A federal grant program that funded the city’s efforts to buy homes threatened by erosion along Sugar Creek has been canceled, leaving future phases of the project without a path forward.
The Building Resilient Infrastructure and Communities program, administered by FEMA and the Indiana Department of Homeland Security, was discontinued earlier this year. FEMA announced the cancellation of all BRIC applications from fiscal years 2020–23 in an April 4 press release.
“The BRIC program was yet another example of a wasteful and ineffective FEMA program,” a FEMA spokesperson said. “It was more concerned with political agendas than helping Americans affected by natural disasters.”
Mayor Todd Barton said the program offered a rare solution to a decades-old erosion problem that has already led to the loss of at least one home and continues to threaten others.
“As Sugar Creek shifts and moves, in combination with heavier and more frequent rain events, there’s been erosion along the banks that’s caused issues for homes on the bluffs above the creek,” Barton said. “One home was demolished years ago after the bank had almost completely eroded underneath it.”
A 2019 study funded by the city concluded the best long-term solution was to purchase properties in the path of expected erosion and return the land to green space, allowing the bank to naturally stabilize over time. In 2023, the city received BRIC funding for Phase 1, which included the voluntary purchase and demolition of four homes on Wayne Avenue.
“The purpose wasn’t to stop the erosion,” Barton said. “It was to get residents out of harm’s way and ensure they didn’t lose everything when the ground gave way.”
The city had submitted an application to fund Phases 2 and 3, which would have included 12 more homes — six on Wayne Avenue and five on Sugar Cliff Drive. Eleven of those property owners had voluntarily agreed to participate.
“Our first phase was very successful and came in well under budget,” said Brandy Allen, the city’s Director of Operations and Community Development. “This was the first time federal funds had ever been used for this purpose in Indiana.”
Allen said the cancellation leaves residents in a difficult position.
“These properties are not in a floodplain and are unlikely to qualify for other programs,” she said. “There are few, if any, readily available sources of funding for erosion-related buyouts.”
The FEMA press release said funds will now shift away from pre-disaster mitigation efforts and instead be directed toward disaster response and recovery. Approximately $882 million in unused BRIC funds will be returned to the U.S. Treasury or reallocated by Congress.
Barton criticized the decision as shortsighted.
“This is reckless,” he said. “The whole premise behind this was to mitigate disasters before they happen. It’s much cheaper than responding afterward.”
The city is now exploring alternative funding options but has found few viable leads. Barton said engineering firms are helping identify possibilities, and the city has contacted Indiana’s congressional delegation.
“I reached out to both of our senators and Congressman Baird’s office,” Barton said. “Baird’s office said they were looking into it. The senators’ offices didn’t respond.”
With no immediate solution in sight, the city is making small changes, such as redirecting rainwater runoff, in an attempt to slow the erosion. But the mayor said those steps are temporary.
“If we are able to identify a funding source, we may have to return to a phased approach due to the size and scope of the project,” Allen said.
In the meantime, residents included in the now-unfunded phases remain in limbo, facing an uncertain future as erosion continues.
