Province offers financial aid to owners of flood-damaged buildings

The New Brunswick government has launched a financial assistance program for homeowners, small businesses and municipalities whose properties were damaged by the spring flood.

Provincial officials also outlined a buyout procedure for heavily damaged structures, and Public Safety Minister Carl Urquhart said the government is committed to creating a long-term flood-mitigation plan. 

"We know that we can improve on things that have been done," Urquhart said Friday at a news conference.

Greg MacCallum, director of the New Brunswick Emergency Measures Organization, would not offer a cost estimate of the damage sustained in this year's flood, which affected more than 16,000 properties and displaced hundreds, but he said it would be in the "tens of millions."

Program details

The maximum assistance for structural repairs for homeowners is $160,000 and $500,000 for small businesses and not-for-profit organizations. The funding is earmarked for repairing and cleaning structures and replacing basic needs.

All affected property owners are eligible to receive free well-water testing, roadside flood-debris collection and electrical system reconnection.

The Progressive Conservative government increased the amount of advanced funding from $4,000 to $15,000 this year to allow residents to return home sooner.

"Past claimants told us that access to more advanced funding would have helped speed up the return to their homes," Urquhart said.

To be eligible, applicants must first register damage with the province by June 15. Once registered, a financial assistance package will be mailed.

People can register their damage online or by calling 1-888-298-8555.

The deadline to apply to the financial assistance program is Aug. 30. More information about the program is available online.

Applicants must first contact their insurance provider to see if the damage is covered, Urquhart said.

"Government assistance is only available if your insurance did not cover the flooding," he said.

Buyout program

The province will continue buying out flood-damaged properties this year. Buyouts are offered when structural damage exceeds 80 per cent of the appraised value of the property.

Property owners then have three options:

• They take the buyout — which would be fair market value up to $160,000 — the building is levelled and the property becomes Crown land.
• They can refuse the buyout, sell their building to the government and keep the land, but they cannot rebuild on the property and will not be eligible for future disaster financial assistance programs.
• They can use the money, up to $160,000, to make repairs but will not be eligible for future disaster financial assistance programs.

"It's to get people out of harm's way," said Lisa Munn of recovery services under the Department of Public Safety.

"And it's also protection for our first responders, who have to go in and evacuate them each time. It's a safety issue."

Urquhart said any land turned over to the government would become surplus land.

Seventy-eight properties were bought out as a result of the 2018 flood.

Cottage owners

Recreational property owners are not included in the financial assistance program, but the province is still considering some form of financial support, according to Jeff Carr, the environment and local government minister.

Carr said a final decision has not been made on whether cottage owners will be able to apply for disaster financial assistance.

"We really haven't had the conversation about that next step yet within government," he said.

Right now, he said the provincial government's priority is "to get homeowners looked at first" and to get people back into their homes.

Last year, the Liberal government offered to give cottage owners up to $6,100 for cleaning up debris. The money couldn't be used for any repairs to cottages. 

The price tag of the 2018 flood, which is still being calculated, stands at $74 million, MacCallum said.

The province said it will consider more efficient use of federal, provincial and municipal resources to reduce the risk of flooding and best practices for building.