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Home My WebLink About4.a. Review of Revised HRA Agreement From Meeting of December 7, 1993 t � CITY OF ROSEMOUNT EXECtTTIVE SUNIl�ARY FOR ACTZON PORT AUTHORITY MEETING DATE: DECEMBER 21, 1993 AGENDA ITEM: REVIEW OF REVISED HRA AGREEMENT AGENDA SECTION: FROM MEETING OF 12-7-93 WORK SESSION PREPARED BY: JOHN MILLER, AGENDA NO. ECONOMIC DEVELOPMENT COORDINATOR 4 .A. ATTAC�3ENTS: REVISED DEV. AGREEMENT, COOPER. AP VED Y: AGREEMENT, RELOCATION AND ACQUIS. PROCEDURES I received from port authority executive director, Ron Wasmund, a list of concerns that the members raised during the discussion of this item at the December 7 meeting. This was forwarded to Diane Nordquist. Attached is a revision prepared by the HR.A as well as a synopsis of acquisition and relocation procedures which I understand was a major concern of some commissioners . - Diane Nordquist will be attending the work session. If you have further concerns, please ma.ke them known to her. In visiting with Diane we have agreed that it is our hope to have a document before you on January 4 that can appear on the committee of the whole report and receive quick appraval . Any changes in the documents should be requested at the December 21 meeting. Chair Dunn and I will meet with the HRA people prior to the December 21 meeting to review in detail the documents and to ask the HRA architect to ha�re �dequate graphics for the planning commission and city council presentations . RECO1+�iENDED ACTION: Discussion item only. PORT AIITHORITY ACTION: s . DAKOTA COUNTY � � / ; , . Housing&Redevelopment Authoriry 2496-14�th Sc.W. •Rosemounc,MN 5�068•612-423-480Q•Fax 612-423-8180 � � � � � � TO: DATE I � . 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DEVELOPMENT AGREEMENT <: .�.;:,.::�::,;W. �.,�..:,..:• This Agreement is made and entered into this day of ��, �:�?��: by and among THE DAKOTA COUNTY HOUSING AND REDEVELOPM��tT�r� �ttl'"I`H012�'TY` ("�:�:�t��:ty") , a public body politic and corporate, THE PORT AUTHORITY IN�??�l�1��5��`�0�2�� THE CITY OF ROSEMOUNT, MINNESOTA ("RPA").�t av. .�ublic body politic and corporate and THE CITY OF ROSEMOUNT {"�[�t�i��:�:�p�t�:��") , a municipal corporation organized and existing under'�'�2ie'��"Iaws��of the State of Minnesota. WHEREAS, the Authority is in the process of developing and carrying out a development within the Municipality which it is intended will result in the construction of a 40-unit senior rental facility (the "Project'�) ; and WHEREAS, the Municipality and RPA believe that the successful undertaking and completion by the Authority of the Project will be of substantial benefit to the Municipality and its residents; and WHEREAS, the Municipality and RPA desire to assist the Authority in the development of the Project; and WHEREAS, the Authority intends at this time to proceed with the acquisition of portions of the property on which the Project is intended to be located; and � WHEREAS, the ultimate viability and economic feasibility of the project will require infusion of funding from sources other than the Authority; and WHEREAS, the parties hereto desire to set forth their understandings as to the sources of such funding in order to provide the Authority with a level of assurance regarding the Project's longer term economic viability; and WHEREAS, the parties desire to enter into this Agreement pursuant to Minnesota Statutes, Section 469.041 and 471.59, and other relevant statutes to set forth their understandings concerning the undertaking of the Project. NOW, THEREFORE, the Municipality, the Authority, and RPA do hereby agree as follows: Section 1. the Authority Proiect Activities. The Authority shall be responsible for all aspects of undertaking and administering the Project. Such activities shall include, but not be limited to, the acquisition of all properties necessary for the Project, including the use of eminent domain if the Authority determines such use to be necessary and desirable, the rezoning of the Project properties and the obtaining of the financing and construction of the Project; provided, that the Municipality agrees to cooperate in the Authority's efforts to rezone the Project site to multiple residential zoning, All acquisitions shall be undertaken in accordance with Section 3 of this Agreement. The funding of the acquisitions shall be as set forth in Section 2 of this Agreement. - 2 - Section 2. a. ) Funding. It is presently anticipated that in order to accomplish the acquisition of all parcels necessary to undertake the Project, it will invoive the expenditure of approximately $580,040. The Municipality, RPA, and the Authority agree that such acquisitions will be funded through the use of RPA tax increment financing funds and Municipality Community Development Block' Grant funds, in the years and in the amounts set forth below: Acquis�.tion ource 1994 995 1996 199? ot s Rosemount TIF Funds 0 56 55 55 $166,000 City CDBG Grants *264 0 ,�50 _Q 5414,000 264 56 205 55 $580,000 * Includes reprogrammed 1992 CDBG funds b. ) Additional Fundinq. It is anticipated that the dollar amount indicated in section 2 (a) (the "Estimated Project Acquisition Cost") will be sufficient to permit the Authority to acquire and assemble a site with the required nwnber of square feet to facilitate construction af the Project. In the event acquisition costs exceed the Estimated Project Acquisition Costs due to the need to correct poor soil conditions, the existence of environmentally "hazardous substances" as defined at Minnesota Statutes, Chapter 115B, the need to acquire additional land in