chapter iv. property acquisition & relocation - Community

CDBG Implementation Guide Page IV - 1 Property Acquisition/Relocation

CHAPTER IV. PROPERTY ACQUISITION & RELOCATION

A. Property Acquisition Many projects funded by CDBG involve some form of property acquisition. The acquisition may be temporary, such as a construction easement, or permanent. Permanent property acquisition may range from "partial", such as securing an easement, to outright purchase and transfer of ownership. Whichever the case, there are very specific procedural requirements imposed on grantees when they must acquire private property in order to carry out their community development programs. The guiding principle in these procedures is the fundamental rights of property owners to receive "just compensation" when their property is needed (or desired) to achieve public purposes.

� These procedures may apply even if the property was acquired prior to

submission of the grant application and even if CDBG funds are not involved in

the actual acquisition costs. If the property was, or is, acquired with the express intent of using it for the activity(ies) for which CDBG funds are requested, that

acquisition must have been, and/or be, conducted in conformance with the

requirements spelled out in this chapter.

Property acquisition procedures fall into two distinct areas: voluntary and non-

voluntary. In order to determine which procedures must be followed, the grantee must answer the following questions:

� does the entity which is carrying out project activities, and which will be acquiring the property, have the power of eminent domain?

� if the entity has the power of eminent domain, will it use this power, if necessary,

to secure the property needed to carry out the project? As can be seen in figure 4.1, answering, "yes" to both of these questions requires the grantee to follow the non-voluntary procedures described below.

The rest of this section provides specific guidance for meeting the procedural requirements of these two methods of property acquisition.

Uniform Relocation

Assistance and Real

Property

Acquisition Policies

Act of 1970 as

amended (42 USC

4601, et seq.)

49 CFR 24 ,

Subpart B

HUD Handbook

1378, Chapter 5

Have power ofEminent Domain ?

Will it be used ?

Voluntary

Non-VoluntaryYes

No

Yes

No

Figure 4.1


� Voluntary Acquisition

� In a voluntary acquisition, the grantee notifies the property owner of an interest in

acquiring the property, with a clear statement that it cannot or will not condemn the

property in order to obtain it for the project. The purpose of this notification is to determine if the property owner is interested in negotiating the sale of the property; if the owner is not interested, the grantee must determine if the project can proceed at any alternative location. If it cannot, the project may not proceed further, and the grant will be de-obligated.

� If the grantee opts to go the "voluntary" route on a site-specific project,

and fails to find a willing seller, it may not start over with the non-voluntary approach. This would amount to after-the-fact coercion against the property owner. If the property is crucial to the project, the grantee should think long and hard about the method used to acquire it.

♠♠♠♠…A card laid is a card played!

If the project does not require a very specific parcel (i.e., it can be undertaken on any site within a given geographic area), the grantee sends a notice to a limited number of property owners in the area. The purpose of this notice is to determine if there are any owners who are actively interested in selling their property. If the grantee receives an expression of willingness from more than one owner, it should develop a priority list of such properties, based on the characteristics (location, likely cost, etc.) which are most advantageous to it.

� All notices must be personally served to owners and occupants, or sent

by registered first-class mail with a return receipt.

� Assuming that there is at least one willing owner, or that the site-specific property owner is willing to consider a voluntary transaction, the next step is to determine if there are any tenants involved (excluding the owner). If there are, the grantee must notify each tenant and advise him or her that it is considering acquiring the property on which they reside for the purposes of carrying out a project. The notice must also alert all tenants that they will not be eligible for any relocation assistance if they move out at this time.

� Following tenant notification, the grantee makes a preliminary estimate of property value and use. The purpose of this estimate is to determine if a formal appraisal will be necessary and, if so, the level of appraiser required.

� When hiring an appraiser, refer to HUD Handbook 1378, Appendix 20:

Agreement for Appraisal Services.

Attachment 1 Attachment 3 Attachment 4

Attachment 5 or

Attachment 6

See Attachment 7


� If an appraisal is not required, skip to step 5. If an appraisal is required, the appraiser must notify the property owner of the date the appraisal is going to be conducted, inviting the owner to accompany the appraiser.

� Once the appraisal and review appraisal (if applicable) has been conducted, and fair market value established, the grantee submits a written offer to purchase the property.

� The Fair Market Value (FMV) established by the grantee is based on the

appraised value. Other considerations may include the timing of the sale and length of time the property is off the market.

The offer may not be more than the appraised fair market value; however, the sale price may be less than the appraised value.

At this point, negotiation begins. The owner has the option of accepting the offer, making a counter-offer or rejecting the offer outright. If, at any point in this process the grantee decides that it does not wish to acquire the property, for whatever reason, it must notify the property owner of this fact.

