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Old Mill Rd Prop Grant ECIAMEMORANDUM March 11, 2003 TO:The Honorable Mayor and City Council Members FROM: Michael C. Van Milligen, City Manager SUBJECT:Contract for Administrative Services for Old Mill Road Property Purchase Grant Administrative Services Manager Pauline Joyce is recommending City Council approval of the Administrative Plan and Contract for Services with East Central Intergovernmental Association for administration of the Grant Agreement between the City of Dubuque and the Iowa Emergency Management Division. The administrative services are required to acquire three properties on Old Mill Road, including relocation assistance to property owners and demolition of the structures. I concur with the recommendation and respectfully request Mayor and City Council approval. Michael C. Van Milligen MCVM/jh Attachment cc: Barry Lindahl, Corporation Counsel Cindy Steinhauser, Assistant City Manager Pauline Joyce, Administrative Services Manager MEMORANDUM March 11,2003 TO:Michael C. Van Milligen, City Manager FROM:Pauline Joyce, Administrative Services Manager SUBJECT: Contract for Administrative Services for Old Mill Road Property Purchase Grant The purpose of this memorandum is to forward two documents for City Council approval relative to the Old Mill Road property acquisitions. These include an Administrative Plan and a contract for services with East Central Intergovernmental Association for administrative services required to acquire three properties, including relocation assistance to property owners and demolition of structures as described in the grant agreement with th Iowa Emergency Management Division.. City Council has previously approved acquisition of three properties on Old Mill Road and the Grant application for FEMA assistance on the acquisitions. FEMA has given approval for the property acquisition and has forwarded the related contracts for signature by the Mayor. Part of the requirements for entering into this contract is for City Council to adopt an Administrative Plan for the acquisition. This plan has been developed by EClA staff, using the same guidelines used in prior flooding related property acquisitions (e.g., the Pennsylvania property). The second document provides for grant administrative services from East Central Intergovernmental Agency. The proposed contract with ECIA covers reimbursement for actual costs, not to exceed $9,000. The requested action step is for City Council to adopt the Administrative Plan and approve the Contract for Services with ECIA for administration of the Grant Agreement No 1420-002, Project No. 1420-31-01 between the City of Dubuque and the Iowa Emergency Management Division. March 11, 2003 City of Dubuque Attn.: Pauline Joyee 5O West 13th St. Dubuque, IA 52001 RE: Hazard Mitigation Program Dear Pauline: As we discussed, the Iowa Emergency Management Division received FEMA approval to proceed with the City's acquisition and demolition of three properties on Old Mill Road. We prepared an Administrative Plan that details the specifics of how the grant will be administered. In addition we prepared an Administration Contract between the City of Dubuque and ECIA for grant administration services. We request that these items be placed on the March 17 City Council agenda for approval. Thank you for your cooperation with this matter. Please feel free to contact me if there is any quest/on. Sincerely, Mark Schneider Encl. CONTRACT FOR SERVICES WITH THE EAST CENTRAL INTERGOVERNMENTAL ASSOCIATION THIS CONTRACT is entered into by and between the East Central Intergovernmental Association (hereinafter called ECIA) and the City of Dubuque, Iowa, (hereinafter called the Grantee) for the purpose of cmrying out the Scope of Services, and Terms in any Attachments as described below. SECTION 1. SCOPE OF SERVICES ECIA shall provide and perform the necessary administrative services required to acquire three properties including relocation assistance to property owners and demolish structures as described in Grant Agreement No. 1420-0002, Project No. 1420-31-01 between the City of Dubuque and the Iowa Emergency Management Division (hereinafter called IEMD). SECTION 2. TIME OF PERFORMANCE The services of ECIA shall commence on March 1, 2003 and be completed within eighteen months of the date of tiffs agreement unless the terms are altered through mutual agreement oflEMD, ECIA, and the City of Dubuque. SECTION 3. METHOD OF PAYMENT Payment shall be due upon receipt of a monthly bill for services. The payment shall be based on the actual costs incurred by the agency in performing the services. Total payment shall not exceed $9,000.00. SECTION 4. PERSONNEL ECIA represents that it has, or will acquire, all personnel necessary to perform the services under this Contract. SECTION 5. PROPERTY ECIA shall be free to acquire or use existing property, real or personal, as it deems necessary in the performance of work under this agreement. SECTION 6. TERMINATION BY GRANTEE 6.1 The grantee may, by thirty days written notice to ECIA, terminate this contract in whole or in part at any time, either for the grantee's convenience or because of the fa/lure of ECIA to fulfill its obligations under the contract. Upon receipt of such notice, ECIA shall: 1. Immediately discontinue all services affected (unless the notice directs otherwise), and 2. Deliver to the grantee all data, drawings, specifications, as may have been accumulated by ECIA in performing this contract, whether completed or in process. 