WANCHESE – While no silver bullet exists for Dare County’s oceanfront housing crisis, a web of federal, state, and local programs offers some relief for homeowners facing imminent threat from rising seas and erosion.
Officials outlined available assistance programs at the Sept. 19, 2025 meeting at the Coastal Studies Institute in Wanchese. They cautioned that funding is limited, timelines are lengthy, and not every property will qualify for help.
For a related article about the science behind coastal erosion, click here.
For a related article about the public’s comments and concerns, click here.
Federal Assistance: FEMA’s Hazard Mitigation Programs
The primary source of financial assistance comes through FEMA’s hazard mitigation programs, administered in North Carolina by the state’s Emergency Management division.
Steve McGugan, assistant director for hazard mitigation with North Carolina Division of Emergency Management, explained that the state applies for federal funding on behalf of local communities and individual homeowners. The programs can fund property acquisition at fair market value or elevation of homes above base flood levels.
“We work to get them to a benefit-cost ratio of one or greater,” McGugan said, referring to FEMA’s requirement that projects demonstrate economic benefits that exceed costs. For expensive properties that might not individually meet this threshold, the state groups multiple homes together to meet the overall requirement.
Currently, Dare County has access to Hazard Mitigation Grant Program (HMGP) funding triggered by recent storms, including PTC-8 and Hurricane Helene. Dare County has requested that homeowners submit their applications by October 15, 2025.
How Much Will FEMA Pay?
The valuation process often confuses homeowners, but McGugan clarified that FEMA pays either pre-storm value or current market value – whichever is higher – not the property tax assessment value.
“If your tax card value says it’s $250,000, if the pre-storm value could be higher than 250, we will go for that amount,” he explained. “If the current market value is greater than 250, we will go for that amount.”
For home relocations, properties must move to areas outside the Special Flood Hazard Area – a significant challenge on the Outer Banks where most land falls within flood zones.
County-Level Programs and Beach Nourishment
Dare County has successfully used federal grants to elevate over 100 structures and currently has elevation projects underway. Barton Grover, the county’s grants and waterways administrator, said the county has submitted approximately 14 acquisition applications from Rodanthe and 45-47 elevation applications from the entire county for the current HMGP round.
The county also maintains an aggressive beach nourishment program. Buxton had 2.6 million cubic yards of sand placed in 2017-2018 at a cost exceeding $20 million, followed by a 1.2 million cubic yard re-nourishment in 2022. A 2026 project, originally scheduled for 2027, has been moved up to address urgent needs.
However, Rodanthe presents a more challenging case. Feasibility studies estimate a beach nourishment project there would cost $40 million or more – far exceeding available grant funding sources.
“We have been unsuccessful in obtaining grants,” Grover acknowledged. “We are still actively looking for grants… but typically they’re in the $3 million dollar range or $5 million, and we haven’t been able to obtain anything close to the $40 million.”
Insurance Coverage and Claims
Flood insurance expert Lisa Sharrard provided crucial information about National Flood Insurance Program (NFIP) benefits that many homeowners don’t utilize.
One underused provision allows policyholders to claim up to $1,000 for loss avoidance measures – moving contents out of a home when a storm threatens. This benefit requires no deductible and doesn’t count as a claim against the property’s loss history.
“You can hire, you can rent a U-Haul, you can hire a crew to unload the house and move the contents out of the house with that notification of a triggering event,” Sherrard explained.
For structures that become entirely over water due to erosion, coverage continues provided homeowners maintain continuous NFIP coverage without lapses. However, Sharrard warned that under current rating systems, “you have a 29-day grace period. On day 30, that policy is gone. We cannot rewrite it.”
When claims are disputed, homeowners can appeal decisions and hire their own engineers to challenge carrier assessments. “Don’t ever think that the final word rests with the carrier or with FEMA,” Sharrard advised.
State and Local Regulatory Response
The state Department of Environmental Quality Division of Coastal Management, represented by Tancred Miller, noted the constraints in addressing the crisis due to state statutes that limit hard erosion control structures on ocean beaches.
“Currently, the only thing you can use is sandbags to control erosion on the ocean front,” Krueger explained. New groins or jetties are prohibited except at island termini as new permanent structures are not allowed on shorelines, and wave attenuation devices aren’t permitted as alternatives to sandbags.
However, Miller indicated his office might help individual property owners with temporary stabilization measures while longer-term solutions develop.
Environmental health regulations also constrain rapid responses. Josh Coltrain, Dare County’s environmental health supervisor, explained that when septic systems are damaged by erosion, property owners must apply for repair permits through a process that can take months, depending on required surveys and setback requirements.
By law, the county must approve all permit requests that meet the requirements.
The Working Group Report: Ideas for Future Action
The Threatened Oceanfront Structures Working Group, convened by the National Park Service and Division of Coastal Management, produced a report with 11 recommendations for addressing the crisis. While not proposing immediate solutions, the report identifies potential policy changes and funding mechanisms.
Superintendent Dave Hallac emphasized that the group’s goal was “not to solve the problem” but “to put ideas on the table that would help decision makers and others advance this issue.” The report examined approaches used by other coastal states and includes recommendations on insurance reform, financial assistance programs, and regulatory frameworks.
To see the report, click here.
Challenges and Limitations
Despite available programs, significant gaps remain. Current FEMA programs don’t provide immediate assistance for homeowners facing collapse within months. The Building Resilient Infrastructure and Communities (BRIC) program, which provided additional federal funding from 2020-2023, has been discontinued.
Beach nourishment, while effective as a temporary measure, requires repeated applications. Even in Buxton, which received major nourishment projects in 2017 and 2022, structures remain at risk.
“Beach nourishment buys time to develop what the next solution might be,” noted Dr. Reide Corbett, executive director of the Coastal Studies Institute. “That’s ultimately what you’re doing with nourishment. … It’s not the solution to the problem at hand.”
Taking Action
For homeowners considering their options, officials recommend:
- Completing Dare County’s voluntary interest form to be notified of future grant opportunities. Fill out the interest form by clicking here.
- Maintaining continuous flood insurance coverage
- Contacting the DEQ Division of Coastal Management about potential temporary stabilization measures
- For imminent collapses, securing cleanup permits and contractors through the National Park Service
The Oct. 15 deadline approaches for homeowners wanting to be included in the current HMGP application to the state, with applications available by contacting Grover.
While the programs offer genuine assistance, officials emphasized that solutions remain limited in relation to the scope of the problem. As McGugan noted, available help comes with “a competitive process” and lengthy timelines that may not match the urgency many homeowners face.
For information on Dare County grant programs, contact Barton Grover at [county website]. The Threatened Oceanfront structures Working Group Report is available at the NC Division of Coastal Management website.
