Mandatory Post-Disaster Home Buyouts: Learning from Houston

After Hurricane Harvey damaged almost half of all Houston-area homes in 2017, the surrounding county implemented a controversial program, the first of its scale in America. Harris County, Texas, used its eminent domain powers to force residents in certain flood-prone areas to move to higher ground. By the time Harris County’s mandatory home buyout program ends in early 2026, nearly 600 households and 400 business or property owners will have relocated out of flood-prone, predominantly Latino neighborhoods. This will disrupt residents’ cycle of destruction and repair – but not without significant personal cost.

As climate-driven disasters impact record numbers of Americans, local leaders across the country are beginning to wrestle with increasingly tough choices on managing climate risk. To discuss the policy and planning implications of lessons learned in Houston, New America brought together the following panelists in conversation:

• Amanda Rocha, Director of Policy and Partnerships, Harris County Housing & Community Development
• Dr. Elyse Zavar, Associate Professor, Department of Emergency Management and Disaster Science, University of North Texas
• Anna Weber, Senior Policy Analyst, Environmental Health, Natural Resources Defense Council
• Helen Bonnyman, Policy Associate, Future of Land and Housing Program, New America (Moderator)

Below are key takeaways from their discussion. 

Principles to guide buyout programs:

• Buyouts typically focus on mitigating risk for vulnerable properties. Instead, buyout planning should begin from examining residents’ needs and preparing to make vulnerable families whole.
• While Harris County’s large-scale, HUD-funded mandatory buyout program may be unprecedented, ultimately the same principles of transparency and equity should guide all types of buyout initiatives, whether mandatory or voluntary.
  • Recipients of both mandatory and voluntary buyouts have expressed similar concerns that largely center around inadequate financial compensation and navigating the disruption of a move forced by flood risk and/or the government.

Understanding the context of buyouts:

• Jurisdictions conducting buyouts must consider the context of the ongoing affordable housing shortage when planning for resident relocation. Particularly after a disaster that damaged many homes, as was the case in Houston, a local housing shortage may be exacerbated as homeowners and renters alike leave damaged homes in search of new housing. 
• Another factor that may constrain relocation options for bought-out residents is the fact that property values in flood-prone areas are likely to be more affordable than in areas on higher ground. This leaves households with fewer relocation options, as their compensation package can’t stretch as far in less flood-prone neighborhoods. 

Looking ahead:

• While local governments across the country operate on tight budgets, smaller jurisdictions simply don’t have the local dollars to flexibly address gaps in federal grant funding the way Harris County did. Federal grants should build capacity at the local level, both in terms of increasing financial compensation for residents, and allowing the workers who manage buyouts to implement best practices.
• The most emphatic recommendation from buyout recipients is for government actors to reduce the need for future buyouts by preventing development in harm’s way.