� The grantee must submit a copy of the appraisal, review appraisal (if appropriate), and any other documentation for the established Fair Market Value to CDFA for review and approval, regardless of whether CDBG funds will be used to pay for the acquisition. If CDBG funds are to be used, this documentation must be submitted with the request for payment. Unjustified payments in excess of the appraised value

may be disallowed at CDFA's discretion.

� Grantees are strongly encouraged not to execute any binding documents

for purchase of property prior to CDFA approval. If CDFA determines that the process fails to comply with any requirements, the grantee will not be allowed to use CDBG funds for acquisition...leaving the grantee financially liable. If some form of offer and acceptance is crucial prior to CDFA approval, it should be explicitly conditioned on formal CDFA approval.

� Non-Voluntary Acquisition Whenever the agency undertaking the CDBG-funded project has the power of eminent domain and will use it, if necessary, to acquire specific parcels of property in order to carry out project activities, it must follow the non-voluntary procedures of acquisition.

� Grantees are strongly encouraged to contact CDFA for technical

assistance as soon as the grant is issued!

This procedure is very similar to the voluntary procedure, with the following steps:

� Since going through this process assumes that the individual parcels needed to undertake the project are, or will be, known, the first step is to identify each parcel

Attachment 8

See Attachment 7

for guidance on

when the review

appraisal may be

waived

Attachment 9

(Insert Option A)

See Attachment 10

Refer to HUD

Handbook 1378,

Chapter 5 for

detailed guidance.

Attachment 11

Attachment 2


and confirm the ownership of that parcel. A file should be set up for each parcel.

� The next step is to determine if an appraisal is required, and if so, the level of appraiser needed.

� After the specific parcel(s) and ownership have been confirmed, and the need for an appraisal tentatively confirmed, the property owner is to be notified, in writing, of the grantee's intent to acquire the property. This notification specifically advises the property owner of their rights and gives them the option of waiving their right to fair compensation (donation) and/or their right to have an appraisal conducted (whether they are donating or not).

At this stage, if the property owner requests an appraisal, the grantee must conduct it...even if the estimated fair market value is less than $2,500. If the appraisal is neither required nor requested, skip to step 5.

� Donation of property most commonly occurs when the grantee is asking

for easement rights. The property owner will usually be receiving a new or improved service (water, sewer, etc.) in "exchange" for donating a partial use of their property to locate the service. The property owner may waive their right of an appraisal if they believe that the fair market value is apt to be "zero" (i.e., the loss in value due to damage or partial interest is off-set by the value of the improvements.)

� If the property owner waives their right to an appraisal, a release to this effect must be executed.

� If an appraisal is required or requested, the next step is to conduct the appraisal. The appraiser must advise the property owner of the date the appraisal will be conducted, inviting the property owner to accompany the appraiser. The same steps are followed for the conduct of a second, or review, appraisal.

When the appraisal and review appraisal have been finished:

If the property owner had previously indicated a willingness to donate the property, but requested an appraisal prior to doing so, a copy of the appraisal report is provided to the owner. At this time the waiver of rights release must be executed, if not done previously. Skip to step 8.

If the property owner had not indicated a willingness to donate the property, the grantee

(or agency) prepares a written statement of basis for just compensation. The dollar value of this statement may not be less than the fair market value established by the appraisal/review appraisal.

� The grantee submits an offer of just compensation, with attached statement of basis.

If the property owner accepts the offer of just compensation, either immediately or after a period of successful negotiation, the grantee prepares and submits a statement of settlement costs. This statement reflects the agreed-to price, plus incidental costs associated with transfer of title (e.g., recording fees, transfer taxes, etc.) If the grantee pays in excess of the fair market value, this is called an administrative settlement; the file must contain a written justification of the excess costs.

Attachment 7

Attachment 12

Enclose the

publication, "When

a Public Agency

Requires Your

Property"

Attachment 13

Attachment 8

Review appraisals

are required in all

non-voluntary

acquisitions. See

49 CFR 24.104.

Attachment 14

Attachment 15

Attachment 9

(Insert Option B)

See Attachment 16

HUD Handbook

1378, Section 5-2.I


Unjustified payments in excess of fair market value may be disallowed, at CDFA's discretion. � Submit a copy of the appraisal, review appraisal, basis of cost, offer of just compensation

and summary of settlement costs to CDFA for review and approval. This must be done prior to or along with the acquisition cost request for payment, if CDBG funds are to be used to cover these costs.

� If the grantee and property owner are unable to negotiate a settlement, the grantee must

decide which of two options to pursue:

a decision not to acquire the property. If this decision is made, the grantee must notify the property owner of this decision, in writing; or,

a decision to initiate condemnation proceedings.

Complete the acquisition by preparing and executing the appropriate legal documentation

(contract of sale, deeds, etc.)

