FEMA Approves Buyouts for Flood-Damaged Homes in North Carolina

In early 2026, Gov. Josh Stein tours the home of Rick and Lorrie Henderson near Saluda which was damaged by Helene.

In a significant move, the Federal Emergency Management Agency (FEMA) has finally given the nod to a handful of property buyouts in Western North Carolina. This decision comes after a prolonged period of stagnation that left state officials and homeowners in limbo for nearly a year.

Months of anticipation have come to an end as FEMA approved acquisitions in Henderson and Buncombe Counties, propelling a select group of homeowners closer to selling their flood-affected properties to local governments. This initiative will eventually transform those lands into community projects such as parks and greenways.

The Department of Homeland Security revealed that $23 million from the Hazard Mitigation Grant Program is set to be allocated, with $14.2 million earmarked for Buncombe County and $9.2 million for Henderson County. Overall, FEMA has committed $1.5 billion to this program.

“The state is very excited to see some long-awaited movement in this space as these awards will help many North Carolinians in their recovery journey,” stated Justin Graney, spokesperson for the North Carolina Emergency Management agency.

However, Graney highlighted that it might take “several days or weeks before the state has any specific information regarding these new awards from FEMA” due to the congressional notification process.

The number of homes approved for buyouts remains uncertain. Applications were submitted for nearly 300 properties from Buncombe and Henderson, suggesting not all received approval.

The approval marks the beginning of a “pre-offer” stage, where local governments will conduct property surveys and appraisals before extending purchase offers to homeowners.

If an offer is accepted, the state will demolish the house and manage the transfer of the property back to the local government. Initially, the state funds the entire operation and later seeks reimbursement from FEMA.




Gerard Albert III

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BPR News

In early 2026, Gov. Josh Stein tours the home of Rick and Lorrie Henderson near Saluda which was damaged by Helene.

Waiting for approval caused ‘immense frustration’

State officials have been vocal for months about their concerns over the lack of approval for any buyout project by FEMA, especially since the first submissions were made nearly a year ago.

Governor Josh Stein recently expressed his “immense frustration” over the delays, saying, “These are folks who — their house is in a flood zone, their house was flooded — many of them have a mortgage on which they have to continue to pay and they have no house. And so all they want is to be bought out so they can start afresh somewhere else.”

The announcement coincided with Stein’s scheduled visit to Washington D.C., where he sought an additional $13 billion from Congress alongside other Western North Carolina lawmakers.

“I heard the good news as I landed in D.C. this morning that the first WNC homeowners have been approved for the homeowner buyout program,” Stein wrote on X.

Additional funds announced include $72 million in public assistance grants from the American Relief Act of 2024, pending DHS Secretary Kristi Noem’s approval.

“This investment will repair and restore critical public infrastructure across North Carolina, including schools, public safety facilities, utilities, and community services,” stated Noem.





A storm damaged home in the River Knoll community near Swannanoa.

Gerard Albert III

/

BPR News

A storm damaged home in the River Knoll community near Swannanoa.

Hazard mitigation buyouts help homeowners recoup losses

The Hazard Mitigation program initiated by FEMA aims to reduce vulnerability to natural disasters like floods and landslides. By relocating properties from high-risk areas, it seeks to lower future repair costs for the federal government.

After Hurricane Helene devastated nearly 1,000 homes in North Carolina in 2024, the state opened buyout applications. These applications undergo a multi-tier approval process involving county and state assessments before reaching FEMA.

Currently, 561 applications have received state approval and await federal endorsement. The latest announcement from FEMA will expedite some of these applications, though the exact number remains unspecified.

Over 200 additional applications are in the pipeline for state approval.

“While this is another promising step in the right direction, there are still families awaiting buyouts for their damaged and destroyed properties,” stated Sen. Ted Budd. “I pledge that I will continue to work closely with all federal, state, and local leaders to continue to identify projects that qualify for federal reimbursement, and I will be in constant contact with FEMA to get these dollars to Western North Carolina communities.”

In Washington, Stein, along with Asheville Mayor Esther Manheimer and State Senator Kevin Corbin, plans to advocate for an additional $13 billion in federal storm recovery funds with other lawmakers.

The recent Hazard Mitigation Grant Program funding also includes:

  • $12 million to North Carolina Emergency Management to support the development and submission of hazard mitigation projects
  • $3.4 million to elevate 45 homes in Beaufort County
  • $1.7 million to acquire flood-prone properties in Transylvania County
  • $760,000 to acquire flood-prone properties in Haywood County
  • $519,000 for the management of Pamlico County’s elevation project
  • $488,000 to acquire flood-prone properties in Brunswick County
  • $361,000 to acquire flood-prone properties in Windsor
  • $314,000 to acquire flood-prone property in Catawba County
  • $297,000 to acquire flood-prone properties in Madison County
  • $212,000 to purchase and install four generators to provide power to Liberty’s critical facilities during severe weather events
  • $168,000 to purchase and install a generator at a Beaufort County pump station
  • $127,000 to purchase and install two generators at two pump stations in Warrenton

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