Executive SummaryA presidential disaster declaration followed Hurricane Sandy (Storm) in view ofwidespread damage in the affected area which includes Richmond and the other countiesin the City of New York. In response to the disaster declaration. New York State (“State”or “NYS”) implemented the Recreate NY Smart Home Buyout (Program) to administerthe voluntary buyout of homes within the designated buyout area that suffered substantialdamage From the Storm.

Funding for this program has been made available by the Federal government and will bedistributed and administered by the State and its partners. Buyouts are voluntary. Nohomeowners are forced to relinquish their property under this program, but homeownerswho decide not to participate in the buyout may be required to reduce their risk for theftiture, by elevating their homes and purchasing insurance coverage through the NationalFlood Insurance Program (NFIP).

Generally speaking. owners will receive 100% of the pre-storm Fair Market Value(FMV) of their storm-damaged property. However, the State will deduct assistance theowner already received from the FMV, including all Federal, State, local and privatesources of disaster-related assistance. This includes, but is not limited to. homeownersinsurance, flood insurance, Small Business Administration (SBA) and FederalEmergency Management Agency (FEMA) benefits. Depending on whether a property isinside the floodplain, deed restrictions may be required to prevent future developmentand support passive and active recreation uses.

The total maximum buyout award available to any property owner is capped at theFederal I-lousing Administration (FHA) loan limit for the county where the property islocated. For most counties included in this disaster declaration, that is $729,750. Pleasego to htips://entp.hud.uov/idapp/lnml/hicostl .cfm to verif’ the maximum award you areeligible for based on this criterion.

Introduction

As a participant of the Program, you will be eligible for Standard Buyout, at100% of the pre-Storm FMV if your property was substantially damaged by the Storm

(damage is greater than 50% of the FMV) and located in a highest risk area along thewater referred to as the “V Zone” in FEMA flood maps, or• 100% of the post-Storm FMV (plus eligible relocation or other assistance) was

substantially damaged by the Storm and located in the 500-year floodplain but outsideof the V Zone.

• You may be eligible for Enhanced Buyout which provides incentive paymentsranging from 5% to 15% of the pre-Storm FMV. If your property is located in apre-defined targeted buyout area designated in consultation with county and localgovernments as coastal buffer zone or other non-residential, non-commercial use you

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may receive incentive payments. You may receive one or more incentive payments in

the following circumstances:

o 5% In-County Relocation incentive. You permanently relocate within the

same county where the Storm-damaged property is located at the

completion of the buyout and for a defined period of years thereafter. The

rationale is to protect and preserve the community while facilitating the

reclamation of land in high risk areas for natural protection against future

damage. NOTE: for New York City residents who participate in the State’s

buyout program this will be available for permanent relocation anywhere

within the five boroughs of New York City.

o 10% Targeted Area Incentive. In an effort to relocate homeowners out of

these high risk areas, and to protect as many as possible from future disasters,

the State will seek the maximum level of homeowner participation by offering

this individual incentive so that as much land as possible within these areas

can be returned to and reclaimed by nature. This land will be maintained in

perpetuity as coastal buffer zones.

OR

o 10% Group Buyout Incentive. Outside of the targeted buyout areas, the

State may. in rare circumstances, provide a 10% Group Buyout Incentive to

certain very limited clusters of homeowners (2-10 consecutively located

properties) whose properties are located inside the high risk V Zone but not

inside an identified targeted buyout area. This incentive may be necessary in

certain rare cases to bring about the reclamation of a concentrated area of high

risk and to avoid the patchwork effect of purchasing all but one or two

properties inside the area.

Each buyout is an individual real estate transaction, and requires the steps of a traditional

sale, such as survey, appraisal. contract and closing). NYS will prioritize applications

taking into account the severity of the damage in a neighborhood or community, the

ability to take advantage of streamlined Federal grants. life safety. environmental

concerns, local long-term recovery goals, etc.

NYS will provide residential tenant relocation assistance in keeping with the Uniform

Relocation Assistance and Real Property Acquisition Policies Act of 1970, as amended

(“the URA”); in concert with The Robert T. Stafford Disaster Relief and Emergency

Assistance Act, 42 U.S.C. § 5121 et seq. (“The Stafford Act”) provisions for tenants of

the storm damaged property. Residential tenants of storm damaged property are

considered to be involuntarily displaced when the State accepts an offer to purchase the

storm damaged property. The State will award relocation benefits to eligible tenants

according to the provisions of the URA and as implemented under the regulations of U.S.

