate a duplication of benefits, or DOB, analysis in compliance with federal requirements.
In addition, any liens or mortgages identified during Step 3: Ownership Verification will be reviewed and verified in order to provide an accurate initial offer price during Step 5.
Once you have completed Steps 1–4, the Strategic Buyout Program will determine the initial offer price, which is equal to the appraised current fair market value (determined in Step 4) minus any liens associated with the property. You and all other owners of your property will then receive an initial offer letter including the purchase price offer, a summary of existing liens, and a request to accept the initial offer to sell the property through the program. This will be bundled in an initial offer package that will also include a copy of the boundary survey, the appraisal, the title report, and instructions on how to appeal if you are not satisfied with your offer.
All owners will be presented with the opportunity to accept or reject the program’s offer. All owners must accept the offer in order to proceed to closing. The Strategic Buyout Program is a voluntary program which means that if any or all of the owners reject the program’s offer, the program will take no further action to acquire the property.
Any applicant owners can appeal the offer or the appraisal, if they feel, for instance, that their property is worth more than the program’s appraised amount. Any applicant who wishes to appeal the program's appraisal must provide, at their own expense, an additional appraisal prepared by a qualified third-party appraiser. If the appeal is approved by the appeal committee, the program will provide an updated initial offer package based on the average of both appraisal amounts. The appraisal requirements and appeal process are outlined in the
Strategic Buyout Program Manual.
After all owners have accepted the offer, the program will begin preparing for the closing appointment. Closing will be carefully scheduled with all owners of the property, representatives from the local government, and representatives from the program. It will also be scheduled with enough lead time to allow for funds to be placed in escrow in a timely manner before the closing date.
No more than forty-eight (48) hours prior to the closing appointment, a vacancy inspection will occur at the property to ensure that all occupants and contents have been removed. Vacancy inspections occur for all properties, including vacant lots.
The property is secured within five days after the closing appointment to prevent unauthorized access.
In addition to the program’s offer, primary residential property owners may be eligible to receive additional incentives. If you move to a new eligible location, you may qualify for the following incentives:
- Risk Reduction: Provides funds to help you move to an area with less risk of flooding within the state of North Carolina
- Affordable Rental (for income eligible applicants): Provides funds to increase the affordability of your next rental unit for at least one year when that unit is located in an area of reduced flood risk and located in the same county as the storm-impacted property.
- Affordable Homeownership (for income eligible applicants): Provides funds to decrease your mortgage and increase the affordability of the next home you purchase when this home is located in an area of reduced flood risk and located in the same county as the storm-impacted property.
- Matching Down Payment (for income eligible applicants): Provides matching down payment funds in the purchase of your next home when the home is located in an area of reduced flood risk and located in the same county as the storm-impacted property.
If you choose to move out of the state of North Carolina, you will not qualify for financial incentives.
More information on incentives, including specific eligibility criteria and income restrictions, can be found on the Strategic Buyout Program Incentives Overview.
Because the Strategic Buyout Program is a voluntary program, landlords will not be eligible for relocation assistance, but tenants may be eligible under the Uniform Relocation Assistance and Real Property Acquisition Act of 1970, as amended (URA). URA is a federal law requiring the Strategic Buyout Program to provide relocation assistance and payments to eligible tenants who are involuntarily displaced because of the program purchasing the property where they live or work.
When the landlord accepts the initial offer for the program to purchase the property, the program will continue to make sure that all URA requirements are met to support tenants. This includes providing tenants with the appropriate required notices and forms, as well as making sure they are in contact with a URA specialist. It is important that landlords keep the program informed of any changes in tenancy, so that URA requirements can be met. Failure to do so may result in an ineligibility determination for the Strategic Buyout Program.
To learn more about the offer determination and closing, please view the Strategic Buyout Program Manual.
Proceed to Step 6: Contractor Selection