Coast city says FEMA flood zones are killing home values. ‘This is crippling Pascagoula.’
City officials, community members and others came together Tuesday as part of a newly formed coalition, S.O.S. Pascagoula, to push for the repeal of a federal regulation that they say is strangling the town.
“The issue is pervasive and compounding,” said Pascagoula Mayor Jay Willis. “FEMA has overstepped and the impact to Pascagoula is serious.”
Following Hurricane Katrina FEMA drew new flood maps for much of the Mississippi Gulf Coast, including Pascagoula. The resulting lines put 90% of Pascagoula in a flood zone. Prior to the 2005 storm, 15-20% of Pascagoula was in a flood zone, according to the group.
Tucked within the rules of FEMA’s flood insurance program is something called the 50% rule, which city officials’ contend is depressing real estate values, impeding development and hurting the town.
“This is crippling Pascagoula,” said Mary Martha Henson, deputy director of the Jackson County Economic Development Foundation.
The 50% rule states that unless a property meets FEMA regulations, homeowners are only allowed to spend up to 50% of the home’s value in maintenance and home improvements over a 10-year period.
Henson and S.O.S. Pascagoula contend that this rule has resulted in properties being abandoned because they require repairs beyond that 50% figure. Thus, real estate values in the city are artificially depreciating.
“Folks in Pascagoula have been unable to sell their homes, unable to maintain them and unable to insure them, because the federal government has set a standard for flood protection that is not suited for reality,” former Gov. Haley Barbour said in a news release announcing the new coalition.
S.O.S. Pascagoula is made up of Willis, Henson and other city officials, citizens and interested parties.
“These neighborhoods have only flooded one time in history,” Willis said. “We have to get some relief from these overreaching federal regulations that are slowly killing some of our lovely neighborhoods in Pascagoula.”
According to S.O.S. Pascagoula, commercial and residential properties alike are being impacted by high costs of flood insurance and “excessive” Base Flood Elevation requirements.
According to data from Zillow, Pascagoula is the cheapest place to buy a home along the Mississippi Coast.
S.O.S. Pascagoula says that politicians at the state level, including the governor and senators, have been receptive to their efforts and are hopeful that they can help get the laws changed.
This story was originally published May 24, 2022 at 6:35 PM.