6.2 If the termination is for convenience of the grantee, ECIA shall be entitled to compensation determined in accordance with 3 of this contract. SECTION 7. TERlVlINATION BY ECIA ECIA may terminate this contract by thirty days written notice to the grantee for grantee failure to comply with the laws, roles, or regulations of the Iowa Emergency Management Division in can'ying out the Contract. The notice shall stipulate the laws, roles, or regulations, which have been violated, and the date ECIA advised the grantee of said violation. SECTION 8. COMPLIANCE WITH LAWS AND REGULATIONS ECIA shall comply with all applicable State and federal laws, rules, ordinances, regulations and orders. ECIA shall comply with the provisions of federal, state and local laws, roles and executive orders to insure that no employee or applicant for employment is discriminated against because of race, religion, color, age, sex, national ori~Sn, or disability. A breach of this provision shall be considered a material breach of this contract. SECTION 9. ACCESS TO RECORDS ECIA shall permit IEMD or its agents to access and examine, audit, excerpt, and transcribe any directly pertinent books, documents, reports, papers and records of ECIA relating to orders, invoices, or payments or any other documentation or materials pertaining to this Agreement. SECTION 10. RECORDS RETENTION All records of Grantee relating to this Agreement shall be retained for a period of five (5) years following the date of final payment or completion of any required audit, whichever is later. SECTION 1 I. OTHER REQUIREMENTS In connection with the carrying out of this agreement, ECIA agrees to comply with any and all roles and regulations of the Iowa Emergency Management Division concerning third party contracts. PASSED AND APPROVED: Grantee: City of Dubuque East Central Intergoverrnuental Association Date Date Terrance M. Duggan, Mayor Chairperson or Executive Director Attest: Jeanne Schneider, City Clerk Attest: ADMINISTRATIVE PLAN VOLUNTARY ACQUISITION OF FLOOD DAMAGED PROPERTIES IN ACCORDANCE WITH THE FEMA HAZARD MITIGATION PROGRAM CITY OF DUBUQUE ADOPTED BY THE DUBUQUE CITY COUNCIL ON MARCH 17, 2003 Prepared by ECIA The community was heavily damaged by a flash flood of the Catfish Creek due to upstream flooding and a heavy downpour. The floodwaters caused major damage to homes and businesses. On the 16th day of September, 2002, the City Council authorized the submission of a Hazard Mitigation Grant Program application to the Iowa Emergency Management Division (IEMD) for the purpose of obtaining federal/state financial assistance under the Robert T. Stafford Disaster Relief and Emergency Assistance Act (PL93-288, as amended) and the Code of Iowa, Chapter 29C. This outline of procedures was created to explain how the program would operate. The City/s committed to making this program work as quickly as possible so that the affected property owners may promptly make their property decisions with as much information as is available. Acquisition Voluntary Acquisition Program The fimding for this program under disaster declaration 1420 requires that certain conditions be met in order for it to be on a voluntary basis. Since this is a voluntary acquisition that is funded under the Hazard Mitigation Program, the City is exempt from following the processes and notices to owners required for acquisition by the Uniform Relocation Assistance and Real Property Acquisition Policies Act of 1970 (hereinafter referred to as UP, A). However, tenants will be provided assistance in compliance with the UPA since relocation is involuntary to them A voluntary acquisition program, in order to be exempt from the Uniform Act, must make offers to purchase on a willing buyer/willing seller basis. That is, if the seller rejects the offer, the City will not pursue acquisition of the property by using its eminent domain powers. In addition, the City must not be purchasing the property for a known project. The City will use the same criteria for purchases in all cases for this program To make an initial determination of willing buyers, the City contacted every owner of property listed in the grant application. ECIA staff personally discussed the program with the owners to determine their interest in pmticipating in this voluntary acquisition program Purchase Price The City is using the FEMA Hazard Mitigation Program guidelines by utilizing the pre-flood value of the property (as of June 4, 2002) for this voluntary acquisition program. In making its detemdnatiun of the voluntary purchase value, a pre-flood owner will be offered a June 4, 2002 fair market value. This value is based on the full assessed value of the property based on the County Assessor's records and other public information times a 1.1 multiplier, which equals 110% of the assessed value. The property owners are not under any obligation to sell their property to the City and, they have an appeal process to permit other information, including