Relocation: Minimizing Resident Displacement

1. Relocation: Minimizing Resident Displacement July 31, 2013

2. Agenda • Overview and Timeline • General Information Notice at Time of Application to TDHCA • Two Types of Relocation Assistance • Household Assessments • Initiation of Negotiations Date • Notice to Move • Relocation Requirements and Enforcement

3. Relocation Overview and Timeline

4. The Main Point Tenants displaced by federally-funded construction must receive: • Relocation Notification, • Relocation Counseling, and • Relocation Financial Assistance Failure to comply can result in: • Substantial, unplanned, out-of-pocket Expenses

5. Why Provide Relocation Assistance? • Required for all federally-assisted projects with tenants displaced due to renovation or demolition • Protects residents from unreasonable or forced displacement • Recognizes the financial burden and discomfort associated with tenant temporary or permanent displacement

6. Benefits to Developer for Compliance • Proper planning and implementation of relocation minimizes developer worries and tenant discomfort • Facilitates tenant move and rehabilitation of units • Helps keep project construction on-time and on-budget

7. Consequences for Non-Compliance • Developer may Pay 42 to 60 months of rental assistance for each household misclassified or not properly notified • Disbursements withheld • Sanctions: Monitoring and compliance enforced • Mandated 18-month escrowfor tenants who move and did not receive required Notices • 18 months = 12 months NOE receipt plus 6 months to secure DSS unit

8. What Kind of Notices are Required? Types of Notices that must be distributed to tenants: • General Information Notice (GIN) • Notice of Non-displacement (NND) or • Notice of Eligibility (NOE) • Notice to Vacate • Move-in Notice, exempting new tenants

9. Relocation Timeline Written Agreement with TDHCA = ION 90-Day or 30-Day Notice Relocation Begins House-hold Assess-ments GIN Applica-tion and Award NND/ NOE Notice to Tenants Notice to Tenants Notice to Tenants

10. Guidance and Instructions • 49 CFR part 24 • Uniform Relocation Assistance and Real Property Acquisition –Final Rule • Section 104(d) of Housing and Community Development Act • Regulations (24 CFR Part 42) • Displacement, Relocation Assistance, and Real Property Acquisition for HUD-assisted programs • HUD Handbook 1378 Tenant Assistance, Relocation and Real Property Acquisition • TDHCA Relocation Handbook

11. General Information Notice (GIN) at Time of Application to TDHCA

12. Relocation Timeline Written Agreement with TDHCA = ION 90-Day or 30-Day Notice Relocation Begins House-hold Assess-ments GIN Applica-tion and Award NND/ NOE Notice to Tenants Notice to Tenants Notice to Tenants

13. Notice Distribution: Existing Tenants GIN informs tenant of: • Federal funds requested, potential displacement, conditions of Relocation Eligibility, and asks tenant NOT to move Use TDHCA GIN as a guide (Handbook, Appendix 3)

14. Notice Distribution: Existing Tenants • Send GIN to ALL tenants listed on Rent Roll submitted with TDHCA application • Confirm receipt of GIN by each tenant • Signed by tenant, or • Certified Mail receipt

15. Notice Distribution: New Tenants Move-In Notice • Informs new tenant they may be displaced and ineligible for relocation assistance • Distribute after GIN ONLY IF Developer owns the property • Not required if tenants will/must receive relocation assistance (i.e., PHA, Voucher, HAP or Supportive Housing) • Use TDHCA sample – Appendix 5

16. Two Types of Relocation Assistance:URA and Section 104(d)

17. Relocation Timeline Written Agreement with TDHCA = ION 90-Day or 30-Day Notice Relocation Begins House-hold Assess-ments GIN Applica-tion and Award Demolition? NND/ NOE Notice to Tenants Notice to Tenants Notice to Tenants

18. Two Types of Relocation Assistance Either type may cover tenants: 1) Uniform Relocation Act (URA) • Applies to ALL federally assisted projects • Requirements of relocation assistance payments are less than 104(d) • Restricts payments or advisory services to “illegal aliens” 2) Section 104(d) • Demolition and Reconstruction If eligible for both, tenant has right to choose URA or Section 104(d) benefits

19. Concerning “Illegal Aliens” URA prohibits providing relocation assistance to “illegal aliens” but still obligates Developer to send required Notices & provide “pro rata” RA to lawful household members “States Public Law 105-117, “illegal aliens” are not eligible for relocation assistance under the Uniform Relocation Act” Section 104(d) is silentconcerning the provision of relocation assistance to “illegal aliens”; therefore, they are not excluded from RA if low-income and displaced

20. Differences between URA and 104(d)

21. Household Assessments

22. Relocation Timeline Written Agreement with TDHCA = ION 90-Day or 30-Day Notice Relocation Begins House-hold Assess-ments GIN Applica-tion and Award Non-Displaced or Permanently Displaced? NND/ NOE Notice to Tenants Notice to Tenants Notice to Tenants

23. Non-Displaced or Permanently Displaced?

24. Household Assessments Relocation Assistance (RA) assessment:complete for each household to determine: • Eligibility to return • Tenant status – Displaced or non-displaced • RA finalized (moving costs and rental assistance). Use: • TDHCA Household Relocation Budget Assistance Calculator (Appendix 6) or • HUD Claim Form (1378 – Appendix 14)

