RELOCATION PLANNING AND ASSISTANCE UNDER THE UNIFORM RELOCATION ACT

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_at_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, staffing
  needs, 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
  

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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)
• Cant 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

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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

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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 DSS 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

• Required to move for the project
• Not offered a DSS 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

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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

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RELOCATION-Residential

• You Must Know Everything
• Replacement Housing (Tenant/Homeowner)
• Current Rent or Mortgage Payment
• Utilities (Average Monthly)
• Citizenship Status
• Occupancy Need
• Whats included in the Move (Storage Buildings,
  Chickens, doghouses ?)

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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 Wont 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, DSS
  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 (DSS)
  
• 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

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When a Notice is Not Issued

• If a notice is required, but not issued, the
  displaced may move into a DSS 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 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 HUDs low-income limit
  
• HUD Limits
• http//www.huduser.org/datasets/ura05/RelocAct.ht
  ml

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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 persons ability to pay
• Reasonably located to employment, schools,
  shopping, transportation-as current home is

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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)
  

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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 toor 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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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 Tenants monthly gross income is 700
• How much assistance will Joe receive?

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What is Base Monthly Rent?

• The Lesser of
• 30 of 700 210, or
• Avg Rent Utilities of his dwelling 250
• Base Monthly Rent210

49
JOE Tenants Rental Assistance

• If Joe moves into the comparable you selected at
  350/ month, he will receive
  
• 350-210140/ monthly rental assistance
• 140 x 42 months5,880

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 300-21090 x 42
  months
• 3,780

51
Tenant Relocation Payment-Rent to Rent

• Comparable Dwelling (Rent Util) 600
• Displacement Dwelling (Rent Util) 400
• 200
• Difference of 200 x 42 months
• 8400 in rental Assistance
• Moving expenses

52
Tenant 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

53
Housing/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.

54
Dont Forget 104(d)-Housing Community
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)

• 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 cant insist on
  Cash Payment at 60 months (But can choose URA at
  42 months)

56
Total Tenant Payment-104(d)

• Total Tenant Payment is based on the persons
  need and is the highest of
  
• 30 of the persons monthly adjusted income,
• 10 of the persons 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
  

57
Replacement Housing Assistance- 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.
  

58
Cash Rental Assistance- 104(d)

• Familys 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

59
Homeowner 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 day 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 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 Payment

• 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

63
Tenants/Owners Must File a Claim for Relocation
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
  

64
Challenges Issues Housing

• There is no limit to what you can pay in Last
  Resort Housing
  
• New Construction is Allowed
• Must be Decent, Safe Sanitary (DSS)
• Whats suitable may be larger than what they are
  currently living in
  
• Must be comparable and make them whole

65
Challenges 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

66
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
  

67
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

68
SUMMARY

• Plan, Plan, Plan
• Keep Detailed Records
• Dont take shortcuts, they can be costly