order to comply with the Municipality zoning or subdivision ordinances, or due to any other factor which prevents the Authority from assembling a site for the Project within the Estimated Project Acquisition Costs, then ail parties will mutually agree to equitably fund the excess- of the Estimated Project Acquisition Cost. Section 3. Selection of Acquisition Properties. Properties to be acquired by the Authority sha11 be selected in the manner provided in this Section. Because the funding to undertake such acquisitions will not be available in its entirety at this time and will be provided at the times and in the amounts set forth in Section 2 above, it is intended that properties will be acquired from willing sellers on a lottery basis. The Authority will provide notices to owners of properties on which the Project is proposed to be located informing such owners that the Authority is interested in acquiring their property and that such owners should respond if they desire to have their properties acquired by the Authority. Owners will be further informed that properties which are unoccupied, as well as properties the owners of which have executed waivers of relocation benefits and services under Sate and federal law, will be given priority in the selection process. Owners of properties which are unoccupied and owners who have executed relocation waivers will have their properties acquired by the Authority on a lottery basis. If no such owners respond, then owners who request the Authority to acquire their properties will have their properties acquired on a lottery basis to be - 3 - conducted by the Authority. Properties will be acquired if and to the extent that funding is available to the Authority according to the fundin schedule set forth in Section 2 above. ��:�:;��:::ae':�"'��i�:�,��Q��`�arit� :.>;;;>;:::>;;::::::::.�.:..::::::::::::..:::::::::..:.:...:....:::.................................................................................................................:::::::::::::.::�::.:::'.�::::.�::::::::::.:::::�:::::::::::::::::::. � ;�: �: �. .1 :: .::..:... :..::.. ;,;:.:::.::::>: :>.;:. <:.-.,:, ;: ,: ;.>;;..: .... ....t��. �� .�st.:f�. ..:�t�:< ::�::::::. . .� :. : :::.:;.:.;>::: ..;:<:.: :>:.:�.:.:.;:::..,»:::::��>�.::.:.:::::::.>..:..;:::<.:�.:> .::::::::::::::::.:..::::::::::.:::::::..::::::::::.::::::::.:...:.y...::::.:::::1....:::��s�.�.tss� t�;� :��°a��: x �.�:��:c��i�.::;�rtc�..�� .�r�s ................:.:.:::.�::..:................................�.................::,:::::.:..:....................................................................�............................::...:::.:....:.�.............:::.:.�......::.:::: ....:..::...................a...:::.:�:. .:.�,.::.�::: .:...,,....... ..............:. ....::::::::::.�::::.:.::::..:.::::::::::::.::::::.:::::::::�.::::::::::�:::::..�::::::::::.�.::.::�::.�.:.:::...::. ,:::::.:. .::...:..::::.�....:...:::::..:..... . . .:,.:. : . .:::... . . �:: ;2:: . ...�.:::: . ....::•.. :...:........i:i:. :....:...:._:...:..:..:�;:......:,:.. .:...:..y.,:...:.�.:....:..:...y,:.r-..:..:. :.�. :... ��;:;'re i�ed::::under:�;::��e...�� r�rm :>�tel at� on �ssi��,a :ce .�nd::::<�al�:�:>:PrQ er�: : ::..::.......:...�...::::.:::::::.:.:_:.:................................::.:��::.::..:...:._:.:::::::::�.:::.:.�.:::::::::::::::::.::.:.::::.�:.�:::..t�.:.::::.:::::::::::::::::.�:::::::._:::::..::::.,:::::::. .::::::.::::. .. .:..:::.::::::.:::.:::..... ............:.:.:..::..:::..:....:..:.............:...:....................:. ................................�?.......:...� . . .: .:. .....:.:.,., .... _..,..:,,,.,. .:...,..................,..,.,...............,..K...,.»....,.......,..........,.............. .,,,,,. .>:::.;::.:.>:.:.. . .:....:.:..::::.�::::.�._::..::..:.::..:::::::.:..�.... .......... ....... ................ AG�t�...s�.��:ti:�:::.:Pa1�:c'��::<::i��t bf �.�'��. All parties agree and understand that the obtaining of relocatian waivers from grospective sellers of property may give rise to claims for liability for relocation banefits or services under applicable law. To the extent that any such claims arise and are found to be valid, the amount of such claims may be considered a project cost to be shared by the parties. Section 4. Cooperation Agreement. It is anticipated that as of �`:�ua��;�`:``':::`��:� the Municipality and the Authority will enter into a �Cooperation �"`Agreement, a copy of which Cooperation Agreement is attached hereto as Exhibit A. Such Cooperation Agreement is intended to set forth the agreements, and payments in lieu of taxes during the operation of the Project. The Authority and the Municipality agree that it may, in the future, be necessary to make certain modifications to the Cooperation Agreement in order to insure the continued economic , viability of the Project subseguent to construction of the Project, and each agrees that it will negotiate with the other in good faith concerning any such proposed modifications. Section 5. Proiect Timing. It is presently anticipated that if the Authority is able to acquire all properties on which the Project is to be located, actual construction of the Project may commence in 1997. At such time, the Authority intends, subject to applicable law and feasibility analyses, to issue housing bonds in order to finance such development. The Authority intends that it will operate the Project as _ a senior rental facility for a period of not less than 20 years. Thereafter, the use may be changed with the approval of all the parties to this Agreement. Section 6. Termination of Aareement. This Agreement may be terminated by, written agreement of all of the parties hereto and shall be terminated at such time as the Authority has repaid the principal and interest on any bonds or other financing obtained to finance construction of the Project. - 4 - IN WITNESS WHEREOF, the parties have executed this Agreement as of the day and year first written above. DAKOTA COUNTY HOUSING AND REDEVELOPMENT AUTHORITY By Its Chairperson By Its Secretary THE PORT AUTHORITY IN AND FOR THE CITY OF ROSEMOUNT By Its By Its THE CITY OF ROSEMOUNT, MINNESOTA BY Its By Its EXHIBITA __________________�_--_-_--_-----__---=__-----�-____---_-__ � COOPERATtQN AGREEMENT - By and between DAKOTA COUNTY HOUSING AND � REDEVEL4PMENT AUTHORITY and _ C1TY OF ROSEMOUNT COOPERATION AGREEMENT THIS AGREEMENT entered into this day of i�.