�� A Note on Condemnations

Exercising the power of eminent domain by condemning private property for a public purpose is absolutely the final, last-ditch step in the acquisition process. Not only can this action leave a bad taste in everybody's mouth, it can be time-consuming and expensive. It is a step which should be taken only after all other alternatives have been exhausted and the grantee determines that the property in question is so crucial to an important public purpose that no other alternative is possible.

While CDFA recognizes that this action is sometimes inevitable, it is not bound by either the delays which might occur or the compensation which the court determines. Grantees should be mindful, when proceeding with a condemnation, that a prolonged legal fight may jeopardize the ability of the grantee to implement the project within the contract time period. Further, CDFA will not increase the grant award if the court decision exceeds the amount budgeted in the grant for acquisition (and no other savings can be realized in other grant line items).

� Points to Keep in Mind!

� If the acquisition of only a portion of a property would leave the owner with a remnant which was uneconomic (not large enough for any reasonable use), the grantee must offer to purchase this remnant along with the portion needed for the project.

� If the owner, in response to the offer, provides additional information which indicates the need for a new appraisal, or if there has been a significant delay since the appraisal was conducted, an updated or new appraisal must be conducted and the acquiring agency must re-establish its offer.

� The grantee or subrecipient (whichever is acquiring the property) must guard against both the existence and appearance of conflict of interest in using CDBG funds to acquire property. Special measures must be taken if an officer or employee of the acquiring agency sells property to the agency.

See RSA 498-A

The New Hampshire

Eminent Domain

Procedures Act

Attachment 10

See HUD Handbook

1378, Section 5-9


B. Relocation If a property owner or tenant is forced to move, either temporarily or permanently, as a result of CDBG funded activities, that person (or household) is considered to be displaced. A displaced person is entitled to certain benefits, including counseling, payments for relocation and, in certain circumstances, assistance in obtaining replacement housing. The provision of this assistance is never optional for the grantee (or its subrecipient), and the burden of proof for demonstrating compliance falls squarely on the grantee. The grantee must determine who might be affected (be displaced), make reasonable efforts to provide the required assistance and document that the process has been followed. This is an involved and detailed process; for that reason, a separate, HUD Handbook 1378 is available to grantees (and will be provided upon request by CDFA), and it will not be repeated in this Manual. While the specific procedural and record keeping requirements are detailed, the basic outline of the process is as follows: � Determine which persons or households may have to be displaced, and whether the

displacement is permanent or temporary, and complete/update the Tenant Tracking Form;

� This form is nearly identical to the Tenant Occupant List form found at

Part VI of the Semi-Annual Progress Report; the only difference between the two is that the Progress Report does not include a column to report household income. The Tenant Tracking Form should constantly be kept current in the grantee file, in order to avoid any unexpected relocation payments and to facilitate completion of the Semi-Annual Progress Report.

� Make certain that affected persons or households receive notice not to relocate (move)

before they are eligible to receive assistance, and that they understand their rights for assistance;

� Provide the assistance to which displaced persons or households are entitled...and not

more or less; � Keep outstanding, detailed records on every aspect of the process.

� These requirements apply only to a non-voluntary property acquisition.

The single most common mistake made by grantees, in the Acquisition/Relocation process, is failure to provide required notices, in a timely fashion, especially to tenants. Provide proper notices at the right times; failure to do so opens you up to legal challenges and additional expenses.

HUD Handbook

1378, Tenant

Assistance and Real

Property

Acquisition Attachment 7

Attachment 18

See Chapter I,

Attachment 5

Under 49 CFR 24

(URA) and 24 CFR

570.104


� Replacement of Low to Moderate Income Housing Units Section 104(d) of the Housing and Community Development Act (the "Barney Frank Amendment") imposes specific obligations on grantees with respect to the replacement of low and moderate income housing units and for the provision of relocation assistance to displaced low and moderate income families or persons.

In brief, these special provisions are triggered when any CDBG-funded activity causes the conversion of low to moderate income housing (including vacant occupiable units) into:

� non-housing (such as demolition of housing units to make room available for some other purpose...like a shopping center or community center); or,

� a smaller number of units (such as conversion of a multi-family unit to fewer units

and/or to fewer net bedrooms); or,

� non-low to moderate income housing (such as upgrading a low-rent apartment building into an up-scale condominium).

In other words, any CDBG-funded activity which causes a reduction in the number of residential units/bedrooms, available to and occupied by low and moderate income persons in the grantee's jurisdiction, must be offset by an equal replacement of the lost units. In addition, displaced low and moderate income families are eligible to receive either the normal URA relocation assistance or (potentially) more generous benefits available under HUD regulation;

the choice of benefits is the displaced person's. The grantee will recall that it certified, prior to its grant award with CDFA, that it had completed a Residential Antidisplacement and Relocation Assistance Plan. Under the provisions of this plan, the grantee agreed to minimize displacement. If the grantee knew at the time it submitted its application to CDFA that displacement was to occur as a result of project activities, this plan was to be very specific in terms of which units are to be displaced and the location of replacement units. If developments during project implementation cause unforeseen displacement, the plan must be amended. Replacement housing must meet the following criteria:

� it must be located within the grantee's jurisdiction, and preferably within the same neighborhood as the units replaced;

� the number of replacement bedrooms must at least equal the number removed;

� the replacement units must be in "standard" condition;

� replacement units must be made available for occupancy within an approximately four

year time period; and,

� replacement units must remain "affordable" for 10 years from the date of initial occupancy.

