Bee Branch Basin Acquisition_Relocation AssistanceMEMORANDUM
July 1, 2003
TO: The Honorable Mayor and City Council Members
FROM: Michael C. Van Milligen, City Manager
SUBJECT: Acquisition-Relocation Assistance Program for Bee Branch Basin
Stormwater Mitigation Activities
The city's initial program of acquisition activities for the Bee Branch Basin Stormwater
Mitigation activities is planned in connection with the expansion of the West 32nd Street
detention basin. Preliminary design has identified 16 homes to be purchased and
removed. The Fiscal Year 2004 CIP budget for this activity, capitalized with projected
revenues from the Stormwater Utility, has allocated $200,000 for design and
engineering, and $563,000 for right-of-way acquisition. It is projected to purchase five
to ten homes with these funds during the fiscal year beginning in July. Additional CIP
funds are projected at $437,000 for Fiscal Years 2005-06 for acquisition activities.
Should the City Council approve this process, the attached letter will be sent to
impacted property owners near the West 32nd Street Detention Basin.
Housing and Community Development Department Director David Harris is
recommending City Council approval for the Housing and Community Development
Department to use the Relocation Assistance Policies and Procedures Manual for
activities associated with this project.
These documents have been wdtten to comply with Iowa Code Chapter 316
requirements for provision of relocation assistance to persons displaced by
governmental acquisitions.
The purpose of the relocation assistance legislation is to "establish a uniform policy for
the fair and equitable treatment of persons displaced.., in order that the persons shall
not suffer disproportionate injuries as a result of projects designed for the benefit of the
public and to minimize the hardship of displacement." The operative principle is to
"make whole" those persons whose property is acquired for a public purpose.
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
David Harris, Housing and Community Development Department Director
Date
Owner
Re: Notice of Intent to Establish a Schedule for Acquiring Properties on 32~d Street
Dear
The City of Dubuque is interested in acquiring the property you occupy located at
in connection with expansion of the 32nd Street stormwater detention
basin. However, we must first propose a schedule for acquisitions and present this to the
City Council for approval. Accordingly, this is not a notice of intent to acquire your
property at this time. Once we have established the schedule, you will receive a notice of
intent to acquire your property.
We do want to inform you of your fights under Iowa Code. If the City acquires your
property and you are displaced as a result, you will be eligible for relocation assistance
according to the Iowa Code. However, do not move now. This is not a notice to vacate
your home. You should continue to pay your monthly mortgage payment. You are urged
not to move or sign any agreements to purchase or lease a new home before receiving a
formal notice of your eligibility for relocation assistance from the City. If you move
before receiving such notice, you may not receive any assistance. Please contact us
before you make any moving plans.
If the City acquires your property and you are eligible for relocation assistance, you will
be offered advisory services, including referrals for replacement housing, and at least 90
days advance written notice of the date you will be required to move. You would also
receive a payment for moving expenses and may be eligible for financial assistance to
help you rent orbuy a replacement home. This assistance is more fully explained in the
enclosed brochure, "Relocation Assistance and Advisory Services."
In the 2004 Fiscal Year Capital Budget, the City has approximately $760 000 available
for acquisitions of 32nd Street properties in connection with the detention basin
expansion. This will fund the first phase of property acquisitions, which will occur in
additional phases over 2-3 years. This means that in the first year of the program, we will
be able to purchase only a certain number of the properties; others will be acquired in
Fiscal Year 2005 and perhaps later.
In order to detennine which properties the City will purchase this year, we are asking you
to respond to this letter with an indication of your interest in selling your home. In
particular, we want to know of any special needs or "hardships" you might experience by
waiting until next year for the City to buy your propc~ty. If you feel you have a hardship
and need to sell your home now, please explain your situation to us.
Specifically, please respond to this notice by mailing a brief written statement of any
special circumstances that apply to your situation. Please make the nature of your need
or hardship clear, by justifying the reason you are requesting for priority on our
acquisition schedule. For example, a hardship might be that you have taken employment
in another city or state and must move; or a head of household might need to be moved to
a nursing facility. You must also provide us proof of this hardship so that it can be
documented.
After we have heard from you, we will consider all requests for "early acquisitions" and
re-contact you with a notice of the schedule for first year acquisitions and intc~nt to
acquire.
In order to be considered for acquisition this year, we must receive your written response
no later than
If you have any questions about this notice, please contact Joleen Patterson, at 589-4239,
who will be glad to explain our program in more detail.
Sincerely
David Harris
Department Director
enc
CITY OF DUBUQUE, IOWA
MEMORANDUM
13 June 03
To: Mike Van,~M, illigen,~\~ City Manager
From: David H'~is, Housing and Community Development Department
Re: Acquisition-Relocation Assistance Program for Bee Branch Basin
Stormwater Mitigation Activities
Introduction
The purpose of this memorandum is to transmit recommended policies and
procedures for administration of an assistance program to households to be
displaced due to stormwater mitigation activities as recommended in the HDR
Engineering study.
Discussion
A "Relocation Assistance Policies and Procedures Manual,~ with accompanying
"Relocation Assistance and Advisory Services" brochure, has been prepared by
the Housing and Community Development Depar[ment. These will be used in
connection with actions recommended in the 2001 HDR "Drainage Basin Master
Plan" as adopted by the City Council.
These documents have been written to comply with Iowa Code Chapter 316
requirements for provision of relocation assistance to persons displaced by
governmental acquisitions. The Iowa Code is based on federal legislation known
as the Uniform Relocation Assistance and Real Property Acquisition Policies Act
of 1970 (the Uniform Act), Public Law 91-646, as amended by the Uniform
Relocation Act Amendments of 1987 (Public Law 1000-17). The related federal
regulations are located in 49 CFR Part 24, 42 U.S.C. 4601.
The purpose of the relocation assistance legislation is to 'establish a uniform
policy for the fair and equitable treatment of persons displaced.., in order that
the persons shall not suffer disproportionate injuries as a result of projects
designed for the benefit of the public and to minimize the hardship of
displacement." The operative principle is to ~make whole" those persons whose
property is acquired for a public purpose.
The City's initial program of acquisition activities is planned in connection with the
expansion of the West 32nd Street detention basin. Preliminary design has
identified 16 homes to be purchased and removed. The Fiscal Year 2004 ClP
budget for this activity, capitalized with projected revenues from the stormwater
utility~ has allocated $200 000 for design and engineering, and $563 000 for right
of way acquisitions. We project the purchase of 5-10 homes with these funds,
during the year beginning in July. Additional ClP funds ara projected at $437 000
for Fiscal Years 2005-06 for acquisition activities.
The Housing and Community Development Department will act as the
administrator for the acquisition and relocation program. We plan to begin initial
contacts with the 32nd Street homeowners in July. This will be followed with
surveys of their homes and compilation of an inventory of available "comparable"
houses currently listed in the Dubuque market. Appraisals of their properties will
be simultaneously undertaken by independent local appraisal firms. Calculation
of total relocation assistance benefits will be completed by Housing staff and
recommendations made to the Council for purchase of the designated homes.
We have made contact with Graham Land Acquisition Associates, the firm
racently used by the City for assistance in purchase of Fourth Street Peninsula
properties in connection with the America's River project. Our intention in doing
so was to assess the feasibility of using the services of Graham in an advisory
capacity. We ara proposing at this time to use Graham Land as a consultant, to
be paid on an hourly basis for advice and counsel, as needed.
It is our intention to minimize the impact of this acquisition program on Dubuque's
landfill. To do this, we are looking at a variety of "racycling" options, including
ralocating the acquired homes to other locations. Another option is to salvage
architectural components, establishing a rasale center for that purpose. A task
force meeting over the past several months, including raprasentatives from the
Solid Waste Agency, Dubuque Main Street Ltd and EnvironConn Consulting, has
considerad the feasibility of this approach.
Action Step
The action raquested of the City Council is to approve the use of the attached
~Relocation Assistance Policies and Procedures Manual" by the Housing and
Community Development Department for activities associated with Bee Branch
Basin stormwater mitigation project recommendations as contained in the 2001
HDR Engineering report.
If you have any questions, please call or write:
Relocation Assistance Section
Housing and Community Development Department
1805 Central Avenue
Dubuque, Iowa 52001
563-589-4239
Fax: 563-589-4244
This brochnre has been prepared to give you general information about
relocation assistance provided by the City of Dubuque for those of you who
may be required to move as a result of implementation of the Drainage Basin
Master Plan recommendations for the Bee Branch Watershed. It is not
intended to 'be a legal document that comprehensively explains every right or
obligation you have, but it is your introduction to the acquisition and
relocation process.
Relocation assistance services are provided by staff from the Housing and
Community Development Department, who will provide as much assistance
as you need to successfully relocate to a suitable replacement property. Staff
are assigned to assist each person, family or business required to move because
of this project. Your first contact with the Housing Department representative
will usually occur during the early stages of the appraisal process, and he or
she will continue to work with you until you have moved aud become
established at a new location. Do not hesitate to ask questions so you are sure
you understand the process and the benefits available to you.
Please let your representative know your needs and preferences. If unable to
help you with a specific problem or concenr, he or she may know of another
person or an organization that can help you. ~
Do not move until you have contacted your Housing Department
representative. Only then will you be sure you are not jeopardizing your
rights and benefits under this program. No person who lawfully occupies real
property will be required to move without being notified in writing at least
90 days in advance.
Zndividuals and Families
If you are required to move~ you are entitled to reimbursement of your
moving costs. You may choose either of two methods of receiving payment.
Do not move until you have contacted your Housing Department
representative to ensure your eligibility and prompt payment after you move.
You may choose either:
Actual Reasonable Fixed Moving
Moving Costs Tncluding: Cost Schedule:
· Packing and unpacking · Lump sum payment based
· ~IYansportation on the number of rooms
· Moving insurance of furniture
· Utility reconnection
· Other related costs
Actual Moving Costs
Actual reasonable and necessary moving expenses will be reimbursed when
your move is performed by a commercial mover. In most cases, you will not
be paid for moving more than 50 rrdles. Other costs, such as temporary
storage, can be reimbursed if Department staff determines they are
necessary. To be reimbursed for any of your expenses, you will be required to
subafit receipts to the Housing Department. In some cases, Housing staff can
arrange to pay the moving company or vendor cfirectly, so be sure to discuss
your situation with your Housing Department representative
before you plan to move.
Fixed Moving Cost Schedule
You may choose to be reimbursed for your moving expenses on a fixed
moving cost schedule. If you choose to accept this mnount, you will not be
required to submit receipts. The amount will be a fixed lump sum based on
the number of rooms of furniture mad other personal property in your home
and includes a lump sum for the reconnection of utilities. You may find his
method will be to your advantage.
Number of Rooms Occupant Owns Occupant Does Not
Furniture Own Furnitur,a
1 $550 $250
2 $700 $275
3 $80O $3OO
4 $900 $325
5 $1,000 $350
6 $1,100 $375
Each addit~onM room $125 $25
Following the City's purchase 9f your home for a projecg, the housing market
in your area may cause your hpusing costs to increase. Payments to assist you
in the purchase or rental of r~placement housing are provided by the City of
Dubuque when necessary so you will not be required to bear the burden of
increased housing costs.
There are several types of replacement housing payments. The type available
to you depends on whether you are an owner or a tenant, and how long you
have lived in the home prior to the start of negotiations for its purchase. The
start of negotiations is the date when a Housing Department representauve
personally presents the property owner with a written offer to purchase.
If you are familiar with the definitions of the terms "dwelling," "decent. safe
and sanitary dwelling" and "comparable replacement dwelling," it will be
easier for you to understand the types of payments available for replacement
housing.
A dwelling is a single-family house; a single-family residence in a two-thmily,
multi-family, condominium or multi-purpose property; or a mobile home. If
you have some other type of residence in mind, please talk to staff about it
before you make a commitment.
A decent, safe and sanitary (DSS) dwelling meets all of the following
minimum reqnirements:
· Conforms to local and state housing and occupancy codes
· Is structurally sound, weathertight, and in good repair
· Has a safe electrical wiring system adequate for lighting and electrical
appliances
· Has an adequate heating system for the living area
· ls adequate in size with respect to the number of rooms and area of living
space to accommodate fl~e person or family
· Has a well-lighted and ventilated bathroom that provides privacy to the
user and contains a sink, bathtub or shower stall, and a toilet, all in good
working order and properly connected to appropriate sources of water
and a sewage drainage system
· Has a kitchen area with a fully usable sink, properly connected to safe hot
and cold water and to a sewage drainage system, and has adequate space
and utility connections for a stove and refrigerator
· Has an unobstructed exit leading to safe open space at ground level
· Where necessary, is free of barriers which would prevent reasonable
entrance, exit, or use by a person with a disability.
A comparable replacement d~elling must be DSS and should be functionally
similar to your present dwelligg. While not identical to your present home, it
should:
° Have a similar number of rooms and amount of living space
o Be located in an area not subject to unreasonable adverse environmental
conditions
· Be located in an area generally not less desirable than your present
location with respect to public utilities and commercial and public
facilities
· Be located on a site that is typical in size for residential development with
normal site improvements, which means - in general - that the home is
located on a lot that is not unusually large or small in your community,
and has average landscaping.
· Be cnrrently available and affordable for you.
The maximum replacement housing payment that will be made available to
you will be based on a Housing Department staff study of the housing mm'ket
in your area. You will be informed of the locations of the homes that this study
recommends are most comparable to yours. Yon are not required to purchase
or rent a~v qf the homes selected b_v the ttousing Department representative.
However, to be eligible for a replacement housing payment, the dwelling you
choose to occupy must be inspected and certified by staff as meeting DSS
requirements. He or she will be happy to inspect a dwelling you are
considering for rent or purehase to make certain it meets these requirements.