�%i��,'��;�.��;, by and between The Dakota County Housing and Rec�eve�'opment Authority (herein called the "Authority") and the City of Rosemount (herein called the "Municipality") ; WHEREAS, the Authority has recommended a senior housing project to the Municipality and has requested the Municipality to approve an acceptable site for the Authority to use for the location of the senior housing development; and WHEREAS, at the ��a:�:l;<:;:>:�J:��., Rosemount Port Authority meeting, the Port Authority��`�approved"and forwarded the following site to the Authority for consideration: Located along Cameo Avenue between 146th Street and Uppar 147th Street. WHEREAS, the Authority wi21 select one of two layouts on the site for the development as described below; WITNESSETH: In consideration of the mutual covenants hereinafter set forth, the parties hereto do agree as follows: 1. Whenever used in this Agreement: (a) The term "Project" shall mean a rental housing development for low or moderate income persons with a family member aged 55 or oider hereafter developed or acquired by the Authority pursuant to Minnesota Statutes, Section 469.017; excluding, however, any rental housing project developed or acquired by the Authority with financial assistance of the United States ot America acting through the Secretary of Housing and Urban Development (��HUD") and excluding any rental housing project covered by any contract for loans and annual contributions entered into between the Authority and HUD, or its pradecessor agencies. {b) The term "Taxing Body" shall mean the State or any political subdivision af taxing unit thereof in which a Project is situated and which would have authority to assess or levy real or personal property taxes or to certify such taxes to a taxing body or public officer ta be levied for its use and benefit with respect to a Project if it were not exempt from taxation. c) The term "Shelter Renter" shall mean the total rentals of a Project exclusive of any charge for utilities and special services such as heat, water, el.ectricity, gas sewage disposal or garbage removal. 1 2. The Authority shall endeavor to develop or acquire and administe� a Project located within the corporate limits of the Municipality containing, in the aggregate, approximately 50 rental units. The obligations of the parties hereto shall apply to the Project. 3. Pursuant to Minnesota Statutes, Section 469.040: (a) the project shall be exempt for all taxes of the Municipality, Dakota County, the State of Minnesota or any political subdivision thereof, provided, however that when any obligations issued by the Authority to assist in financing the development of a Project have been retired, then the exemptions from taxes shall terminate and; provided further, that the Authority he=eby agrees to pay when due any special assessments levied for improvements benefitting the property; and (b) notwithstanding the provision set forth in (a) above, after the Project has become occupied, either in whole or in part, and before the Authority retires any obligations issued by it to assist in financing such Project, the Authority shall file with the property assessor, on or before May i of each year, a statement of aggregate shelter rentals of that project collected during the preceding calendar year; and five percent (5�) of such rentals (but in any event not exceeding the amount whi�h would be payable in taxes if the Project were not exempt from taxation) shall be charged to the Authority and collected from it as a service charge for the services and facilities to be furnished with respect to that Project, collected in the manner provided by law for the assessment and collection of taxes. The amount so collected shali be distributed to the several taxing bodies in such proportions as the tax rate of each bears to the total tax rate of those taxing bodies that would be levied against such Project if it were not exempt from taxation. 4. During the period commencing with the date of the acquisition of any part of the site of the Project and continuing so long as any bonds issued in connection with such Project remain unpaid, the Municipality without cost or charge to the Authority or the tenants of such Project (other than the payments set forth in 4 above) shall: (a) Furnish or cause to be furnished to the Authority and the tenants of such Project public services and facilities (not including heat, water, electricity, gas, sewage dispasal or garbage removal) of the same character and to the same extent as are furnished from time to time without cost or charge to other dwellings and inhabitants in the Municipality; 2 (b) Vacate such streets, roads, and al2eys within the area of such Project as may be necessary in the development thereof, and convey without charge to the Authority such interest as the Municipality may have in such expenses to the Authority or to the Municipality, cause to be removed from such vacated areas, in so far as it may be necessary, all public or private utility lines and equipment; (c) In so far as the Municipality may lawfully do so, (i) grant such deviations from the building code of the Municipality as are reasonable and necessary to promote economy and efficiency in the development and administration of Project, and at the same time safeguard health and safety, and (ii) <� .