r elocation p lanning and a ssistance u nder t he u niform r elocation a ct dca housing &...
TRANSCRIPT
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RELOCATION PLANNING AND ASSISTANCE UNDER THE UNIFORM
RELOCATION ACT
DCA Housing & Redevelopment Workshop Lake Blackshear
October 22, 2008
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WHAT IS URA?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
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RESOURCESRESOURCES
HUD HANDBOOK 1378
49 CFR 24
Phillip Fortenberry,Acquisition/ Relocation Specialist
U.S Dept of Housing and Urban Development
404-331-5001, Ext.2550
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On-Line ResourcesOn-Line Resources
http://www.fhwa.dot.gov/realestate/divroster.htm
http://www.hudclips.org
http://www.hud.gov/relocation
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What Triggers URA?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
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The URA Objectives: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
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Definition of a ProjectDefinition 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
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PLAN! PLAN! And PLAN SOME MORE!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
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What To Consider When Planning:What To Consider When Planning:
Minimizing Displacement Budgetary Implications-Realistic Estimates &
Sufficient Funds Project Coordination-Agencies, neighborhood
groups, persons affected Resource Needs- relocation policies, staffing
needs, training, capacity building
Administrative Requirements
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Plan Your WorkloadPlan 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
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How Much Is This Going to Cost?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
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VOLUNTARY ACQUISITIONVOLUNTARY 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
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INVOLUNTARY ACQUISITIONINVOLUNTARY 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
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ACQUISITION RECORDKEEPINGACQUISITION 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
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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
RECORDKEEPING: Keep Good, RECORDKEEPING: Keep Good, Detailed Records!Detailed Records!
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RELOCATION IS EXPENSIVE!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
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RELOCATION RECORDKEEPINGRELOCATION 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
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DISPLACED PERSONS DISPLACED PERSONS RECORDKEEPINGRECORDKEEPING
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
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RELOCATION-NonresidentialRELOCATION-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
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What is a Person?What is a Person?
Household Business Nonprofit Organization Farm Any entity with Personal Property on the
Project Site
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When is a Person Displaced?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
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TEMPORARY MOVES-ResidentialTEMPORARY 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)
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Occupants are DISPLACED When: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
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Everyone Gets a NoticeEveryone Gets a Notice
Those that are Displaced
Those that are Not Displaced
All new tenants that move in need Move-In Notices
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RELOCATION NOTICESRELOCATION 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
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General Information NoticeGeneral 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.
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HUD BrochuresHUD 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
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RELOCATION-ResidentialRELOCATION-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 ?)
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The Initial Survey-What You Need To The Initial Survey-What You Need To Know: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
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What you Won’t Know until Later:What you Won’t Know until Later:
Existing Felonies Bad Credit Mortgage is Past Due or in Foreclosure Utility Debts And More
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Assistance & Advisory ServicesAssistance & 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
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Advisory ServicesAdvisory 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
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DATE OF ELIGIBILITYDATE 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)
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NOTICES DUE AT IONNOTICES 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
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When a Notice is Not IssuedWhen 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
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Other Displacement NoticesOther 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
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The Relocation ProcessThe 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
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Tenant AssistanceTenant 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
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Tenants Eligible for Moving ExpensesTenants 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
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Comparable Replacement DwellingsComparable 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
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Comparable Replacement DwellingsComparable 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
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Financial Assistance is Not Required Financial Assistance is Not Required When: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)
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Summary of Tenant AssistanceSummary of Tenant Assistance
Advisory Services Payment of Moving Expenses (Fixed or
Actual) Replacement Housing Assistance Rental Assistance or Purchase Assistance
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How to Determine Rental AssistanceHow 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.
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Determine Base Monthly RentDetermine 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
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Rental AssistanceRental 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.
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EXAMPLEEXAMPLE
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?
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What is Base Monthly Rent?What is Base Monthly Rent?
The Lesser of:
30% of $700= $210, or
Avg Rent & Utilities of his dwelling = $250
Base Monthly Rent=$210
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JOE Tenant’s Rental Assistance: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
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What if Joe moves somewhere other What if Joe moves somewhere other than the Comparable offered?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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Tenant Relocation Payment-Rent to Tenant Relocation Payment-Rent to RentRent
Comparable Dwelling (Rent & Util): $600 Displacement Dwelling (Rent &Util): $400
$200
Difference of $200 x 42 months=
$8400 in rental Assistance +Moving expenses
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Tenant Relocation: Income basedTenant Relocation: Income based
Comparable Dwelling (Rent & Util): $600 30% of qualified “low” Income tenants
average gross monthly income $300
$300
Difference of $300 X 42 months=
$12,600 in Rental Assistance +
Moving Expenses
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Housing/Section 8 VouchersHousing/Section 8 Vouchers
Agencies are encouraged to help eligible displaced tenants obtain a certificate or housing voucher for rental assistance
If the person did not have assistance before, they must be informed of the cash payment option
A 42 month gap payment may still be needed ADVANTAGE: Can Stay on the program as long as
there is a need and assistance may be recomputed each year to reflect changes in income, rent, utilities, etc- No so with Cash payment option.
