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R ELOCATION P LANNING AND A SSISTANCE U NDER T HE U NIFORM R ELOCATION A CT

R ELOCATION P LANNING AND A SSISTANCE U NDER T HE U NIFORM R ELOCATION A CT . DCA Housing & Redevelopment Workshop Lake Blackshear October 22, 2008. WHAT IS URA?. Uniform Relocation Assistance and Real Property Acquisition Policies Act of 1970, as amended

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R ELOCATION P LANNING AND A SSISTANCE U NDER T HE U NIFORM R ELOCATION A CT

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  1. RELOCATION PLANNING AND ASSISTANCE UNDER THE UNIFORM RELOCATION ACT DCA Housing & Redevelopment Workshop Lake Blackshear October 22, 2008

  2. WHAT IS URA? • Uniform Relocation Assistance and Real Property Acquisition Policies Act of 1970, as amended • Applies to all Federally Funded Projects • Protects the Rights of Property Owners • Provides Assistance to Displaced Persons

  3. RESOURCES • HUD HANDBOOK 1378 • 49 CFR 24 • Phillip Fortenberry,Acquisition/ Relocation Specialist U.S Dept of Housing and Urban Development 404-331-5001, Ext.2550 phillip_j._fortenberry@hud.gov

  4. On-Line Resources • http://www.fhwa.dot.gov/realestate/divroster.htm • http://www.hudclips.org • http://www.hud.gov/relocation

  5. What Triggers URA? • HUD-Funded programs or projects which have acquisition as an activity are subject to the acquisition regulations of the URA • A person displaced as a result of acquisition, demolition, or rehabilitation is subject to the relocation requirements of the URA • In some projects (ESG/SHP), a lease can trigger relocation requirements of the URA

  6. The URA Objectives: • To have uniform, fair and equitable treatment of persons who real property is acquired from or for persons who are displaced in a federally funded project • To treat individuals fairly, equally and consistently • For Agencies to act effectively, and in a cost effective manner

  7. Definition of a Project • The term “Project” means any activity or series of activities undertaken with HUD financial assistance received or anticipated in any phase • Projects often combine different funding sources • HOME Funding • CDBG Funding • Agency/Nonprofit Funding • Owner and/or Contractor Funding

  8. PLAN! PLAN! And PLAN SOME MORE! • Early Planning is Critical • Lack of Planning causes inefficiency • Mistakes can be costly and have consequences • Relocation done incorrectly will be done again-Per HUD

  9. What To Consider When Planning: • Minimizing Displacement • Budgetary Implications-Realistic Estimates & Sufficient Funds • Project Coordination-Agencies, neighborhood groups, persons affected • Resource Needs- relocation policies, staffingneeds, training, capacity building • Administrative Requirements

  10. Plan Your Workload • Acquisitions • How many sites are to be acquired? • Is it a Voluntary or Involuntary Acquisition? There are differences in displacement of occupants depending on the type • Displacements • Number of Displaced Persons • Suitable Replacement Sites- Nonresidential • Comparable Housing-residential • Temporary Moves - Suitable housing for residential moves - Negotiated, reasonable assistance for nonresidental

  11. How Much Is This Going to Cost? • Acquisition Costs (Voluntary/Involuntary) - Legal Expenses, Appraisals, Surveys, Environmental, etc. • Relocation Displacement Costs - Moving Expenses - Replacement Housing Payments • Temporary Displacement Costs - Moving and Increased Housing Costs • Special Needs - Background checks, transportation, pets, credit reports, emergency shelter

  12. VOLUNTARY ACQUISITION • Eminent Domain will not be used • No specific site is needed and any of several other properties could be acquired for project purposes • Arms Length, Voluntary transaction • Negotiated Agreement (Fails if not friendly) • Can’t come back later and force the owner to sell • Provide the Fair Market Value before Acquiring the Property • Displaced Tenants receive assistance- but no relocation benefits to Owners

  13. INVOLUNTARY ACQUISITION • Use of Eminent Domain to acquire • Letter of Interest • Letter of Intent (Seldom Used, Triggers Displacement) • Owner Invitation to Accompany Appraiser • Offer Letter with Summary Statement for Fair Market Value • You will acquire the property because it is critical to the project

  14. ACQUISITION RECORDKEEPING • Chapter 6-3 of Handbook 1378 • Notices with Brochures • Invitation to Sellers to accompany appraiser • Valuation or appraisal approved by review appraiser • Offer letter and summary statement attached • Conversation & Negotiation records • Administrative Settlements • Closing Statements & evidence the Seller was paid • Final Title Opinion • Recorded Deed • Appeals, Complaints, Awards