To be sure you are not jeopardizing your benefits, do not commit yourself to
the pnrchase or rent of replacement housing until the housing has been
inspected b_v the Housing Department This inspection is not a guarantee
against problems currently existing in the dwelling or those that may arise in
the future; it is made only to determine your eligibility for a replacement
housing payment.
If you are an owner-occupant or a tenant-occupant of a mobile home, the
provisions are generally the same as those for conventional homes. However,
there are some considerations unique to mobile homes. Your Housing
DeparUnent representative will provide you wiil~ specific information.
If you have owned and lived in your home for 180 clays or more immediately
prior to the initiation of negotiations for its purqhase, you nmy be eligible for
a replacement housing payment. This payment is to cover the costs necessary
for your purchase of a comparable DSS replacement dwelling. This is IN
ADDITION to the amount paid to you for the purchase of your present home.
Housing staff will compute the maximum payment you are eligible to receive.
The following example illustrates how a payment is computed:
Assume the City has purchased your dwelling for $50,000. The Housing staff
has studied the housing market in your area and determined that comparable
replacement housing is available to you for $60,000.
If you actually purchase and occupy a DSS replacement dwelling for
$60,000, the replacement housing payment made available to you
would be $10,000.
If you purchase and occupy a DSS replacement for $65,000, you
would be required to pay all costs exceeding those for a $60,000
home.
If you purchase and occupy a DSS replacement for $55,000, yon
would be eligible to receive a replacement housing payment of
$5,000.
The amount of the payment cannot exceed the actual cost difference or the
maximum amount computed by the Housing staff, whichever is less.
Additional Benefits
You may also be eligible to receive reimbursement of additional expenses
incurred in your purchase of a comparable replacement dwelling including:
· !ocreased mortgage interest qt)s~ts. If you have had a bona fide mortgage
on your home for at least 180 days prior to the initiation of negotiations,
it may be necessary for you to get a new mortgage at a higher interest rate
when you purchase your replacement home. The amount you are eligible
to receive will be limited to those costs necessary for your purchase of a
comparable replacement dwelliug or tire dwelling you actually purchase,
whichever is less. The amount you receive is intended to ensure it will not
be necessary to increase your mortgage payment after you purchase a
replacement dwelling. Your Housing Department representative can
explain this payment in more &taft.
· ~xpenses incidental to the purchase of your replacement dwelline. You
will b~ reimbttrsed for actual, reasonable and necessary expenses incurred
for items such as: a title opinion, recording fees, appraisal, etc. This does
not include prepaid expenses such as property insurance and. real estate
taxes. Housing staff will provide additional information.
· Rental assistance. If you decide to rent rather than purchase a
3eplacement home, you may be eligible for rental assistance. Housing staff
can provide you with additional information.
If you have owned a~ld lived in your home for at least 90 days but less than
180 days immediately prior to the initiation of negotiations for its purchase.
OR
If you are a tenant and have lawfully occupied your home for at least 90 day.,;
immediately prior to the initiation of negotiations for its purchase, you may
be eligible for a rental assistance payment to enable you to rent a comparabk:
DSS replacement dwelling for a period of 42 months.
Housing staff will compute the maximum payment you are eligible to receive.
]'he maximum rental assistance payment computed tbr you will include
consideration of utility costs, your household income and the rental market in
your area. The following example provides an illustration of how thia
payment is computed:
Assume t~mt you are paying $200 per month for your dwelling (including
your average utitity costs), that this amount is not an undue hardship for you
because of your family's income, and that you are not paying a rental amount
considerably under the amount that the local rental market would normally
command for your home. Housing staff have studied the rental market in your
area and determined that comparable DSS replacement horn;lng is available to
you for $250 per month including the estimated average cost of utilities.
1. If you actually rent and occupy a DSS replacement dwelIing for
$250 per month, you are eligible to receive $2,100 as a rent
supplement. This amount represents $50 per month for 42 months.
2. If you actually rent and occupy a DSS replacement for $300 per
month while comparable DSS housing was available for $250 per
month, you would be eligible to receive a rent sttpplement of $2,100.
You would be required to pay the additional $50 per month from
your pocket.
3. If you actually rent and occupy a DSS replacement for $225 per
month, you would be eligible to receive a rent supplement of $1,050,
which represents a supplement o1' $25 per month for 42 months.
The amount of the rent supplement payment cannot exceed the actual cost
difference or the maximum amount computed by Housing staff, whi. chever is
· Down payment assistauce. If you decide to purchase replacement
housing, down payment assistance may be available to you. Your Housing
Department representative can provide you with additional information.
Your Housing Department representative will give you the forms
necessary to claim payments. He or she will also assist you in filling out
the forms.
You must be in occupancy of your replacement dwefiing within one year
after the latter of: the date you actually moved from the home acquired by
the City of Dubuque, or the date that the City of Dubuque fully paid the
established purchase price tbr your home.
· You must have filed the forms necessary to claim payment within
18 months after the latter of those two dates.
Owners and tenants in lawful occupaucy of their homes for less than
90 days immediately prior to the initiation of negotiations are, in most
cases, eligible to receive reimbursement for moving expenses and are also
efigible to receive advisory services.
Replacement housing payments offered are conditional If the price paid
for your home is different than the amount offered initially, your
maximum replacement housing payment may change.
· Except for any state or federal law providing low-income housing
assistance, relocation assistance payments are not considered as income.
llf you believe that the Housing Department has failed to properly determine
your eligibility for assistance, a payment or the amount of a payment, you may
have the matter reviewed. An uncomplicated procedure has'been developed
for the resolution of grievances related to this procedure, the timing and your
responsibilities, ghould this need to arise. However, in general, if you want a
1.
Send a written statement requesting the review and outlining the
items in dispute to: Directm; Housing and Community Development,
1805 Central Avenue, Dubuque, IA 52001.
If a payment or the amount of a payment is in disp'~tte, you should
also explain why you believe you are entitled to the payment and
attach documentation tlmt you believe supports your position.
Upon receipt of this written statement, the Director of the Housing and
Community Depamnent will review the information and then contact you to
schedule a meeting to discuss your claim If after that meeting you believe tl~at
your eligibility for assistance has not yet been properly established, you may
request fimher revie~
The review consists of a meeting with the Housing Trust Fund Committee.
This meeting will be held at the Housing and Co~mnunity Development
Department ofllce and you will be given a fnll opportunity to be heard. The
']'rust Fund Committee will make a recommendation for settlement of your
claim. This will be forwarded to the City Manager for his review and approval.
Fiually. the City Council must approve expenditures for pumhase of all real
property.
li'-'l
I::':-I
RESIDENTIAL RELOCATION ASSISTANCE POLICIES AND
PROCEDURES MANUAL
SECTION
PAGE
PROJECT PURPOSE .................................................................................................... 1
REGULATIONS .............................................................................................................. 1
PURPOSE OF THE RELOCATION ASSISTANCE PROGRAM ..................................... 1
RELOCATION ASSISTANCE PLAN
RESEARCH
PREPARATION ..................................................................................................
PROJECT FILES ............................................................................................................ 2
RELOCATION APPEAL PROCESS
GENERAL ........................................................................................................... ~
RES¢ON$fi TO REQUEST ................................................................................
APPEAL REVIEW BOARD .................................................................................. 3
NEARING AGENDA ............................................................................................ 3
DETERMiNaTiON OF THE. DECISION ............................................................... 4
BEC~SION ........................................................................................................... 4
CLAIMS AND PAYMENTS
PROCESS FOR PAY;viENT ................................................................................ 4
A
ADVANCE PAYMENTS ......................................................................................
DEDUCTIONS FROM RELOCATION ASSISTANCE PAYMENTS ..................... 5
5
TIME FOR FILING CLAIMS ................................................................................
NOT CONSIDERED AS INCOME ....................................................................... 5
NOTICES
GENERAL NOTICE ............................................................................................. 5
NINETY (90) DAY NOTICE ................................................................................. 6
THIRTY (30) DAY NOTICE ................................................................................. 7
NOTICE OF INTENT TO ACQUIRE AND RELOCATION ELIGIBILITY. .............. 7
ADVISORY SERVICES
WHOIS ELIGIBLE .............................................................................................. 7
SERVICES PROVIDED ........ _.8
PREVENTING SUBSEQUENT OCCUPANCY ............................................................. 10
SECTION 2 PAGE
RESIDENTIAL DEFINITIONS
DISPLACED PERSONS (DISPLACEE) .............................................................. 1
UNLAWFUL OCCUPANCY ................................................................................. 2
NEGOTIA ON .......................................................2
,N~T~,TION OF T~ e
OWNER OF DWELLING ..................................................................................... 2
DWELLING ......................................................................................................... 3
, EN~,',I, ..............................................................................................................
180-DAY OWNER OCCUPANT .......................................................................... 3
90-DAY OWNER OCCUPANT ............................................................................ 3
90-DAY TENANT OCCUPANT ............................................................................ 3
LESS THAN 90-DAY TENANT OR OWNER OCCUPANT .................................. 4
SUBSEQUENT OCCUPANT ............................................................................... 4
MULTIPLE OCCUPANTS OF ONE DISPLACEMENT DWELLING ..................... 4
COMPARABLE REPLACEMENT DWELLING .................................................... 4
HABITABLE SPACE ........................................................................................... 5
DECENT, SAFE AND SANITARY (DSS) ............................................................ 6
REPLACEMENT HOUSING PAYMENTS (RHP) ................................................. 7
REPLACEMENT HOUSING PAYMENT (RHP) ELIGIBILITY .............................. 8
PURCHASE OF REPLACEMENT DWELLING ................................................... 8
FAIR MARKET VALUE ....................................................................................... 8
PURCHASE SUPPLEMENT ............................................................................... 8
MORTGAGE ....................................................................................................... 9
MORTGAGE INTEREST DIFFERENTIAL ........................................................... 9
h,,,.,,DE~I ~ ~. EXPENSES ................................................................................... 9
RENTAL SUPPLEMENT ................................................................................... 10
UTILITY COSTS ............................................................................................... 10
LAST RESORT HOUSING ................................................................................ 10
SALVAGE VALUE .............. ; .............................................................................. 10
VALUE-IN-PLACE ............................................................................................. 10
TRADE-IN-VALUE .; .......................................................................................... 10
UNECONOMIC REMNANT ............................................................................... 11
THE INITIAL INTERVIEW ............................................................................................ i 'i
RESIDENTIAL MOVING EXPENSE PAYMENTS
GENERAL .......................................................................................................... 11
ACTUAL COST METHOD ................................................................................. 12
SCHEDULE METHOD ...................................................................................... 14
ADDITIONAL INFORMATION
PACKING/UNPACKING ALLOWANCE ............................................................. 15
MORE THAN ONE FAMILY OR INDIVIDUAL LIVING IN A HOME ................... 15
REMOVE ALL PERSONAL PROPERTY ........ ~ .................................................. 15
HAZORDOUS OR TOXIC HOUSEHOLD MATERIALS ..................................... 15
MISCELLANEOUS EXTERIOR PERSON PROPERTY .................................... 16
DIRECT PAYMENTS ........................................................................................ 16
TRANSFER OF OWNERSHIP .......................................................................... 17
INELIGIBLE EXPENSES ................................................................................... 17
PAGE
REPLACEMENT HOUSING PAYMENTS (RHP)
GENERAL ......................................................................................................... 17
PAYMENT AFTER DEATH ............................................................................... 20
OWNER-OCCUPANTS OF ¶80 DAYS OR MORE ....................................................... 20
PURCHASE SUPPLEMENT
DETERMINING COST OF A COMPARABLE REPLACEMENT DWELLING ..... 2~,
ADJUSTMENTS TO THE LISTING PRICE OF THE COMPARABLE
REPLACEMENT DWELLING
ADJUSTMENTS TO THE PRICE OF THE REPLACEMENT DWELLING ......... 22
PRICE DIFFERENTIAL OR SUPPLEMENTAL HOUSING PAYMENT .............. 23
OWNER RETENTION OF DISPLACEMENT DWELLING ................................. 23
SPECIAL CONSIDERATIONS ................................................................................... ~. 24
MORTGAGE INCREASE DIFFERENTIAL PAYMENT (MIDP) ..................................... 25
INCIDENTAL EXPENSES ............................................................................................ 26
DISBURSING PAYMENTS ........................................................................................... 26
SUPPLEMENTAL HOUSING PAYMENTS .................................................................. 27
INSURANCE PROCEEDS ............................................................................................ 27
PARTIAL OWNERS ..................................................................................................... 28
RENTAL ASSISTANCE PAYMENT ............................................................................. 28
LAST RESORT HOUSING ........................................................................................... 28
METHODS OF PROVIDING REPLACEMENT HOUSING ............................................ 29
TOTAL ACQUISITIONS ............................................................................................... 30
PARTIAL ACQUISITIONS ............................................................................................ 30
REMOVAL OF BARRIERS .......................................................................................... 31
DOCU~iENTATiON ...................................................................................................... 31
TENANT OCCUPANTS OF 90 DAYS OR MORE; OWNER OCCUPANTS OF AT
LEAST 90 BUT LESS THAN 180 DAYS ...................................................................... 32
M.~_~(IMUM RENTAL SUPPLEMENT ............................................................................ 32
PAGE
BASE MONTHLY RENT .............................................................................................. 33
DETERMINING THE RENTAL COST OF A REPLACEMENT DWELLING ................. 33
DETERMINING THE RENTAL SUPPLEMENT TO ACTUALLY PAY .......................... 34
LAST RESORT HOUSING ........................................................................................... 35
METHODS OF PROVIDING REPLACEMENT HOUSING ............................................ 36
DOCUMENTATION ...................................................................................................... 37
CONVERSION OF PAYMENT ..................................................................................... 37
DOWNPAYMENT ASSISTANCE ................................................................................. 37
OWNER OR TENANT OCCUPANTS OF LESS THAN 90 DAYS; OR
SUBSEQUENT OCCUPANTS ..................................................................................... 38
RENTAL SUPPLEMENT .............................................................................................. 38
APPENDIX
CITY OF DUBUQUE
HOUSING AND COMMUNITY DEVELOPMENT
DEPARTMENT
RELOCATION ASSISTANCE
POLICIES AND PROCEDURES MANUAL
APRIL 2003
SECTIONI
PROJECT PURPOSE
The City of Dubuque has prepared a Drainage Basin Master Plan for the Bee
Branch Watershed in response to citizen complaints and recurring stormwater
flooding. This is a multi-year program involving a variety of measures to mitigate
floodwater impacts.
