CBS/AP/ February 5, 2013, 10:52 AM

100 days post-Sandy, N.Y. Gov. Cuomo wants some areas emptied

A woman walks with her dog by homes damaged by Hurricane Sandy along the beach in the Rockaways on January 15, 2013, in New York City.

A woman walks with her dog by homes damaged by Hurricane Sandy along the beach in the Rockaways on January 15, 2013, in New York City. / Getty Images

NEW YORK New York Gov. Andrew Cuomo wants to spend up to $400 million to buy and demolish homes wrecked by superstorm Sandy and permanently preserve the land as undeveloped coastline.

A Cuomo administration spokesman confirms the state would use a portion of the $51 billion disaster relief package approved by Congress last week. That would be subject to federal approval.

The plan first reported Monday by the New York Times was presented to federal officials Friday, and the Times reports some are receptive to the idea.

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Aerial views of superstorm damage

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Sandy victims left in the cold

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Sandy's devastation on Staten Island

The program would offer previous full market value for homes in the 100-year flood plain substantially damaged by the storm and related flooding. It's estimated 10 to 15 percent of 10,000 owners might apply.

Cuomo raised the buyout proposal earlier, along with other new measures to protect New York City's underground infrastructure from flooding.

The proposal may be a tough sell in many hard-hit areas, including the Rockaways, reports CBS station WCBS in New York.

Local resident Daniel, of Belle Harbor, Queens, told WCBS pre-Sandy value was not all that great anyway. He said he does not expect people to go for the plan.

"Especially if people still have their mortgages, or whatever, like that, then we get the money, we don't even have enough money to pay off our mortgages," Daniel said. "Where would they be then? Where would they live?"

State Sen. Joseph Addabbo Jr., D-Queens, told WCBS only a few people have shown any interest. But he predicted that more might when new flood maps come with strict requirements that may cost them too much to meet.

A similar plan in New Orleans after Hurricane Katrina was met with fierce resistance by locals after it was proposed by then-Mayor Ray Nagin. Eventually, many of the low-lying areas marked for greenspace saw residents return anyway.

So far, Gov. Chris Christie of New Jersey has not announced any similar intentions regarding the numerous shore communities in that state that were ruined by Sandy.

On a Monday night appearance on David Letterman's show, Christie only talked about rebuilding efforts.

"We still have 42,000 families tonight who are homeless" as a result of Sandy, he told Letterman. He also said that nearly 82,000 businesses are still out of commission.

The governor stressed efforts he's making to ensure that properties are rebuilt stronger and that standards are higher.

"We can't have this happen again," he said.

Meanwhile, residents in one New Jersey beach community are struggling with insurance claims so much that Christie and members of his cabinet are heading there in person later Tuesday.

Christie is taking his banking and insurance commissioner, the director of the Office of Recovery and Rebuilding and other officials to Union Beach.

He's planning to announce measures to help residents deal with insurance disputes.

State and Federal Emergency Management Agency employees are to be on hand in the community all day to help residents with their individual problems.

© 2013 CBS Interactive Inc. All Rights Reserved. This material may not be published, broadcast, rewritten, or redistributed. The Associated Press contributed to this report.
6 Comments Add a Comment
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WildPainter says:
With the sea levels rising and the continuing global warming the storm intensity will continue to rise all over our country. The fires, tornadoes, floods and hurricanes have struck with increasing devastation all over our country.

The majority of homeowners who suffer losses do struggle with their insurance providers for a just settlement. Few get it. There are certain services that the government is better equipped to provide then a for profit business. As a homeowner I'm tired of seeing my insurances premiums being continuously jacked up only to read about the profit returns that these insurance providers are reaping. Profit and partisan politics both need to be kept out of disaster relief and protection.

This is an opportune time for our country to consider a Federal disaster insurance program that every
adult pays into. When a disaster strikes the government will have the funds to step in and provide the necessary relief and support.

Each disaster has exposed the crumbling state of our national infrastructure. We need about 20 million more jobs in our country. It's time we press our elected officials for the creation of a Federal Infrastructure Bank to
design and construct the necessary flood controls for our coastal cities and municipalities that line our river ways. Prevention is much cheaper then disaster relief. Let's be smart about this. There are no turn key answers. Doing more of the same is simply insane.
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PourpaixPourpaix says:
Homewrecker!
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twmat311 says:
Pre-storm values weren't that great, and buyout money won't cover the mortgages still owed. And maybe the insurors won't pay out, or won't reinsure.

So where does that leave them? Between a rock and a hard place. Nice views aside, you have to think of this ("what if?") before you sign the contracts to buy.

Maybe no one could have predicted the severity - but many of these coastal places seem to be eye level with the water. "In over your head" risk just seems to run about 50-50, so it sweems the only thing you can do is try to plan ahead, not hope for rescue.
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twmat311 replies:
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I didn't even try to weigh in the effect of the real-estate bubble; just like with all 401K victims, there will likely be nothing done ever to correct that setback. There will be a generation whose legacy will be partly that financial "punishment," for doing nothing wrong - added on to any/all natural disaster effects.
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Scimajor says:
"Especially if people still have their mortgages, or whatever, like that, then we get the money, we don't even have enough money to pay off our mortgages," Daniel said. "Where would they be then? Where would they live?"

That's an excellent ponit actually. If people had a mortgage that was larger than the market value of their house (B.T.W. It wasn't their fault that the housing market crashed. My house is still worth about half what it was before the crash.) then they'd be screwed.
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ballwyllo replies:
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It makes sense to buy them out and put the land in reserve status. Why do I think that somehow, once the land is bought out, it then sold to a shell company owned by some politician who then sells it to some developer and round and round we go!