STURGIS, S.D. – The Meade County Commission says they have received information from Senator Mike Rounds’ office that a recent lawsuit filed by residents of a Blackhawk subdivision where sinkholes have opened up affects their plan to try for FEMA money.
Meade County Commission spokesman Jerry Derr wrote in a release Tuesday that based on recent information provided by Senator Mike Rounds office, FEMA is prohibited from considering or awarding federal resources until a lawsuit filed by homeowners within the subdivision is resolved.
The county earlier had decided to begin the process of applying for a Hazard Mitigation Grant that would provide up to 75-percent of a home’s value.
Some residents of the Hideaway Hills Subdivision have been forced out of their home due to sinkholes that have developed, exposing an old gypsum mine beneath.
Residents have filed a lawsuit against Meade County, the state of South Dakota and developers of the subdivision, saying the county knew about the mine when the subdivision was built in the early 2,000’s. They are suing for more than $75-million in total damages.
On Tuesday, the Meade County Commission announced they would cease pursuing FEMA funding that would provide up to 75-percent of a home’s value pre-sinkhole after receiving the letter from Rounds’ office.
A motion by Commissioner Rod Bradley stated “that based on recent information provided by US Senator Michael Rounds’ Office that ‘FEMA is prohibited from considering or awarding federal resources until the lawsuit concludes,’ it appears that the Hazard Mitigation Grant Program (HMGP) opportunity is not a viable path to pursue for the homeowners within the Northdale Sanitary District. As Meade County was not obligated- but volunteered- to pursue the HMGP application process, given the new information, Meade County will cease pursuing the HMGP on behalf of the homeowners.”
His motion was seconded by Commissioner Doreen Creed and passed unanimously.
The lawsuit on behalf of 119 homeowners in the subdivision also includes counts against title companies involved in sales of the homes, attorneys for previous owners, and real estate agents who sold the homes. It seeks more than $35,000,000 in compensatory damages, $40,000,000 in exemplary damages, and “such other relief as the court deems equitable.”
The plaintiffs are asking for a jury trial.
