Elizabeth City is seeking nearly $3 million in flood mitigation grant funds to buy 21 homes from residents affected by flooding in the Oxford Heights subdivision, City Manager Rich Olson announced Friday.

Olson said a letter of interest, sent Friday to the N.C. Division of Emergency Management, seeks funds under the federal 2007 Flood Mitigation Assistance Grant Program to buy 21 residential and two commercial properties.

Olson said he drafted the letter with help from Christy Saunders, emergency management coordinator for Pasquotank and Camden counties.

The low-lying 101-home subdivision was deluged with flooding from Tropical Storm Ernesto in September, and flooding in general has increased in recent years. The letter of interest is the first step in the process, he said.

"A property owner questionnaire was sent to the affected residents in Oxford Heights," Olson said. "Additional information will be required by FEMA over the next few weeks and we will refine our application once we have received the questionnaires back from residents.

Olson said a city match of an unknown amount would be required for the grant.

Since this is the first time the city has sought state and federal funds to buy out homes, Olson said he isn't sure how good the city's chances are of getting approved. But he said he remains hopeful.

Several longtime residents have already said they'd accept a fair buyout of their homes, although they are concerned they wouldn't be able to afford a house of similar size in the area due to recent escalating home prices.

Dozens of Oxford Heights residents have attended recent City Council and Pasquotank Commissioners meetings asking for help in solving their flooding problems, which most believe are being worsened by stormwater runoff from housing and commercial development.