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MOUNT VERNON — The cost of flood insurance prompted a Knox Pages reader to ask about the 12 homes in South Vernon built through a Land Bank-Habitat for Humanity partnership.
“Why did Knox [County] Land Bank buy 12 lots on Columbus Road for Habitat for Humanity, especially since that is considered a flood zone?” our reader wrote. “Flood zone insurance typically runs from over $2,000 to upwards of $7,000 a month.
“I can’t afford that — let alone someone going through Habitat for Humanity.”
The project started in January 2024 when the Foundation Park Conservancy donated 15 lots to the Land Bank. Twelve of the lots were buildable.
The Land Bank partnered with Habitat for Humanity of Knox County and Schlabach Builders to build the homes.
“We were aware of the floodplain issues when we accepted these properties from Foundation Park Conservancy,” Land Bank President Sam Filkins said.
“While there was nothing we could do to completely remove the properties from the floodplain, we worked to mitigate the impact as much as possible.”
He said that on some lots, that meant strategically placing the home so it would be outside the floodplain.
“On others, we raised the foundations two feet above the base flood elevation and incorporated floodgates into the foundation design. These improvements significantly reduced the cost of flood insurance,” Filkins said.
Reduced sale price helps cover cost of flood insurance
Filkins said that on average, homeowners with houses in the floodplain will pay approximately $100 to $200 a month for flood insurance.
“We recognized this could affect affordability, so we adjusted the sales prices to ensure no homeowner would spend more than 30 percent of their income on total housing costs,” he said.
“Every homeowner was informed about the need for flood insurance, and Habitat worked with each family to secure a policy so the cost could be included in their monthly escrow payment.”
Two lots were not buildable when the housing project began.
One was excluded because it was located almost entirely on the levee or within Dry Creek. The other was 107 Columbus Road, which was too narrow to accommodate a home under current regulations.
“After the neighboring house at 107½ Columbus Road was damaged by a fire, the owner generously donated the property to the Land Bank. We used state demolition funds to clear the site, combined the two parcels, and created one additional buildable lot,” Filkins said.
As of July 21, the Land Bank has sold six of the 12 homes. The remaining six are in contract.
The Land Bank and Habitat held dedication ceremonies for six homes; more dedications are scheduled.
