After years of fearing the clouds, Donna Rogers has finally seen a silver lining. Rogers, 55, has lived for 30 years in a flood-ravaged neighborhood in East Jackson. She’s seen the water creep in through her back door after a hard rain. She’s seen neighbors rescued from their homes by boat. She’s seen the water get so high that the police had to close the streets, and in May 2003, she saw tornadoes destroy nearby homes and watched the accompanying rain flood others.

But it was because of those storms that Jackson officials were able to apply for and get $4.2 million of hazard mitigation funds for Rogers’ neighborhood.

The three-year project—for which the city will chip in $1.4 million—hopes to buy all 189 pieces of property (92 structures and 97 lots) in an area around Anderson Creek and transform the land into a neighborhood park. There are also hopes the revitalized land will spur new development in adjacent streets, between East Jackson and downtown.

But for Rogers, the renewal has already come. In December, Rogers was among the first homeowners to reap the benefits of the buyout program when she moved into her new, larger home. She tells friends she “moved from under the hill to on top of it.”

City and state officials say the voluntary home buyout program for the Anderson Creek area is the largest hazard mitigation grant ever managed by the Tennessee Emergency Management Agency (TEMA) in terms of both cost and the number of residents involved.

According to the grant, landowners are offered fair market value for their property. Those who are owner/occupants are also eligible for a $22,500 comparable housing assistance grant. Renters can get $5,200 grants to put towards rent or the purchase of a new home, plus moving expenses.

Another key component of the grant is that the city can’t take property by eminent domain while the grant is in effect the next two and a half years, says Valerie Horton, who manages the program for the city of Jackson.

While the program is voluntary, Horton says several factors may make it clear to homeowners in the area that selling and moving is best for all concerned.

First, once the buyout program is over, it’s unlikely the hazard mitigation offer will be made again—even if another disaster should hit the area.

Second, once homes are bought and demolished, the remaining homes might be in even more danger of flooding. Also, insurance companies may decide the risk of insuring the ones left over is too great.

Participation in this program is typically 100%, says Josh Springer, a TEMA hazard mitigation specialist.

“Once you see everyone move out and the homes are demolished, you start thinking about the situation you are in,” Springer says.

Beyond simply selling the program and getting the word out, Horton says there have been few snags. Of the 30 people who had applied for the buyout by mid-December, only one has complained about the fair market value an independent appraiser assigned a home. One landowner—an investor, not a homeowner—argued that the appraisal for his lot was too low and has told the city he will not sell, Horton says.

The main problem is helping the homeowner who might have an extraordinary amount of debt tied to the home.

"If a homeowner is upside down in his home—he has a first and second mortgage or has had major repairs—the fair market value may not be close to the debt they have attached to the property,” Horton says.

In one case, Horton says the value of a home was $20,000, but the debt was $40,000 due to weather-related repairs.

Other problems the program faces include getting in touch with the many absentee landlords who don’t know about the program and educating the residents about financial issues.

Horton says many applicants struggle with the choices they must make after they get this large settlement. Many have had poor credit and need help avoiding excessive costly debt, while others do not have bank accounts and don’t understand how the banking process would help.

“The lack of education may mean some of these people end up with some bad loans, but I hope that won’t happen,” Horton says. “I give them as much information as I can, but I can only do so much.”