One of the activities to be comPleted as part of this project will be the purchase of
homes and their removal from areas where major system improvements will be
constructed. These improvements will include enlargement of retention basins
and construction of drainageways.
REGULATIONS
The City will provide relocation assistance benefits based on legislation and
regulations referenced in the U.S. Department of Housing and Urban
Development (HUD) Uniform Relocation Assistance Act, Iowa Code and the Iowa
Department of Transportation Relocation Assistance Procedures Manual.
PURPOSE OF THE RELOCATION ASSISTANCE PROGRAM
The purpose of the Relocation Assistance Program is to ensure that persons who
are required to move (or to move their personal property) as a result of the public
projects will not suffer disproportionate injuries as a resUlt of those projects.
Relocation Assistance will be provided on a uniform, equitable and non-
discriminatory basis. It is intended that the Housing and Community
Development Department will act as an advocate for persons required to move,
while at the same time protecting the interests of the public as a whole to ensure
that benefits provided are not in excess of those to which the persons are
entitled.
No person is entitled to receive a relocation payment that has the same purpose
or will have the same effect as a payment already received through some other
program or through the acquisition process.
RELOCATION ASSISTANCE PLAN
A written plan will be developed by Housing Department staff for each property to
be acquired. All relocation issues will be noted, including the need for increased
time to accomplish a successful move, potentially larger replacement housing
payments, or adapting replacement housing to meet the special needs of the
relocatee.
As soon as the personal interviews are completed, a survey of potential
replacement properties will be completed. The multiple listing service, realty
companies, Intemet web sites and newspaper advertisements will be
reseamhed. A survey of iocai builders and house movers may be necessary.
Local financial resoumes should also be contacted to determine prevailing
interest rates and special services available to the relocatee. Area services such
as public transportation, schools, shopping facilities, etc., should be reviewed as
well as local agencies who provide information on Iow-income, senior citizen or
assisted living housing.
PROJECT FILES
A file will be maintained for each property to be acquired. This file will contain all
information specific to that parcel and will contain all documentation needed to
support payment of relocation benefits.
information gathered on each project should include:
Relocation Plan
Public Hearing Information
Housing Offers of Relocation Assistance
General Correspondence
Building & Moving Cost Data
Financial Information
2
RELOCATION APPEAL PROCESS
GENERAL
The appeal process will be explained by the Housing Department staff to anyone
who believes that he or she has not been offered properly determined relocation
benefits. This process is designed to be an uncomplicated procedure for the
resolution of grievances relating to claim or eligibility review.
A request for review should be submitted in writing within 60 days after written
notification of a relocation assistance determination has been sent or delivered to
the relocatee. The request should outline the items or issues and amounts in
dispute and provide documentation supporting the position. The request for
review should be submitted to the Housing and Community Development
Department.
RESPONSE TO REQUEST
The Director of the Housing and Community Development Department will
review the claim and attempt to resolve the dispute prior to arranging a hearing.
If there is a resolution, it will be approved by the appellant in writing. A hearing
will then not be necessary.
APPEAL REVIEW BOARD
If the claim cannot be resolved, the Housing Trust Fund Committee will serve as
the review board.
The Housing Department will schedule a time and location convenient to the
appellant and will notify the Housing Trust Fund Committee, as well as the
appellant. Legal counsel for the appellant is not necessary, however, appellants
do have the right to counsel, at their expense.
HEARING AGENDA
During the hearing both the appellant and the Housing Department
representative will be given a full and equal opportunity to be heard. Both parties
may present oral and written information on an informal basis without regard to
rules of evidence. Each may object to the information presented and may
question those presenting the information.
The appellant may inspect and copy materials pertinent to the claim, except
those items that are, by law, confidential and not open to public inspection.
Consistent with applicable law, the City may impose reasonable conditions on
this activity.
3
DETERMINATION OF THE DECISION
Promptly after all information is submitted by the appellant, the Housing Trust
Fund Committee shall prepare a decision. The Committee may refer back to
notes of oral and written information. An internal document will be prepared as a
written summary of the information considered and a listing of documents
received. This document will be included in the appeal file.
The decision will recommend all benefits and payments for which the appellant is
deemed to be eligible. This decision will also report the rationale underlying the
decision, showing appropriate calculations and cite the sections of the law or
regulations that support the determination.
DECISION
The decision of the Housing Trust Fund Committee will be reported to the City
Manager. At that time; the City Manager will noti,~y the appellant in writing and
provide a copy of the appeal recommendation. The appellant will aisc be
informed, in writing, of their dght to seek judicial review.
All information relating to the claim may be sent by regular mail. All records
related to the claim will be retained at the Housing and Community' Development
Department.
CLAJMS AND PAYMENTS
PROCESS FOR PAYMENT
A claim for payment will be submitted to the City Finance Department for review,
with the appropriate documentation.
A voucher wiii be prepared and submitted for the preparation of a payment
warrant. Processing for payment usually takes seven to ten days.
ADVANCE PAYMENTS
At times it is necessary to make an advance payment in order to reduce a
hardship to the relocatee. Funds can be advanced subject to safeguards. In
these instances, the relocatee is required to sign an agreement to perform.
These advance payments may be necessary to enable the relocatee to complete
a transaction, rent necessary moving equipment, close on a replacement house,
etc., prior to actually moving or giving possession of the acquired property.
DEDUCTIONS FROM RELOCATION ASSISTANCE PAYMENTS
No payment will be withheld from a relocatee to satisfy an obligation to any
creditor, with the following exception.
In instances when the City rents the acquired preperty back to the relocatae and
they fail to pay rent, the City may request in writing that the back rent be
deducted from the relocation payment. However, if this deduction will prevent
the relocatee from obtaining comparable replacement housing, it will not be
allowed.
TIME FOR FILING CLAIMS
All claims for payment must be filed within a specific time frame unless there are
extenuating circumstances. This time frame is dependent on occupancy status,
Tenants must claim payments within 18 months after the required date to move.
For owners, the date is the later of.'
months after the actual date moved, OR,
> 18 months after the final acquisition payment, including condemnation
or court awards.
NOT CONSIDERED AS INCOME
Relocation Assistance payments are not considered as income for tax purposes.
However, the Housing Department staff are not legally qualified to provide tax
advice.
NOTICES
GENERAL NOTICE - RELOCATION ASSISTANCE AND ADVISORY
SERVICES BROCHURE
A brechure has been prepared for people who will be required to move or move
their personal property. Everyone is entitled to receive a written description of
the City of Dubuque's relocation assistance program. Copies of this brechure
are available to attendees of public hearings and upon request.
This brochure is presented by the Housing Department staff at the first contact
with the owner or tenant of a parcel requiring relocation assistance. A receipt will
be signed to demonstrate that the general information contained in the brochure
was made available. Refusal to sign the receipt will be noted and included in the
parcel file.
The purpose of the brochure is to inform the relocatee that they may be required
to move as a result of the project. In general, the brochure:
Describes payments that may be available, how the person may
become and/or remain eligible for benefits and the procedure to obtain
payment; and,
Informs the person that as much assistance as reasonably possible will
be made available to them, including assistance in filing claims for
reimbursement, locating potential replacement properties, obtaining
assistance from other sources (housing authorities, social ser¢ices,
etc.) and other assistance that may be required to successfully
relocate; and
Informs the person that he or she will be not required to move without
at least 90 days written notice, and if the person is the occupant of a
home to be acquired, this notice will not be issued until the City has
informed them, in writing, of comparable replacement housing currently
available to them; and,
Describes the person's right to have their claim reviewed (the appeal
process).
NINETY (90) DAY NOTICE
No person who lawfully occupies real property, to be acquired by the City of
Dubu(]ue will be required to move without at least 90 days written notice. This
notice'is usually delivered by Housing Department staff at the first face-to-face
contact to present the "Offer to Purchase." This is also known as the "Initiation of
Negotiations" which serves to establish eligibility for relocation assistance
benefits.
This notice provides written information regarding specific eligibilities. It cannot
be delivered to residential relocatees unless the "Offer of Relocation Assistance"
accompanies the "Offer to Purchase." The comparable property is considered
not to be available if there is a sale pending, if the property has been sold or if
the listing is inactive. The Housing staff who delivers the offer must confirm the
availability of comparable replacement housing. This is accomplished by
contacting the real csf~te i~finr~ ~r~enf nrior fn the ~nnninfmenf
r......lve a _r,t.en. ,..t...e at least 30
,, ,,s n,~,k.e also states that the relocatee will ~'~' ,,, t r.~, ~,-
days prior to the specific date when they must move.
6
THIRTY (30) DAY NOTICE
This notice will not be issued until the relocatee has received payment from the
City of Dubuque as agreed in the contract or until the condemnation award has
been deposited by the City as prescribed by law.
If the relocatee and the City of Dubuque agree to a date for possession which
varies from dates indicated in the 90 and 30 day notice provisions, it will be
specified in the contract and will constitute a waiver of the provisions.
NOTICE OF INTENT TO ACQUIRE and RELOCATION ELIGIBILITY
Relocatees are encouraged to remain in occupancy of the property to be
acquired until it is necessary to move. In some instances when there may be a
shortage of available replacement properties or a particular hardship, it is in
everyone's best interest to allow the relocatee to move from the property prior to
the "Initiation of Negotiations".
ADVISORY SERVICES
Providing services may be the most important part of the HoUsing Department's
duties. In order to accomplish the purpose of the program, which is to minimize
the displacees' hardships, the providing of services is critical to the success of
the program.
WHO IS ELIGIBLE?
!. Persons occupying rea! prope._rty to be acquired for the project,
Most of the people who are provided with advisory se~:ices will be in this
category as they are the occupants of the project site. This group may
include owners and tenants of the residences, owners and tenants of
businesses or non-profit organizations or people who own personal
proper~y located within the area to be acquired as pad of the project.
Persons occupying real property adjacent to that being acquired who
are caused substantial economic injury by the acquisition.
IL~ c,len~e,~
The acquisition of property adjacent to a business may reduce "- "' ' "~
significantly, limit accessibility or affect it in other ways which cause it
~' ~'--" ' ~'~"- wuo,,,esses are not '~; nl ~A n~r n ~nH
W,,,,= such k,,.;. ~,sF,ac8~ F~,so,,s
therefore, not entitled to business relocation payments, Housing
Depa~ment staff will make available relocation assistance adviso~
se~ices to them. Examples of such se~ices might include: consultation
with them on space needs; current market conditions; traffic pa~erns or
mf ..... abo,,
transp0~ation as they relate to relocating the business; ' ~-~ '"
7
regarding the availability of relocation sites; or information about the
referral to the Small Business Administration.
Persons who, as a result of the project, move or move personal
property from real property not being acquired for the project.
For example, the owner of a business lives across the street from his
business location and the business is being acquired but the residence is
not. When the business is relocated to another location some distance
from his residence, he or she chooses to move from the residence also, in
order to remain close to the business location.
Persons who move into a property after its acquisition by the City of
Dubuque.
In these cases, the tenant moves in with the knowledge that he or she will
have to move out when the project requires. Although no relocation
assistance payments will be made to assist with the move, these "short-
term occupants" are entitled to advisory services.
SERVICES PROVIDED
The relocation program will many times provide unusual types of assistance.
There are basic services that will be made available to all displaced persons.
!. Explain the relocation assistance program and appropriate payments that
may be available to them.
Explain and describe the eligibility requirements and type of
documentation needed for each relevant type of relocation payment, and
at an appropriate time, determine the eligibilib/, for payments of each
displaced person.
3. Determine the needs of persons to be displaced for advisory assistance.
Make every, effort to help meet the needs identified, while recognizing the
importance of the displaced person's priorities and their desire or lack of
desire for assistance.
5. Provide the following specific types of services, as appropriate:
Current and continuing information on listings, including listing prices
or rents, of comparable replacement properties either comparable to
acquired dwellings or appropriate for displaced businesses. This
information can be provided by personal contact or by mail. This
information is most important while the displaced person is actively
looking for a replacement property.
8
Information concerning Federal and State housing and other programs
offering relocation or related types of assistance.
Assistance in obtaining and completing application or claim forms
for relocation payment or other related assistance, as needed.
Transportation for d sp aced Dersons to inspect potential relocation
housing, when needed.
Minimize hardships on the displacees as much as possible, which may
include advancing relocation payments.
Explain the various types of financing that are available.
Some displaced persons will require almost no advisory services while others will
need considerable attention. There is no substitute for knowing the area the
project is impacting and for knowing the people who are to be displaced.
Sometimes this knowledge must go beneath the surface to special problems or
needs of the displacee and sometimes gaining such knowledge may require
skilled interviewing and repeated contacts.
, ep, ..sen,a.,ve w,l,.
When working with the displacee, the Housing Department - -" ~ ~ '~ ~'
Develop a rapport with them in order to gain their confidence. This will
undoubtedly improve the chances for a successful relocation.