independent appraisals to be submitted for the City's consideration. Definition of Owner-Occupant The City will make its initial offers to purchase to owner-occupants of flood-damaged residential property. An owner-occupant is defined as follows: 1. Holds title to the property with valid deed or valid real estate contract that pre-dates June 4, 2002, 2. Continues to hold title to the property to the date of the City's offer to purchase, 3. Will certify to having lived in the house as his/her/their primary* residence as of the date of the flood event. * - Primary is defined as the owner's principal place of residence. The owner must reside at the site at least six months plus one day of the previous twelve months to be considered primary**. This will be verified in order of preference by 1) Homestead Exemption on the property; 2) Income tax returns; or 3) Owner-signed certification stating that the property is their primary residence. ** - Note: An exception to this requirement may be made if the owner acquired the property less than six months prior to June 4, 2002. This will be verified by County records and closing documents. Definition of Investor-Owner The City will make offers to purchase to investors-owners of the selected flood-damaged residential property. An investor-owner is defined as follows: 1. Holds title to the property with valid deed or valid real estate contract that pre-dates June 4, 2002, 2. Continues to hold title to the property to the date of the City's offer to purchase and did not occupy the unit as of June 4, 2002, 3. The investor-owner shall provide the City with additional information as may be required by the City, including available information on any tenants. 2 What is to be Acquired The City will acquire all land and improvements associated with the properties subject to this program Any additional lots that are adjoining and owned by the eligible, residential property owners may be purchased at the option of the City and the seller, but only after approved by IEMD and FEMA. Property to be acquired must have been substantially damaged as a result of the June 4, 2002 floods. Substantially damaged is defined as damage greater than 50% of the value of the structures on the property. The land value is not included in the calculation. For any commercial property acquired under this program, the City will obtain a Clean Closure Certificate, where appropriate, and provide it to FEMA for approval prior to the City's acquisition. Pre-Acquisition Activities The City shall undertake a number of activities relating to each property prior to making an offer to purchase. Briefly, these activities are: 1. Determining pre-flood market value as descn'bed above in "Purchase Price". 2. Identifying the owners who want their property to be considered for acquisition. 3. After the property owner indicates their interest in participating in the voluntary acquisition program, the City will: a. Prepare a schedule of property values for all properties in the project, Ix Order a title certificate, c. Order a "mortgage" property survey, d. Work with FEMA and the Small Business Administration (SBA) to obtain information on the proceeds received through those agencies' programs for each property. Timing of Offers The City will make offers to purchase to willing and eligible property owners after completion of the aforementioned pre-acquisition activities. It is anticipated that offers will be delivered to eligible owners as quickly as possible. Offer The City will make its purchase offers in substantially the same form as used with other City purchases of property, and including appropriate terms as provided by or required by the participating State and Federal agencies. Important policy elements of the offer are: 1. Purchase Price: The pre-flood tax assessed value of the real estate, adjusted upward to reflect pre-flood market value as defined in "Purchase Price". Deduction from Purchase Price: As applicable, insurance proceeds for real estate damage, other public payments as determined by FEMA that represent a duplication of payment for the real estate, property taxes due and owing, and other payments required to clear special assessments, liens of judgments, will be paid prior to closing or deducted at the time of closing. The City will receive individual determinations by FEMA and SBA of the deductions or credits on FEMA and/or SBA funds already disbursed. Closing and Possession: Due to the distressed condition of many properties, as caused by the flood damage, it is in the best interest of the City to not take possession of the houses while they are occupied by the sellers. It has been the practice of the City to only engage in rent-back arrangements with sellers when the houses have met reasonable standards of safety and habitability. In order to accomplish this transfer of ownership and possession in a manner which does not place the sellers or the City in a position of financial risk or other liability, a process was designed to use a closing agent to manage the acquisition by the City together with the move to a replacement housing location. After the City and the seller have executed the Offer to Purchase and the deed to the property, the documents will be delivered to the escrow