The Lifecycle of Grants: Acquisition, Relocation and Procurement

1. The Lifecycle of Grants:Acquisition, Relocation and Procurement November 8, 2012

2. Presenter Betsy Giffin Section Supervisor, Training & Technical Assistance Office of Community Development 77 South High StreetColumbus, Ohio43215614.466.8216 F 614.752.4575 Betsy.Giffin@development.ohio.gov

3. TopicsIntroduction, Resources, and Tips • Real Property Acquisition • Relocation of Residential, Businesses, Non-Profits, and Farms • Section 104(d) • Procurement • Administrative Services • Consulting Services • Interagency Agreements • Intra-agency Agreements • Engineering and Architectural Services

4. Acquisition, Relocation, and Section 104(d)

5. The Act and Regulations • The Uniform Relocation Assistance and Real Property Acquisition Act of 1970, as amended (URA) • 49 CFR Part 24 is the government-wide regulation that implements the URA. • The regulations HUD follows are U. S. Department of Transportation regulations at Title 49 of the Code of Federal Regulations

6. Regulations • Available on-line • http://www.gpo.gov/fdsys/browse/collectionCfr.action?collectionCode=CFR&searchPath=Title+40&oldPath=&isCollapsed=true&selectedYearFrom=2010&ycord=1593

7. What are the URA Objectives • To provide uniform, fair and equitable treatment of persons whose real property is acquired or who are displaced in connection with federally funded projects • To ensure relocation assistance is provided to displaced persons to lessen the emotional and financial impact of displacement • To ensure that no individual or family is displaced unless decent, safe, and sanitary (DSS) housing is available within the displaced person's financial means • To help improve the housing conditions of displaced persons living in substandard housing • To encourage and expedite acquisition by agreement and without coercion

8. How do URA requirements impact your project? • Agencies conducting a program or project under the URA must carry out their legal responsibilities to affected property owners and displaced persons. • Agencies should plan accordingly to ensure that adequate time, funding and staffing are available to carry out their responsibilities.

9. Some of those responsibilities include: • For Real Property Acquisition– 2 kinds • Involuntary • Voluntary

10. Some of those responsibilities include: InvoluntaryAcquisition • Appraise property before negotiations • Invite the property owner to accompany the appraiser during the property inspection • Provide the owner with a written offer of just compensation and a summary of what is being acquired • Pay for property before possession • Reimburse expenses resulting from the transfer of title such as recording fees, prepaid real estate taxes, or other expenses.

11. Involuntary Acquisition Involuntary • Property is dilapidated and blighting the neighborhood • Property owner not willing or unable to make repairs • Specific property needed for another purpose e. g. easements • Property owner is not willing to sell

12. Voluntary Acquisition Voluntary • Property is dilapidated and blighting the neighborhood • Property owner not willing or unable to make repairs • You have a willing seller • Selling price is fair and reasonable

13. Some of those responsibilities include: • For Residential Displacements • Provide relocation advisory services to displaced tenants and owner occupants • Provide a minimum 90 days written notice to vacate prior to requiring possession • Reimburse for moving expenses • Provide payments for the added cost of renting or purchasing comparable replacement housing

14. Some of those responsibilities include: • For Nonresidential Displacements (businesses, farms, and nonprofit organizations) • Provide relocation advisory services • Provide a minimum 90 days written notice to vacate prior to requiring possession • Reimburse for moving and reestablishment expenses

15. Resource for Acquisition, Relocation, & Residential Anti-Displacement and Relocation Assistance Plan • Real Estate Acquisition and Relocation Policy and Guidance • HUD Handbook 1378 • Available On-line • http://portal.hud.gov/hudportal/HUD?src=/program_offices/comm_planning/library/relocation/policyandguidance/handbook1378

16. Let’s Take a Look at the Index of the Handbook • Invaluable Resource • Contains many, many sample forms • Is kept up to date on-line

17. Publications • HUD Brochures • These brochures provide general information about rights when real estate (real property) is acquired, or person/entities forced to move from tier home, business, or farm as a direct result of the acquisition, rehabilitation or demolition of real property for a Federally-funded project.

18. Brochures • Acquisition • When a Public Agency Acquires Your Property • Relocation • Relocation Assistance to Tenants Displaced From Their Homes • Relocation Assistance to Tenants Displaced From Their Homes (Section 104(d)) • Relocation Assistance to Displaced Businesses, Nonprofit Organizations and Farms • Relocation Assistance to Displaced Homeowner Occupants * Also available in Spanish

19. Brochures • Other Publications • Developing Projects With HOME Funds: Ten Things You Need To Know About Relocation and the Uniform Act (URA) * but might have been afraid to ask • Planning and Budgeting Relocation Costs for HUD-Funded Projects • http://portal.hud.gov/hudportal/HUD?src=/program_offices/comm_planning/library/relocation/publications

20. Section 104(d) aka Barney-Frank Amendment • Each Grantee has an Anti-Displacement Plan and Certification • Replacement of Occupiable Housing • Extra Relocation Assistance for LMI • 24 CFR 570.488(c)

21. A Housing Unit Demolished Must be Replaced if: • Occupied, regardless of its condition and rents at or below FMR • Currently vacant but occupied within the past 3 months regardless of its condition • Vacant for more than 3 months and suitable for rehabilitation

22. Housing Does Not Need to Be Replaced if • Property that has a value of less than $10,000, • Has been vacant for at least 3 months, • and has been documented to be dilapidated will be considered not suitable for rehabilitation.