See 24 CFR

570.606, 24 CFR

Part 42, and HUD

Handbook 1378,

Chapt.7. Attachments

19 and 20

24 CFR 570.606

24 CFR 570.606

Some exemptions

from these criteria

are possible.

Because meeting

the obligations

under this

provision of the

law can be

extremely

technical, the

grantee should

contact CDFA for

detailed guidance.


C. Summary As mentioned at the outset of this Chapter, few issues have more legal or emotional impacts than the rights of property owners and tenants. It is crucial that these rights be scrupulously protected and observed when undertaking any public project. Grantees are strongly encouraged to seek out technical assistance from CDFA at the earliest stages of project implementation. Grantees are also strongly encouraged to read the more detailed guidance referenced in this Chapter if they are undertaking any property acquisition or will displace any persons or households. Finally, the grantee must take great care to avoid the existence or appearance of coercion; nothing will get you in hot water faster.

PROPERTY ACQUISITION PROCESS

VOLUNTARY TRANSACTION

Attachment 1

CDBG Implementation Guide Property Acquisition & Relocation Page IV – 9

Send Letter of Interest to Owner

(Attachment 3)

Site Specific?

Yes No

Yes

No

Willing ?

Start Over

Send Notice to Tenants

(Attachment 5 or 6 and 18)

Select Offer(s) Receive Indication of Interest

Send Letters of Interest to Owners

(Attachment 4)

Identify Area/ Property Owners

Estimate FmV

Less than $10,000 Less than $100,000/ Industrial

More than $100,000/ Commercial

Procure NHLR or NHCG

Appraiser

Procure NHLR/NHCR/NHCG

Appraiser

Notify Owner of Appraisal Date (Attachment 8)


Conduct Appraisal

Conduct Appraisal

Conduct Review Appraisal

Waiver?

Make Offer/ Negotiate

(Attachment 9)

Start Over Reach Agreement

Submit Appraisal Review Appraisal/Waiver

to CDFA

Start Over CDFA

Approve ?

Prepare/Execute/Record Contract/Filings

* Either party can opt out of the process at any point.

No

No

Yes

Yes

No

Yes

PROPERTY ACQUISITION PROCESS

NON-VOLUNTARY TRANSACTION

Obtain Names of Owners

Set up Individual

File

Confirm Ownership

Estimate FMV

Notify Owner of Intent/Rights (Attachment 12)

Tenants ?

Notify Tenants (Attachment 5 or 6, and 18)

FMV = Fair Market Value

Sign Release (Attachment 13)

Appraisal Required?

Less than $100,000 or Industrial Procure NHLR/NHCR/NHCG

Appraiser


Do Appraisal

Willing to Donate?

Review Appraisal

Sign Release (Attachment 14)

Offer of Just Compensation (Attachment 9)

Negotiate

Successful

Accepted

Prepare Statement of Settlement Costs (Attachment 16)

Submit appraisal(s) + settlement to

CDFA

Approved Start Over

Condemn ?

File Suit Escrow FMV

Notify Owner

(Attachment 10)

Start Over…or Project Dead

Successful ?

Prepare, Execute, Record Contract/Filings

Yes No

Yes

Yes

No

No

No

No No

No

Yes

Yes

Yes

Yes

Yes

More than $100,000 or Commercial Procure NHLR or NHCG

Appraiser

Attachment 2

CDBG Implementation Guide Page IV – 10 Property Acquisition/Relocation

Attachment 3

CDBG Implementation Guide Page IV – 11 Property Acquisition & Relocation

[Agency or Municipal Letterhead]

Date Address of Property Owner Dear: Property Owner Name This is to inform you that Agency Name is interested in purchasing the property located at Street

Address, Map, Lot Number or other identification. The Agency Name or Grantee has received a Community Development Block Grant from the Community Development Finance Authority, for the purpose of briefly describe project. Acquisition of the above-referenced property is needed in order for the project to be implemented and its benefits to be enjoyed by the community. This sale is voluntary. If you do not wish to sell, the Agency will not acquire the property. The Agency [does not have the power to acquire your property by condemnation / will not use the

power of eminent domain to acquire the property]. Since the purchase would be a voluntary, arm's length transaction, you would not be eligible for relocation payments or other relocation assistance available under federal law. However, tenants are eligible for relocation benefits. If you are interested in considering the sale of this property to the Agency, an appraisal and

review appraisal will be conducted to establish the fair market value of the property, which will be the basis for determining the offer to be made for purchasing the property. Please be aware that this letter does not constitute an offer to purchase your property, but is intended solely to determine if you have any interest in pursuing such a sale. Again, please understand that if you do not wish to sell your property, the Agency will take no further action to acquire it. If you are interested in discussing this further, please contact Name,

Address, and Phone Number if different than letterhead.