agent to retain until the seller has purchased a replacement dwelling or has found other accommodations. When the seller has scheduled the closing for the replacement dwelling and arranged to move to that dwelling, the City escrow agent will coordinate the closing of the transactions such that the seller will move from the property acquired by the City concurrent with the closing. In the event the property purchased by the City is not occupied, the closing will occur as soon as the title and closing-related issues are satisfied. Otter Form The City will provide a written purchase price at the time an offer to purchase is presented. An example of the form that will be used is shown as Exhibit B-Offer to Buy Real Estate and Acceptance Form Essential factors in the form include: Closing Date - A mutually agreed upon date by the City and the seller to close on the property. Clear Title - The seller must provide clear title to the City's satisfaction before the closing can occur. The seller must convey by warranty deed. Expiration Date - The City will allow two weeks from the date the offer is made for the seller to decide whether to accept. The City will permit an extension of the expiration date, if requested in writing by the owner, up to an additional two weeks. It is the intention of the City to make as many offers as quickly as possible. Sellers will be reminded that if they do not want to accept the offer, they must let the City know as soon as possible. Property Inspection - The seller will grant access to the City to inspect the flood damaged property for personal property, hazardous materials, etc. that mast be removed prior to closing. Removal of Debris - The seller agrees to remove, at their expense, prior to closing, all vehicles and vehicle parts, firewood, construction material debris, and other personal property located on the site. Use of Purchase Price - The seller must agree to certify to use the purchase price of the flood damaged property expressly for the purpose of replacement housing outside of National Flood Insurance Program (NFlP) Zone A Flood Plain boundaries. Subject to Approval of the City Council - The offer is subject to the City Council approval of the form of offer and the specific offer terms for each property. Appeal of Offer Price If, after the presentation of the offer, the seller believes the offer price is incorrect due to factual errors and/or can present additional information directly relating to the pre-flood market value, the City will have an appeal process as described below: The seller may appeal the estimate of pre-flood value after presentation of the City's offer to purchase and before the expiration date of the offer to purchase. Within two weeks of the City's offer to purchase, the seller shall present a written statement which includes the reason for the appeal such as factual information and any data that support the reason for the appeal to increase the offer price. The seller will assume the responsibility of securing an appraisal from a certified appraiser approved by the City and incurring the expense of the appraisal. The seller will understand that the appraised value will be taken under consideration after the total project budget expenses are known and any revision in the acquisition offer will be subject to City Council approval. The seller is NOT guaranteed that the appralisal price will be used to determine the offer price and should anticipate that the City will not exceed its total project budget. Within 30 days of filing the written appeal statement, the seller must provide the appraisal report to the City for review. The seller may submit a written request to the City for a 14-day extension to allow the additional time necessary to secure the appraisal. In the case that the seller exceeds the 30-day period to obtain and submit the appraisal, and does not provide a written request for an extension, the original offer to purchase price will prevail. Process After Offer is Accepted If the propmty owner accepts the City's offer, the following will be undertaken: 1. The seller will provide the City with the property abstract or the City will obtain a new 40-year abstract (at the seller's expense). 2. The City will forward the abstract or request for a new abstract to an escrow agem that will function as the program's closing agent. The escrow agent will be responsible for ordering the abstract work, issuing a title opinion, transmitting the title opinion to the property owner and providing sample forms of affidavits and releases. Upon receipt of the necessary title-clearing documents from the seller, the escrow agent will prepare a closing statement utilizing the HUD-1 Settlement Statement Form, and set up the closing. The City will notify ECIA of the pending closing in order to undertake the required property inspections and prepare appropriate requisitions. The escrow agent will not close the transaction and the City will not take title to the subject property until the property owner has found a replacement property, obtained an accepted offer on that property, and is ready to close and take possession of that replacement property. The intention for this process is that the City wishes to arrange to take title to the flood damaged