25. Initiation of Negotiations (ION) – Critical Milestone

26. Relocation Timeline Written Agreement with TDHCA = ION 90-Day or 30-Day Notice Relocation Begins House-hold Assess-ments GIN Applica-tion and Award Written Agreement? NND/ NOE Notice to Tenants Notice to Tenants Notice to Tenants

27. Notice Distribution: Initiation of Negotiations (ION) ION Date (TDHCA written agreement) Notices Required by this date: • Notice of Non-Displacement (NND) • For Non-Displaced Tenants • Notice of Eligibility (NOE) • For Permanently Displaced Tenants

28. Notice of Non-Displacement (NND) • Distribute at ION • Return tenant-signed copy to TDHCA with written agreement • Confirm non-displacement status and eligibility to return to project • States temporary relocation move-out instructions, timeframe and return estimate • Specifies temporary eligible moving expenses and replacement housing costs (Not to exceed 12 months)

29. Notice of Non-Displacement (NND) • Tenant’s right to appeal, details given • Permissible to combine NND with GIN ONLY if : • Applicant owns property • Tenant eligibility is confirmed • Notice contains NND required language • Use TDHCA NND (Appendix 7) as a guide

30. Eligible Relocation Costs for Non-Displaced Temporary Displacement (NND) • Moving costs (actual or owner paid) • Rental assistance and eligible Security Deposit • Storage • Utility connection fees • Cable, telephone, and internet connections • TDHCA Per diem meal allowance (hotel stay) – listed in Relocation Handbook RA in leased unit for a period NOT to exceed 12 months or becomes permanently displaced

31. NOE for Displaced Tenants • Distribute Notice of Eligibility at ION • Return tenant-signed copy to TDHCA with written agreement • Confirms displaced status, specifies eligible moving expenses and replacement housing costs (URA 42 months or 104(d) 60 months) OR eligible down payment assistance • Lists at least three comparable units

32. Definition of “Comparable Unit” • Must meet Decent, Safe and Sanitary (DSS) inspection standards • Use TDHCA DSS form (Appendix 11) • Must accommodate household size needs • Must be located in Project service area • Must use local equivalent rents • Must not use HUD Fair Market Rent (FMR) cap unless required by Program (i.e. PHA or Voucher)

33. NOE for Displaced Tenants Notice of Eligibility • Provides move-out instructions • Explains tenant’s right to appeal • Use TDHCA NOE as a guide (Appendix 8 in the Handbook)

34. Eligible Relocation Costs for Displaced Permanent Displacement (NOE) • Moving costs (actual or HUD Fixed http://www.fhwa.dot.gov/realestate/fixsch96.htm) • Rental assistance (cash or Voucher) • Security Deposit (URA or 104(d)) • Utility connection fees • Cable, telephone, and internet • Down payment assistance

35. Other Actions: At ION Implementation of Relocation Plan • Identify Relocation Coordinator • Tenant-level impacts and dates -- specify • ID comparable temporary and permanent units • Estimate all relocation costs – update total relocation budget • Comply with URA or 104(d) Rental Assistance payment and down payment assistance • Move-In Notice: Issue to any tenants moving in after ION date

36. Notice to Move

37. Relocation Timeline Written Agreement with TDHCA = ION 90-Day or 30-Day Notice Relocation Begins House-hold Assess-ments GIN Applica-tion and Award Tenant status confirmed? NND/ NOE Notice to Tenants Notice to Tenants Notice to Tenants

38. Relocation: 90-Day Notice • Distribute after tenants’ non-displaced or displaced status is confirmed • Stipulates move deadline date • States Public Law 105-117, “illegal aliens” are not eligible for relocation assistance under the Uniform Relocation Act • Remember: URA still obligates Developer to send required Notices & provide “pro rata” RA to lawful household members

39. Relocation: 90-Day Notice • Permissible to combine NOE and 90-Day notice if construction schedule requires • Permissible to send NND a 30-Day notice for temporary moves if in-house or less than 6 months

40. Relocation Requirements and Enforcement

41. TDHCA Requirements and Penalties • Developer may be required to pay or escrow an amount equal to maximum entitlement RA amount up to 18 months, if tenants are not properly classified or notified • Disbursements require relocation compliance • TDHCA monitors relocation and enforces compliance • One-to-one replacement is required for Projects that demolish units • TDHCA enforces tenants’ rights to appeal

42. Important Reminders • Follow timelines • Ensure tenants receive required Notices • Account for ALL tenants listed on Rent Roll at GIN and ION to avoid need to find missed tenants and pay RA benefits out-of-pocket • Include all eligible RA costs in Relocation Budget for ALL tenants on Rent Roll to avoid out-of-pocket costs

43. Updated HOME Final Rule and URA and Section 104(d)

44. URA Clarifications and Changes • ION date change • Existing agreements (loan commitments) will not change • ION will possibly occur at Loan Closing hereafter • 24 CFR §5.628 replaces 24 CFR §5.613 • Enforces Total Tenant Payment (TTP) calculation at 30% of monthly adjusted income and determines Welfare TTP if standard monthly pay is “ratably” affected (proportioned based on income or appraised assets)

45. URA Clarifications and Changes • Permits HOME Tenant-Based Rental Assistance as option • Tenants who receive TBRA as RA option must not be required to participate in self-sufficiency program as condition of relocation assistance • Encourages use of acquisition down payment assistant for relocation

46. Minimizing Resident Displacement Carmen A. Roldan Relocation Specialist carmen.roldan@tdhca.state.tx.us