EAST PALESTINE — A week after announcing a nearly $4 million contribution to protecting East Palestine’s drinking water supply, Norfolk Southern announced the interim Value Assurance Program (VAP), calling it another promise kept to the village.

“This is another step in fulfilling our promise to East Palestine to make it right. Norfolk Southern is steadfast in keeping our commitments, including protecting the home values of the community,” said Norfolk Southern CEO Alan Shaw. “This program aims to give homeowners the reassurance they need.”

In March, the railroad said it was focusing on addressing three major concerns in the wake of the derailment — the impact the disaster could have on water quality, property value and long-term community health.

In a press release on Monday, Norfolk Southern said the VAP will compensate for any reduction in value of eligible residential properties as a result of the rail disaster. The VAP will address properties located in East Palestine and some surrounding communities. The railroad explained that, 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. At the time of the long-term VAP announcement, the interim plan will end, and the long-term VAP requirements will apply.

The program is not without caveats. Properties must be located inside the designated area, which extends to New Waterford to the west, New Galilee to the east, South Beaver Township to the south and New Springfield to the north. Eligible 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. In addition, to be eligible and receive compensation under the interim or long-term plan, homeowners must submit a release of property claims which would affect homeowners’ rights in litigation. Eligible property owners who choose to participate must use an approved real estate agent from a list currently being compiled. 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, no further remedy exists for the property owner as Norfolk Southern is not offering to purchase any properties.

Not everybody was expecting to be impressed with the VAP. Sen. J.D. Vance (R-OH) accused the railroad of using Monday’s announcement as a way to hide its opposition to the Railway Safety Act, which is meant to strengthen rail safety with two-person crew requirements, increased fines for railroads, advance notification for high-hazard flammable trains and the implementation of more hotbox detectors and is yet to make it to the floor for a full count form the Senate.

“In the run up to the markup of the Railway Safety Act, Norfolk Southern and its backers in Congress announced that they had reached an agreement to establish a fund making East Palestine residents whole for the diminution of their property value,” said Vance. “This announcement was a transparent attempt to distract from the fact that they were opposed to railroad safety reform to prevent another East Palestine disaster. I did not join this effort because I did not trust the railroad to make good on its word.”

Vance said initial skepticism has been proven true. In May, Shaw penned a letter to Vance and Sen. Sherrod Brown (D-OH) along with other senators in which he promised a fund to compensate homeowners in East Palestine, Ohio for property value diminution. The program was officially announced May 10. The details didn’t follow until Monday, causing confusion among homeowners wishing to participate earlier and under the impression the program had already been rolled out.

“The program has thus far been a complete and total disaster,” he said. “Since their announcement, reliable information has been difficult to impossible for homeowners to secure. My office has been inundated with complaints from residents that Norfolk Southern has failed to answer their very reasonable questions and that their property value has fallen significantly since the railroad set off a chemical bomb in the heart of their town.”

Vance said the VAP is still lacking.

“It is exactly as I had feared–that there would be generosity and openness in public and penny-pinching and evasion in private,” he said. “Proponents of the program, having trumpeted their success in securing empty promises, have not been particularly interested in ensuring the fund worked to help East Palestine. My staff and other Ohio officials have worked together to pressure the railroad to make changes and I understand that Norfolk Southern intends to announce an expansion of the program later this week. My expectations that they will deliver on their promises are low.”

selverd@mojonews.com