CREATIVE OPTIONS FOR FLOODED HOMES

A plan is currently underway to identify flooding vulnerabilities and watershed improvement opportunities in Houston area. It’s called the San Jacinto Regional Watershed Master Drainage Plan (SJMDP).

It is a comprehensive regional Plan led by local partners including the Harris County Flood Control District (HCFCD), the San Jacinto River Authority (SJRA), Montgomery County, and the City of Houston. Seventy five percent of the funding for this plan is provided by FEMA and twenty five percent by the partners.

The coverage area is 3,000 square miles and includes 535 miles of streams. The plan was kicked off in April 2019 and will identify future flood mitigation projects to reduce flood risks. Target completion is Fall 2020. The budget for the study is $2.7 million.

Timarron and Timarron Lakes is a home development in The Woodlands adjacent to Sring Creek, a major watershed included in this study. More than 300 homes were flooded during Hurricane Harvey. Flooding has become a chronic problem for home owners in this area.

Many of these home owners have decided to move on but have dealt with the stigma of flooding when selling their existing home. Instead of taking on the challenging Buyer's market, some have chosen to keep their homes and turn them into rentals. This has turned out to be an unexpected investment opportunity.

By renting their home, they've been able to appreciate the cash flow it generates while gaining all the benefits of income property. Those benefits include depreciation and expense deductions that offset the income reported to the IRS. This is particularly beneficial now that personal deductions have become irrelevant due to higher standard deductions.

The watershed study will hopefully discover some well needed improvements to the area drainage system. However, the history of Harvey will be fresh in our minds for some time. Ironically, this tragedy is providing some home owners with a bright side and a long term investment opportunity.