Department of Housing and Urban Development (HUD) and FEMA.

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You will be contacted by a Case Manager or Relocation Advisor who will meet with you.explain the program. answer specific questions, and assist you through the process. Theassigned Case Manager or Relocation Advisor will work with you to make yourtransaction go as smoothly as possible.

Statement of Policy

• The Slate may purchase properties under the Community Development Block Grant -

Disaster Recovery (CDBG-DR) program established by MUD, and/or the FEMAHazard Mitigation Grant Program (HMGP), to improve public safety, reduce futurelosses and assist occupants with relocation and replacement housing away from floodprone areas.

• The services and payments described in this guidebook will be provided to all whoparticipate in the voluntary acquisition of properties damaged by Superstorm Sandy,Hurricane Irene or Tropical Storm Lee. The program may be funded by HUD,FEMA. and the Stale. It is the policy of the State that all aspects of this program willcomply with all applicable provisions of local, State and Federal statutes andregulations.

• This program is voluntary. The State will not require any owner to sell property to theState as part of this program. The State will not use its power of eminent domain(sometimes called “condemnation”) to obtain land for this program. The State willencourage owners of parcels in identified flood-prone areas to vacate their propertyand offer it to the State for purchase. This is intended to help people move from areasmost damaged by Superstorm Sandy. Hurricane Irene or Tropical Storm Lee, andreduce the potential for ftiture losses.

• To the greatest reasonable extent, no residential tenant who lawfully occupies realproperty will be required to move without written notice at least 90 days before theproperty must be vacated.

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Definitions and Terms

Intent of GuidebookThe purpose of this guidebook is to assist you by briefly explaining the process and thebenefits you may be eligible for. The laws and rules are complex because thecircumstances, needs and types of damage caused by the storm differ so much among theparticipants. This guidebook is not meant to discuss the law and its procedures in detail,but rather to provide an overview of the Federal and State programs that may beapplicable. Please discuss all aspects of your proposed transaction with the Case Manageror Relocation Advisor provided by the State for guidance through the process.

Important Definitions

Alien Not Lawfully Present: A person who is unauthorized to be present in the UnitedStates. A person must be authorized to be in the United States in order to be eligible toreceive URA relocation benefits, relocation advisory services or replacement housingassistance. The person must be able to certify’ that he or she is either a citizen or national

of the United States or an alien who is lawfully present in the United States. The State

may approve exceptions if unusual hardship would occur to the alien’s spouse, parent orchild who is a United States citizen or an alien admitted for permanent residence.

Displaced Person: A person who moves from the real property or moves personalproperty from the real property because of the acquisition of the real property. in whole

or in part. or as the result of a written notice from the State to vacate real property that it

has acquired. In the case ofa partial acquisition, the State shall determine ifa person isdisplaced as a direct result of the acquisition. Displaced persons are classified as:

A residential Tenant-Occupant (including mobile homes and sleeping rooms)

Duplication of Benefits (DOB): Any payments received by the property owner fromlocal, State, or Federal sources that would represent a duplication of financial assistance

to the property or owner for storm/flood related damages.

Investor-Owner: Holds title to the property with valid deed or valid real estate contractthat pre-dates the storm event; continues to hold title to the property to the date of theState’s offer to purchase and did not occupy the unit as of the date of the storm event; theinvestor-owner will provide the State with additional information as may be required,including available information on any tenants.

Owner-Occupant: A person who holds title to the property with valid deed or valid realestate contract (or holds a similar property’ interest) that pre-dates the storm events;continues to hold title to the property to the date ofthe State’s offer to purchase; and willcertify to having lived in the dwelling as his/her primary residence as of the date of the

storm event.

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Pre-storm Fair Market Value (FMV): Value based on appraisal of pre-siorm conditionof property as ofOctober 78th 2012. FMV may be identified via post-storm forensicappraisal.

Priman’ Residence: The owner’s principal place of abode. The owner must have lived atthe site before the storm event for it to be considered primary. The residence may beverified in order of preference by I) Homestead exemption of the property: 2) Income taxreturns; or 3) Declaration signed by the property owner certifying that the property is theowner’s primary residence.

