The province is making swift changes to its Disaster Recovery Program (DRP) which could have drastic effects on Alberta communities and leave homeowners vulnerable.
Minister of Municipal Affairs Ric McIver sent a letter to chief elected officials explaining the changes. Going forward, the DRP will be split on a 90-10 basis, which means the municipality will be responsible for 10 per cent of the costs borne for disaster relief.
“These changes are intended to share the responsibility of disasters with all those who are impacted and to make the program more sustainable for future events,” said McIver’s letter.
This is a concern for Drumheller Mayor Heather Colberg and Chief Resiliency and Flood Mitigation Officer Darwin Durnie.
“All communities in Alberta are affected by this change,” Durnie said. He notes in 2005, if the program were in place, the town could have been on the hook for up to $1.4 million.
Another change which directly affects homeowners is the implementation of a funding limit of $500,000 per homeowner, on a one-time basis.
This means if a homeowner’s property is damaged in a disaster, and it is not insured, they are only able to apply to the program once, with the capped limit. In the event of another disaster, the program will not be provided to future applicants who are on the property at the same legal description.
The funding is not cumulative.
For example, if a property owner applies once and is eligible for funding less than the $500,000 limit, they would not be able to apply again. Addresses that received assistance will be posted online on the Government of Alberta website to “provide transparency about DRP funding limits and up-to-date information for prospective homeowners, developers, and real estate professionals. The funding received stays with the property; therefore, a new homeowner would not be able to access disaster recovery funding for that same property in the future.”
According to the DRP, these changes will not be retroactive prior to 2021.
“Any of the people that received funding in the 2005 or 2013 floods, under this (new) program, they would have a caveat marked on their land titles and they would not have been eligible for any further funding,” Durnie told the Mail.
He added, “It just reinforces our efforts as the flood office must be to preserve and protect the value of properties in the valley so they remain eligible for insurance, which, in turn, means eligible for mortgages.”
To protect themselves, homeowners are encouraged to purchase insurance.
Mayor Heather Colberg told the Mail, “I wrote the ministers office stating the government announcement brings concern to our 8,000 residents distributed along 100 kilometers of riverbank. I’ve asked the minister for a meeting to further discuss the implications and to work together on solutions.”
More information regarding the changes to the DRP are available online at www.alberta.ca/drp.
