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National VOAD Rental Guidance Document€¦ · Because of funding limitations, however, it may be...
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Ratified by the NVOAD Board February 2018 National VOAD Rental Guidance Document Goal and purpose This document is designed to give insight to Long Term Recovery Groups (LTRG) and/or voluntary agencies when considering the repair/rebuilding of rental properties that have been affected by the disaster. NVOAD definition of a disaster A disaster is a natural or human-caused incident that disrupts normal life, causing physical and/or emotional trauma and/or damage to property and/or community infrastructure. Disasters may include hurricane, tornado, wind storm, flood, tidal wave, tsunami, earthquake, volcanic eruption, landslide, mudslide, snow or ice storm, wild fire, explosion, acts of public violence or terrorism, or other human caused or technological events involving toxic and/or radiological materials, etc. General considerations: Depending on the size and scope of the disaster and the availability of the affordable housing stock, rental units may play a huge role in placing survivors into a more permanent housing solution. Communities may have a large rental population and not addressing the repair of these properties could change the entire face, demographics, culture and economy of a community. Information on how many rental properties are affected, as well as, in comparison to other properties can be obtained from a FEMA Routine Use Report. The local community is very interested in retaining the community population and character. Several factors must be considered to determine if repairing rental units fits into your mission. A rental complex with more than four (4) units is considered a commercial property and will not be considered in this document. If the rental population is high in the affected community, here are some elements to consider when discussing help for rental properties: • Withholding help will prevent large numbers of the community from returning as consumers, employees, students, tax payers and even recovery leaders. • Often rental tenants comprise the most vulnerable of the pre-disaster population. Their loss of affordable housing may compound their situation. • Some businesses will not reopen until a certain amount of the population has returned which affects the economy and the availability of jobs and services for homeowners. • A high number of damaged rental properties affects the livelihoods of those owners/landlords and their ability to rebuild their own homes or stay in the community. • Keeping extended families in one community may be a priority to their health and welfare.
Transcript of National VOAD Rental Guidance Document€¦ · Because of funding limitations, however, it may be...
RatifiedbytheNVOADBoardFebruary2018
NationalVOADRentalGuidanceDocument
GoalandpurposeThisdocumentisdesignedtogiveinsighttoLongTermRecoveryGroups(LTRG)and/orvoluntaryagencieswhenconsideringtherepair/rebuildingofrentalpropertiesthathavebeenaffectedbythedisaster.
NVOADdefinitionofadisasterAdisasterisanaturalorhuman-causedincidentthatdisruptsnormallife,causingphysicaland/oremotionaltraumaand/ordamagetopropertyand/orcommunityinfrastructure.Disastersmayincludehurricane,tornado,windstorm,flood,tidalwave,tsunami,earthquake,volcaniceruption,landslide,mudslide,snoworicestorm,wildfire,explosion,actsofpublicviolenceorterrorism,orotherhumancausedortechnologicaleventsinvolvingtoxicand/orradiologicalmaterials,etc.
Generalconsiderations:Dependingonthesizeandscopeofthedisasterandtheavailabilityoftheaffordablehousingstock,rentalunitsmayplayahugeroleinplacingsurvivorsintoamorepermanenthousingsolution.Communitiesmayhavealargerentalpopulationandnotaddressingtherepairofthesepropertiescouldchangetheentireface,demographics,cultureandeconomyofacommunity.Informationonhowmanyrentalpropertiesareaffected,aswellas,incomparisontootherpropertiescanbeobtainedfromaFEMARoutineUseReport.Thelocalcommunityisveryinterestedinretainingthecommunitypopulationandcharacter.
Severalfactorsmustbeconsideredtodetermineifrepairingrentalunitsfitsintoyourmission.Arentalcomplexwithmorethanfour(4)unitsisconsideredacommercialpropertyandwillnotbeconsideredinthisdocument.
Iftherentalpopulationishighintheaffectedcommunity,herearesomeelementstoconsiderwhendiscussinghelpforrentalproperties:
• Withholdinghelpwillpreventlargenumbersofthecommunityfromreturningasconsumers,employees,students,taxpayersandevenrecoveryleaders.
• Oftenrentaltenantscomprisethemostvulnerableofthepre-disasterpopulation.Theirlossofaffordablehousingmaycompoundtheirsituation.
• Somebusinesseswillnotreopenuntilacertainamountofthepopulationhasreturnedwhichaffectstheeconomyandtheavailabilityofjobsandservicesforhomeowners.
• Ahighnumberofdamagedrentalpropertiesaffectsthelivelihoodsofthoseowners/landlordsandtheirabilitytorebuildtheirownhomesorstayinthecommunity.
• Keepingextendedfamiliesinonecommunitymaybeaprioritytotheirhealthandwelfare.
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AllrequestsforassistancemustcomethroughtheDisasterCaseManagementprocess,tenantand/orowner/landlord.ThetenantmayqualifyforassistancefromtheLTRGorvoluntaryagencytoassistwithpersonalpropertyand/orotherservicesthatdonotincludetherepair/rebuildingoftherentalproperty.