�'}V�'V�•F •' �ys3 `��'�'`' such , �t:;�:�:�:''�EiF��°,��::��'`'�%��:�� ,�::,.•�:ri.:s:vr.�•:..yF•��.�:,�.x,M.<•��.�x,•��.;;:fM: changes in any zoning of the site and surrounding territory of such Project as are reasonable and necessary for the development and protection of such Project; and surrounding territory; (d) Accept grants of easements necessary for the development of such Project; and (e) Cooperate with the Authority by such other lawful action or ways as the Municipality and the Authority may find necessary or convenient in connection with the development and administration of such Project. 5. In respect to the Project, the Municipality further agrees that within a reasonable time after receipt of a written request therefore from the Authority: (a) It will accept necessary dedications of land for, and will grade, improve, pave, and provide sidewalks for all streets bounding the Project necessary to provide adequate access thereto (in consideration whereof the Authority shall pay to the Municipality sueh amount as would be assessed against the Project site for such work if such site work were privately owned) ; and (b) It will provide, or cause to be provided, water mains, and storm and sanitary sewer mains, leading to such Project and serving the bounding streets thereof (in consideration whereof the Authority shall pay to the Municipality such amount as would be assessed against the Project site for such work if such site were privately owned) . 6. No Cooperation Agreement heretofore entered into between the Municipality and the Authority shall be construed to apply to a Project covered by this Agreement. 7. No member of the governing body of the Municipality or any other public official of the Municipality who exercises any responsibilities or funetions with respect to the Project 3 . ; . during his tenure or for one year thereafter shall have any interest, direct or indirect, in the Project or any property included or planned to be included in the Project, or any contracts in connection with such Project or property. If any such governing body member or such other publie official of the Municipality involuntarily acquire or had acquired prior to the beginning of his tenure of any such interest, he shall immediately disclose such interest to the Authority. 8. This Agreement shall not be abrogated, changed, or modified without the written consent of the parties hereto. The privileges and obligations of the Municipality hereunder shall remain in full force and effect with respect to the Project so long as the beneficial title of such Froject is held by the Authority. IT WITNESS WHEREOF the Municipality and the Authority have respectively signed this Agreement and caused their seals to be affixed and attested as of the day and year first above written. CITY OF ROSEMOUNT _ (SEAL) (Mayor) Attest: (City Manager) (City Clerk) THE DAKOTA COUNTY �iOUSYNG AND REDEVELOPMENT AUTHORITY (SEAL) (Title) Attest: Secretary 4 y �: � u.s.0�psrtmsnt of Housing � and Urban Developmsnt �� Office of Communiry Pianning and Development Ag�"�� Relocatfon Assistance _ Add��ss T� �ispiaced Homeowners office Hours r � Tele. No. Person to Contact Introductian This bc>oklst describes the relocation payments _ and other relocation assis#ance provided under the � Uniform Relc�catlon Assistan�e and Rea1 Prop- erty Acqui�ition Policies Act of 1970,as amended (URA)to most homeowners�ose home is acqu�red by a pubtic agency for a Federa! project or a project in which Federa(funds are used. To be eligible for the assistance described in this booklet, you must have owned and accupied your home for at least 180 days be#ore the Agency offered to buy it. If yau are no#ified that your home w�it be acquired � and you wili be displaced, it is irnportant that you do not move be#ore you learn what you must do to receiue'the reiocation payments and ather assistance to which you are entitled. This bookiet may not answer alf of your questions. If you fiave more questions, contac#the Agency du�y�o �,E.,�, respansible for the project. (Check the back of this HUD-1044-CPD �' 'ew� � booklet for the name of tt�e person to contact at �'�t �' the Agency.) Ask your questions before you Previous Edifion Obsolete �,,,�� '��: move. Aftervvards, it may be too late. i � � Summary of Relocation Assistance Hu�brocnure,"When a Pubiic Agency Acquires Your Property." As an eli�ibie displaced homeowner,you wili be offered the foliowing advisory and financiai assis- How Wili The Agency Know How Much Help I tance: Need? : Yau wiil be contacted at an early date and person- • Advisory Senrices. This inciudes refer- aily interviewed by a representafive o#the Agency rals to comparable and suitable replacement to determine your relocatian needs and prefer- fiomes�the inspection of replacement hous- � ences for replacement fiousing and advisory ing to ensure that it meets established stan- � senrices.The interviewer wiU ask certain questions dards,heip in preparing ciaim forms for relo- abput you and other members of your household. catiort payments and other assistance to j ft is to your advantage to provide#he