Sincerely, Name

Title

italic type = customize as appropriate. [ / ] = select the appropriate option.

Sample Voluntary Notice to Specific Owner

Attachment 4


[Agency or Municipal Letterhead]

Date [Address of Property Owner] Dear Property Owner Name: The Name of Agency or Grantee has received a Community Development Block Grant from the Community Development Finance Authority for the purpose of briefly describe project. In order to provide these services, we are inviting offers from property owners in describe

geographic area to sell or donate land. All sales or donations will be on a voluntary basis. The Name of Agency [ does not have the power to acquire property by condemnation / will not use the

power of eminent domain to acquire the property]. If mutually acceptable terms and conditions of such acquisition cannot be reached, the Agency will not take further action to acquire such property. Since the purchase would be a voluntary, arm's length transaction, you would not be eligible for relocation payments or other relocation assistance otherwise available under federal law. However, tenants are eligible for relocation benefits. If you are interested in considering the sale of suitable property to the Agency, an appraisal and

review appraisal will be conducted to establish the fair market value of the property, which will be the basis for determining the offer to be made for its purchasing. Please be aware that this letter does not constitute an offer to purchase your property, but is intended solely to determine if you have any interest in pursuing such a sale. Again, please understand that if you do not wish to sell your property, the Agency will take no further action to acquire it. If you are interested in discussing this further, please contact Name,

Address, Phone Number if different than letterhead.

Sincerely, Name

Title

italic type = customize as appropriate. [ / ] = select the appropriate option.

Sample

Voluntary Notice to Several Owners

Attachment 7

CDBG Implementation Guide Page IV- 15 Property Acquisition & Relocation

APPRAISAL REQUIREMENTS The New Hampshire State Appraisal Board has established licensing and certification levels for appraisers doing business in the state. The level of appraiser required is based on either the kind of property or, if residential, the value of the property. The following table displays the kind of appraiser classification required for various types of property, as well as whether a review appraisal is mandatory.

Residential

Industrial

Commercial

$10,000 or less

$100,000

or less

> $100,000 < $250,000

> $250,000

> $1 million

Level of Appraiser

None*

NHLR NHCR NHCG

NHLR NHCR NHCG

NHCR NHCG

NHCG

NHCG

NHCG

Review Appraisal

Yes

Yes

Yes

Yes

Yes

Yes

Waiver of Review

Appraisal Permitted

N/A

Yes

No

No

No

No

No

* Value of property estimated by a person knowledgeable about local real estate values NHLR = New Hampshire License Residential NHCR = New Hampshire Certified Residential NHCG = New Hampshire Certified General A waiver of the review appraisal, when permitted, may be granted by the Chief Executive Officer or the Board of Selectmen only if all of the following conditions can be met:

� The request is for a Voluntary acquisition; and,

� The appraisal is uncomplicated (without mixed uses on the property, deed restrictions, ecological or zoning restrictions, partial acquisition, unsettled estate, etc.); and,

� The appraisal was completed within six months prior to the signing of a

purchase and sales agreement by both parties; and,

� The building (if any) contains less than ten residential units. CDFA may grant a waiver of this policy based on public exigency and a request signed by the municipality's Chief Executive Officer.

Attachment 8


[Appraiser's Letterhead]

Date [Address of Property Owner] Dear Property Owner Name: The firm of Appraisal Company Name has been retained by Grantee or Agency Name to prepare an appraisal of your property located at Street Address. The purpose of the appraisal is to determine the fair market value and the just compensation to be offered to you for acquiring rights to the property. The appraisal of your property will be based on nationally recognized appraisal standards and techniques to the extent that such principles are consistent with the concepts of values and the rules of evidence of value under the eminent domain provisions of the State of New Hampshire. I wish to invite you or your agent to accompany me on the inspection of your property. My inspection is scheduled for Date and Time. If this is inconvenient, please contact me at Telephone Number, so that a mutually agreeable inspection can be scheduled.

Sincerely,

Appraiser Name

License or Certification Number

SampleSampleSampleSample

Attachment 9


[Agency or Grantee Letterhead]

Date [Address of Property Owner] Dear Name of Property Owner: The Name of Grantee or Agency recently had your real property, located at Street Address, appraised by Name of Appraisal Company on Date. The purpose of this appraisal was to establish the fair market value of the property. � Insert Option A {To be used if this is a voluntary transaction}

This appraisal has been reviewed by a qualified review appraiser and all documentation has been reviewed for its accuracy. The Name of Grantee or Agency is prepared to compensate you in the amount of Spell Out Dollar Amount ($ ) for the purchase of the above referenced property. By this action, the Name of Grantee or Agency initiates negotiations to acquire this property. As you were advised earlier, if negotiations fail the Name of Grantee or Agency will not acquire the property. Attached is a copy of the appraisal report.

