H.C. Peck & Associates, Inc. A National Land Service Company Comparable Housing – Best Practices...

H.C. Peck & Associates, Inc.A National Land Service Company




Comparable Housing – Best Practices

High Volume, Low Income

Mark Kendell, SR/WA, R/W-RACRelocation Project Manager, H.C. Peck & Assoc.

IRWA International Education ConferenceAtlanta, GA

June 14, 2011





Project:

A 12.1-mile light rail transit corridor in the Denver Metro Area





Planned...




H.C. Peck & Associates, Inc.A National Land Service Company Existing:





Muhr Apartments

.




H.C. Peck & Associates, Inc.A National Land Service CompanyFacts:

• 96 families to move

• Persons not lawfully present

• Ongoing evictions (through the Courts)

• Moderate to high crime area

• Spanish speaking population

• Most available Comps exceed comparability standards

• 50% Low (and no) income = FINANCIAL MEANS!




H.C. Peck & Associates, Inc.A National Land Service CompanyComparable Housing:

Uniform Act Regulations – 49 CFR, Part 24.2(a)(6)

• DS&S

• Functionally equivalent

• Adequate in size

• No adverse environmental conditions

• Location not less desirable

• Site typical in size

• Currently available

• Reflect similar government assistance

• Within financial means




H.C. Peck & Associates, Inc.A National Land Service Company“Financial Means” means:

42 months rental differential based on “Base monthly rental” 24.402(b)(2)

which is lesser of:

Rent to Rent

Or

Thirty (30) percent gross household income (if classified as ‘‘low income’’

by HUD Section 8 tables)




H.C. Peck & Associates, Inc.A National Land Service CompanyChallenges:

• 1, 2 and 3 Bedroom Apartments

• Rent to Rent Base: $425 - $650/month

• Low income Base (FINANCIAL MEANS) : $150 - $1,000/month

• Range of Comps: $375 - $1,000/month

• How are large swings in RHPs avoided?

• Can we avoid leaving low income tenants with enormous monthly differentials that they must pay after supplement expires?




H.C. Peck & Associates, Inc.A National Land Service CompanyExample 1:

• Same subject unit

• Both comps suitable, available and meet the displacee’s needs

• RHP spread over $20,000 – not equitable

• After 42 months, monthly differential is a greater burden on low income family




H.C. Peck & Associates, Inc.A National Land Service CompanyHow do we make it work?

Key:

Look at cost effectiveness!

(but I thought we weren’t supposed to pick comparables based on price...)





Authority:

• Replacement housing of last resort 24.404(a)(2)(iii) –

• Replacement housing of last resort 24.404(c) -




H.C. Peck & Associates, Inc.A National Land Service CompanySolution:

FAVE 5 MEETINGS

• Held every week at Relo Office

• Each Agent brings at least 5 available comps

and 5 displacee files needing determinations

• Take turns matching Relocatees and Comps

• Lowest base to most cost-effective comp

• Agent doesn’t automatically get to match his or her comp with his or her displacee





Comp lists developed





Sample:




H.C. Peck & Associates, Inc.A National Land Service CompanyExample 2:

• Same subject unit

• Both comps suitable, available and meet the displacee’s needs

• RHP spread more equitable

• After 42 months, monthly differential less of a burden on low income family•





Conclusion:

No RHP’s can computed using “tables”:• Each displacee must be offered at least one “real” available comparable dwelling that meets

their needs;

This approach may not work if:• The subject dwellings are not substandard• Comps available are not basically

“interchangeable” ;

Remember the “purpose” @ 49 CFR 24.1:(a) Fair and equitable treatment(b) No disproportionate injuries(c) Implemented in a cost effective manner





Questions andComments

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Thank you!

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