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FAQ
Voluntary Property Acquisitions
Last updated on January 24, 2012
Q. Will there be an acquisition or buyout program?
A. The City of Minot is in the process of making application for funding for an acquisition program. At this time, no funds have been allocated to the City of Minot for acquisitions or buyouts. However, the City is beginning to contact eligible property owners to gauge their interest in participating in a voluntary acquisition program. More than 120 properties have been determined to be eligible at this time.
Q. Who can participate?
A. The owners of the 120+ eligible properties are eligible to participate. Additional properties may be authorized at a later date depending upon availability of funding.
Q. How will it work?
A. The City is contacting eligible property owners to gauge their interest in participating in a voluntary acquisition program. If the property owner is interested in participating, the City will provide an offer for the purchase of the property to the property owner on a voluntary basis. Offers will likely be contingent upon final approval of the City and upon availability of funds.
Q. How will the offer prices be determined?
A. Offer prices will be based upon a pre-flood assessed value based upon records maintained by the City Assessor's office, plus 15% to reflect current market value.
Q. How can I sign up to participate?
A. At this time, no sign up is necessary. The City is contacting the owners of the eligible properties. However, any property owners that would like to receive future information for potential acquisition of their property may contact Swanson & Warcup at 701-858-8040. Your information would then be taken down for future contact. Information needed would be your name, address of property, your current mailing address, telephone numbers and if available, email addresses.
Q. Can I withdraw from participation?
A. As this is a voluntary acquisition program, the owner may reject any offer of purchase or may withdraw from further negotiations. Property owners are under no obligation to sell their property to the City and a seller may terminate negotiations at any time prior to signing a purchase agreement.
Q. How will the buyouts be funded?
A. Presently, no decisions regarding funding sources have been made other than an application has been made by the City to the North Dakota State Water Commission. Such funds will require a local cost share to be borne by the City.
Q. Am I responsible to pay off my mortgage?
A. Yes. At closing, the City would be receiving clear, marketable title. All liens, mortgages and other encumbrances would need to be satisfied at the time of closing.
Q. What type of property will be acquired?
A. 120+ properties, primarily residential, have been identified as being eligible. The acquisition program is not, however, limited to any particular type of property.
Q. May I salvage materials from my home?
A. Salvage is generally not allowed. However, specific requests for salvage will be considered on a case-by-case basis. If the property owner wishes to salvage the entire structure and only sell the lot, the City will also consider that on a case-by-case basis.
Q. I already received money from FEMA, SBA or insurance. Will such payment affect my buyout?
A. Yes. Under federal law, a "duplication benefits policy" will apply. Duplication of benefits simply means being paid more than once for the same thing. Different types of assistance and programs help victims of natural disasters to rebuild and relocate. By law, federal assistance cannot duplicate the benefits provided by other sources. Federal regulations require the reduction of duplicated benefits from the offer price. However, if you have completed repairs that were funded by other sources, credits against a duplication of benefits policy will be allowed. Therefore, it is extremely important to keep your receipts showing all expenses you have incurred for labor or materials for your repairs to your property.
Offers to purchase are made on a willing buyer-willing seller basis. Property owners are under no obligation to sell their property and seller may terminate negotiations at any time prior to closing.
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