My wife and I purchased an older home in Virginia 3 1/2 years ago. Shortly after moving in I noticed that the crawl space became very damp after rain storms. It was very easy to determine that each time it rained our yard received much of the drainage from the street. The house is situated at the bottom of a 1/4 mile long grade. I brought this up to the city administrator and was told that it was my problem. Before I could do anything to alleviate the problem, the town repaved our road....the road now has a slope towards our yard and we get all the drainage from the road during rains. Even a small storm makes our yard look like a lake. The water then flows under the house and comes up in the crawl space. The crawl space is not just wet, it's muddy most of the time. The dirt around the support pilings is washing away and we have mold everywhere. When I brought this to city officials I was told that all they could do was send out a city engineer to show me what I'd have to do to fix the problem. My question....does the city have any liability here? We are going to have to move soon if this isn't fixed.

Hard to say. It sounds like your property is just at a bad location, and everything is draining its way. I suggest talking with a real estate attorney.