  15. RECORDKEEPING: Keep Good, Detailed Records! • The Grantee is responsible for keeping the records for 3 years- the latest of: - Date final payments are made - Date Project was completed, or - Date issues (audit, litigation, condemnation is complete or resolved) - The Program retention period may be longer

  16. RELOCATION IS EXPENSIVE! • The average relocation takes 68 hours of staff time • The average relocation cost $23,000 • Relocation process can take 18 months or longer

  17. RELOCATION RECORDKEEPING • Records for projects-date of formal approval • Names of Applicants on: • Date of Application • Date of Site Control • Date Agency determines to acquire • Date set by program requirement • Records for non-displaced persons • Records for displaced persons

  18. DISPLACED PERSONS RECORDKEEPING • Contact/Conversation Records • Advisory Services • Social, Transportation, Benefits, Comparables • Proof Notices & Brochures were Received • Inspections • Claims for Payment-accurate, completed, signed • Payment Calculations, issued & required • Support Documents and Verifications • Appeals and Complaints

  19. RELOCATION-Nonresidential • Suitable Sizes & Locations • Zoning Issues • Environmental Issues • What is being moved? Equipment, Inventory • Disconnection & Relocation Issues • Installation Issues • Professional Services • Planning Services • Printing- Signs, letterhead, invoices (Change of address) • Loss of Clients

  20. What is a Person? • Household • Business • Nonprofit Organization • Farm • Any entity with Personal Property on the Project Site

  21. When is a Person Displaced? • For a Person to be displaced, their move must be: • Involuntary • Permanent • If a Person is made to move permanently, they are always displaced

  22. TEMPORARY MOVES-Residential • Moving costs from dwelling and back are paid • Increase in housing costs incurred during the temporary relocation period are covered • Residents relocated must be offered DS&S housing that is reasonable and affordable • Advisory Services are required • Move is for a short period of time- temp moves over a year triggers displacement • Return move to a suitable unit is permitted, but not suggested (could result in appeals/complaints)

  23. Occupants are DISPLACED When: • Required to move for the project • Not offered a DS&S unit • Unreasonable temporary relocation • Unreasonable permanent move within the unit • Proper notices or advisory services not given • Non-residential occupant has unreasonable terms (business/nonprofits) • HUD program change in the residential use or character of the project

  24. Everyone Gets a Notice • Those that are Displaced • Those that are Not Displaced • All new tenants that move in need Move-In Notices

  25. RELOCATION NOTICES • General Information Letter/Notice (GIN) • Define Project • Explain that Occupant can remain • Explain that Occupant must Move • Initiation of Negotiations (ION) Letter • Notice of Nondisplacement • Notice of Eligibility for Relocation Assistance • Sent at same time offer is made • 90 Day Vacate Notice • Can combine the notices-must be timely

  26. General Information Notice • Send it early-application submission, Site Control, Letter of Interest • Must show Proof of Receipt-Hand Deliver or Certified Mail-Get their Signature • Sending it, and sending it early, will limit unnecessary Displacement Claims • Call People, Hold Meetings, Knock on their Doors • Advises tenants not to move or vacate and to keep paying their rent.

  27. HUD Brochures • Attach the appropriate Brochure to the GIN notice: • Residential Tenant HUD 1042 CPD • Residential Homeowner HUD 1044 CPD • Nonresidential Tenant HUD 1043 CPD • The Brochures describe Assistance to be provided based on the type of Relocation

  28. RELOCATION-Residential • You Must Know Everything: • Replacement Housing (Tenant/Homeowner) • Current Rent or Mortgage Payment • Utilities (Average Monthly) • Citizenship Status • Occupancy Need • What’s included in the Move (Storage Buildings, Chickens, doghouses ?)

  29. The Initial Survey-What You Need To Know: • Identify everyone living in the unit/house • Identify non-legal Residents • Identify Mobility or Special Needs • Obtain Income Information • Obtain Self Certification if self employed • Obtain SS# (s) to verify public assistance • Obtain Utility and Lease Information • Determine the type and number of Pets

  30. What you Won’t Know until Later: • Existing Felonies • Bad Credit • Mortgage is Past Due or in Foreclosure • Utility Debts • And More

  31. Assistance & Advisory Services • Begins at initial survey (Include friends, family, church members, pastors) • GIN and Brochures give basic information • NOE identifies at least one comparable, DS&S unit, and specific financial assistance • Flyers are a good way to update the displaced with new available housing

  32. Advisory Services • Inspection of replacements housing to ensure it is decent, safe & sanitary (DS&S) • Help with preparing Claim Forms • Referrals to public and private agencies for financing, employment, health, welfare, education, or legal assistance