Determine those special items that help the displacee in their daily
,amps, -~de .... rwa.~s, main ~,.~,r
,..u.,ne. , h..se ,,,ay ~n,.,u.~.. , ....
laundry, lifts, grab rails, special sanitary facilities, etc.,
Determine any family or friends who the displacee may want to be
, ..locati..,, act~v~t ....
,nvolved ip, the r,~ '~,n ' · ;,~
Determine if the displacee needs any special materials from the City or
other agency. This may include braille,signing, translating, audio
version of the brochure, etc.
The relocation process can be very stressful for everyone, but perhaps more so
for the elderly and staff needs to be emotionally prepared to work with them. The
Housing Department representative must be willing and able to do whatever is
necessary to assist in the relocation, but also recognize there are times that the
answer must be "no" when the request is unreasonable.
9
Doing what is necessary may include spending a great deal of time listening to
the displacee and thus learning what their needs are. Staff may spend a good
amount of time coordinating with other agencies, family, friends or even medical
specialists to ensure the displacee's needs are met.
PREVENTING SUBSEQUENT OCCUPANCY
At times the displaced tenant will have moved prior to the City of Dubuque
receiving possession from the owner of the property. In these instances, it is
o,ffen desirable to acquire the owner's right to rent the property in order to prevent
having to relocate a subsequent tenant. This will ensure that the owner will not
suffer a loss in rental income before giving up possession of the property.
Tenants are ordinarily encouraged to remain in occupancy of the property until
possession is transferred by the owner. However, when there is a scarcity of
available rentals, it is best to get the tenant moved so that they can get on with
their lives and the vacant displacement property can be sold or demolished in a
timely manner upon receipt of possession.
Housing staff will research current rental terms and conditions in order to arrive
at a fair amount to offer to the owner. Generally this amount is the current rental
amount plus a reasonable allowance for utilities. It is reasonable to assume that
utility costs on a vacant property will be less than when occupied (lower
temperature, water and electricity usage, etc.) The agreement should stipulate
that the owner pay utilities to ensure that the integrity of the prope~¢ remains
intact prior to giving possession.
Payment to the owner can be made in several ways.
If the tenant has been given a "Notice of Intent to Acquire" and vacates the
property prior to the initiation of negotiations, Housing staff will contact the
landlord and execute the agreement.
If the parcel is in active negotiations and the tenant moves, the Housing
Department representative should either execute the agreement or make
payment via an Administrative Settlement. The agreement will begin on
the date the tenant vacates the property and extend to the date the
property is conveyed to the City or the date of condemnation, whichever
occurs first.
10
.SECTION 2
RESIDENTIAL
RELOCATION
ASSISTANCE
RESIDENTIAL DEFINITIONS
DISPLACED PERSON (DISPLACEE)
Any person (individual or family) is considered to be displaced if required to move from
the real property as a direct result of:
1. The acquisition of the real property in whole or in part; or
2. A written notice of intent to acquire from the City of Dubuque; or
3. The initiation of negotiations for the purchase of the real property by the
City of Dubuque.
Persons considered NOT to be DISPLACED are persons who:
1. Are not legal residents of the United States of America; or
2. Move before the initiation of negotiations, unless the City of Dubuque determines
they were displaced as a direct result of the project; or
3. Initially enter into occupancy of the property after the date of its acquisition for the
project; or
4. Have occupied the property for the purpose of obtaining relocation assistance
Uniform ~C~,
under the ' ^ "or
5. Are not required to relocate permanently as a direct result of the project; or
6. As owner-occupants, vo untarily sell the property after being informed in writing
that if a mutually satisfactory, agreement cannot be reached, the City of Dubuque
,,.,~ not acquire the, ,rnn~_ .... s ,a,,ed tenants are eligible); or
7. The City of Dubuque determines is not disp!aced as a direct result of a partial
acquisition; or
8. Are notified in writing, after receiving an Offer of Relocation Assistance, that he
or she will not be displaced. Notice will not be given unless the person has not
moved and the City of Dubuque agrees to reimburse for any expenses incurred
to satisfy binding contractual relocation obligations entered into after the effective
date o~ u ~e notice of relocation el,g,~,~l,t'y, or
9 Retain the -~"~'* ''¢" ~ and ,-~'~',,~*n,'v ~,~ the r~l nrnnc~rtv for lif~. after its
acquisition by the City of Dubuque; or
10. Are determined to be in unlawful occupancy pdor to the initiation of
negotiations or have been evicted for cause under applicable laws.
UNLAWFUL OCCUPANCY
Any person who occupies the real property and is not in unlawful occupancy on the date
of the initiation of negotiations is presumed to be entitled to relocation payments and
other assistance unless:
1. The person received an eviction notice prior to the initiation of
negotiations and as a result of that notice is later evicted; or
2. The City of Dubuque determines the person is a squatter who is occupying the
property without permission of the owner and otherwise has no legal right; or
3. The person is evicted after the initiation of negotiations for serious or repeated
violation of matedal terms of the lease or occupancy agreement; and
4. In all cases the eviction was not undertaken for the purpose of evading the
obligation to make available the relocation payments or other assistance.
The Housing Trust Fund Committee will be consulted prior to denial of relocation
assistance and/or advisory sen/ices.
INITIATION OF NEGOTIATIONS
This is also referred to as the "Ninety (90) Day Notice." This date is the delivery of the
initial written offer of just compensation by the City of Dubuque to the owner (or
designated representative) for the purchase of the real property for the project. If a
"Notice of Intent to Acquire" or a "Notice of Relocation Eligibility" is issued and the
person moves prior to the initial written purchase offer, the "initiation of negotiations"
means the actual move of the person from the property.
OWNER OF A DWELLING
A person is considered to have met the requirement to own a dwelling if the person
purchases or holds any of the following interests in real property':
Fee title, a life estate, a land contract, a 99 year lease or a lease including
any options for extension with at least 50 years to run from the date of
acquisition; or
An interest in a cooperative housing project which includes the right to
occupy a dwelling; or
contract to purchase any of the interests or estates described above; or
Any other interest, including a partial interest, which, in the judgment of
the City of Dubuque, is considered as ownership.
DWELLING
The term "dwelling" means the place of permanent or customary and usual residence of
a person, according to local custom or !aw, including a single-family house; a single
family unit in a two-family, multi-family or multi-purpose property; a unit of a
condominium or cooperative housing project; a non-housekeeping unit; a mobile home
or any other residential unit.
TENANT
A tenant is a person who has the temporary, use and occupancy of real property owned
by another.
180-DAY OWNER OCCUPANT
A displaced person who has actually owned and occupied the dwelling to be acquired
for the project for not less than 180 days immediately prior to the initiation of
negotiations for its purchase.
For mobile homeowner-occupants, the person both owned the mobile home and
occupied it on the site to be acquired for the project as least 180 days immediately prior
to the initiation of the negotiations for its purchase.
90-DAY OWNER OCCUPANT
A displaced person who has actually owned and occupied the dwelling to be acquired
for the project for at least 90 days but less than 180 days immediately prior to the
initiation of negotiations for its purchase.
For mobile homeowner-occupants, the person both owned the mobile home and
occupied it on the site to be acquired for the project for at least 90 days but less than
180 days immediately prior to the initiation of negotiations for its purchase.
90-DAY TENANT OCCUPANT
A displaced person who has actually and lawfully occupied the dwelling to be acquired
for the project for at least 90 days immediately prior to the initiation of negotiations for its
purchase.
For mobile home tenant-occupants, the person actually occupied the displacement
mobile home on the displacement site to be acquired for at least 90 days immediately
prior to the initiation of negotiations for its purchase.
LESS THAT 90-DAY TENANT OR OWNER OCCUPANT
A displaced person who has actually and lawfully occupied the dwelting to be acquired
for the project less than 90 days immediately prior to the initiation of negotiations for its
purchase.
SUBSEQUENT oCCUPANT
A person who has occupied the dispiacement property after the ~n~t ~to o ~l=gou=L,on=
date but before the date the property is acquired by the City of Dubuque.
MULTIPLE OCCUPANTS OF ONE DISPLACEMENT DWELLING
When two or more occupants live together they are considered a family unit for
relocation assistance purposes and one comparable housing study will be prepared and
presented to them as a unit. If they elect to move to separate replacement dwellings,
each occupant is entitled to a reasonable prorated share, as determined by the City of
Dubuque, of any relocation payments that would have been made if the occupants
moved together to a comparable replacement dwelling.
If the City of Dubuque determines that two or more occupants have maintained
separate households within the same dwelling, each occupant will have separate
entitlement to relocation payments.
COMPARABLE REPLACEMENT DWELLING
No person may be required to move from a dwelling unless he or she has been offered
a comparable replacement dwelling. The City of Dubuque will offer every displaced
person at least one comparable replacement dweiiing and, if possibie, three. The term
"comparable replacement dwelling" means a dwelling which is:
Decent, Safe and Sanitary ~DSS~ ~
Functionally equivalent to the displacement dwelling meaning that it
performs the same function, provides the same utility and is generally
similar with regard to number of rooms and area of living space. The
comparable replacement dwelling need not possess every feature of the
displacement dwelling, but the principal features must be present. In
determining whether a replacement dwelling is functionally equivalent to
the displacement dwelling, reasonable trade-offs may be considered for
specific features when the replacement dwelling is equal to or better that
the displacement dwelling.
Adequate in size to accommodate the occupants. It should have similar
habitable area.
4
In an area not subject to unreasonable adverse environmental conditions.
In a location generally not less desirable than the displacement dwelling
with respect to public utilities, commercial and public facilities and distance
to schools and employment.
On a site that is typical in size for the residential development with normal
site improvements. It does not need to include specialized improvements
such as swimming pools, greenhouses, over-sized garages, outbuildings,
etc.
Must currently be available to the relocatee on the private market.
However, the comparable replacement dwelling for a person receiving
government housing assistance before displacement may reflect similar
government housing assistance.
Within the FINANCIAL MEANS of the relocatee
For owners, it is assumed they can afford replacement housing if
they are not required to pay more for the mortgage payment on
their replacement dwelling than they paid for the displacement
dwelling. The test for the owner-occupant of 180 days or more is
that the cost of the comparable replacement dwelling does not
exceed the tota. amount of the acquisition price for the
displacement dwelling plus the supplementa! housing payment.
For tenants, the assumption is that they should not pay more than
30% of gross income for rent and utilities. The test for tenants of
90 days or more or short-term owner-occupants is that the monthly
rent plus utilities for the replacement dwelling does not exceed the
bask monthly rent ( the lesser of the actual average rent including
utilities or 30% of the displaced person's gross monthly income) at
the displacement dwelling plus the amount of the rental assistance
payment.
HABITABLESPACE
The enclosed floor space for living, sleeping, cooking or eating purposes with minimum
ceiling heights of 7 feet, except in rooms under a sloping ceiling. In those instances at
least one half of the floor area must have a ceiling height of 7 feet. Floor area located
under the portion of the room where the ceiling height is less than 5 feet may not be
counted when computing maximum permissible occupancy. Areas excluded as
habitable space include bathrooms, hallways and closets.
DECENT, SAFE AND SANITARY (DSS)
This term refers to the physical condition of the replacement dwelling and its effect on
the health and safety of the occupants. Comparable replacement housing must meet ali
the minimum requirements established by Federal Regulations and applicable housing
and occupancy codes. Essentially, if a dwelling meets the requirements of the local
codes, it will be DSS.
A basic premise in the relocation program is that the replacement housing made
availabl~ to displaced persons must meet certain qualitative standards. These
standards are:
WATER - It must have an adequate supply of potable (drinking) water.
KITCHEN - In the case of a housekeeping unit, there will be a kitchen
area containing a fully usable sink properly connected to potable hot and
cold water and a sewage drainage system. There must also be adequate
space and utility connections for a stove and refrigerator.
HEATING SYSTEM - It must contain a heating system capable of
sustaining a temperature of 68 degrees which should have been inspected
or installed within the past 12 months. If not, a furnace inspection by a
qualified person is required.
BATHROOM - It must have a separate, well-lighted and ventilated
bathroom affording privacy to the user, containing a sink, bathtub or
shower stall, and a toilet, all in good working order and properly connected
to appropriate sources of water and sewage system.
ELECTRICAL SYSTEM - It must have an adequate and safe electrical
wiring system for lighting and other electrical services.
STRUCTURALLY SOUND - It must be structurally sound, weather-tight
and in good repair. Examples: no broken windows; chipped or peeling
paint; no major foundation problems; good roof; functional gutters;
drainage away from the foundation, etc.
EGRESS - It must have a safe, unobstructed means of egress to safe,
open space at ground level. If the unit is located on a second stow or
above, it must have access directly from or through a common corridor
which has at least two means of egress.
6
ADEQUATE IN SIZE - It must be adequate in size with respect to the
number of rooms, bedrooms and living space needed to accommodate the
relocatee. There must be an adequate number of bedrooms for the
occupants. Each unit shall have at least one habitable room having not
less than one hundred (100) square feet of floor area. Other habitable
rooms shall have an area of not less than seventy (70) square feet.
Where more than two (2) persons occupy a room used for sleeping, the
required floor area shall be increased by fifty (50) square feet for each
occupant in excess of two (2). A decision concerning adequacy normally
would involve the correlation of the age and sex of adults and children
sharing the unit, cultural customs and the appropriateness of sharing
bedroom space.
ACCESSIBILITY - For a relocatee who is disabled, the dwelling must be
free of any barriers which would preclude reasonable ingress, egress or
use of the dwelling by such person. Examples: wheelchair ramps, wider
doorways, grab bars and speciai bathing facilities; first floor laundry, etc.
WARNING & SAFETY DEVICES - It must have operating smoke alarms,
a minimum of one per floor, including the basement, and outside each
sleeping area. Steps and stairways must have adequately attached and
functioning handrails.