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Don’t Forget 104(d)-Housing & Don’t Forget 104(d)-Housing & Community Development Act of 1974Community Development Act of 1974
Section 104(d) is only subject to projects that have:
– Demolition of low-income housing– Conversion of low-income housing to another use– Demolition that causes low-income persons to be displaced– HUD projects that use CDBG or Home Assisted Projects– One for One replacement housing applies
Rental Assistance is for 60 Months
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Under 104(d)Under 104(d)
Eligible Tenants must be a low income person
Eligible Tenants must be relocated as a result of demolition or conversion to another use (usually low income to market rate)
If Section 8 Assistance is offered and comparables are suitable, tenant can’t insist on Cash Payment at 60 months (But can choose URA at 42 months)
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Total Tenant Payment-104(d)Total Tenant Payment-104(d)
Total Tenant Payment is based on the person’s “need” and is the highest of:
30% of the person’s monthly adjusted income*, 10% of the person’s monthly gross income, or The Welfare Rent Allowance (where designated)
*Regs define for certain allowances, such as dependents, elderly and handicap when determining adjusted income
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Replacement Housing Assistance- Replacement Housing Assistance- 104(d)104(d)
Each person must be offered rental assistance equal to 60 times the amount obtained by subtracting the Total Tenant Payment from the lesser of:
The monthly rent & utilities of the comparable replacement dwelling, or
The monthly rent & utilities for a decent, safe & Sanitary dwelling to which the person actually moves.
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Cash Rental Assistance- 104(d)Cash Rental Assistance- 104(d)
Family’s adjusted monthly income: $600
Comparable to which tenant moved: $350 (for rent & avg utilities)
30% of 600= $180$350-$180= $170
$170 x 60 months= $10,200 in Rental Assistance
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Homeowner RelocationHomeowner Relocation
A displaced owner occupant may be eligible for a Replacement Housing Payment up to $22,500 (or more, see last resort housing)
Owners in Voluntary Acquisitions are not eligible for full relocation benefits
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Replacement Housing Payments-180 Replacement Housing Payments-180 day ownersday owners
Price Differential Payment- the amount by which the cost of a comparable replacement dwelling exceeds the acquisition payment of the displacement dwelling
Increased Mortgage Interest Costs -costs where the interest rate on the new mortgage exceeds the owners present mortgage
Incidental Expenses -expenses related to the purchase of the replacement dwelling (Title exams, recording fees, certain closing costs)
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HOMEOWNER RELOCATIONHOMEOWNER RELOCATION
Replacement Housing Payment:
Lesser of the Displacement or Comparable Dwelling
+ Incidental Costs
- Acquisition Cost of Displacement Unit
=Replacement Housing Payment
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EXAMPLE-Replacement Housing EXAMPLE-Replacement Housing PaymentPayment
Lesser of
Replacement Dwelling $100,000
Comparable Dwelling $ 95,000
$95,000
Displacement Unit 44,000 (Acquisition)
Differential Payment $51,000
Incidental Costs + 1,500
RHP due Displaced $ 52,500
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Tenants/Owners Must File a Claim for Tenants/Owners Must File a Claim for Relocation PaymentsRelocation Payments
A tenant or Owner must buy or rent a dwelling that is decent, safe & sanitary within 12 months of moving out of the displacement dwelling. (You get it inspected!)
A claim form must be filed for relocation payments within 18 months after the date of the move.
This period can be extended under some circumstances
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Challenges & Issues: HousingChallenges & Issues: Housing
There is no limit to what you can pay in Last Resort Housing
New Construction is Allowed Must be Decent, Safe & Sanitary (DS&S) What’s suitable may be larger than what they
are currently living in Must be comparable and “make them whole”
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Challenges & Issues: SiteChallenges & Issues: Site
Occupants May be Under-housed Utilities could be paid/included in rent May have large Storage facilities Individual Location Needs-Transportation,
Health issues, Accessibility Frail or Diminished Capacity Social Issues
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Challenges & Issues:Challenges & Issues:
More than one family or individuals in a house- Can relocate to separate locations which is very expensive
Hard to find Comparable housing that is equivalent and functional
Comparable housing will set the maximum Rental Housing Payment amount
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Challenges & Issues:Challenges & Issues:
Tenants Pay little or no rent Will not cooperate with you- give you no
information May need emergency housing or Shelter
Housing Household consists of illegal aliens
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SUMMARYSUMMARY
Plan, Plan, Plan
Keep Detailed Records
Don’t take shortcuts, they can be costly