info�mation min�mize the impact of the move. so that the Agency can assist you in moving wi#h a minimum of harciship. The in#o�ma#ion you give • Payment for Moving Expenses. You may wili be kept in confidence. choose either a: Wow Soon WiII 1 Have To Move? -- Payment for Your Actuai Reasonable If possibie, a mutualty agreeabie date for the move . Moving and Related Expenses, or will be worked out. You wili be given enough time -- Fixed Moving Expense and Disloca- to make pians for moving. Unless there is a health tion Altowance. or safety emergency�you wili not be required to _ , move wi#hout at least 94 days advance written • Replacement Houstng Assistance. To natice of(i) at least one "comparabie reptacement enabte you to buy or, if you prefer, rent a home"that is available to you and (2�the earliest comparable or suitable replacement home, date by which you must move. Moreover, you wiN you may choose either. not have to move for at ieast 30 days after your property is acquired. -- Purchase Assistanae, or —,Rental Assistance. What Is A Comparable Replacement Home? A comparabie replacement home is: If you disagree with the Agency's decision as to the relocation assistance for which you are eligible, . Decent, safe, and sanitary. you may appeat that decision. • Functionaily equivalent to (and equal or better than) your present home. G@11et'81 QUeSt1011S • Actually avai{abie for you to buy. • Affordabie. (Ordinarily,there is no increase in How Wiii I Know i Am Eligibte For Relocation monthly mortgage payments#or principat and Assistance? interest.) You shculd�eceive a written no#ice expiaining your • Reasonabiy accessibie to your place of eligibility fof relocation assistance. You will be- emp{oyment come eligible for relocation assistance on the da#e . Generally as weli located with respect to pubiic you�ceive the Agency's written offer of"just and commercial facilities, such as schools and com�ensation"to purchase your home. You shopping, as your present home. should not move before receiving that purchase � Not subject to unreasonable adverse offer. Ifi you do, you may not receive relocation environmental conditians. assistance. For information about the a�uisition • Available ta all persons regardless of of your home, ask the Agency for a copy of the race, color, religion, sex,or natianal origin. 2 3 � � � Vlihat is�ecent,Safe, And Sanitary Agency wi(I refer you to lenders that can provide Housing? mortgage financing for your new hame. If th� Decent, safe,and sanitary housing is housing money paid for your old horne is appiied to the that: purchase af yaur new home, there should not be any increase in the numt�r or amount ofi your � Meefs applicable housing and occupancy monthiy mortgage principal and interest payrnents, requirements. • Is structuraliy sound,weathertlght, and in good 1Khat If i Find My Own Repfac�ment repair. Housing? ' • Contains a sa#e� adequate electricalwiring You have every right to find your own repiacement system. housing. However, before you buy or rent,ask th� • Has adequate living space for the occupants. Agency to inspect the unit to make sure that ii is . Has a kitchen with a sink, hot and cold running decent, safe, and sanitary. If the housing unit is water, and connec#ions for a stove and refrig- not decent,safe, and sanitary, you wiU not receive erator. a replacemert fiousing payrnent. • Has a separate,complete bathroom with hot and cold running water. What if I Encounter A Probiem!n Obtaining • Has Meating as required by ciimatic conditions. Housin�Of My Choice? . • Has an unobstruc#ed exit to safe, open space at If you encounter a problem in buying or renting ground IeveL housing af your choice, notify the Agency immedi- • Meets s#andards protecting oce�pants from ately. The Agency wiU look into the matt�r and try . lead-based paint Mazards. to resalve it. You will receive'this help whether you • if you are physicatly handicapped, is free of any were referred to the housing unit or found it your- barriers which would preclude your reasonable seif. use of#he unit. If you are unable to buy or rent a housing unit Will The Agency Help Me Find A because of discriminatory practices on the part of a Replacement Home? real estate broker, rental agent, �nder,or a prop- Yes. You will be provided with referrals to housing erry owner, the Agency wilt help you file a formal that has been inspected to ensure that it meets housing discrirninafion complaint with the U.S. : estabfished standards. If possible, you will be re- pepartment of Housing and Urban Development or fened to at least three comparabfe replacement the appropriate State or local faic housing a�ency. homes. The majcimum financial assistance for wMich you may qualify will be based on the cost of What Other Services Wilt 1 Receive? the most representative comparable replacement In addition to help in obtaining a camparable home that is available to you. When the AgencY I replacement home,other assistance, as necss- gives you its initial written purchase offer, it will ��ry,wiq be provided in order to minimize the inform you of such unit and explain the maximum impact of yaur move. This assistance may include payment available, referral to approp�iate public and private agenaes (3nce the Agency represen#ative has a clear that provide services conaeming housing financ- und�rstanding af your needs and preferences,he �ng,employment. health,welfare, or I+egal assis- or s�`will work with you to assuce that you are �nce. The range of services depends on the given the best possible cfioice of housing. The needs of the person being displaced. You shouki Agency will