The amount offered does not include any partial acquisition for the real property or compensation for damages, if any to the remaining real property.

� Insert Option B {To be used if this is a non-voluntary transaction}

This appraisal has been reviewed by a qualified review appraiser and all documentation has been reviewed for its accuracy. The Name of Grantee or Agency is prepared to compensate you in the amount of Spell Out Dollar Amount ($ ) for the purchase of the above referenced property. By this action, the Name of Grantee or Agency initiates negotiations to acquire this property. Attached is a Summary Statement of the Basis for Determination of Just Compensation.

The amount offered does not include any partial acquisition for the real property or compensation for damages, if any to the remaining real property. Also, this offer does not include any relocation payments which either the owner or tenants may be entitled to receive.

We believe this offer is fair and equitable, and we urge your favorable consideration and acceptance. If this offer meets with your approval, the Name of Grantee or Agency will prepare a written sales agreement for your signature.

Sincerely,

Name Title

Enclosure: Summary Statement of the Basis for Determination of Just Compensation (italic type = customize as appropriate)


Attachment 10


[Grantee or Agency Letterhead]

Date [Address of Property Owner] Dear Name of Property Owner: A decision has been made by the Grantee or Agency Name not to acquire the property located at give location.

→ Insert if this is a non-voluntary transaction.

Upon receipt of this notice, any person moving from the above address will not be eligible for relocation benefits. Please disregard any previous written notice of eligibility for relocation assistance. Since no displacement will occur as a result of federally funded actions, there is no basis for providing relocation assistance.

If you have any questions concerning this letter, please feel free to contact the Grantee or Agency Name at Telephone Number.

Sincerely,

Name Title

Italic type = customize as appropriate


Attachment 13


WAIVER OF REQUIRED APPRAISAL

I understand that the Agency or Grantee Name requires [an easement / partial fee interest / fee simple title interest] in the following property which I own, for the purpose of implementing Describe Project:

[Insert Legal Description] I further understand that the Agency or Grantee Name is required, under the provisions of the Uniform Relocation Assistance and Real Property Acquisition Policies Act of 1970, as amended, to provide an independent appraisal and review appraisal in order to establish the fair market value of such property, and that such valuation forms the basis for just compensation to which I am entitled. Having been fully informed of my rights to have appraisals performed for the above-referenced property, I do hereby waive my rights to have such appraisals conducted, and do hereby release the Agency or Grantee Name from its obligations to have such appraisal conducted. (Signature of Owner) (Date) (Signature of Witness) (Date) (Signature of Acquiring Official) (Date) Italic type = customize as appropriate [ / ] = select appropriate option


Attachment 16


STATEMENT OF SETTLEMENT COSTS Name of Property Owner: Identification of Acquired Property:

Expenses Incidental to Transfer of Title

Paid by Grantee

Paid by Owner

1. Recording Fees

2. Transfer Taxes

3. State Tax Stamps

4. Survey and Legal Description

5. Pre-payment Penalties

6. Pro-rata Portion of Prepaid Taxes and Public Service Charges

7. Other (Describe)

TOTALS

This Statement of Costs is certified as true and correct: Signed:

(Closing Attorney) (Date)


Attachment 17


RELOCATION

INDIVIDUAL HOUSEHOLD FILE REQUIREMENTS The following information must be included in the General Relocation File: 1. Displacement Policy 2. Demographic Profile of Tenants 3. General Correspondence 4. Tenant Occupancy Form 5. CDFA Monitoring Documentation The following information on each person or household which is displaced as a result of project activities must be included in the files: 1. Copies of Notice (plus verification of receipt) 2. Income Data of Tenant or Business 3. Description of Relocation Payment Requirements 4. Documentation of Rent Determination 5. Temporary Relocation Documentation 6. Inspection of New Dwelling 7. Displacement Notice (plus verification of receipt) 8. Record of Advisory Services 9. 90 Day Notice 10. 30 Day Notice 11. New Dwelling Inspection Receipts 12. Payment of Claims 13. Last Resort Housing 14. Inspection 15. Appeals 16. General Correspondence 17. Replacement Housing Records

Attachment 18 Page 1 of 2


TENANT TRACKING FORM

Date of Notice

Occupant

Name

Type Unit

Owner/ Tenant

Household

Income

Street Address

(Apt. No.)

Monthly Rent and Utilities

Temporary

Move ?

Street Address

(Apt. No.)

Date of Move

Street Address

(Apt. No.)

Lease

Change ?