REPLACEMENT HOUSING PAYMENTS (RHP)
These payments are designed to help eligible displaced persons to move into housing
which is Decent, Safe and Sanitary (DSS), adequate for their needs and comparable to
what they had before the project required their move. These payments are available to
res dentia! d sp aced persons only.
The RHP available for owner-occupants of 180 days or more may include a
supplemental (rental or purchase) housing payment, payment for increased mortgage
interest and incidentai expenses. The sum of these payments cannot exceed $22,500.
The RHP available for owner-occupants of less than 180 days is limited to a rental
supplement up to a maximum of $5,250.
The RHP available for tenant-occupants of 90 days or more may include a rental
supplement or downpayment assistance including incidental expenses associated with
the purchase. Payment is limited to $5,250.
Sometimes these payments are not sufficient to meet the objectives of the law and
regulations and it is necessary to follow Last Resort Housing (LRH) procedures to
provide payments.
.ACEMENT HOUSING PAYMENT ~HP) ELIGIBILITY
Payment Maximum 180-Day 90-179 Day 90-Day
Amount Owner- Owner- Tenant
Occupant Occupant
RHP for Homeowners I $22,500 Yes No No
Rental Assistance $5,250 Yes Yes Yes
Downpayment Assistance $5,250 No Yes Yes
PURCHASE OF A REPLACEMENT DWELLING
A displaced person is considered to have purchased a replacement dwelling if the
person:
Purchases a dwelling; or
Purchases and rehabilitates a non-DSS dwelling; or
Moves and establishes a dwelling that he or she owns or purchases; or
Constructs a dwelling on a site he or she owns or purchases; or
Contracts for the purchase or construction of a dwelling on a site provided
by a builder or on a site the person owns or purchases; or
Currently owns a previously purchased dwelling and site. The valuation
will be based on its current fair market value. It is not necessary to obtain
an appraisal as long as the determination is made on a reasonable basis.
FAIR MARKET 'VALUE - STATE OF IOWA DEFINITION
The term fair and reasonable market value means the cash price which would be
arrived at between a voluntary seller, willing but not compelled to sell, and a voluntary
purchaser, willing but not compelled to buy, both of whom are acting freely; intelligently
and at arm's length, bargaining in the open market for the sale and purchase of the real
estate in question.
PURCHASE SUPPLEMENT
The difference between the price actually paid by the displaced person for a
replacement dwelling] and the price paid by the City of Dubuque for the displacement
dwelling. The purchase supplement may not exceed the price of a comparable dwelling
which is established in the comparable housing study completed by the City of
Dubuque.
MORTGAGE
A mortgage is a lien commonly given to secure advances on the unpaid purchase price
of real property, and any credit instruments secured by it. For relocation purposes, real
es~,=~e ~,on~,~.~s a,e ~,~,nsl,~e,,.d to ..... ort~.~es.
MORTGAGE INTEREST DIFFERENTIAL
This payment is intended to compensate the displaced owner-occupant for increased
interest costs which he or she is required to pay for financing the replacement property.
The mortgage on the displacement dwelling must have been a bona fide and valid lien
in existence for at least 180 days prior to the initiation of negotiations and more than
one mortgage can be considered.
The payment computation is based on the unpaid balance of the existing mortgage on
the displacement dwelling, its remaining term and the current prevailing interest rate
charged by lending institutions in the area of the displacement dwelling. Separate
computations will be made for each outstanding mortgage.
INCIDENTAL EXPENSES
The reasonable expenses actually incurred by the relocatee in the purchase of a
replacement dwe.~ng' "' and customarily paid by,*,h,,'~ buyer. Eligible expenses include:
Legal, closing and related expenses, including title search, preparations of
conveyance instruments, notary fees, preparation of surveys and plats
and recording fees:
Lender, loan application fees and appraisal fees.
FHA .mortgage insurance fees.
Loan oriaination or assumption fees that do not represent prepaid interest.
Limited ~o the balance of the existing mortgage of the owner-occupied
dwelling.
Certification of structural soundness, radon and termite inspection if
required or customary in the community.
Credit report.
Escrow agent's fee.
Revenue or documentary stamps, sales or real estate transfer taxes, but
not to exceed the costs for a comparable replacement dwelling
RENTALSUPPLEMENT
The difference between the monthly rent and utilities necessary to rent a comparable
...... + d ........ g, o~ .~o~.~.,-~n,~,~ by the C ty of r~,,h,.que ~nd the mnnthly rent and
utilities for the displacement dwelling times 42 months. Utilities include heat, light,
water, storm water and sewer.
UTILITY COSTS
Utility costs are considered to be costs for electricity, heat, water and sanitary and
stormwater sewer for a dwelling and paid by a person. The phrase "for a dwelling" is
not meant to be overly restrictive but the costs incurred by a person to provide those
utilities to a number of non-residential outbuildings, for example, would not be used in
computations for the base monthly rental.
LAST RESORT HOUSING
This provision involves the use of payments in excess of statutory maximums or the use
of other unusual methods of providing comparable housing. Examples: payments in
excess of the statutory limits; rehabilitation of and/or additions to an existing
replacement dwelling; new construction; provision of a direct loan or use of other
financial techniques; physical relocation of a dwelling; pumhase of existing housing;
removal of barriers to the disabled; etc.
SALVAGE VALUE
The term "salvage value" means the probable sale price of an item, if offered for sale on
the condition that it will be removed from the property at the buyer's expense, allowing a
reasonable period of time to find a person buying with the knowledge of the uses and
purposes for which it is adaptable and capable of being used, including separate use of
Serviceable components and scrap when there is no reasonable prospect of sale except
on that basis.
VALUE-IN-PLACE
The term "value-in-place" means the amount a prudent purchaser would pay for an item
in place. Its value is determined by the use the item contributes to the value of the
whole.
TRADE-IN-VALUE
The term "trade-in value" generally refers to the value of an item of personal property
taken as payment or partial payment for purchase.
lO
UNECONOMIC REMNANT
The term "uneconomic remnant" means a parcel of real property in the which the owner
is left with an interest after the partial acquisition of the property and which the City of
Dubuque has determined has little or no value or utility to the owner.
THE INITIAL INTERVIEW
The initial interview With the displacee is the most important part of the whole relocation
process. This is the time in which the Housing DePartment representative can make a
positive impression with the displacee, gain their trust and establish the rapport that can
either make the experience a success or failure.
Prior to the meeting the Housing staff should become familiar with the general locale of
the property to be acquired, the specifics of the proposed acquisition and the potential
impacts on the remaining property, if any.
Staff should make every effort to schedule an appointment with the displacee at a time
that is convenient and at a location that is comfortable for the relocatee, within reason.
The purpose of the initial meeting is the giving and getting of information. Housing staff
may be the first person from the C ty of Dubuque who the displacee has met one on
one.
T~h~ staff should be prepared to take the time necessary ,o ens,,r,, that ,h,. Relocation
AssiStance Program is explained in a manner that the displacee understands.
Housing staff also needs to receive information from the displacee in order to ascertain
their needs and desires and must be skillful in seeking this information. This is
accomplished by explaining why the information is needed and by providing assurance
to the displacee that the information gathered is confidential.
Staff is expected to gather the information necessary to complete a Residential
Relocation Inspection Sheet. This information will become the basis for completing
moving estimates, comparable housing studies and finally the Offer of Relocation
presented to the displacee.
RESIDENTIAL MOVING EXPENSE PAYMENTS
GENERAL
Residential moving expense payments are designed to compensate a person for
moving and related expenses which are incurred as a result of having to move from his
or her dwelling or to move personal property as a result of the project. They include
1!
items such as the cost of packing, transporting and unpacking household goods, the
cost of storage, if necessary, and other related costs.
Reimbursement of expenses is limited to one move if a second, or split move is
voluntary.. Payment is limited to the reasonable and necessary expenses that would
have been incurred had the displacee moved only once.
In the event that comparable replacement housing has not been made available but it is
necessary to require the person to move for a highly extraordinary reason, a second or
split move is not considered to be voluntary and ali reasonable and necessary expenses
will be reimbursed.
Reasonable and necessary expenses incurred by a person who elected to move to a
replacement dwelling that is not decent, safe and sanitary (DSS) can be paid or
reimbursed. No requirement exists that a person move to a DSS replacement dwelling
in order to receive reimbursement or payment for moving expenses.
These residential moving costs may be computed in two ways, the actual cost method
and the schedule method.
ACTUAL COST METHOD
Any owner or tenant-occupant of a dwelling who qualifies as a displaced person is
entitled to payment or reimbursement of those actual and reasonable expenses that the
City of Dubuque determines to be necessary for a successful move. Eligible expenses
include:
I. Transpor[ation of the displaced person and the person's personal propeCy for a
distance not to exceed 50 miles.
2. Packing, crating, unpacking and uncrating of the personal property.
3. Disconnecting, dismantling, removing, reassembling and reinstalling relocated
household appliances and other personal property.
Storage of the personal property for a period not to exceed 12 months. The
boarding of animals is not considered to be storage according to federal
regulations. The storage location cannot be a site in which the displacee has an
ownership or tenant interest.
The 12-month limitation can be waived in extraordinary circumstances. In those
instances, the Housing Department Director will be consulted for approval.
5. Insurance for the replacement value of the personal property to be moved. This
can be during the move and for any storage period determined to be necessary.
t2
6. The replacement value of personal property lost, stolen or damaged when
insurance covering such loss is not reasonably available. If the loss is through
the fault or negligence of the displacee, or his or her agent or employee,
reimbursement for the loss will not be allowed.
It is the responsibility of the Housing Department representative to make arrangements
to obtain a binding moving bid from a competent mover in the general vicinity of the
displaced property, if possible. It is preferable to obtain at least two bids. Staff should
be present during the movers' inspections in order to clarify the items to be moved and
any special handling, if required.
Staff wilt negotiate a reasonable amount to be paid for the bid with instructions to the
mover that the bid is for the exclusive use of the City of Dubuque. All bids should be in
writing and provide a reasonable breakdown of the specific costs and special handling
requirements, if necessary, noted on the estimate.
Staff will review the estimates to insure completeness and inventory consistency. This is
especially critical if there is a large disparity between estimates, if there is a substantial
difference between estimates, staff should attempt to resolve them. It is reasonable to
assume that two competent, knowledgeable companies moving the same inventory the
same distance should be reasonably close in their estimate. If they are not, and the
difference cannot be resolved, staff should obtain an estimate from a third party to
assist in providing a sound basis for the cost of the move.
While there is no fixed dollar ceiling on payments for actual moving expenses, there are
limits on what may be paid:
The payment may not exceed the actual cost of the moving and related
expenses, and will be based on receipts for the costs claimed.
The charges which make up the payment must be reasonable, i.e., typical
of the amounts charged for a similar move,
The items of cost included in the claim for reimbursement must be
necessary to accomplish the move.
4. Payment for the move is limited to the Iow acceptable bid.
When making determinations of reasonableness and necessity, staff should use
common sense and good judgment.
In order to minimize or eliminate hardships, the displacee may request that the vendor
be paid directly. Staff will arrange for such payments and complete an Assignment of
Interest.
SCHEDULE METHOD
Any person displaced from a dwelling or seasonal residence may choose to receive an
expense and dislocation allowance as an alternative to actual expenses. This schedule
or'fixed method is based on the number of rooms of furniture in the dwelling from which
the move occurred.
The advantages of this method are:
1. It minimizes record keeping and paperwork for both the displacee and the
City of Dubuque.
2. It is clear, simple and easy to administer.
3. The displacee knows in advance the amount he or she will be paid and can
plan accordingly.
Claims for payment can be processed in advance of the physical
move and payment to the displacee can be made immediately upon
satisfactory vacation of the premises.
This fixed or schedule payment, established by the City of Dubuque, is composed of
~,o parts.
!. The n_mber of rooms of furniture and/or possessions. Typica y, bathrooms
are, ,~,~ tn,.,,~de,~.
Staff may adjust the room count where such an adjustment is felt to be
reasonable. Examples of this include: rooms with substantially more L, ,an The
typical amount of possessions may be counted as two or more rooms;
basement areas, small storage sheds or garages may be counteu as rooms;
and, miscellaneous exterior personal property may be considered as a
room.
A dislocation allowance. This allowance is intended as reimbursement for
various incidental costs such as reinstallation of telephones, utility hookups,
cable hookups, etc.
Staff should be aware of these costs in the displacee's locality and share this
information with the dispiacee. This will enable the displacee to make an
educated decision as to whether the fixed or schedule payment is suited to
their needs.
14
ADDITIONAL INFORMATION
PACKING/UNPACKING ALLOWANCE
This is an additional payment to reimburse the residential displacee for their time in
packing and/or unpacking their personal property' regardless of whether the displacee
elected to use a commercial mover or the schedule move. There are many times
special items of personalty that the displacee elects to move themselves and it is
reasonable to altow a reasonable payment for their time.
Payment of these packing and/or unpacking expenses is $250 for a room count of eight
rooms or less, with an additional payment of $25 per room above that.
In those cases where the displacee is elderly, has special needs or cannot physically
perform the task, staff will obtain estimates and payment will be made on an actual cost
basis.
MORE THAN ONE FAMILY OR INDIVIDUAL LIVING IN A HOME
If two or more individuals live together and must move as a result of the project, and
they elect to move to separate replacement housing, each is entitled to a prorated share
of the moving payment that would have been made if they had moved together to one
replacement dwelling. Staff can usually facilitate an agreement between the parties as
to how much each should receive.
If, in staffs judgment, the occupants are maintaining distinct and separate households
that happen to be under one roof, it is not necessary to prorate. Each can receive
separate payments based on the rooms of possessions that each occupies in the
dwelling.