CriteriaBeforeconsideringifrepair/rebuildingassistancemaybeavailableforowners/landlordsofrentalunits,asetofeligibilitycriteriamustbeestablished.Criteriamaydifferfromoneresponsetoanother,dependingonthefinancialandmaterialresourcesavailabletotheLongTermRecoveryGroup(LTRG)ineachaffectedcommunityorvoluntaryorganization/agencydoingthework.
Herearesomeimportantconsiderationswhensettingthesecriteriaguidelines:
• Thecommunitymayviewthisassistanceasbeingavailableforallwhomeetthecriteria.Becauseoffundinglimitations,however,itmaybenecessarytolookatrepaironrentalpropertyonacase-by-casebasis.
• Someowners/landlordsmayhavemultiplerentalproperties,astheironlyincomesource.Itwillbeimportanttodeterminehowmanyrentalpropertieswillberepaired/rebuiltperowner/landlord.Aduplexorotherrentalpropertymaybeessentialtotheowner’slivelihood.
• Itisalsonecessarytoestablishincomeguidelines.Anowner/landlordmayhaveapropertythatisoccupiedbyafamilymemberandmakeslittletonoincomefromthatrentalproperty.Oftenthisfamilymemberispartofavulnerablepopulation.Itisimportanttorememberincomeisnotwhatisreceivedfromtherentalproperty,butwhatremainsafterexpenses.
TherearemanywaystoverifyownershipofthepropertyWarrantyDeedThemostcommontypeofdeedisageneralwarrantydeed,whichshowsthatthegrantortransferredcleartitletothecurrentowner.Theactualdeedtothepropertyshowsthenameofthecurrentownerandadescriptionoftheproperty.Thedeedwillbesignedbythepreviousownerorgrantoroftheproperty.
Recorder'sOfficeAproperlyrecordeddeedbecomespublicrecord,andyoucanpurchasecopiesofarecordeddeedatthecountyrecorder’sofficetodemonstrateproofoflandownership.
DeedofTrustSomestatesrequirelenderstoexecuteadeedoftrustwhenaborrowerpurchasesapropertyusingamortgage.Acopyofthedeedoftrustisalsoavailableatthecountyrecorder’soffice.
MortgageNoteInadditiontousingthepropertydeedtoprovelandownership,themortgagenotealsoindicatesthattheborrowerownsapropertythatincludesamortgagelien.
SatisfactionofMortgageLetter
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Themortgageborrowercompletesthepaymentobligationunderamortgage,thelendermusttenderasatisfactionofmortgagelettertotheborrower.Thislettermayalsobeusedtoprovelandownership.Asatisfactionofmortgagetoshowwhohasthecleartitletotheproperty.
PropertytaxrecordsInmanystatesthisinformationisavailableonlinebycountywhichshowsthenameofthepropertyowner.
TypesofservicesthatmaybeconsideredEvenafterdecidingyouragencyorLTRGwillprovidesupporttotherecoveryofrentalproperties,therearevarioustypesofservicestoconsiderproviding.Thismayinclude:
• Offeringfundingforrepairorreplacementofthefurnaceorotheressentialutilitiesthatareconsideredlifesustaining.
• Assistancetohireprofessionalcontractorsrequiredtocompletethework.Contractswithhiredcontractorsshouldbebetweentheownerandcontractor.Thisgivesanywarrantytotheowner,eveniftheUnmetNeedsCommitteeoragencypaysforthecontractor.
• Repairstoaculvertorbridge,ifaccesstothepropertyhasbeencompromised.
• Muckoutoftheproperty.Somevoluntaryagenciescanprovidethisservice.Whenofferingcleanupservices,itisimportanttoreceivepermissionfromtheowner/landlordandtenant,sincetheremaybetheremovalofphysicalandpersonalproperty.Itisimportanttorememberthiswillnotnecessarilyensurethetenantisabletoreturnhome.
• Rebuildingand/orrepairstothestructure.Theorganizationsthatmuckoutthepropertiesmaynotrebuildaswellsotherewouldneedtobeotherarrangementsdevelopedifthatisthecase.
IdentifypossiblefundingsourcesTheDisasterCaseManagerwillworkwiththeownertoidentifyanyresourcestheownermayhaveavailable,suchasinsurance,orapplyingforaSBAloanorprivateloan.Itmaybenecessarytoidentifypotentialfunderswhocanfundrepair/rebuildingofrentalproperties,sincemanyagencieshaveguidelinesthatrestrictfundingonrentalproperty.Theremaybeaneedtoinvestigategrantsthatmaybeavailable.Itisimportanttoinvitethelocalnon-profitand/orbusinesscommunitiestobeattheunmetneedstable,sincetheyhaveadesiretoassisttheirlocalcommunity,theymaybeabletoofferlimitedfundingtoclients.
EstablishacontractItisimportantthatacontractbewrittenbetweentheowner/landlordandthetenant.Occasionally,legalprofessionalswilldonatetheirservicestotheLTRGoranonprofitagencymaybepartoftheLTRG.Thecontractshouldincludeinformationontheamountchargedforrentandlengthoftimethecontractistobeenforced,followingrepairsmadeorfundedbytheLTRG.Itshouldalsocontaininformationon
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theprocedureandrequirementsregardingifthepropertyissold,orthetenantisnotabletostayintherentalproperty.Thereshouldbelanguageinthecontractthatidentifiesthepreviousleaserequirementstoremainthroughthedurationofthiscontract.