Substantial Damage; Damage in excess of 50% of the pre-storm assessed buildingvalue, not financially or structurally feasible to repair.

Tenant: A person who has temporary use and occupancy of real property owned byanother. The term “person” means any individual, family, partnership, corporation orassociation.

Voluntary Participation: Ifa mutually satisfactory agreement on terms of theconveyance cannot be reached, the State will not acquire the property. Buyouts(acquisitions of property) are voluntary. No property owners will be forced to relinquishtheir property.

90 Day Tenant: A displaced person who has actually and lawfully occupied the dwellingto be acquired for the project for at least 90 days immediately prior to the initiation of theOffer to Purchase ifthe tenant has reoccupied the dwelling since the storm event.

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Section One: Voluntary Property Acquisition

Eligibility

The buyout program is open to property owners in disaster declared counties affected bySuperstorm Sandy. Hurricane Irene or Tropical Storm Lee. This includes residents ofNew York City that meet any one of the following three criteria:

• Properties substantially damaged by the storm (damage is greater than or equal to50% of the FMV) and located in a highest risk area along the water referred to as the“V Zone” in FEMA flood maps.

• Properties substantially damaged by the storm and located in the 500-year floodplainbut outside that V Zone.

• Properties located in pre-defined targeted buyout areas, to be determined inconsultation with county and local governments.

Required Documentation

Property owners who have reviewed the eligibility requirements and have submitted anapplication to the State should bring the following documents:

• Deed and tax receipts that show you own the property.o Liens or recordings against the deed.

• Property mortgage amount - before insurance benefits or other aards.o Mortgage information, including its owner/servicer, and any home equity

loans or second mortgages taken against the property.

• I lousehold income information, including tax returns and pay stubs.o Information regarding rental income from property affected by the storm.

• Property survey or tax map showing the location and size of your property.• Information and documentation on benefits received through other programs:

o Flood Insurance - including the name of the insurance companies, policyinformation, receipts or correspondence related to payments received orpending.

o Homeowner’s Insurance - including the name of the insurance companies.policy information, receipts or correspondence related to payments received orpending.

o SBA - Disaster Loan - including aard information or correspondence relatedto loans received/pending.

o FEMA Assistance for Repair/Replacement - including payment information,or correspondence related to payments received or pending.

Receipts for eligible repair expenses paid - including cancelled checksdocumenting any completed storm repair costs.

o Information on any down payment assistance you may have received from theState or county to purchase your home.

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o Other Governmental Sources and Non-Governmental Sources.• Information related to any environmental issues, such as lead, asbestos and oil tanks.

which have been flagged on the property, and evidence of any remediationcompleted.

• Any appraisals prepared for the property within the six months prior to the storm.• Damage estimates received for storm damage.• Ifavailable. a letter from your local Floodplain Administrator certifying that your

property has been deemed “substantially damaged” under your community’s localfloodplain law. (NOTE: This may be required for properties at which storm-relateddamages exceed 50% of the structure’s pre-storm fair market value.)

• Receipts for repair expenses, including cancelled checks documenting completedrepairs.

• Receipts for rental expenses while you could not occupy your home and were livingelsewhere.

Property Valuation

The amount of the State’s offer will be based on the pre-storm FMV determined by anindependent appraisal. The benefits that a property owner has already received will besubtracted from the FMV to avoid Duplication of Benefits (DOB).

• Participants who owned the property at the time of the storm event will be offered thepre-disaster appraised value determined by an independent appraiser hired by theState to perform a forensic appraisal.

• Participants who voluntarily purchased the storm-damaged property after the stormwill be offered the lesser of the amount paid to acquire the property or the post-floodappraised value.

• Participants who have received flood insurance adjustments, settlements or paymentsthat exceed the appraised value of the structure will be offered the appraised landvalue only.

• tithe county, State, or other designated authority demolished the structure beforemaking an offer to purchase because storm damage made the structure an imminentthreat to life or property, the property owner will be offered the pre-disaster appraisedvalue.

Deductions — Offer — Closing

The Case Manager will review with the property owner all previous payments receivedthat may represent a DOS. This includes Federal. State. local and/or private sources of

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disaster-related assistance, including, but not limited to. homeowners and/or floodinsurance proceeds. SBA and FEMA. These payments may represent a duplication ofpayments for the real estate and must be deducted from the FMV of the property beforethe State is permitted to acquire the property. Benefit amounts you have already received

for specific losses that would be duplicated by payment ofpre-storm market value will bededucted, and the net amount presented to you as the offer. As with a typical real estate

transaction, property taxes due or owing and other payments required to clear specialassessments, liens or judgments, will be paid by you before closing or deducted at thetime of closing. Your Case Manager will review your specific calculation with you and

explain how it applies to your transaction prior to accepting thc Stat&s offer.

