Budget crisis may leave suburban flood buyout families under water
After living through four major floods over the past three decades, Jim Bataille is ready to move out of his Des Plaines home.
The 78-year-old semiretired designer was prepared to sign on the dotted line on a voluntary federal government buyout of his property, allowing him and his wife Judith to move away from the Des Plaines River to their new townhouse in a drier part of town.
“This seemed to be the answer to all my problems,” Bataille said of the $350,000 buyout offer. “It was a good amount and I was glad to accept it - I thought.”
While a dozen of their neighbors on the oft-flooded Big Bend Drive were able to ink contracts and move out, the Batailles and six other families remain in limbo because of the ongoing state budget stalemate.
All signed contracts for their homes to be purchased and torn down, but closings scheduled after last July were postponed because some of the promised buyout money hasn't come in from the state, which has been without a budget since Gov. Bruce Rauner took office more than a year ago.
The Illinois Department of Natural Resources has committed more than $11 million to fund buyouts throughout the state - from $2 million to help purchase and demolish 21 homes in Des Plaines, to $5 million for more than 100 homes in downstate Alexander County. Projects in Warrenville, South Elgin and Spring Grove were also promised funds that haven't yet been received.
The money serves as the required local match in the Federal Emergency Management Agency's buyout program to acquire and demolish continually flooded structures. FEMA officials say the buyouts are often cheaper in the long run than having to pay out federal flood insurance claims time and time again.
The program requires houses to be vacant at the time of closing, so many people bought new houses, or are renting.
Bataille and his wife closed on their new two-bedroom townhouse on the south side of Des Plaines last July. Since then, they've been paying $1,400 in monthly mortgage payments and association dues for the new home, which they've only moved a few items to. They're also paying taxes and utility bills for both properties.
“Two electric, two gas, two water, too much,” Bataille said.
After homeowners sign an option contract for their house to be purchased, they have a year to schedule a closing to make it a done deal. For the Batailles, that was supposed to occur by January, but the state agreed to a 6-month extension because of the budget battle between Republican Rauner and Democrats in the General Assembly.
Bataille said he's cashed in his life insurance policy, all but depleted his savings, and borrowed money from friends. He's sought out odd jobs, like designing pages for a Wyoming retail magazine.
He said if he has to, he'll put his new townhouse up for sale or, in the worst scenario, let the bank have it.
“The clock is ticking for me,” he said.
Flooded houses
The Batailles were among the first to sign up for the voluntary buyouts after Des Plaines officials learned in early 2013 of approval of a grant for federal buyout funds after the Des Plaines River overflowed its banks in September 2008. A subsequent flood in April 2013 only confirmed the decision of many to leave.
In 1976, though, Bataille and his wife moved from Skokie to what they thought was their Des Plaines “dream house.” It had everything they wanted: stone fireplace, circle drive, trees and a big backyard where their kids could play. And the price was right: $80,000.
Ten years later the first big flood occurred. Another struck the following summer, and there were several other “close calls” before the floods in 2008 and 2013, Bataille said.
Floodwaters would rush across backyards, fill basements and measure up to 2 feet deep upstairs.
For the 12 homes that have already been purchased and razed on Big Bend Drive - a curving street that borders the Des Plaines River on three sides - the city of Des Plaines has fronted $1 million officials hope to recover from the state.
While nine homes from the $10 million first phase remain in limbo, purchase contracts are now being issued for another dozen homes in a second phase, said Jon Duddles, Des Plaines' assistant director of public works and engineering.
Those buyouts are being funded with $3 million from FEMA and $1 million from the Metropolitan Water Reclamation District of Greater Chicago.
Because the required local match doesn't rely on state funds, “the unfortunate thing is some of the people in the second round may have their homes purchased and demolished before the first round,” Duddles said.
This month, Des Plaines officials got word they were approved for another $15.7 million from the water district that could pay for another 49 homes.
Jim Bataille asks why those funds couldn't be put toward his buyout.
Duddles said that's an option the city is exploring - but the city doesn't want to relieve the state of its obligation.
Some 100 properties remain on the city's voluntary buyout list, and Duddles said he continues to apply for grants to fund additional rounds of buyouts - though he isn't asking the state for anymore than he's already requested.
'Caught in the middle'
In an effort to secure state money for buyouts already in the works, State Rep. Marty Moylan is drafting a bill that would make the Department of Natural Resources release those funds. It would mirror a similar effort by the Des Plaines Democrat late last year to release funds to state lottery winners, and gasoline and gambling tax money to municipalities.
Despite the battle with Democrats over the state budget, Rauner agreed to Moylan's legislation last time.
This time, though, may be different.
“The governor sympathizes with those whose homes have been damaged by floodwaters; however, the state currently lacks the appropriation authority to fund this project,” Catherine Kelly, Rauner's spokeswoman, said in a prepared statement. “Rep. Moylan should co-sponsor the governor's capital bill and call for an immediate vote to fund this important project.”
A similar measure to free up $5 million for buyouts in southern Illinois was introduced last November by Democratic Rep. Brandon Phelps of downstate Harrisburg, with no result so far.
Bataille said he hopes Springfield leaders can “let bygones be bygones” to pass a budget. His buyout, he said, would be “nickels and dimes” in the entire state spending plan. “I got caught in the middle of a struggle.”
State flood buyout funding
Illinois Department of Natural Resources funding for buyouts of flood-prone structures is on hold in these areas:
Alexander County: $5 million, 115 structures
Pearl City: $2.1 million, 22 structures
Des Plaines: $1.9 million, 21 structures
McHenry County: $1.1 million, 12 structures
Gallatin County: $297,000, 2 structures
DuPage County: $277,500, 1 structure
Roanoke: $250,000, 5 structures
Freeport: $85,000, 5 structures
South Elgin: $34,000, 1 structure
Total: $11.1 million, 184 structures
Sources: City of Des Plaines, Illinois Department of Natural Resources