Opportunities, Tradeoffs, and Caveats for Private Sector Involvement in US Floodplain Buyout Programs

The United States has increasingly relied on government-administered floodplain buyout programs to reduce flood risk and remove flood-damaged dwellings from floodplains. However, high transaction costs and long administrative timelines dramatically hamper buyout program efficiency. This report derives financial efficiency thresholds suggesting situational advantages to both private- and government-run buyout programs and also evaluates alternative institutional structures for implementing buyouts and novel mechanisms for financing buyouts