Voluntary Acquisition Appeal Process

The owner may appeal the State’s determination of the pre-storm FMV of the propertyafter receiving the offer to purchase. An appeal of the property valuation must be basedupon a second appraisal by a certified or licensed real estate appraiser at the owner’s

expense. A partial list of qualified appraisers may be obtained from thc State or yourCase Manager.

The properly owner must present a written statement to the Case Manager before theexpiration date of the State’s offer to purchase. The Case Manager will deliver the appeal

to the State. The appeal must state the basis for the owner’s disagreement and shouldinclude all the information the property owner wants the State to consider (including the

second appraisal). The appeal must include specific factual information and any data thatsupport the appeal to increase the offer price.

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Section Two: Tenant Relocation Assistance and Benefits

Relocation Assistance Services — Residential Tenant(s)

This policy will apply only to residential tenants, and only after the property has receivedan executed purchase agreement. Any disp’aced tenant(s) shall be offered relocationassistance services for the purpose of locating a suitable replacement property. Relocationservices are provided by qualified personnel employed by, or working on behalf of, theState. They are there to assist and advise you; make use oftheir services. Ask questions,and be sure you understand all your rights and relocation benefits.

During the initial interview, your housing needs and desires and your need for assistancewill be determined. A Relocation Advisor will contact you, and relocation payments willbe explained in accordance with your eligibility. You cannot be required to move unlessat least one comparable replacement dwelling is made available. When possible,comparable housing will be inspected prior to being made available to you in order toassure that it meets Decent, Safe, and Sanitary (DSS) standards. I you desire, theRelocation Advisor will give you current listings of other available housing.Transportation may be provided to inspect available housing. Tell your RelocationAdvisor ifyou need counseling or assistance from other sources to minimize thehardships of relocating. The State has a variety of programs to help you adjust to yournew location.

Social Services Provided by Other Agencies

Your Relocation Advisor will be familiar with the services provided by other public andprivate agencies in your community. ifyou have speciai problems. the RelocationAdvisor will make every effort to secure the services ofagencies with trained personnelwith the expertise to help you. Make your needs known so you may receive the help youneed.

Relocation Advisory Assistance

This checklist is a summary of the relocation advisory assistance you may reasonablyexpect to receive if you are a tenant displaced by a project. The Relocation Advisor mustpersonally interview displaced persons to:

• Determine their needs and preferences.• Explain relocation benefits.• Offer assistance.• Offer transportation, if necessary.• Assure the availability of a comparable residential property in advance of a

residential displacement.

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• Provide current listings of comparable properties.• Provide the amount of the replacement housing payment, in writing.

• Inspect replacement dwelling for DSS acceptability.

• Supply information on other local, State and Federal programs offering assistanceto displaced persons.

• Provide advice to minimize hardships.• Assist in the preparation of claims for payment.

Eligibility for Residential TenantsTenants of residential property may be eligible, depending on qualifications, for thefollowing benefits:

I. Moving Expense Payment.2. Rental Assistance Payment,3. Down Payment Assistance,

As a displaced person, you are entitled to receive payment for moving and relatedexpenses. There are two types to choose from:

I. Actual Reasonable Moving ExpenseYou may choose to have a moving company move you to your replacement property, tip

to 50 miles away. and have all reasonable moving expenses paid on your behalf. To use

this payment, two bids must be obtained from licensed moving companies. Themaximum amount you are eligible to receive for your move is based on the lesser of thetwo bids.

- Fixed Moving PaymentUnder the fixed moving payment, the displaced person is eligible to receive a one-timepayment, based on the number of furnished rooms in the property, to execute the movethemselves. The payment is paid directly to the tenant and is based on a schedulepublished by the Federal Department of Transportation. You will be notified of theamount you are eligible for when you receive your Notice of Relocation Eligibility.