offer you transportation to inspect ask the Agency representative to tell you about the these units. speci#ic services that witl be available to help yau and your famify. If there is a mortgage on your present home, the 4 r 5 � � What Is A Paymenf For Actual Reasonable advantageous. No speciai documentation'is Moving And Related Expenses? required to support your claim. You need only ff you choose a Payment For Actual Reasonable move your personal property and complete the Moving and Rela#ed Expenses, you may include in appropriate ciaim form in order to receive your your ciaim the reasonable and necessary costs for: payment. . • Transportation far you and your family, I Want To Buy Another Home. How Much • Packing, rnoving and unpacking your house- Pur.chase Assistance Wiil i Receive? Mold goods. To help you buy a comparabie repiacement home . Disconnecting and reconnecting household o�other decent, safe and sanitary home of your appiiances and other personal property � choice, you wiN receive Purchase Assistance equal (e.g., telephone and cable TV). ' to the sum of the fotiowing three amounts: • Storage of household goods, as may be necessary. • Purchase t�ric+e Differentisi. if the cost of re- . Insurance for the reptacement value of your placement housing exceeds the amount the property during the move and necessary stor- Agency pays for your present home,you wi0 be a9e� paid the difference. The Agency wiil inform you in . The replacement value of property lost, a timely manner, in writing, of the location and cost stolen or damaged in the move (but not of comparable reptacement housing(and explain through your neglect) if insurance is not rea- the basis of its determination) so that you wilt know � sonably availabie. in advance the maximum amaunt of assistance you may receive. That information should help you The Agency wiU explain all eligible moving costs, decide how much you wish to pay for your next � as well as those which are not eligibie. You must home. � be abie to account for any costs that you incur, so keep all your receipts. Seiect your rnover with You are#ree to purchase any decent, safe and care. The Agency can fielp you select a reliable sanitary housing unit of your chaice. 1f the pur- and reputabte mover. chase price is less than the cost of a comparable replacement home,the payment will be limited to You may elect to pay your moving costs yourself the actual difference. If it exceeds the cost of a and be repaid by the Agency or, if you prefer, you comparable reptacement harne,the payment wilt may have the Agency pay the mover. In either be based on the cost of a comparable home, case, let the Agency know before you move. What Is A Fixed Moving Expense And Examples: Let's say that#he�►gency pays ' $20,000 to purchase your fiome and that a compa- Dislacation Allowance? � rable replacement home costs$30,000. If you choose a Fixed Moving Expense and Dislo- ' cation Allowance, you will receive an allowance # -- If you pay$29,OQ0 for a replacement which is based on the number of rooms in your home,you would receive a$9,000 differ- home or the numbe�of rooms of fumiture you wilt ential payment(the difference between be moving, as shown on a scfiedule. The Agency the Ageney's payment for the acquisjtion has a copy of the schedule and will help you of your home and the a�st af your replace- decide w�ether choosing this allowance is in your ment home). t�st�erest. -- If you pay$32,Q00 for the replacement !#you do not have a large amount of personal home,you would receive a$10,0�differ- property to move,this payment should be more entiaf payment(the difference between 6 . � j .f. . . � .. . � � � . . . . � . . . . � � . . . . � . . . . . . . . .� . � � � � . the Agency's acquisition payment and the differential, and incidental expenses. If you are Ro# cost of the comparabte replacement eligible for one of these costs, you may stiil be home). eligible for the others. • Mortgage Interest Differential Payment. To qualify fiar the payment, you must purchase and This amount covers the"present value"of the occupy a decent,safe and sanitary repiacement additional costs required to finanee the purchase home within one year after the later of: the date of a replacement home that result if#he interes# yau move o�the date you receive the final pay- rate you must pay for a new mortgage is higher ment for the acquisition of your present home. than the i�terest rate on the mortgage on your However,the Agency wili extend this period for present home. It aiso covers other debt service good causs. costs. The paymen#is based on the 1esser o#: the mortgage balance on your present home or your 1f I pecide To Ren#, Ratt�er Than Buy, How new mortgage amount. To be eligible, the mort- Much Assistance Wili I Receive? gage on your home must have been a valid lien for if you decide to rent rather#han buy a replacement at least 180 days before the Agency's initial written home, you may be eligible to receive Rental purchase offer for your home. Assistance, The assistance cove�s a 42-month period and is computed in the following manner: � You should provide the Agency with a copy of your mortgage(s)as soor� as possible, Based on that The assistance needed#or one month is deter- information and the prevailing terms and conditions mined by subtrac#ing the"base monthly rent"for - of new mortgage financing, the Agency will deter- your present home from the cost of rent and mine the approximate morfgage interest differential utilities for your new home{or a comparable payment for which you will be eligible, inform you reptacement home, ifi that cost is lawer�. That