23. Tenants and Relocation • Tenants required to leave a property because of sale or intent to sell are eligible for relocation services and cost.

24. Relocation Benefits • Can also be due to homeowners, non-profits, businesses, and farms if displaced

25. Change in Use or Property Disposition for Property Acquired an/or Improved > $25,000 Recipient may not change the use or planned use of property (including the beneficiaries of such use) unless • affected citizens are given reasonable notice of, and opportunity to comment on, any proposed change, and either:

26. Change in Use or Property Disposition for Property Acquired an/or Improved > $25,000 • The new use of such property qualifies as meeting one of the national objectives and is not a building for the general conduct of government; • or the following requirements are met:

27. Change in Use or Property Disposition for Property Acquired an/or Improved > $25,000 • All parties agree to a new use which does not qualify as meeting a national objective • The CDBG program is reimbursed the current fair market value of the property.

28. Liens • Liens are required to be placed on real property which is acquired and/or improved in whole or in part using CDBG funds in excess of $25,000. • Demolition is considered an improvement.

29. Procurement

30. Basic Procurement Requirements per 24 CFR Part 85 Competitive Construction Bidding Competitive Proposals Small Purchases Noncompetitive Proposals Administrative Services Professional Services Interagency Agreements Force Account Contract Provisions What We Will Cover Today

31. Procurement Regulations • Layered • Federal (24 CFR Part 85) • State (Ohio Revised Code) • Local

32. Procurement Standards • Grantees use their own Procedures • Provided they conform to: • Applicable Federal Law • Standards identified in 24 CFR Part 85

33. Code of Conduct • Must be written procedures • Governs employees employed in the award or administration of contracts

34. Code of Conduct • Identify Conflict of Interests • Standards for Procurement and Contracting • Financial Management and Recording Systems • Cost Allowability • Program Monitoring

35. Full, Open and Free Competition – Regardless of Dollar Amount • All procurement • Fair and open competition is a basic tenet of public procurement. • Such competition reduces the opportunity for favoritism and inspires public confidence that contracts are awarded equitably and economically.

36. Four Methods of Procurement Identified in 24 CFR Part 85 • Small Purchases (less than $50,00) • Sealed Bids ($50,000 or more) • Competitive Proposals • Noncompetitive Proposals

37. Methods of Procurement • Competitive Sealed Bidding • Competitive Sealed Proposals • Small Purchases • Sole Source Procurement • Emergency Procurements • Special Procurements • Architectural and Engineering Services • Administrative Services, etc.

38. Sealed Competitive Bids

39. Competitive Sealed Bids • Cost > $50,000 • Formal Advertising • Publicly solicited • Publicly Opened • Preferred for construction contracting

40. Competitive Sealed Bids • Firm-fixed-price contract (lump sum or unit price) is awarded to the responsible bidder who is the lowest price.

41. Competitive Sealed Bids If sealed bids are used, the following conditions must apply: • A complete, adequate, and realistic specification or purchase description must be available • Two or more responsible bidders are willing and able to compete • Procurement lends itself to a firm fixed price

42. Bid Advertisement - Counties • ORC 307.87 - Notice shall be published once a week for not less than 2 consecutive weeks preceding the day of the opening of bids in a newspaper of general circulation • The county must also post the notice on a public bulletin board

43. Bid Advertisement - Counties • The county may also cause notice to be inserted in trade papers or post the notice on the county’s internet site. • If the notice is posted website, the county may eliminate the second notice otherwise required to be published in a newspaper, provided that the first notice published in such a newspaper meets all of the following requirements:

44. Bid Advertisement – Cities and Villages • ORC 731.22 - “for not less than 2 nor more than 4 consecutive weeks in a newspaper of general circulation” • No Internet posting provisions

45. Procurement Process • Maintain written documentation of the process • Including bid table or quote tabulation sheet • Issue Notice of Award to successful contactor

46. Small Purchases

47. Small Purchases • Simple and informal method • Lower of less than $50,000, local policy, or charter • Federal rules different rules than Ohio Revised Code

48. Small Purchases • 1st must develop scope of project • Development detailed specifications about the goods and services to procured so an apples to oranges evaluation can be done

49. Bid Advertisement - Counties • It is published at least two weeks before the opening of bids. • It includes a statement that the notice is posted on the county’s internet site on the world wide web. • It includes the address of the county’s internet. • It includes instructions describing how the notice may be accessed on the county’s internet site.

50. Small Purchases Initial Third Party Estimate of Cost • Catalog prices • Data from similar previous bids • Engineer • Phone inquiries sometimes • Etc.