REMOVE ALL PERSONAL PROPERTY
Displacees will move or dispose of all personal property prior to receipt of the moving
payment or reimbursement, and the possession warrant. The intent is not to be picky,
but to ensure that significant items of personal property and any quantities of unwanted
or discarded materials that are significant enough to attract rodents or other pests are
removed.
H~ZARDOUS OR TOXJC HOUSEHOLD MATERIALS
Displacees are encouraged to properly dispose of unwanted household materials that
are considered to be toxic or hazardous. The Iowa Department of Natural Resources
publishes a pamphlet "Home Sweet Hazards" that describes these materials and
contains suggestions on substitutions, uses and disposal of such substances. Housing
staff can provide a copy of this pamphlet in the packet of materials presented to
displacees.
During staff's inspection of the property to be acquired, these items should be noted and
pointed out to the displacee to put them on alert to the special disposal procedures.
Examples include: insecticides, rodent killers, fertilizers, herbicides, fungicides,
brush cleaners, paint strippers, photographic chemicals, wood preservatives,
parts cleaners, oil-based paints, varnishes, thinners, turpentine, antifreeze, motor
oil, degreasers, transmission fluid, lead-acid batteries, gasoline, radiator flushes,
rust preventatives, oven cleaners, furniture and other polishes, deodorizers,
mothballs/flakes, spot removers, floor waxes, drain cleaners, aerosol cans and
other non-biodegradable items.
Many times, the displacees aren't even aware of these potentially dangerous items and
it can be expensive to dispose of these materials properly and responsibly. In order to
do this, the City of Dubuque will reimburse the actual and reasonable cost to dispose of
these materials.
Such reimbursement will be provided to all displacees whether they move on an actual
cost or schedule basis.
MISCELLANEOUS EXTERIOR PERSONAL PROPERTY
Many properties have other items of personal property outside the dwelling which will
need to be moved. These items may include satellite systems, liquid propane tanks,
ornamental displays, portable clothesline poles, swing sets, swimming peols, etc.
Because it can be costly to disconnect, move and reconnect many of these items, the
displacee may be forced to move using the actual cost basis even though they would
prefer to use the schedule move.
In these cases it is more cost effective to reimburse the move of these items on an
actual cost basis in addition to a schedule move for the household items.
A separate offer for a personal property move should be requested by the Housing
Department representative.
DIRECT PAYMENTS
In order to minimize or eliminate a hardship, the displacee may request that the vendor
be paid directly. Staff can arrange for such payments. The displacee may assign
payments to movers and other vendors providing services required by the move. An
Assignment of Interest should be used.
TRANSFER OF OWNERSHIP
Upon request, the displacee will transfer ownership of any personal property not moved,
sold or traded in, to the City of Dubuque. Usually this will be in the form of a Bill of Sale
or notarized Letter of Understanding.
INELIGIBLE EXPENSES
None of the following expenses are considered to be eligible for reimbursement as
residentia! moving and related expenses.
The cost of moving any structure or real property improvement in which the
displacee reserved ownership. However, this cost is an eligible expense if the
displacee reserves ownership, moves it from the displacement site, re-
occupies it on a replacement site and it meets DSS criteria.
2. interest on a loan to cover moving expenses.
3. Personal injury.
Legal or other costs of preparing a claim for a relocation payment, or for
representing the displacee with the City of Dubuque.
5. Expenses of searching for a replacement dwelling.
6. Expenses for storage of personal property at a location where the displacee
has an ownership or tenant interest.
REPLACEMENT HOUSING PAYMENTS (RHP)
GENERAL
In addition to the moving payment expenses discussed eadier, another set of payments
is provided for persons displaced from their homes. These Replacement Housing
Payments (RHP) are designed to help eligible displaced persons to move into housing
which is decent, safe and sanitary (DSS), adequate for their needs and comparable to
what they had before the project required their move. These payments are available to
residential displaced persons only.
There are three categories of RHPs: Purchase Supplements, Rental Assistance and
Downpayment Assistance. Sometimes even these payments are not sufficient to meet
all costs and it may be necessary to provide last resort housing payments and/or
procedures.
]7
All Replacement Housing Payment categories have specific requirements for eligibility
and computation. However, all have a number of features in common.
Occupancy
Payments may only be made to occupants of the dwelling. This means
that the dwelling is their usual place of residency or abode. Summer
homes are not considered primary residences.
Displacement
Payments may only be made to displaced persons. A displaced person is
one who moved or moved personal property from real property as a direct
result of the project. See definition for Displaced Person (Displacee).
Replacement Housing Standards
Pa~ ....... s ma:,, be made only if the hoUsing to which the displaced person
moves meets cer[ain standards. These standards concern size, physical
condition, utility and affordability for the displacee. See definitions for
Comparable Replacement Dwelling, Habitable Space, and Decent,
Safe and Sanitary (DSS).
Time Limit For Purchase/Rental of Replacement Dwelling
Payment may be made only if the displacee purchases or rants and
occupies the replacement dwelling within one year.
For displaced homeowners the year begins on the later of:
The date the displacee receives final payment for the displacement
dwelling, or, in the case of a condemnation, the date the full amount of
the estimate of just compensation is deposited in the court, or
The date the displacee is offered comparable replacement housing.
A displaced tenant must rent or purchase and occupy a DSS replacement
dwelling within one year of the date he or she moves from the displacement
dwelling.
Time Limit For Filing Claims
Reimbursement may be made only if the displacee files a claim for
payment within i8 months of the beginning of the one year period
discussed above. The City of Dubuque may waive this limit in
extraordinary circumstances,
t8
Payment Limited To Actual Cost
Payments under the RHP are intended to assist displaced persons in
obtaining comparable replacement housing and to compensate for the
increased housing related costs imposed on them by the project. The
payment is limited to the lesser of:
The calculated RHP, or
The amount actually paid for the comparable replacement dwelling.
There are five general categories of residential occupants:
1. Owner-Occupants of 180 days or more. See definition of 180-Day Owner
Occupant
2. Occupants of 90 days or more. See definitions of 90-Day Owner Occupant
and 90-Day Tenant Occupant,
3. Occupants of less than 90 days. See definition Less Than 90-Day Tenant
or Owner Occupant.
4. Persons who occupied the property after the Initiation of Negotiations and
before it was acquired by the City of Dubuque. See definition Subsequent
Occupant.
prupe~ty UnL -~ - :~ ....... :_...4 ~..
5. ~ersons who o~o not occupy the
City of Dubuque. See definition Displaced Person (Displacae).
Al! resider~tia! displacees except persons occupying the property after it was acquired by
the City of Dubuque are entitled to comparable rep acement nous'ng, adwsory
assistance and advisow services.
Persons who occupied the property after its acquisition by the City will be provided
advisory assistance and services if such assistance is needed and is requested in
writing.
All RHP offers are conditional. In order to receive the maximum amount calculated, the
displacee must spend or be legally committed or bound to spend the amount indicated
on the offer as the basis for the determination.
Displacees are not required to relocate to housing that will keep them in the same
occupancy status. Tenants are eligible for assistance in the purchase of replacement
housing and owners are eligible for rental assistance.
t9
No person will be denied eligibility for an RHP solely because the person does not meet
the occupancy requirements described, for a reason beyond his or her control including:
disaster, emergency, hospital stay, military reserve duty; or
Another reason such as a delay in the construction of the replacement
dw~:,ng.
PAYMENT AFTER DEATH
A replacement housing payment is personal to the displaced person and upon his or her
death, the undisbursed portion of any RHP shall not be paid to the heirs or assigns,
except that:
The amount attributable to the displacee's period of actual occupancy of
,~,,, r~,,~,-,,m~r`* ,4,~o ~,,,~ will be paid. Typically, this wn ri only nncur in
the case of last resort supplemental rental payments made in installments;
Full payment will be disbursed if the other members of the displacee's
family continue to occupy the DSS replacement dwelling. If the family
elects to move to a different replacement dwelling, the Housing
Department representative will recommend what payments may be
appropriate;
Ar,,, portion o~ an R~4p that is ,,ecessary tn sat sfy a I~gal obligation of an
e~,.~e in connection w,th .he selection of a rep,ac~ ~ · dwelJ,.. ~,
behalf of, a deceased ........ "' u, . lau, ~u u ~ e~.
OWNER-OCCUPANTS OF 180 DAYS OR MORE
GENERAL
A person is considered to be in this category and may be eligible for an RHP if the
person has actually owned and occupied the displacement dwelling for not less than
180 days prior to the initiation of negotiations for its purchase by the City of Dubuque.
The maximum Replacement Housing Payment (RHP) for this category is $22,500
unless Last Resort Housing provisions apply. The payment wi!! be the sum of:
The purchase supplement; and
The increased mortgage interest costs and other debt service costs
incurred in connection with the mortgage of the replacement dwelling,
limited to: the remaining balance of the mortgage(s) on the displacement
2O
The expenses incidental to the purchase of the replacement dwelling,
limited to the lesser of: the costs that would have been incurred had the
person purchased a comparable replacement dwelling; or, the actual
expenses.
See definitions for PURCHASE SUPPLEMENT, MORTGAGE INTEREST
r~[===~-~m~ o.,,4 M~' r~NTAL EXP~NS~
PURCHASE SUPPLEMENT
DETERMINING THE COST OF A COMPARABLE REPLACEMENT DWELLING
The upper limit of a replacement housing payment is based on the cost of a comparable
replacement dwelling.
.,-,. .... ~.,^ .... ,~,,, ~ ' ~'= ["~' = by the Hn~sing Department
[ ~.ee cu.~b, ara~,,= repla,.e,,,ent ,~.e,llngs should ..... at..d .......
representative, using local realty offices as resources so that the addresses and
locations can be provided to the displacee. If less than three are available in the local
market; staff shoMd document the extent of the search that was conducted.
Comparable replacement dwellings will be selected from the neighborhood from which
the person was displaced. When that is not possible, comparables will be selected from
nearby or similar neighborhoods with housing costs that are generally the same or
higher than the displacee's former neighborhood. See definition for COMPARABLE
REPLACEMENT DWELLING.
The payment should be based on the most neany represeH~dve dw~..~j ~' ' ...... ~
to or better than the displaCement dwelling. If at all possible, staff should include two
more listed properties that were considered that are comparable, DSS and not listed at
a higher price than the most comparable.
This assures the validity of the study in that the Offer of Relocation
Assistance is a document that provides assurance that the City of
Dubuque will provide monetary assistance (purchase supplement), if
necessary, to the displaced person in order to purchase any of the
comparable replacement dwellings listed on the offer.
It is also documentation that more than one comparable replacement
property is available in the marketplace for the displacee to purchase for
the monies set out in the offer.
It allows the City of Dubuque to issue the 90 day notice, thus assuring the
timely completion of relocation activities prior to the lett. ing of the
construction project.
Staff should state the reasons for selecting the most comparable dwelling.
In some cases there may not be suitable properties available for sale. Staff may then
determine that in order to provide for comparable replacement housing, last-resort
housing is necessary.
It is important that in these cases, the City of Dubuque cannot assure the availability of
comparable replacement housing until the housing is DSS and available for occupancy.
If staff determines that new construction or rehabilitation of existing housing is
necessary, he or she must be sure to monitor the selection of potential contractors to
ensure the displacee's choice of said contractor is not one who is likely to cause project
delays because of failure to complete the work necessary to make the dwelling DSS.
ADJUSTMENTS TO THE LISTING PRICE OF THE COMPARABLE
REPLACEMENT DWELLING
If local market conditions indicate there is a significant (greater than 5%) difference
between the asking and selling prices of residential properties, an adjustment should be
made to the asking price of the comparables used in the study.
Examples of this are:
If the local market conditions indicate a sale to listing ratio of 95% or more,
staff should use the full amount (100%) of the listing price.
If the local market conditions indicate a sale to listing ratio of less than
95%, apply the ratio to 95% rather than 100%:
Ex: 94%/95% = 99%
93%/95% = 98%
92%/95% = 97%
This eliminates a potential gap which could penalize the displacee.
ADJUSTMENTS TO THE PRICE OF THE DISPLACEMENT DWELLING
If the comparable .replacement property lacks a major exterior attribute that the
displacement property has, the acquisition price of that attribute may be subtracted from
the acquisition price of the residential port. ion of the property for purposes of calculating
the maximum payment.
22
When locating comparable replacement properties, staff should make every attempt to
locate a comparable that includes all the amenities of the displacement property and
may consider attributes that the comparable has in offsetting attributes found in the
displacement. This tool is needed because no two properties are the same. Examples
of such adjustments include lot size, location, street surfacing, swimming pool, decks,
patios, etc.
Generally, the contribution value of such attribute is abstracted from the Elements of
Comparison portion of the Uniform Residential Appraisal Report (URAR) or other
appraisal report format. In instances where this is not ava able, staff will either consult
with the reviewer of the appraisal or consult records of similar adjustments on other
properties in order to ascertain the acquisition pdce of said attribute.
PRICE DIFFERENTIAL OR SUPPLEMENTAL HOUSING PAYMENT
The price differential is the amount that must be added to the final acquisition price
(whether it is established through negotiated settlement, condemnation or an appeal
from condemnation) of the displacement dwelling to provide an amount equal to the
LESSER of:
~ The reasonable cost of a comparable replacement dwelling as determined
by the City of Dubuque; or
The actual purchase of the DSS replacement dwelling actually obtained
and occupied by the displacee.
If the displacee is disabled or has some special needs or accommodations that are
leoitimately necessary, for their reasonable enjoyment of the replacement dwelling,
th~se needs should be considered. It is many times very. difficult to find properties to
accommodate these special needs, so the reasonable cost of the modifications may be
reimbursed in addition to the calculated RHP.
