Georgia's '100 Year' Drought Worsens, Affects Real Estate Transactions

Georgia's '100-Year Drought' has sparked controversy throughout the region and has already had an effect on area real estate transactions. I have personally been involved in two deals in rural West Ga involving homes being purchased that both used wells which had recently run dry. One of these homes did not have county water supplied yet, the now-dry well was the only source of water for the home. A competent home inspector discovered the situation and the switch-over to county water had to be worked into the transaction. Shallower wells are drying up throughout the region.

A low priced foreclosure, if an investor had snatched this home up without an inspection the additional $3000 needed to convert to county water would have been a hidden cost to them, another great reason to always use a professional home inspector for every purchase. I recommend that all pending Douglasville real estate transactions should be reviewed to determine if they are affected by this situation.  Most homes in the city and county are supplied by the WSA but many  older homes still have wells which have been converted for lawn irrigation purposes.

The worsening drought has been heavily reported on by the Atlanta media, area residents were stunned by a recent WSBTV feature which questioned how the entire North Georgia region can be under the strictest water restrictions ever issued while the Army Corps of Engineers releases 1.9 million gallons of water a day downstream to Florida and Alabama which are not under these same water restrictions. Douglasville announced today that residents found violating the watering ban would have their water shut off for a first offense, with a $1000 fee to have it re-connected.

Governor Sonny Perdue issued an ultimatum to the Corps October 12th demanding the Corps reduce the flow downstream which Georgia estimates would drain Lake Lanier completely by January 2008. Later that same day the Corps issued a news release stating their intention to release even more water downstream. The Governor's ultimatum gave a deadline of the October 17th before the State begins legal action against the Army Corps of Engineers which will be the 2nd such suit since 2006. Today's deadline ended with a letter to the Governor's office, the Corps again refusing to reduce the amount of water being released. The Corps follows Federal guidelines which regulate the amount of water released to protect wildlife, homes, and businesses downstream.

The Georgia Water Council has scheduled a series of public hearings around the state to receive public input on a revised draft of the Comprehensive Statewide Water Management Plan. The Georgia Association of REALTORS® (GAR) has joined a broad-based coalition formed to review and critique the proposed water plan. The GAR has taken a stance on the issue and encourages Georgia REALTORS to support the following:

• The Purpose of the State Water Plan Should be to Meet All Reasonable Current and Future Needs for Water in the State while protecting natural systems.
• The State Water Plan Should Prioritize Water Resource Assessments, Which Can Begin While the Needs for New Regional Water Supplies are Being Determined and Met.
• Development and Implementation of the State Water Plan Must be State Funded.
• The State Water Plan Should Provide Authorization and Guidance, not Directives, to the DNR Board.
• To Meet Future Water Supply Needs of the State, the State Water Plan Should Emphasize and Concurrently Support Conservation, Additional Water Supply Storage, Water Reuse, and Water Transfers.
• Adaptable In-stream Flow Regimes Must be Established to Concurrently Meet the Needs of Human Use and Environmental Demands.
• The Economic Impact on All Planning and Water Resource Management Options Must be Identified and Considered Before New Policy and Planning Changes are Made.
• Water Development and Conservation Plans Must Be Part of the Regional Planning.
• The "Introduction and Guide to Statewide Water Planning" Sections of the June 28 and Sept 13 Versions of the BluePrint document Should Not be Part of the Water Council's Final State Water Plan.
  

The public hearings are scheduled through October at various locations and begin at 6:00 P.M. I will continue to provide updates on the drought and its effects on Douglasville Real Estate and the West GA market as warranted.