o#that amount and explain tfie conditions on which monthly need, if any, is multiptied by 42 to deter- it is based, The payment will be made available m�ne the totat amount that you will receive. This with the pu�chase price differential in a timely amount will be paid directly to you. Hawever, the manner to reduce the amount you must borrow to Agency may elect to provide the assistance in buy your new home. monthly installments, other periodic payments oc in a lump sum. • Incidental Expens�s(Closing Costs). This amount covers those extra casts typicatly charged Generally,the base monthly rent for your present ' when one buys reai property,such as the co�t of a home is the lesser of: (1) the estimated"market property survey;the cost of preparing a legal renY'and average monthly cost for utilities,or description and deed; recording fees;the cost o# (2)thirty (30) percent of your average monthly title insurance, revenue stamps and transfer taxes ' gross househald income. (not to sxceed the cost to buy a comparable � �eplacement home);loan application, loan origina- Examples: l.et's say that tMe monfhly"market tion and appraisal-#ees;the cost af a credit report; renY'and average cost for utifities for your present and the cost for a certification of structural sound- home are$250;the monthly rent and estimated ness or termite inspectian when required. It does average utility costs for a comparable replacement not c�er prepaid expenses,such as property fiome are $35Q;and your monthly gross income is taxes and insurance. $700. tn this case your"base manthly rent"would be $210 because that amount(30 percent of your Remember, your total payment is the sum cf the income} is less than the monthly market rent and purchase price differential, mortgage interest cast of utilities at your present home ($250). 8 � 9 � � .. ! � , � -- If you rent a replacement home for$360 ' sooner it can be p�ocessed and paid. Jf you are ' per month, including estimated utility unabte to file your ciaim within 48 rnonths, ask the charges, you witl receive $5,880. That � Agency to extend this period. amount is 42 times$140 (the difference � between the "base monthly rent"for your I Be careful not to confuse�is 18-month period with present home ($210) and the cost for a � the 12-month period w'rthin which you must buy or comparable replacement home ($350)). i rent and occupy a replac:ement dwelling in order to � be eligible for a replacement housing payment. -- If you rent a replacement home fpr$310. � including estimated average monthly utility I You will be paid promptly after you file an accep#- charges, you will receive $4,200. That I able claim. If there is any question regarding your amount is 42 times$100 (the difference � right ta a relocation payment or the amount af the- between the"base moMhly rent"for you� 1 payment, you witl be natified,in writing, of the present home ($210) and the actual cost ; problem and the action you may take to resolve of your new home ($310)). the matter. To qualify for rental assistance,you rnust rent and Wilf l Be Paid For My Property Before l Have To - occupy a decent, safe, and sanitary home within Move? one year after the date you move. However,the !f you reach a nego#iated agr�ement to sep your - Agency will extend this period for goad cause. property to the Agency, you will not be required to move before you receive the aqreed purcfiase Must t File A Claim To Obtain A Relocation price. if the property is acquired through an emi- � Payment? nent domain proceeding,you cannot be required Yes. You must file a claim for sach relocation to move before the estimated fair market value of payment. The Agency will, however, provide you me property has been deposited with the court. with the required claim form, help you to complete (You should be able to withdraw this amount it, and explain the type of documentation, if any, immediately, less any amounts necessary to pay that you must submit in orcler to receive the pay- off any mortgage ar other liens on the property and ment. to resolve any special ownership problems. With- drawal of your share of the money will not affect If you must pay any relocation expenses before Your right to sesk addi#ional compe�sation for your you move(e.g., a deposit when you contract for � property.) the purchase of a new home), discuss your needs ' Will I Have To Pay Rent To The Agency Before I with the Agency. You shauld be able to obtain an � �ve? advance payment to meet these costs. An ad- � You may be required to pay a fair rent to the vance payment to purchase a home may be ' A enc for-the riod between the ac is�tion of ptaced in "escrow." An advancepayment for g y � � moving expenses may be paid directty to the your property and the date tha#you move. Such moving contractor to ensure that the move wi11 be rent wiil not exceEd the market rent for comparable completed on a timely basis. 