Monthly Rent and Utilities



Instructions For Completing

TENANT TRACKING FORM

This form is to be utilized to enter required information about households which must be relocated, either permanently or temporarily, as a result of housing rehabilitation activities. Each line of the form should represent data on a single household which experiences some form of relocation. Do not enter data for any household which does not have to be relocated. (This includes any household which did not occupy a unit as of the date when the rehabilitation contract was fully executed.

�� OCCUPANT DATA

Date of Enter the date on which this household received a notice Notice that it would or might have to be relocated. {See HUD Handbook 1378, 2-3a}

Occupant Enter the first and last name of the head of household. Name

Type Enter either an R if the unit is residential or O if non-

Unit residential

Owner/ Enter either an O if the household owns the unit, or a T Tenant if the household is a renter, lessor or other form of tenant.

Household Enter the adjusted gross household income from the most

Income recent federal tax year.

�� BEFORE REHABILITATION

Street Enter the household's address prior to the date when the Address rehabilitation contract was executed (signed by both the owner and contractor); include apartment number, if appropriate.

Monthly Enter the total monthly rent plus average monthly utility

Rent costs for this household, in this unit. And Utilities

�� DURING REHABILITATION Temporary Enter either Y (yes, this is a temporary move) or N (no, this is Move ? a permanent move). {See HUD Handbook 1378, 2-4(1)(2)} Street Enter the address where the household resided while Address

construction was under way. Include the apartment number, if appropriate.

Date of Enter the date when the household vacated the premises. Move �� AFTER REHABILITATION Street Address Enter the address where the household moved after the

project was completed. If the address is different from the address before rehabilitation, explain the circumstances in the file.

Lease Change ? Enter either Y (yes, there have been changes made to the

original lease…or a new lease signed) or N (no, there are no changes in the tenant lease). If a Y is entered, document the circumstances in the file.

Monthly Enter the rent after rehabilitation, plus the estimated cost of Rent and Utilities. This amount should not exceed the pre-

Utilities rehabilitation rent or 30% of the tenant’s income.

Attachment 19


TOP TEN CHANGES IN REVISED URA REGULATIONS EFFECTIVE 2/6/05

10. No solicitation of Relocation Benefit Waivers (24.207(f))

Agency may not propose or request waiver

Agency must advise of payments and assistance to which entitled (may accept written refusal)

9. Replacement Housing Payments

Renters who buy (24.402(c)), full rent supplement may apply to down payments

Owners who rent (24.401(f)),

$5,250 cap removed for 180-day owner

Amount up to purchase supplement under 24.401(b)(1) available as rent supplement

8. Conflict of Interest Increase (24.102(n)(3)), old limit $2,500, new limit $10,000

Applies to appraiser, review appraiser

When doing appraisal review or waiver valuation

7. Appraisal Waiver Increase (24.102(c)(2)(ii))

Old limit $2,500, new limit $10,000

Applies to uncomplicated valuations with anticipated value less than $10,000

Requires waiver valuation by qualified person

Option: $25,000 (24.102(c)(2)(ii)(c)

If acquiring agency offers owner an appraisal

If funding agency approves practice

FHWA-assisted projects, approval is at the Division level

6. Elimination of "Style of Living" (24.2(a)(6)(ii)

Comparability language remains

Avoids abuse in interpretation

5. Decent, Safe, and Sanitary Standards (24.2(a)(8)(iv)

Old, general size adequacy

New, Local code, agency policy

Determines requirements for number of rooms, area of living space, separation of sleeping quarters by gender

4. No Subpart B Exception for Direct Federal Acquisition (24.101(a))

Subpart B applies to all "direct federal" acquisitions

Exception: TVA and Rural Utilities Service

3. 30% Income Rule for Rental Assistance Payment (24.402(b)(2)(ii)

Applies 30% of income rule to "base monthly rent" only if low income

Uses HUD Annual Survey of Income Limits, based on household size, geographic location

2. Expanded Business Relocation Expenses (24.304)

Moved certain expenses from business reestablishment (24.304) to actual costs categories

Section 24.301 governs personal property

24.303 covers related non-residential expenses

Standard for both is reasonable, actual, necessary

Move to 24.303 removes $10,000 cap for:

Utilities connections from right of way

Professional services to determine suitability of replacement site

Impact fees or one-time utilities usage assessment

1. Expanded Business Advisory Services (24.205(a)(4))

Estimate availability of replacement business sites

Analyze business moving problems if:

Complex or lengthy moving processes, or

Small business with limited financial resources or few alternative relocation sites.

(24.205(c)(2)(i) )Determine relocation needs and preferences of business

Explain relocation payments and other assistance

Eligibility requirements

Procedures for obtaining assistance

Business Interview Requirements 24.205(c)(2)(i)(A) thru (F)



Acquisition/Relocation ABC’s Policy Newsletter of the Relocation and Real Estate Division Department of Housing and Urban Development Community Planning and Development

Vol. 1 No. 1 (Subpart B) April, 2005 Office of Affordable Housing Programs

Q1: When is an appraisal not required for an acquisition subject to the Uniform Relocation Assistance and Real Property Acquisition Policies Act of 1970, as amended (URA)?