properties when the owner is ready to vacate and take possession of their chosen replacement property. Acquisition Staff The Acquisition staff, supplied by ECIA, will present the offer in person and be available to answer questions. After the offer is made, the Notice of Relocation Eligibility will be presented and ECIA will inspect the property. If the offer is rejected and the property owner chooses not to sell the property, the acquisition staff will close the property's file and 'de-obligate' the funds reserved for the property's acquisition and relocation payments. Contract Services The City shall hire a number of services to be performed on a contractual basis to assist in the acquisition program. The services contracted for, or to be contracted for are: 1. Title certificate and abstracts 2. Mortgage property surveys 3. Title opinions 4. Escrow agent 5. Historical intensive level surveys, ffrequired 6. Domolition work 6 Property Management Summary The City will undertake certain property management activities upon the acquisition of those volunteer, flood damaged properties that the owners choose to sell. It is the intention of the City to minimize its costs and risks in managing the properties when acquired. Inspections The form of the Offer to Purchase provides that the City will have the right to inspect the premises once the seller accepts the offer. The purposes of the inspection are to determine if there are any hazardous materials on site, serious safety risks or unique fixtures to the property that the City would need to deal with upon its acquisition. A further requirement of the Offer to Purchase provides that the seller agrees to remove from the property, at their expense and prior to closing, all vehicles, wood, construction materials, debris and personal property. The purpose of this provision is to ensure that the City is not burdened with the cost and risk of injury or expense of removal oftbe abandoned personal property. Disposition of Improvements The City will make every effort to dispose of improvements from the property through sale to the public in order to minimize project costs. This has been accomplished in the past by arranging auctions of the improvemenm As sellers move from the properties acquired under this program, Acquisition Staff will evaluate each property for the sate possibilities of the improvements. If improvements were made and paid for with owner fimds area- June 4, 2002 and no reimbursements or assistance was provided by FEMA, the owners may choose to remove those improvements at their own expense or leave them intact. If disposing by sale is determined to not be feasible, the property will be demohshed and removed. Until any improvements are sold and removed or demolished and removed, the property will be secured. The proceeds from the sale of any improvements reduce the total costs of the Hazard Mitigation Program. Pro.am Close-Out Once the owners of all eligible properties have been contacted and acquisitions have either been completed or decrmed, a review of the files will be completed by staff following the clearing of all fixtures from the subject properties. Any program revisions that may have occurred will be noted in the Administrative Plan and all files wilt be kept in accordance with the City's standard file policies and procedures. Relocation Overview The Relocation portion of this document will describe the City's provision of relocation assistance for the residential properties that are purchased. Benefits will be made available as described below. Funding Sources The City will be utilizing Federal, State and local funding in order to provide relocation benefits for properties that are actually acquired. Relocation Assistance Program for Owner-Occupants The voluntary nature of this program does not obligate the City to provide relocation benefits. However, the City has opted to provide relocation benefits to pre-flood primary owner-occupants who accept the City's offer to purchase their flood damaged resident/al property. These benefits will help the owner-occupants secure replacement housing. It is anticipated that almost alt owner-occupants will be able to use the relocation assistance as a major source of funds to purchase decent, safe and sanitary replacement housing. 1. Eligibility - Owner-Occupants: In order to be eligible for owner-occupant benefits, the owner-occupant must: a. Accept the City's offer to purchase. b. Meet the definition of owner-occupant. Purchase or rent a decent, safe and sanitary housing unit within 6 months of acceptance of the City's Offer that is located outside of Zone A, NFIP Flood Hazard map boundaries. Determination of Benefits: The City will provide two types of relocation benefits for owner-occupants: a Replacement Housing Benefit Payment and a Moving Expense Payment. The Replacement Housing Benefit is for the purchase or rental of a unit. A Notice of Relocation Eligibility (included in Exhibit B) explaining the specific benefits to the owner-occupant will be made in person by the Relocation staff after the City's offer to purchase the flood damaged property is presented. The seller will be asked to sign a receipt for the Notice. The Notice will contain a "180 Day Eligibility Provision" notifying the owner of the expiration date of the Replacement Housing Benefit. 