Good news for Wawarsing homeowners sitting atop the leaky Delaware Aqueduct: Last week, the New York City Department of Environmental Protection has agreed to set $3.7 million aside to bail out homeowners whose houses have been damaged by leaks from the underground water tunnel.
The Times Herald-Record reports:
The DEP's cash will about double a state buyout program for Wawarsing that was approved earlier this year, bringing the total pot of money to more than $7 million.
But the buyouts come with several caveats. Homes are only eligible for the state buyout if they're worth less than $250,000, and if the household makes less than 150 percent of median income — a number that officials say is still unclear.
It's welcome news for the homeowners, who have been waiting over a decade for New York City to take meaningful action on the issue. But they're not busting out the champagne just yet:
"I think we need time to digest this," said Julianne Lennon, a leader of the homeowners' group. "I want everything to be laid out on the table before we jump around and celebrate."
Locals are also taking a dim view of the caps on income and home value attached to the funds. From the Daily Freeman:
Ulster County Legislator Terry Bernardo, R-Accord, said city officials are still not accepting full responsibility for problems related to the leaks.
“We certainly need to get the income cap lifted,” Bernardo said. “Why would the income cap apply to any money the DEP is going to give?”
A little envelope math on this: The Times Herald-Record says there are about 53 houses affected by the leaks. According to data from Trulia, the median sale price for a home in Wawarsing is currently $125,000. And the Daily Freeman reports that the DEP may also offer homeowners an additional $20,000 in exchange for a promise not to take further legal action against New York City.
Assuming 53 homeowners were bailed out at an average of $145,000 apiece, the total cost (not counting any administrative overhead) would be $7,685,000 -- a bit more than the total amount set aside by both New York City and the state for the program.
