Spencer, IA (Northwestiowanow.com) — The city of Spencer has embarked on its own home buy-out program. City Manager Kevin Robinson says they had to pivot when the federal government declined to purchase 15 of the 40 homes destroyed by the flood.
The city of Spencer and Spencer Municipal Utilities will now offer to buy those 15 properties with the hopes of replacing them with affordable housing. New construction would not have been an option if the FEMA purchases were approved.
Robinson says the homes will not have basements and will be constructed with flood resistant material.
The upfront cost to the city is $2.5 millions. In case the home sales do not cover that investment, the balance will be made up with Local Option Sales Tax and proceeds from the Tax Increment Financing District that is already in existence.