3. Replacement Housing Payment/Purchase: The City will make a Replacement Housing Benefit Payment based on the owner-occupants purchasing replacement housing which is decent, safe and sanitary within 6 months from the owner- occupant's acceptance of the City's offer to purchase the flood damaged property. The payment mount of the Replacement Housing Benefit cannot exceed $10,000. 4. Timing of Release of Replacement Housing Benefit Payment: The payment will be released only after the closing on the property the City is purchasing from the owner- occupant and at the closing on the replacement house. If a replacement unit is not purchased within 6 months of the owner-occupant's acceptance of the City's offer to purchase the flood damaged structure, the relocation money will be de-obligated and made available for additional acquisitions. The owner-occupant may request an extension of the six-month period, to the Relocation staff, ff he/sbe can show good reason as to why the replacement has not been purchased. 5. Purchase of Replacement Housing Unit Before the City makes Offer to Purchase: If an owner-occupant wants to purchase another house before the City makes its offer, the purchase is at the owner's risk. If the City then makes its offer to purchase the flood damaged property and the owner accepts, the replacement unit previously purchased must pass a decent, safe and sanitary inspection to qualify for the Replacement Housing Benefit. Adjustments to the Replacement Housing Benefit, as descended below, can be made as required. The Replacement Housing Benefit Payment will be made at the closing of the City's purchase and upon submission of a deed or other evidence acceptable to the City of the amount paid for the replacement housing unit. 6. Adjustments to the Replacement Housing Benefit Payment: If the replacement housing unit costs less than the combined total of the City's purchase price and the Replacement Housing Benefit, the City will reduce the Replacement Housing Benefit to equal the cost of the replacement housing unit. As a result, the total of the City's purchase price and the Replacement Housing Benefit equals the cost of the replacement housing unit. If the cost of that unit is less than the City's purchase price of the flood damaged structure, the Replacement Housing Benefit will not be paid. For instance, the owner-occupant receives $30,000 as the purchase price of the flood damaged property and qualifies for the $10,000 Relocation Housing Benefit Payment for a total of $40,000. The owner-occupant then purchases a replacement housing unit for $38,000; the City will provide $8,000 as the Relocation Housing Benefit Payment. If the replacement housing unit cost was less than $30,000 (the City's purchase price for the flood damaged property), the owner-occupant would only receive the Moving Expense Benefit. If the replacement housing unit costs less than the total City payment for acquisition and the Replacement Housing Benefit, but requires repairs to make it decent, safe and sanitary, the City will let the owner-occupant use the balance of the benefit to have those specific repairs completed. In addition, when the replacement housing unit costs less than the total of the City's acquisition and Replacement Housing Payments, the City will permit the Replacement Housing Payment, as needed, to be used to pay eligible closing costs on the replacement housing unit that represent costs normally paid by the buyer. It will not include items such as pre-paid interest points or mortgage insurance. If the maximum relocation assistance payment is not required to purchase the replacement dwelling selected bi the displaced person, certain costs can be considered as part of the replacement unit's purchase price, for the purposes of this program only, when calculating the Replacement Housing Benefit Payment. Eligible costs are those costs necessary to correct decent, safe and sanitary deficiencies and to make the replacement dwelling more comparable and ftmctionaily similar to the flood damaged unit the City is acquiring. Eligable examples of those items to make the replacement dwelling more comparable and functionally similar are a garage, an extra bathroom and handicapped accessibility that existed in the former dwelling. Excluded are the costs of a cosmetic nature, including general remodeling, carpeting, "updating", siding, window treatments and other items. The displaced person must provide satisfactory evidence of the construction costs of the functionally similar item(s) and a construction schedule which must be approved before the funds can be authorized for release. 7. Mobile Homes: The owner-occupant may purchase a mobile home and qualify for the Replacement Housing Benefit provided that the unit is decent, safe and sanitary. If the purchase price is less than the combined total of the City's acquisition price for the flood damaged structure and Relocation Benefit, the Replacement Housing Benefit will be adjusted to reflect the actual purchase price of the mobile home and lot. If the mobile home lot is rented, the City will make a payment based upon the lesser cost of the actual lot rent for 42 months or $3,000 and the cost of the mobile home in determining the Replacement Housing Benefit Payment. The total Replacement Housing Payment paid for a mobile home and lot, whether purchased or rented, will not exceed the appropriate Replacement Housing Benefit Payment. 