  33. DATE OF ELIGIBILITY • The Date of the Initiation of Negotiations(ION) can be the date a project is funded, committed to by all parties, the date an offer is made or some other date depending on the type of project, funding source or proposed action • The ION date is an important date in establishing relocation eligibility (if applicable)

  34. NOTICES DUE AT ION • Notice of Eligibility- issued to all occupants who are permanently or involuntarily displaced from the project • Notice of Nondisplacement to all residents who can remain at the site, or who can return to the site within one year of the initial temporary move date

  35. When a Notice is Not Issued • If a notice is required, but not issued, the displaced may move into a DS&S unit and they will establish the amount to be paid • Displacement before ION date -Lease is not renewed -Oral request -Written request

  36. Other Displacement Notices • Letter of Eligiblility • Identifies comparable dwellings • Establishes a cap on relocation costs • 90 Day Notice- is the minimum for a force move • Eviction “for the project” does not cause a resident to lose his or her right for assistance

  37. The Relocation Process • Collect & Verify Data during planning process • Submit Application, Letter of Interest/GIN, Secure Option, etc. • Identify specific site or replacement unit • Property acquired, or contract, or Offer Letter -Issue Eligibility Notice or Nondisplacement Notice • Move Occupants/Persons • Approve and Pay relocation or displacement claims

  38. Tenant Assistance • Offered a Replacement Housing Unit • Replacement Housing “Gap” Payment • Choice to use “Gap” as Down Payment • Advisory Services • Provide Moving Assistance: • Reimbursement of Actual Moving Expenses • Fixed Moving Expense (based on #rooms furniture)- HUD Schedule by State • Combined Move

  39. Tenants Eligible for Moving Expenses • Moving Expenses can be: • A Fixed Payment- based on a predetermined amount for number of furnished rooms* • Actual Move Payment- Obtain quotes/bids from moving companies for a complete move • Hourly Rate based on Contract Prices *Fixed Residential Moving Cost Schedule

  40. Comparable Replacement Dwellings • Offer comparable replacement units in the Letter of Eligibility and estimated relocation amounts specific to the displaced person • 30% Calculation applies only to tenants who are below HUD’s low-income limit • HUD Limits: http://www.huduser.org/datasets/ura05/RelocAct.html

  41. Comparable Replacement Dwellings • A Comparable Replacement dwelling must be offered to the tenant • It must be Decent, Safe & Sanitary • It must be currently available to rent • Functionally equivalent to their present home • Within the displaced person’s ability to pay • Reasonably located to employment, schools, shopping, transportation-as current home is

  42. Financial Assistance is Not Required When: • Person is a squatter • Person is not lawfully present in U.S • Resident received a Move-In Notice (Sample Letter and Notice for residents that move in during the process)

  43. Summary of Tenant Assistance • Advisory Services • Payment of Moving Expenses (Fixed or Actual) • Replacement Housing Assistance • Rental Assistance or Purchase Assistance

  44. How to Determine Rental Assistance • Tenants may be eligible to Receive rental assistance for a 42 month period under URA • Tenants may be eligible to Receive rental assistance for a 60 month period under 104 (d) • Payments must be made in installments unless used for a down payment-then a lump sum may be paid.

  45. Determine Base Monthly Rent • Base Monthly Rent is the lesser of: -The monthly rent and average monthly utilities of the displacement dwelling, or -Thirty (30) percent of the average monthly gross household income-IF tenants are low income based on HUD income limits

  46. Rental Assistance • Subtract the Base Monthly Rent of the displacement dwelling from the cost of rent & average utilities of the replacement dwelling they moved to–or the most comparable replacement home you provided, whichever is less. • Multiply the difference by 42 to determine how much the tenant will receive.

  47. EXAMPLE • JOE Tenant Currently pays $250 in rent and utilities every month • The Comparable you provide in his letter of eligibility is $350 for rent and utilities • JOE Tenant’s monthly gross income is $700 How much assistance will Joe receive?

  48. What is Base Monthly Rent? The Lesser of: • 30% of $700= $210, or • Avg Rent & Utilities of his dwelling = $250 Base Monthly Rent=$210

  49. JOE Tenant’s Rental Assistance: • If Joe moves into the comparable you selected at $350/ month, he will receive: $350-$210=$140/ monthly rental assistance $140 x 42 months=$5,880

  50. What if Joe moves somewhere other than the Comparable offered? • If Joe Tenant moves into a house/unit that is more than the comparable, Joe will still receive $5,880. The comparable “caps” the amount he can receive. • If Joe Tenant moves into a unit that is less in rent & utilities than the comparable, such as a $300 unit, he will receive: $300-$210=$90 x 42 months $3,780

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