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.
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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
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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.
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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.
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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.
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