2. Rental Assistance PavineiziThis payment is intended to assist residential tenants that wish to rent a DSS replacement

dwelling and pay the increased rental costs incurred from moving outside the programarea. To determine your benefits, a comparable rental study will be completed. YourRelocation Advisor will explain this procedure with you. Your Relocation Advisor will

request documents to help determine eligibility. Necessary documentation will include

items such as, but not limited to, verification of rent paid and monthly income.

The comparable property chosen by your Relocation Advisor to base your maximum

eligibility must be available for rent on the date your offer is presented. lithe rent of the

comparable property is higher than your base monthly rent, you may be eligible for a 42-month rental assistance payment, not to exceed $5,250. You must rent and occupy a DSS

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replacement property within one year from the date of displacement to be eligible for thispayment.

In determining your maximum eligibility, your “base monthly rent’ is the lesser of thefollowing amounts:

• Monthly rent plus utility costs.

• Thirty (30) percent of the displaced person’s average monthly gross householdincome ifthe amount is classified as “low income” by HUD’s Annual Survey ofIncome Limits for the Public Housing and Section 8 Programs.

• The total of the amounts designated for shelter and utilities ifthe displaced personis receiving a welfare assistance payment from a program that designates theamounts for shelter and utilities.

3. Doii’n Paynwnt AssistanceTenants that choose to purchase a home as their replacement property may use theirmaximum eligible rental assistance amount to pay their down payment and closing costs.You must purchase and occupy a DSS replacement dwelling within one year of the dateof your displacement to be eligible for this payment.

— Decent, Safe and Sanitaty (DSS) InspectionThe property that you purchase or lease must pass a DSS inspection prior to thedisbursement of your relocation benefits. Do nor execute a sales contract or a leaseagreement until a representative from the State has inspected and certified in writing thatthe dwelling you propose to purchase or rent does meet the basic standards. Please do notjeopardize your right to receive a rental assistance payment by moving into a substandarddwelling.

The DSS inspection is solely for the purpose of ensuring that the State is providing fundsfor housing that meets general housing standards at the time of the inspection. It does notprovide any assurance or guarantee by the State that there are no defects in the property,its fixtures or its equipment which may be discovered at a later date. The State and/or theinspector assume no liability if there are structural, mechanical, legal or other unforeseenproblems discovered after the property is inspected.

- Fair HousingThe Federal Fair Housing Act (Act) sets forth the policy of the United States (U.S.) toprovide, within constitutional limitations, for fair housing throughout the nation. This Actand amendments make discriminatory practices in the purchase and rental of mostresidential units illegal if based on race, color, religion, sex, national origin or disability.Whenever possible, minority persons shall be given reasonable opportunities to relocateto DSS replacement dwellings, not located in an area of minority concentration, that arewithin their financial means. This policy does not require the State to provide a larger

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payment to a person than necessary for that person to relocate to a replacement dwelling

comparable to the dwelling occupied at the time of the storm.

NOTE: No relocation payment received by a displaced person tinder this part shall be

considered as income for the purpose of the Internal Revenue Code of 1954, which has

been designated as the Internal Revenue Code of 1986 (Title 26, U.S. Code), or for the

purpose of determining the eligibility or the extent of eligibility of any person.

Uniform Relocation Act Appeal Rights

Any person may appeal the States determination of eligibility for replacement housing,relocation assistance or the amount that the State offers to pay. The person must requestan appeal in writing.

A tenant must submit a written request for review ofa denied claim for relocation

assistance or payments not more than 60 days after your claim is denied.

NOTE: Please keep in mind that relocation laws and regulations are lengthy. This

guidebook briefly described payments you may be entitled to. Consult your Relocation

Advisor for details, policies and procedures.

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Property Owner Checklist and Notes

There are several events and questions that may arise during the course of yourtransaction. This space is provided to help you keep information that is specific to yourtransaction available to you.

• Name of Case Manager:

• Date of Duplication of Benefits (DOB) meeting with Case Manager:

• Location of DOB meeting:

• Date and conclusions (if any) of telephone call to agent on status ofDOBverification:

• Date you received the State Offer to Purchase this storm-damaged property:

• Date of meeting with your Case Manager to discuss the States Offer to Purchase:

• Date of the States Offer to Purchase stating the amount of the offer:

• Projected closing date:

• Date you received the preliminary closing statement with confirmed amounts ofpayments and net proceeds:

• Actual closing date on sale of storm-damaged property:

• Replacement home purchase date:

• Replacement home purchase price:

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