OWNER RETENTION OF DISPLACEMENT DWELLING
If an owner-occupant retains ownership of the.~,..F'4 .,.~o,.o.,~,,f..,.,.,,,......,~welllnn., = and moves it from
the displacement site, the purchase price of the replacement dwelling will be the sum of:
The cost of moving and restoring the dwelling to a condition comparable to
that prior to the move; and,
The cost of making the dwelling DSS; and,
The current fair market value (unless the displacee rents the displacement
r ..... suitable replacement
site and there is a reasonable opportunity to o"f o
site) for residential use of the replacement site; and,
The retention value of the dwelling, if such retention value is reflected in
the acquisition cost used when the supplemental housing payment was
calculated.
SPECIAL CONSIDERATIONS
If the displacement dwelling was a part of a property that was not just a
single family residence but contained another dwelling unit, and/or space
used for non-residential purposes, and/or is located on a lot that is larger than
typical for residential purposes, only the acquisition price that is actually
attributable to the displacement dwelling is considered. The acquisition price
attributable to the displacement dwelling will be determined by the Housing
Department representative.
If the displacement property is appraised and acquired based on a highest and
best use other than residential, such as vacant commercial, the acquisition price
of the residential portion is the per unit price applied to the square footage that is
considered to be typica! for a residential site.
Example:
The displacement dwelling is located on a 30,000 square foot lot
that is appraised based on a determination that the property has a
highest and best use of vacant commercial development and is
purchased for $3.00 per square foot, indicating a value for the
property of $90,000. If the typical residential site size in the area is,
say 10,000 square feet, this would indicate a residential portion of
$30,000 ( 10,000 sf @ $3/¢).
Or, if the displacement dwelling is part of a commemial building
which is appraised and acquired for $25 per square foot of building
area, including land, the value of the residential portion is
determined by multiplying the residential square footage by the
acquisition price, $25 per square foot. If, say, the displacement
dwelling contains 1,000 square feet and is part of the commercia!
building containing 5,000 square feet, it is reasonable to use 20%,
or $25,000, as the residential portion of the $125,000 purchase
price.
If the acquisition of a portion of a typical residential property causes the
displacement of the owner from the dwelling and the remainder is a buildable
residential lot, the City of Dubuque wili normally offer to purchase the entire
property. If the owner refuses to sell the remainder, the fair market value of the
remainder will be added to the acquisition cost of the displacement dwelling for
purposes of computing the RHP.
24
MORTGAGE INCREASE DIFFERENTIAL PAYMENT (MIDP)
This payment is intended to compensate the displaced owner-occupant for increased
interest costs which he or she is required to pay for financing the replacement property.
In order to qualify for this payment, the mortgage on the displacement property must
have been a bona fide and valid lien in existence at least 180 days prior to the initiation
of negotiations for the purchase of the property. More than one qualifying mortgage may
b~
The payment for increased mortgage interest cost shall be the amount which will reduce
the mortgage balance on a new mortgage to an amount which could be amortized with
the same monthly payment (principal and interest) as that for the mortgage on the
displacement dwelling.
This payment computation is based on the unpaid balance of the existing mortgage on
the displacement dwelling, its remaining term and the current prevailing interest rate
charged by lending institutions in the area of the comparable replacement dwelling used
in the housing study. If there is more than one mortgage outstanding on the
displacement dwelling, a separate computation will be required for each mortgage.
In the case of a home equity loan, the unpaid balance shall be the balance which
existed 180 days prior to the initiation of negotiations or the balance on the date of
acquisition, whichever is less,
if the disp.acee obtains a smaller mortgage or a mortgage for a lesser term than the one
+h *-I; r~l ¢,~r~nf ct~^~lllnn fh~ n~¢mCnf ~*¢j b¢ rCa,,ced 2~nnrdinolv.
This -" -* ....
p,=yme,,~ o;,o,~id be made available at or near the time of closing on the
replacement dwelling in order to reduce the new mortgage. Although it is not a
requirement that the payment be applied to ,e,.uce the n ...... ortga~e ...... should
stress the purpose of this payment and encourage the displacee to do so.
Staff should attempt to obtain the necessary information on the displacee's current
mortgage, if any, during the first personal contact. In preparation for the first visit, staff
will research the information needed for any computation including the unpaid balance
of the mortgage, the interest rate, the monthly payment (principal and interest only) and
the remaining term in months or years.
- ~,~-, ..... ,,, ,.,,~ ,~,o~,,a,.ee s F..,,,,,s..,..n,
staff'should be able to contact the mortgage holder for a copy of the information
needed. Generally, it is necessary for the displacee to provide an account number for
reference to the lender.
25
Once the information on the existing mortgage and prevailing mortgage terms are
known, staff can then prepare an estimated MIDP for presentation to the displacee.
When the information on both the displacement and replacement properties is available,
an actual payment can be calculated. It is important to have this information far enough
ahead of the closing on the replacement dwelling so that the displacee will be able to
know how much financing they will need.
it may be necessary' to establish an escrow agreement with the finance or lending
institution that will handle the closing on the replacement so that any last minute
changes will not cause a delay in payment.
Purchaser's points and loan origination or assumption fees, but not seller's points shall
be paid to the extent:
They are not paid as incidental expenses;
They do not exceed rates normal to similar real estate transactions in the
area;
The City of Dubuque determines them to be necessary;
The computation of these points will be based on the unpaid mortgage
balance on the displacement dwelling less the amount determined for
reduction of the mortgage balance under this section.
This payment is not avai!able to the displacee if:
There is no mortgage on the displacement dwelling; or
The interest rate obtained on the mortgage for the replacement dwelling is
less than the interest rate on the displacement dwelling.
INCIDENTAL EXPENSES
The City of Dubuque will reimburse the dispiacee for the reasonable expenses incurred
in the purchase of the replacement dwelling. The reimbursable expenses are those
customarily paid by the buyer, with certain limitations.
DISBURSING PAYMENTS
Prior to the disbursement of supplemental housing payments, the replacement dwelling
must be inspected to ensure it is DSS.
26
If the displacee needs to assign future payments to a financial institution or some other
third party, an Assignment of Interest can be used.
In many cases, the displacee will need money to close on the replacement dwelling or
advance payments for new construction prior to being in a position to surrender
possession of the displacement dwelling. In these cases, the displacee must sign a
document agreeing to a reasonable date of surrender of possession of the displacement
dwelling in exchange for early release of the supplemental housing payment and/or the
possession warrant for the displacement dwelling.
In the case of new construction, displacees should be advised that any builder who is to
receive advance or progress payments should be bonded. The bonding will protect the
displacee in the event that the builder does not perform in the manner agreed, or in the
worst case~ abandons the project. Releasing advance or progress payments to builders
who are bonded will also protect the City of Dubuque in the event of a problem.
It is far more desirable if staff will contact the displacee's lender and arrange for an
escrow account to manage the funds and provide the necessary releases as
construction progresses.
SUPPLEMENTAL HOUSING PAYMENTS
Supplemental housing payments are conditional. The initial determination and offer are
based on the appraised value of the displacement dwelling and available comparable
replacement dwelling. In the event the "acquisition price" changes through either
administrative seElement or eminent domain proceedings, the amount of the
supplemental payment may change.
In the event that the determination made by a compensation commission is appealed to
District Court, a significant delay may ensue. If the displacee opts to move before it is
actually required (the !80th day after the compensation award is deposited with the
County sherif0, the displacee will be required to sign an agreement that will require the
displacee to refund any par[ of the supplemental housing payment for which they are
not eligible based on the "acquisition price" as determined by the Court.
INSURANCE PROCEEDS
To the extent necessary to avoid duplication of payments, the amount of any insurance
proceeds received by a displacee in connection with a loss to the displacement dwelling
due to a catastrophic occurrence shall be included in the acquisition price of the
displacement dwelling when computing the price differential.
2?
PARTIAL OWNERS
If a partial owner is the occupant of the property, the calculation of the supplemental
housing payment is somewhat different.
Example:
An occupant has a one quarter interest in a dwelling with an appraised
value of $60,000. The comparable replacement study indicates housing is
available for $70,000.
The occupant is eligible for a maximum supplemental housing payment of
$10,000. In order to qualify for the maximum payment, the occupant must
spend his or her share of the acquisition price of the displacement
dwelling ($15,000) plus at least $i0,000, or $25,000 for DSS housing, and
must actually occupy it.
If the supplemental housing payment is not sufficient to allow the displacee to purchase
replacement housing, the displacee may need to become a tenant. The City of Dubuque
does not have the obligation to provide higher supplemental housing payments for the
sole purpose of making the displacee a sole owner of replacement housing.
RENTAL ASSISTANCE PAYMENT
An owner-occupant of 180 days or more who could be eligible for a supplemental
housing payment to purchase replacement housing, but instead elects to rent a
replacement dwelling is eligible for a rental supplement, not to exceed $5,250,
computed and disbursed in accordance with the procedures for tenant occupants of 90
u,~y~ o,
The computed supplemental housing payment, increased interest and incidental costs
for purchasing replacement housing exceeding $22,500, demonstrates the need for last
resort housing provisions. Thus, the rental supplement may exceed the $5,250, but in
no event can it exceed the amount computed for the purchase of replacement housing.
LAST RESORT HOUSING
APPLICABILITY
The threshold for implementing Last Resont Housing provisions is when the sum of the
supplemental housing payment, mortgage interest differential payment and incidental
closing costs exceed $22,500. These provisions are most generally employed when
comparable replacement dwellings are not available within the monetary limit of
$22,500 for 180-day owner occupants, thus necessitating the need to provide additional
or alternative assistance.
28
Any decision to provide last resort housing assistance must be adequately justified
either:
1. On a case-by-case basis after consideration is given to:
The availability, of comparable replacement housing in the project area;
The resources available to provide comparable replacement housing;
The individual circumstances of the displacee; or
2. On an area or project basis because:
There is little, if any, comparable replacement housing available to
displacees within an entire project area; and
The project cannot be completed in a timely manner without last resort
housing assistance; and
The method(s) selected for providing replacement housing is/are cost
effective given the potential cost of project delays
No person will be required to move from a displacement dwelling unless comparable
DSS replacement housing is made available.
No person wi!! be required to accept a dwelling under these provisions in lieu of any
acquisition payment or any relocation payment that the displacee might otherwise be
eligible to receive, unless the displacee and the City of Dubuque have entered into a
contract requiring the person to do so.
METHODS OF PROVIDING REPLACEMENT HOUSING
There is broad latitude, but the method must be cost effective and must be justified on a
case-by-case basis unless a determination is made that it is necessary for an entire
project.
This provides an opportunity for the Housing Department representative to present
innovative or unconventional ideas in order to solve the housing problem. However, the
selected method must be determined to be the most cost effective of the methods
analyzed. Staff will explore all possible solutions.
29
Possible methods include, but are not limited to:
Payments in excess of the $22,500 monetary limit.
Most of the time, this is the situation that triggers the implementation of
last resort payments and the documentation requirements that go along
with it~
~ ~,~ t ~-I II'n
Rehabilitation of and/or additions to an existing, epla,~,.men, ,,we,,~, ,g.
There may be occasions when there is available housing, but it may be
necessary to cure DSS deficiencies or the addition of a room would make
an otherwise deficient replacement dwelling work for the displacee. If cost
effective, this a viable solution to solve the displacee's housing needs.
Construction of a new replacement dwelling.
TOTAL ACQUISITIONS
Staff should work closely with the displacee in order to ascertain their needs and
preferences as they relate to site location, type and quality of construction.
Staff must still research the market in order to locate a site for the construction of the
replacement dwelling. Staff should be aware of any restrictive covenants on the tract,
size of the tract, zoning and availability of utilities to the site that may affect its usability
by the disptacee.
When gathering costs for new construction, staff must remember that the objective is
not to duplicate all the physical attributes of the displacement dweiiing but rather to
meet the functional needs of the displacee. Staff should make every attempt to gather
cost information for a dweliing of similar quality and construction.
Staff should base their estimate on habitable space rather than gross square footage,
although this is not critical when comparing like structures. It is cdtical when comparing
different types of dwellings (1-story, 2-story, split level, split-foyer, earth homes, etc.).
Staff should be cognizant of special features involving windows, fireplaces, plumbing
features, cabinetry, heating, cooling, etc.
PARTIAL ACQUISITIONS
Staff should work closely with the displacee in order to ascertain their needs and
preferences as they relate to location on the remaining property, type and quality of
construction.
30
The land value used in this situation is based on the land value that is attributed to the
residential portion of the acquisition. This value is allocated from the appraisal in
developing the cost of new construction. If the final acquisition price exceeds the
appraised value, this value could change.
When gathering costs for new construction, staff must remember that the objective is
not to duplicate all the physical attributes of the displacement dwelling but rather to
meet the functional needs of the displacee. Staff should make every, attempt to gather
cost information for a dwelling of similar quality and construction.
Staff should base their estimate on habitable space rather than gross square footage,
although this is not critical when comparing like structures. It is critical when comparing
different types of dwellings (l-stow, 2-story, split level, split-foyer, earth homes; etc.).
Staff should be cognizant of special features involving windows, fireplaces, plumbing
features, cabinetry, heating, cooling, etc.
REMOVAL OF BARRIERS
The removal of barriers or the addition to or the rehabilitation of an existing dwelling to
assist the elderly or those displacees with special needs is sometimes necessary.
The cost of these features can be added to the listing price of the replacement
comparable dwelling. It is preferable for staff to obtain two estimates, if possible, in
order to ascertain the reasonable cost to make the adaptations necessa,5,. Examples of
these adaptations include, ramps or lifts, wider doors, first floor laundry, garage
openers, special stools and/or showers, lower counters, specia! features for the hearing
impaired, etc.