8. Payment After Death: The City will pay the approved Relocation Housing Benefit to the heirs and assigns, if the other family members were living in the flood damaged unit when the offer was made and if they will occupy the replacement housing unit which is being purchased. The purchase agreement on the replacement housing unit must have been accepted if the closing has not yet occurred. A moving expense payment will be made if there is personal property to be moved from the flood damaged structure. 9. Decent, Safe and Sanitary Standard: All owner-occupants receiving the Replacement Housing Benefit must relocate to housing units that are decent, safe and sanitary. The decent, safe and sanitary standard is similar to HUD Housing Quality Standards. 10 The decent, safe and sanitary inspection is not a certification or guarantee of the house's condition or of its major systems (such as heating, plumbing and electrical). A qualified individual will inspect the items that are specifically listed in federal regulations 49 CFR, Part 24. After the owner-occupant has an accepted purchase agreement for the housing replacement unit and has received the City's offer to purchase the flood damaged property, he/sbe is to call ECIA staff to schedule the decent, safe and sanitary inspection. The owner-occupant will also provide the name and phone number of the person who can provide access to the property. It may take several days for the actual inspection to take place. Iftbe house is located outside the area, it will be necessary for the City to work with the nearest local public agency to schedule an inspection. When the decent, safe and sanitary inspection is made of the replacement housing unit, the inspector will provide a list of items that are violations. Many of the violations can be solved quickly and inexpensively and should not cause the sale to be lost. Common problems are missing hand rails, improperly vented water heaters, missing light switch cover plates and water heater drip legs, copper gas lines and exposed wiring. It is the responsibility of the buyer and seller to reach an agreement as to who pays for the required repairs. 10. Replacement Housing Benefit Payment - Rent: For owner-occupants choosing to rent, the City will make a lump sum payment of up to $5,250 at time of closing on the flood damaged propegy. Prior to the closing, the owner-occupant must provide evidence that the unit is decent, safe and sanitary and/or has a current rental occupancy certificate. 11. Moving Expense Payment: In addition, the City will pay $1,000 as a Moving Expense Payment when the owner-occupant moves into a replacement living unit. Tenant Reloeation Benefits Program The City will utilize Federal, State and local funding to provide relocation assistance in conformance with the Uniform Act in concert with the Robert T. Stafford Disaster Relief Act of 1974 provisions for tenants of the flood damaged property. The tenants of the flood damaged property are considered to be involuntarily displaced when the City accepts an offer to purchase the flood damaged property. Accordingly, the City will award Tenant Relocation Benefit standards for eligable tenants in accordance with the URA regulations. 11 1. Eligibility: To be eligr-ble for the Tenant Residential Relocation Benefits, the tenant must: a. Have been, as of the date of initiation of negotiations, a legal residential occupant of the flood damaged property for which the City Council has approved acceptance of the purchase offer. b. The tenant can prove evidence of the tenancy for a minimum of 90 days prior to the initiation of negotiations. c. Purchase or rent a decent, safe and sanitary replacemem housing unit that is located outside of Zone A on NFIP Flood Hazard maps. Determination of Benefits: The relocation staff will determine benefits in accordance with the Uniform Relocation Act and funding source requirements, but which will not exceed $5,250 (unless housing of last resort provisions are utilized if approved by FEMA Region VII). Replacement Housing Requirements: All tenants receiving the Replacement Housing Benefit must relocate to housing units that are decent, safe and sanitary that are located outside of Zone A on NFIP Flood Hazard maps. The decent, safe and sanitary inspection is not a certification or guarantee of the housing unit's condition or of its major systems (such as heating, plumbing and electrical). A qualified individual will inspect, at minimum, the items that are specifically listed in federal regulations (49 CFR, Part 24). Relocation Staff For the owner-occupants participating in the voluntary acquisition program, the Relocation staff, provided by ECIA, will present the Notice of Relocation Eligibility in person after the City's offer to purchase is made. They will be available to answer questions at that time and on a phone basis, as needect Relocation staff will work with identified tenants if and when investors-owners of residential properties accept Offers to Purchase by made by the City. 12