Implementing Nature-Based Solutions: Levee Setbacks and Voluntary Property Buyouts

A levee setback realigns an existing levee or constructs a new one at a distance from an active river channel, reconnecting the river with its historical floodplain. One key component of the levee setback process is conducting voluntary property buyouts of properties located between the river and the new levee footprint. For a general voluntary property buyout, a local government or entity buys eligible homes or property from willing sellers, demolishes any structures, and maintains the land as open space. A buyout thus eliminates the flood risk to people and property in that area and reduces costly flood damages in the future. In practice, these buyouts can be quite challenging.

This primer builds on a previous IRIS in Focus primer that provides a legal and policy foundation for communities interested in levee setbacks. It focuses on the challenges of voluntary property buyouts in the context of levee setbacks and how lessons learned from general voluntary property buyouts might apply to this specific contest. After discussing key differences between these two types of buyouts, the primer discusses lessons learned from general buyout programs, including the geographic distribution, implementation, participation factors, and outcomes, and applies these insights to setback-related buyouts. Finally, it offers recommendations to enhance participation in these buyout programs.

Voluntary Property Buyouts in a Levee Setback Context

A voluntary property buyout for a levee setback shares many similarities with a general property buyout, with a few key distinctions because of different objectives. All buyout programs broadly seek to mitigate flood risk by moving people and property out of harm’s way. For a general property buyout program, the environmental benefits – from maintaining contiguous properties as open space or creating pocket parks of open space, for example – are secondary. In a levee setback context, a specific objective is to restore the ecosystem services of the floodplain and to use that green infrastructure to provide flood hazard reduction benefits and reduce the likelihood of future flood losses. This objective, as well as the context of the buyout program (disaster-dependent or not) shape the process and implementation, participation, and social outcomes of buyout programs.

To construct a setback levee, all properties within the setback levee design must be purchased and removed because anything riverward of the levee will be unprotected. A single holdout can defeat the purpose of restoring the floodplain and the selected design of the setback levee. The consequence is that the project either does not move forward or must be redesigned. The need for all property owners to participate in a buyout means that early outreach to affected properties, clear communication, and support services throughout the buyout process are critical.

The timing of a levee setback and the buyout process may be more predictable and clearer than a general buyout program, depending on the legal authority used to authorize the setback. Greater predictability and clarity tend to lead to more participation in a buyout program. For example, a levee setback that is authorized by Congress and that is not disaster-dependent may allow more time for planning and designing the levee footprint, collecting community input, assessing real estate needs, and applying for funding.

In contrast, disaster-dependent general buyout programs, and levee setbacks pursued under the USACE’s emergency response authority, tend to be implemented in the months and years following a catastrophic flooding event. The stress of a traumatic event can both encourage participation by motivating property owners to relocate to avoid future flooding or discourage participation in buyout programs if the process takes too long or seems too uncertain.

Key Lessons from Voluntary Property Buyouts

Homeowners’ decisions to participate in buyout programs are influenced by various factors, including timing, financial pressures, and social dynamics. The process is often complicated by the length of time required to finalize the purchase.

The timing of buyout programs is crucial. Programs with pre-existing funding tend to have shorter, more efficient processes, making them more attractive to homeowners. Buyout programs that take a long time can dissuade participation, particularly among those without the financial resources to wait.

Relocation after a buyout can lead to both positive and negative outcomes for households. While flood risk is generally reduced, some participants may face equal or greater risks in their new locations. Lower-income residents often struggle to find comparable housing, and the process can lead to increased social vulnerability and mental health challenges.

Outcomes at the community level are similarly mixed. Although buyouts may reduce flood risk, they can also disrupt social networks, have variable impacts on property values, and lead to demographic shifts.

Financial and social effects of buyouts at the municipal level are also mixed, including potential loss of tax revenue and changes in municipal tax expenditures. The long-term impacts are complex and vary depending on the number, location, and management of the bought-out properties in relation to available housing and other municipal infrastructure.

Recommendations for Implementing Voluntary Property Buyouts for a Levee Setback

Plan ahead. A community interested in a levee setback should begin considering voluntary property buyouts as one of the first steps in the planning process.
Shorten the time to complete a voluntary property buyout. A community should investigate funding opportunities from federal, state, and other sources to help with buyout costs, apply to funding sources that do not require disaster declarations or that provide pre-disaster funding, and – in a post-disaster context – apply as quickly as possible for funding.
Coordinate support for a buyout program. A community should build administrative capacity for a buyout program by involving different government entities, non-profits, and local businesses such as housing authorities, realtors, attorneys, and community advocacy groups.
Collaborate and build relationships within the community. A community interested in a levee setback should proactively initiate conversations with affected property owners, identify their priorities and interests, and assess the potential social and economic impacts of a buyout program.
Use established community and social networks to maximize participation and collaboration. Outreach to community members should be integrated into existing community gatherings where possible or utilize other traditional means of community engagement and collaborative problem-solving.
Provide financial assistance to help buyout participants throughout the relocation process. A voluntary buyout program should include assigning liaisons, counselors, or case workers who are accessible by phone or in person to assist participants and provide timely updates throughout the process.
Consider a levee setback project within the context of local land use and growth management. Especially where loss of housing stock and tax revenue are likely to be issues, administrators should proactively seek opportunities to construct new housing or revitalize existing structures in more secure areas.
Collect standardized data to better understand post-buyout outcomes. Buyout administrators should prepare intake forms and data collection methods that maintain contact with participating households to better understand what happens to participating households after relocation at different post-buyout times, as well as the impacts on the communities that receive the relocating households.

Conducting voluntary property buyouts in the historical floodplain is a critical part of a levee setback project. Many knowledge gaps remain, such as the social outcomes and impacts of these programs and research specific to buyouts in the setback context. Nevertheless, lessons learned in the social sciences literature are important to keep in mind as levee setbacks grow in popularity as a nature-based solution for flood mitigation.

The primer is available here.

Project Team

Katie Foster, Postdoctoral Research Associate, IRIS

Monika Giri, Graduate Research Assistant, Department of Anthropology

Yee Huang, Legal and Policy Analyst, UGA Carl Vinson Institute for Government

Project Support

This primer was supported by the Army Corps of Engineers Award W912HZ2020031.