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EAST PALESTINE -- Norfolk Southern invited area real estate agents and their clients to an open-door open house on Thursday at the East Palestine Eagles Hall to discuss the details of the railroad's interim Value Assurance Program (VAP) which is meant to help homeowners wishing to leave the village sell their homes for fair market value.
Will Harden, Norfolk Southern Senior Director of Legal Claims, who was on-hand to help realtors and residents better understand the program, said that while Norfolk Southern doesn't want to see any families leave East Palestine, the railroad wants to make it as easy as possible for those who choose to.
"We are here in the village to make things right. We want people to stay and we are here in the community to help in various ways," Harden said. "Through the Family Assistance Center (FAC), we've had about 4,500 households come through for 11,5000 family visits. We are making a huge effort to help residents in need. We would like everybody to stay here but for residents who are determined to leave, who want to sell their homes and leave somewhere else, then this program is available to them."
Protecting property values in the wake of the rail disaster and chemical spill has been a highly-discussed concern in the village. In the weeks following the derailment, Norfolk Southern said it was working on addressing those calls. In September, the railroad rolled out the VAP.
Norfolk Southern explained the VAP is intended to "compensate for any reduction in value of eligible residential properties as a result of the derailment." The VAP addresses properties located in East Palestine and surrounding communities (New Waterford to the west, New Galilee to the east, South Beaver Township to the south and New Springfield to the north). Through the interim VAP, those residents in the defined program area who have sold their homes since Feb. 3, currently have their homes on the market, or will put their homes on the market, are eligible to be compensated for any difference between their home's market value and its sale price. The interim VAP will also be available for future sales. Norfolk Southern reported a full long-term program is in development. When the long-term VAP is announced, the interim plan will end, and the long-term VAP requirements will apply. No definitive timeline has been placed on the VAP, but representatives from Norfolk Southern expect the program to span years.
The program, which was lauded by Norfolk Southern, drew ire from Sen. Sherrod Brown (D-OH) and his republican counterpart J.D. Vance (R-OH) when it was announced. Both lawmakers criticize the program's restrictions and certain caveats. For example, to participate in the VAP, property owners must not be in bankruptcy at the time of sale or at the time the VAP claim is made, must satisfy all outstanding liens against the property at or prior to closing and must follow the procedures detailed in the Interim VAP booklet, including timely submitting all required forms and documentation to the VAP Administrator. Property owners must use an approved real estate agent from a compiled list. Furthermore, VAP compensation is based on a comparison of sale price and market value and not a loan amount or what is owed on an existing mortgage. If a property fails to sell, the property owner is seemingly out of luck as Norfolk Southern is not offering to purchase any properties.
Those stipulations drew criticism but none more so than the condition that placed participation eligibility on the homeowners willingness to sign a release that would affect homeowners' rights in litigation.
Harden explained the provision would release Norfolk Southern of liability for property damage only.
"The value assure program for residents involves signing property-damage release only. There are no other claims that are concluded through this program, only property," Harden said. "No person injury, no other type of claim, just property damage which would be remedied when they sell their home in this program."
Harden said that while no resident has yet to be compensated through the program, there are currently 12 homes in the process. He said that given the volume of calls and emails the FAC has received that have expressed interest in the VAP he expects that number to increase six fold.
While the program was established to protect home values, it is unclear what, if any, negative impact the derailment has had on the real estate market in the village. According to Rocket Homes, a tech company which tracks and analyzes real estate data, there were 43 homes on the market in East Palestine in November with nine homes sold. By comparison, 42 were for sale in November of 2022. Of the homes that have sold in the East Palestine area recently, 33 percent of those homes sold within 30 days and 56 percent of homes were sold within 30 to 90 days. However, over half of those homes sold below asking price. Still, Rocket Homes called East Palestine "a buyer's market," reporting that the median home sold price in East Palestine was $125,000 in November, an increase of 25 percent from last year.
Residents seeking more information or who want to participate in the VAP but are unsure if what step to take first are encouraged to visit the FAC or the railroad's website dedicated to the derailment recovery.
"Come see us at the Norfolk Family Assistance Center at Rebecca Place and pick up a flier, or go to the website nsmakingitright.com and click on the link for the value assurance program," Harden said. "The documentation for the program is online, that's the first step. That's where you can find the most information about the program."
Harden also confirmed that approximately 100 households are still displaced in the temporary assistance relocation program, which aided families who choose to leave during track remediation. He said there an additional 25 families have been living elsewhere since the day of the derailment. Norfolk Southern announced last week that temporary relocation financial assistance will end on Feb. 9, shortly after the rail disaster's one-year mark, but Harden stressed that doesn't mean all support will stop.
"Ten months later, Norfolk Southern is still here for the long haul. We said that and we meant it," Harden said. "We have programs in place like the VAP, to lend assistance to residents who need it. We are not going anywhere."