1 properties in the area. i You must file your claim within 18 months after the � � �Have To Pay Federal Income Taxes an My dat�ou move o�receive the final payment#or the Reiocation Payments? acquisition of your present home. However,it is to No. Section 216 of the URA states that you need your advantage to file as soon as possible after not report relocation payrnents as part af your you move.: The sooner you submit you�claim, the gross income for Federal tax purposes. Far infor- 10 �� r . � -mation an State or local income taxes,you shouid check with the State or local income tax office in your area or with your personal tax advisor. if I Don'f Receive The Required Assistance, : Can I APP�aI? if you disagree with the Agency's decision as to . your right to�elocation assistance or the amount of a payment� or the adequacy of the housing to � which you have been referred, you may appeal the decision to the Agency. The Agency wiU inform you of its appeal proce- dures. At a minimum,you wiil have 60 days to file your appeal with the Agency after you receive written notification'of the Agency's determination ' on your claim. Yaur appeai must be in writing. ;� Hawever,�you need heip, the Agency wiil assist � you in preparing your appeai. If you are a low-or moderate-income person and � are dissatisfied with the Agency's de#ermination on �. your-appeal, you may have an additionai right to request administra#ive review of that decision(e.g., by HUD or the State). The Agency wiit explain whether this option is available. You can expect a fair decisian on anY appeal• However, if you are no#satisfied with the final administrative decision on your appeal, you may , seek review af#he matter by the courts. ! Have More �uestions. Who Will Answer Them? f If you have further questions after reading this baoklet, contact the Agency and discuss your � concerns with the Agency representative. � � 12 ,r ' , I �-r Handbook 137$ c� A endix 1$ � PP i GUIDEFORM WAIVER OF RELOCATION ASSISTANCE UNDER THE UrtIFORM RELOCAITON ASSISTANCE AND REAL PROPERTY ACQUISITiON PQLICIES ACT 4F 1970, AS AMENDED (URA) 1. I, __ , am presently [the nwner ofl [a residential tenant of J propeny located at --- jaddress�, 2. I have been fc,.mally notified that this property is to be [acquirec� rehabilitated, demolished] for a program or project to be camed out by [agencY] with Federal financial assistance provided by the United States Department of Housing and Uri�an Development, and that it will therefore be necessary for me to move permanently from this property. I have been further advised that I am eligible for relocation payments and other relocation assistance under the URA in connection with this dispiacement. It has been explained to me that the law provides for advisory assistance, including refenral to comparable (affordable, decent, safe and sanitary) replacement housing; f�r payment of actual, reasonable moving and related expenses ar for a fixed e�epense and dislocation allowance, at my election; and, in addition, for a replacement housing payment to assist me in buying or renting a replacement home. . �� 3. The nature and amounts of such payments and other assistance have been . specifically described to me in such a manner and in sufficient detail that I fully understand my eligibility. 4. I have determined not to claim the benefits available to me under the URA, and hereby release the _ jagency] frorn all obligations and liability regarding them. I do this freely, on the basis of my full understanding of all my legal rights. I am under no duress or coercion by the [agencY] and make this decision without reservatian or qualification. 5. This waiver shall expire on jdate) , unless the assisted program or project has been completed by that date. Witness: Signature: Witness: �� _ , (Seal�, Natary Public My Commission Expires On: APP. 18-1 9/9Q .. ,z , SIIMMARY OF Acquisitian & Relocation IIniform Relocation Assistance and Real Propertv Acquisition Policies Act as Amended by the Su=face Transportation and IIniform Relocation Assistance Act of 1987 General - It is important to note that both the public real property purchasing process and the relocation of owners, tenants, and businesses is extensively regulated and requires appropriate attention. Reasons for ensuring compliance are: 1) it's required for most public acquisitions; 2) monitoring may follow use of certain state or federal funds; and, 3) court action may develop and it's wise to show required procedures were followed. I. Acquisition Reguirements A. General 1. Notice to owner regarding interest 2. Owner shall have opportunity to accompany appraiser 3. Fee appraisal 4. Review appraisal 5. Owner may receive appraisal and have up to $500 paid for by public source 6. Offer with summary statement required 7. Advantages to seller - fair market value, generally no realtor fees, most closing costs paid by public source, tax advantages if condemnation threat, relocation, etc. 8. Fixture appraisals typically done for businesses B. Other Acquisitions 1. No appraisal if value less than $2,500.00 2. Voluntary acquisition and waivers of benefits can be used II. Relocation A. Owner Occupants 1. Must be 180 day owner occupants - 2 - 2. Eligible for: - difference between purchase price and cost of a comparable referral made; i.e. , replacement home option - moving expense payment - actual or fixed payment - mortgage interest differential payment - closing costs - relocation services/assistance 3. Relocation Assistance - not to exceed $22,500 unless housing of last resort B. Tenants 1. Must be 90 day occupant 2. Eligible for: - rental assistance payment up to $5,250.00 (payment depends on income, current rent and comparable referral rent) - down payment up to $5,250.00 - moving expense payment - actual or fixed - relocation services/assistance - housing of last resort (depending on sources of public funds) C. Business Relocation 1. Reestablishment expenses - not to exceed $10,000/with limits on certain expenses . � and 2. Actual moving expenses - include cost to move, change printed items, ` lettering `on vehicles, licenses, phone work, etc. or 3. Fixed payment in lieu of reestablishment and moving expenses - $1,000 up to $20,000 depending on average annual net earnings - separate payments for separate businesses under same roof if taxes filed separately