In the case of new construction any adaptations necessary should be considered in the
original estimate as it is generally more cost effective to add these features during
construction.
In some circumstances, when the person is displaced from a very large or substandard
dwelling, a replacement housing payment based on different space and physical
characteristics than the displacement is possible. Smaller, better quality replacement
housing that is DSS and is adequate in size to accommodate the displacees can be
used. However, the housing must be functionally equivalent to the displacement
dwelling.
DOCUMENTATION
To document the need for use of last resort housing provisions, staff will develop a
written plan that addresses the circumstances of the displacee, the problems
encountered and the proposed solution. This plan must provide a solution that is legally
possible, cost effective, orderly and humane. This plan will be submitted to the Housing
Department Director for review and approval.
TENANT OCCUPANTS OF 90 DAYS OR MORE, OR OWNER
OCCUPANTS OF AT LEAST 90 DAYS BUT LESS THAN 180 DAYS
GENERAL
A person is considered to be in this category and may be eligible for a rental
supplement if the person has actually rented and occupied or owned and occupied the
displacement dwelling for not !ess than 90 days prior to the initiation of negotiations for
its purchase by the City of Dubuque; and
Either rents or purchases and occupies a DSS replacement dwelling within one year
after:
For a tenant, the date he or she moves from the displacement dwelling; or
For an owner, the later of:
The date final payment for the displacement dwelling is received, or in the
case of a condemnation, the date the full amount of the estimate of just
compensation is deposited with the shedff, or
The date the displacee is offered comparable replacement housing.
MAXIMUM RENTAL SUPPLEMENT
The maximum rental supplement for this category may not exceed $5,250 unless Last
Resort Housing provisions apply.
This payment is based on the difference between the monthly rent and utilities
necessary to rent a comparable replacement dwelling, as determined by the City of
Dubuque and the monthly rent and utilities for the displacement dwe!!ing. Utilities
include heat, electricity, water and storm water and sanitary sewer:
Computation of the rental supplement is completed using the following formula:
Monthly rent of a comparable replacement dwelling plus utilities
MINUS
Base monthly rent of the displacement dwelling (Including utilities)
TIMES 42 (months)
Equals the maximum rental assistance payment
32
If $5,250 is exceeded, last resort housing provisions will apply. In all cases, the cOst of
utilities must be included with both the rent of the displacement dwelling and the
replacement dwelling when computing the rental assistance payment.
BASE MONTHLY RENT
Base monthly rent is the lesser of:
The average monthly cost for rent and utilities at the displacement
dwelling for a reasonable period prior to displacement. Reasonable period
of time is considered to be six months because of the diversity of weather
in Iowa.
For a tenant who paid little or no rent for the displacement dwelling,
the fair market rent should be used, unless it would result in a
hardship because of the displacee's income or other
circumstances.
For an owner-occupant, the fair market rent should also be used;
OR
Thirty (30) percent of the displaced person's gross monthly income.
If the displacee refuses to provide evidence of their total income or is a
dependent, the base monthly rental is assumed to be the average monthly
cost for rent and utilities as discussed above.
A full time student or resident of an institution is assumed to be a
uependenL ,_,, ,,ess he or she demonstrates otherwise;
OR
The total of the amounts designated for shelter and ,Jt~ ties if the displacee
is receiving a welfare assistance payment from a program that designates
the amounts for shelter and utilities.
DETERMINING THE RENTAL COST OF A REPLACEMENT DWELLING
Comparable eplacement dw,.l,ings wil, ,~,, selected from th., neighborhood from which
the person was u,~l~luced. '*'"-- that is not
p,~o,~,=, co p,= ab ~s., ,~e se,e,.~,. ,r,.,,,
nearby or similar neighborhoods with housing costs that are generally the same or
higher than the displacee's former neighborhood. See definition for COMPARABLE
REPLACEMENT DWELLING.
Three comparable replacement dwellings should be located by staff so that the
addresses and locations can be provided to the displacee. If less than three are
available in the local market, staff should document the extent of the search that was
conducted for comparable housing.
The payment should be based on the most neady representative dwelling that is equal
to or better than the displacement dwelling. If at all possible, staff should include two
more listed properties that were considered as comparable, DSS and not listed at a
higher rent than the most comparable.
This assures the validity of the study in that the Offer of Relocation
Assistance is a document that provides assurance that the City of
Dubuque will provide monetary assistance (rental supplement), if
necessary, to the displaced person in order to rent any of the comparable
replacement dwellings listed on the offer.
It is also documentation that more than one comparable replacement
property is available in the marketplace for the displacee to rent for the
amount set out in the offer.
It allows staff to issue the 90 day notice, thus assuring the timely
completion of relocation activities prior to the letting of the construction
project.
Staff should state the reasons for selecting the most comparable dwelling.
DETERMINING THE RENTAL SUPPLEMENT TO ACTUALLY PAY
The rental supplement paid is based on the actual rent paid on the DSS replacement
dweliing actually occupied by the displacee.
Example:
Monthly Rent & Utilities In Study: $ 600.00
Less Base Monthly Rent: 500.00
Difference:
$ 100.00
Times 42 months = Rental Supplement of: $4,200.00
If the rent and utilities of the replacement dwelling are less than the amount shown in
the comparable replacement housing study, the payment will be reduced accordingly.
Example:
Uu.ue~ of R~F,,=ce,,,ent. ~
,wunth~y Rent & ~,=",= ~ ~^ ~ . ,~ ~n nn
Less Base Monthly Rent: 500.00
Difference: $ 50.00
Times 42 months = Rental Supplement of: $2,100.00
34
In this example the maximum rental supplement cannot exceed $4,200.00 even if
the actual rent and utilities paid exceed $600 per month.
To expand this example further, let's say the displacee had a gross monthly income of
$1,200 per month. Application of the Financial Means Test indicates that the displacee
should spend no more than 30% of their gross monthly income for their housing needs.
Therefore, the base monthly rent is $360.00, and the calculation is as follows:
Example:
Monthly Rent & Utilities In Study: $ 600.00
Less Base Monthly Rent: 360.00
Difference: $ 240.00
Times 42 monthS = Rental Supplement of: $10,080.00
LAST RESORT HOUSING
APPLICABILITY,
Last Resort Housing provisions are employed when comparable rePlacement dwellings
are not available for rent within the monetary limit of $5,250, thus necessitating the need
to provide additional or altemative assistance.
Any decision to provide last resort housing assistance must be adequately justified
either:
1. On a case-by-case basis after consideration is given to:
The avaiiabiiity of comparable rentals in the project area;
The resources that are available to provide comparable replacement
housing in the community;
The individual circumstances of the displacee; or
2. On an area or project basis because:
There is little, if any, comparable rental housing available to displacees
within an entire project area; and
The project cannot be completed in a timely manner without last resort
housing assistance; and
The method(s) selected for providing replacement housing is/are cost
effective given the potential cost of project delays.
No person will be required to move from a displacement dwelling unless comparable
DSS replacement housing is made available.
No person will be required to accept replacement housing under these provisions in lieu
of any acquisition or relocation payment that the displacee might otherwise be eligible to
receive, unless the displacee and the City of Dubuque have entered into a contract
requiring the person to do so.
METHODS OF PROVIDING REPLACEMENT HOUSING
There is broad latitude, but the method selected must be cost effective and must be
justified on a case-by-case basis unless a determination is made that it is necessary for
an entire project.
This provides an opportunity for staff to present innovative or unconventional ideas in
order to solve the housing problem. Again, the method selected must be determined to
be the most cost effective of the methods analyzed. Staff will explore all possible
solutions.
Possible methods include, but are not limited to:
Payments in excess of the $5,250 monetary limit.
If a rental assistance payment in excess of $10,000 is necessary, it will be
provided in periodic installments (generally annually). If staff believes that
it would be in the ,4~ ,.~ ,. , ko , ~ o , ¢~.,~,- ,,
,.,s~.,a,.ee s ~s. ,nter~s. w~a.se of a~,n~r~nn~l
circumstance or cunu,uu, ,) to provide 8 ..... ' '~' :~ '~ *~ e4 ~ nnn
in periodic installments, the Housing DepaAment Director will be
consulted;
Providing a direct loan with regular amortization or deferred repayment,
secured or unsecured, interest bearing or interest free.
Purchasing land/or a replacement dwelling by the City of Dubuque with
subsequent lease or sale to, or exchange with a displacee.
The removal of barriers to the disabled.
The change in status of the displacee with his or her agreement from
tenant or homeowner if it is more economicai to provide a downpayment
rather than a last resort rental supplemental payment.
In some circumstances, when a person is displaced from a very large or substandard
dwelling, a rental supplemental payment based on different space and physical
characteristics than the displacement property is possible. Smaller, better quality
replacement housing that is DSS and is adequate in size to accommodate the
displacees can be used. However, the housing must be functionally equivalent to the
displacement dwelling.
DOCUMENTATION
To document the need for last resort housing provisions, the Housing Department
representative will develop a written plan that addresses the circumstances of the
displacee, the problems encountered and the proposed solution. This plan must provide
a solution that is legally possible, cost effective, orderly and humane. This plan will be
submitted to the Housing Department Director for review and approval.
CONVERSION OF PAYMENT
A displaced person who initially rents replacement housing and receives a rental
assistance payment may change his or her mind and purchase replacement housing.
This can be done within one year of moving from the displacement dwelling.
In the event that the person does opt to purchase replacement housing, any rental
assistance that has been paid to them will be deducted from the calculated rental
supplement. This applies only to displacees who:
Have been receiving their rental supplemental payments in installments;
or
Did not rent replacement housing utilizing the full amount of the calculated
rental supplement. For example, the rent and utilities was calculated at
$700 per month and the disp!acee rented a dwelling for $650 per month,
Received the full amount of the rental supplemental payment and it was
less than $5,250. See Downpayment Assistance.
DOWNPAYMENT ASSISTANCE
Rather than continue to rent, a residential tenant displacee may decide to purchase
replacement housing, and it is the policy of the City of Dubuque to encourage home
ownership if it is a viable alternative for the displacee, it is not necessary for staff to
locate comparables for the displacee to purchase, only to compute and advise the
tenant of the potential rental supplement discussed earlier.
3?
If the displacee elects to purchase replacement housing, he or she is eligible to receive
the calculated rental supplemental payment plus incidental expenses, except that no
extraordinary loan origination fees or points will be allowed that would allow the person
to obtain a mortgage at lower than typical interest rates, in other words, points that
would in effect buy down interest rates will not be considered.
The full amount of downpayment assistance must actually be applied to the purchase
price and incidental expenses. A commitment to spend is not sufficient.
If a tenant residential displacee had a calculated rental supplemental payment of less
than $5,250 and opts to purchase replacement housing, the amount of downpayment
assistance will be raised to $5,250 plus incidental expenses.
OWNER OR TENANT OCCUPANTS OF LESS THAN 90 DAYS
OR
SUBSEQUENT OCCUPANTS
GENERAL
A person is considered to be in this category if the person has actually rented and
occupied or owned and occupied the displacement dwelling for less than 90 days prier
to, or after, the initiation of negotiations for its purchase by the City of Dubuque; and
Either rents or purchases and occupies a DSS replacement dwelling within one year
after:
For a tenant, the date he or she moves from the dispiacement dwelling; or
For an owner, the later of:
The date final payment for the displacement dwelling is received, or in the
case of a condemnation, the date full amount of the estimate of just
compensation is deposited with the sheriff, or
The date the displacee is offered comparable replacement housing.
All Replacement Housing Payments to displacees in this category will be paid under
Last Resort Housing provisions.
RENTALSUPPLEMENT
For tenant occupants, the procedures and requirements are the same as for tenants of
more than 90 days, except that, if there is comparable, DSS replacement housing
available within the displacee's financial means, the displacee is not eligible for a rental
supplemental payment.
The difference between a tenant occupant of 90 days or more and a tenant occupant of
less than 90 days is illustrated as follows:
Example 1:
Rent of Displacement Dwelling:
Rent of Comparable Replacement Dwelling:
Disp~ac~ ~ ~ro~s ~v,ont~ ,,y Income:
Financial Means Test (30%):
$ 400.00 per month
$ 500.00 per month
$1,500.00 per month
$ 450.00 per month
90 Days or More Tenant: $ 500.00 - $ 400.00: $100.00 x 42 months = $ 4,200.00
Less Than 90 Days Tenant: $ 500.00 - $ 450.00 = $ 50.00 x 42 months = $ 2,100.00
Example 2:
If the displacee's gross monthly income was $ 2,000.00 per month, the financial
means test indicates an expenditure of $ 600.00 per month and the calculations
would change to:
90 Days or More Tenant: $ 500.00 - $ 400.00 = $100.00 x 42 months = $ 4,200.00
Less Than 90 Days Tenant: $ 500.00 - $ 600.00 = No RHP
Example 3:
If the displacee's gross monthly income was $1,000.00 per month, the financial
means test indicates an expenditure of $ 300.00 per month and the calculations
-would change to:
90 Days or More Tenant: $ 500.00 - $ 300.00 = $ 200.00 x 42 months = $ 8,400.00
Less than 90 Days Tenant: $ 500.00 - $ 300.00 = $ 200.00 x 42 months = $ 8,400.00
If the tenant of less than 90 days refuses to provide evidence of their total income or is a
dependent, they are assumed to have met the financial means test and are not eligible for
a rent supplemental payment. They will still be eligible for reimbursement of their moving
costs as there are no length of occupancy requirements for moving costs.
As in the case of tenant occupants of 90 days or more, displacees in this category are
eligible for downpayment assistance.
Owner occupants of less than 90 days are not eligible for a supplement housing payment
to assist in purchasing replacement housing.
40