Flood Recovery Update - December 2025

The City of Rock Valley wants to share an update on where things stand as we continue working through the long recovery process from last year’s historic flood. While progress is happening every week, much of the work depends on federal processes that must be completed before we can move forward on major projects. Here’s where things stand today:

Home Buyouts

We understand that until these buyouts occur, many lives remain on hold, and the past eighteen months have been incredibly difficult both financially and emotionally. While FEMA views the Hazard Mitigation Grant Program as a long-term mitigation strategy rather than an immediate emergency response, we know that for those whose homes were destroyed, this program is essential to your recovery. The process is voluntary, complex, and time-consuming, but it is the path that ultimately provides families with the ability to move forward.

The City’s Hazard Mitigation Grant Program (HMGP) application originally included 122 properties impacted by the flood. Because of the size and cost of the project, FEMA requires several layers of technical and financial review before funding can be approved.

Separately, the City’s Swift Current application included an additional 28 properties. Swift Current is designed to move faster than HMGP; however, our Swift Current application has stalled at the federal level. As a result, the State of Iowa is now working to combine these 28 Swift Current properties with 122 HMGP properties so that all 150 properties can move forward together under HMGP.

Right now, FEMA has asked the City and the State for additional information on 16 specific properties. These properties were flagged because FEMA needs more documentation to justify why they should be included in the overall application. The State of Iowa completed a Benefit-Cost Analysis (BCA) for the entire project, which is required for FEMA approval. Our BCA score for 122 properties was 0.84, and the project must reach 1.0 for FEMA to approve funding.

To help improve our score, the State is incorporating the 28 Swift Current properties into the HMGP application. Because the Swift Current program has stalled due to federal bureaucratic issues, adding these 28 properties, each located within the flood map, is expected to raise the overall BCA score above 1.0. The State has informed the City that the updated BCA should be completed next week. If the revised score still falls below 1.0, the State will then work with the City to identify which properties may need to be removed from the application to ensure that the remaining properties can be approved.

The City continues providing all requested information so the State can update the BCA and resubmit our application to FEMA. Because of the size of this project and the amount of documentation involved, each review step can take weeks or even months when FEMA needs additional justification or updated figures.

Rock Valley is responding quickly to every request, but final approval is entirely in FEMA’s hands. The City cannot begin buyout offers until the project is officially obligated.

Governor Reynolds is also making Community Development Block Grant (CDBG) funds available to help cities cover our required 15% local share of the buyout program. We are extremely grateful for this support, because without this support, the City would not be able to afford the purchase of all 150 properties. The estimated purchase price for the 150 properties is $31.6 million, not including demolition costs. The CDBG funding represents an avoided local cost of at least $4.74 million for Rock Valley.

FEMA Mobile Housing Unit (MHU) Purchases

FEMA is continuing its process to transfer and sell the MHUs currently located in both the Rock Ridge Trailer Court and K&K Trailer Court. The City has assisted residents throughout this process, and for those unable or not eligible to purchase an MHU, we have worked one-on-one to help them find housing options so they can remain in Rock Valley.

FEMA’s lease with the City for the Rock Ridge Trailer Court ends on December 26, 2025. When that lease expires:

• The land will return to City ownership.
• The City will then transfer it back to the Rock Valley Economic Development Corp. (RVEDC) for $1.00, the same amount the City paid RVEDC.
• FEMA required the land to be owned by a government entity during the lease period. RVEDC supported the flood response by temporarily transferring ownership to the City.

RVEDC has already reached an agreement with the owners of the K&K Trailer Court to purchase the Rock Ridge Trailer Court, with the transaction expected to be completed before the end of the year.

These ownership steps do not affect residents’ ability to purchase FEMA MHUs or remain in their homes. Everything is on track, and the City will continue supporting residents throughout FEMA’s process. More information will be shared directly with MHU occupants as FEMA finalizes next steps.

Public Assistance Reimbursements

The City of Rock Valley currently has 22 active FEMA Public Assistance projects under review. These projects cover everything from our emergency flood response to long-term repairs of public buildings, parks, utilities, and roads. Each project must go through FEMA’s full review process before funding can be obligated.

One example of a completed project is the massive debris cleanup that occurred immediately after the flood:

• The City spent $3.1 million on debris cleanup.
• Crews collected and hauled 19,148,700 pounds of debris to four different landfills in Iowa, Nebraska, South Dakota and Minnesota.
• Trucks traveled 90,580 miles hauling debris to the landfills.
• An additional 1,185,720 pounds of materials were recycled.
• 100,000 pounds of hazardous materials were disposed of by licensed contractors.

To date, the City has had to spend $20 million on flood recovery and emergency response, while only receiving about $1.5 million in FEMA reimbursement so far.

Because federal reviews take time and because the City cannot pause critical services, we have had to secure short-term financing to bridge the gap:

• The City issued $3 million in bonds.
• The City borrowed $1 million from the State of Iowa.
• The City borrowed $15 million from Premier Bank and Peoples Bank

We are extremely grateful to both financial institutions for stepping in quickly to help Rock Valley continue operations while we wait for FEMA reimbursements.

However, FEMA does not reimburse interest costs. That means all interest paid on these loans becomes a direct cost to our community, which impacts as recovery efforts.

Library, City Shop, Bridges & Trails

Many residents have asked why construction has not yet started on the Library, City Shop, and several major infrastructure projects. The reason is not a lack of planning, it’s that FEMA requires a strict sequence of approvals before any work can begin. Starting early would put millions of dollars of federal funding at risk.

Here’s why the City must wait:

• Federal law requires FEMA to complete Environmental and Historic Preservation (EHP) reviews on buildings, parks, utilities, and infrastructure before work begins.
  If the City starts construction early, FEMA cannot legally fund the project.
• After FEMA approves the Scope of Work, cost estimates, and all environmental/historic reviews, FEMA must obligate the funds.
  Until funds are obligated, no reimbursement is guaranteed.
• If the City started early and FEMA later found that any part of the project didn’t perfectly match the approved scope, local taxpayers would be responsible for 100% of the cost.

Given that the City has already spent around $20 million on flood recovery, taking on additional multimillion-dollar projects without guaranteed FEMA reimbursement would severely strain our finances.

We understand residents want to see progress and so do we. But FEMA’s process is legally required, and skipping steps would jeopardize tens of millions of dollars in federal assistance.

Waiting for FEMA approval protects:

• The City’s finances
• Local taxpayers
• The long-term success of our recovery

As soon as FEMA obligates each project, the City will immediately move forward with bidding and construction.

Thank You

We appreciate everyone’s patience as we work through these federal processes. Flood recovery is a long journey, but progress continues—and we will keep the public updated as major milestones are reached.

If you have questions, please reach out to the City Office.