A1: The URA statute requires real property to be appraised, except in cases involving acquisition by sale or donation of real property with a low fair market value (Section 301(2)).

• This provision of the law is further defined and implemented by the URA regulations at 49 CFR 24.102(c), which in part sets forth that an appraisal is not required when the “…Agency determines the appraisal is unnecessary because the valuation problem is uncomplicated and the anticipated value of the proposed acquisition is estimated at $10,000 or less, based on a review of available data.” If these criteria are met, the Agency may prepare a waiver valuation, provided the person performing the waiver valuation has sufficient understanding of appraisal principles and the local real estate market to be qualified to prepare it. The term “Waiver Valuation” is defined at 49 CFR 24.2(a)(33).

Written procedures for use of a waiver valuation should be established by an Agency prior to its use. When a waiver valuation is determined to be appropriate, adequate documentation of the valuation data used must be maintained in the acquisition file for HUD monitoring purposes.

If the anticipated amount of a waiver valuation is expected to exceed $10,000 but is less than $25,000, the Agency may request a waiver from HUD to exceed the $10,000 regulatory limit (see Q/A 3 below).



• In the case of a property donation covered under 49 CFR 24.108, an appraisal is not required if the property owner releases the Agency from its obligation to appraise the property and is informed of his/her right to receive just compensation. All releases must be signed by the property owner and must be maintained in the Agency’s file for monitoring purposes.

• An appraisal is not required for “voluntary” acquisitions which meet the requirements and criteria of 49 CFR 24.101(b)(1)-(5). However, although an appraisal is not required under these circumstances, Agencies should consider having an appraisal prepared and reviewed for commercial/industrial properties and for properties with high anticipated values.

Q2: When is a “waiver valuation” not appropriate?

A2: A waiver valuation is not appropriate when: 1) The anticipated value of the proposed acquisition is expected to exceed $10,000 (unless waived by HUD, see Q/A 3 below); 2) possible damages to the remainder property exist; 3) questions on highest and best use exist; 4) the valuation problem is complex; 5) the use of eminent domain is anticipated; 6) hazardous material/waste may be present; or 7) for other reasons, the agency determines an appraisal is required. If the property owner elects to have the Agency appraise the property, the Agency must obtain an appraisal and shall not use the waiver valuation procedures provided in the cited regulations.

Q3: In 49 CFR 24.102(c)(2)(ii)(C) it says that the Federal Agency funding a project may approve exceeding the $10,000 threshold for uncomplicated acquisitions which do not require an appraisal, up to a maximum of $25,000, if the Agency acquiring the real property offers the property owner the option of having the Agency appraise the property. In HUD-funded projects, how would an Agency request approval of a threshold above $10,000?

A3: A request for approval of a threshold above $10,000 (not to exceed $25,000) for a HUD-funded project should be submitted to the appropriate HUD Regional Relocation Specialist who has responsibility for the State in which the project is located. A list of the HUD Regional Relocation Specialists located in the Office of Community Planning and Development (CPD) can be found on HUD’s relocation website at: www.HUD.gov/relocation under “Contacts.” The Agency request must include its written waiver valuation operating procedures and documentation to supporting the waiver request including: Identification of the project or projects for which a higher threshold is requested, the threshold amount requested, identification of the person or persons who will be authorized by the Agency to perform



the waiver valuation in lieu of an appraisal, a description of the qualifications of each named person to perform such a valuation based on sufficient understanding of the local real estate market, and agree that the Agency will offer the property owner the option of having the Agency appraise the property. The Regional Relocation Specialist will review the request and consult with appropriate staff from the HUD program area(s) funding the project (CPD, Public and Indian Housing, and/or Housing). The Regional Relocation Specialist will prepare a memorandum addressed to the General Deputy Assistant Secretary for CPD either recommending approval or disapproval of the request with appropriate justification. This memorandum is to be signed by the Field Office CPD Director in whose jurisdiction the project is located. Copies will be provided to the appropriate HUD program areas. The Assistant Secretary for CPD, or her designee, will approve or disapprove requests for higher thresholds. If an increase in the waiver valuation threshold is granted by HUD, it is strongly recommended that the Agency secure the property owner’s agreement to accept a waiver valuation (in lieu of an appraisal) in writing, prior to preparation of the waiver valuation. In any event, the property owner’s signature acknowledging the agency’s offer of an appraisal and the property owner’s acceptance of a waiver valuation must be included in the Agency’s acquisition file whenever the waiver valuation amount exceeds $10,000.

Documents

chapter iv. property acquisition & relocation - Community