A national study found that New Jersey ranks third in the nation in wasteful spending on flood-prone properties.

That study has prompted analysts to call for change to the national flood insurance program.

The National Resources Defense Council found that more than a half billion dollars of insurance claims were paid out to rebuild about 3,000 New Jersey homes that would inevitably be flooded again.

Union Beach Councilman Anthony Cavallo says that he has rebuilt and raised his home higher than recommended after it was destroyed by Superstorm Sandy. Cavallo says that his city is thinking ahead and he thinks that the federal government should as well.

“It’s federal money, which is our tax dollars, you know?” says Cavallo. “If you rebuild it, you’ve got to rebuild it to comment standards and you’ve got to make it stronger the next storm or else you’re just throwing money away. You’re throwing mine and your tax dollars away.”

The council’s report argues that the cycle of rebuilding homes unintentionally traps some homeowners who would rather move to higher ground than stay in the same place. Homeowners who have gone through the rebuilding process say it's unfair for the federal government to keep funding damage-prone properties.

“I don’t think that’s right. It shouldn’t be funded,” says Sea Bright resident Terry Barrett. “If the people are doing it, it’s one thing, but if the government is funding it, I don’t think it’s right.”

The report recommends lawmakers revamp the national flood insurance program with climate reform and provide homeowners a guaranteed buyout if they don't want to rebuild. 

The council says that rebuilding costs will rise as the sea levels rise in the coming decades. They say that it would be cheaper to buy out modest homeowners’ homes than rebuilding. They say it would cost $163 billion compared to $224 billion to rebuild.

Congress is due to reauthorize the program by September.