Relocation: Minimizing Resident

DisplacementJuly 31, 2013July 31, 2013

Agenda

Overview and Timeline General Information Notice at

Time of Application to TDHCA Two Types of Relocation

Assistance Household Assessments Initiation of Negotiations Date Notice to Move Relocation Requirements and

Enforcement2

Relocation Overview and Timeline

The Main Point

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Why Provide Relocation Assistance?

Required for all federally-assisted projects with tenants displaced due to renovation or demolition

Protects residents from unreasonable or forced displacement

Recognizes the financial burden and discomfort associated with tenant temporary or permanent displacement

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Benefits to Developer for Compliance

Proper planning and implementation of relocation minimizes developer worries and tenant discomfort

Facilitates tenant move and rehabilitation of units

Helps keep project construction on-time and on-budget

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Consequences for Non-Compliance

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What Kind of Notices are Required?

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Relocation Timeline

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Notice to

Tenants

Notice to

Tenants

Notice to

Tenants

Guidance and Instructions

49 CFR part 24 Uniform Relocation Assistance and Real

Property Acquisition –Final Rule Section 104(d) of Housing and

Community Development Act Regulations (24 CFR Part 42) Displacement, Relocation Assistance, and

Real Property Acquisition for HUD-assisted programs

HUD Handbook 1378 Tenant Assistance, Relocation and Real Property Acquisition

TDHCA Relocation Handbook10

General Information Notice (GIN) at Time

of Application to TDHCA

Relocation Timeline

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Notice to

Tenants

Notice to

Tenants

Notice to

Tenants

Notice Distribution: Existing Tenants

GIN informs tenant of: Federal funds requested,

potential displacement, conditions of Relocation Eligibility, and asks tenant NOT to move

Use TDHCA GIN as a guide (Handbook, Appendix 3)

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Notice Distribution: Existing Tenants

Send GIN to ALL tenants listed on Rent Roll submitted with TDHCA application

Confirm receipt of GIN by each tenant

Signed by tenant, orCertified Mail receipt

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Notice Distribution: New TenantsMove-In Notice Informs new tenant they may be

displaced and ineligible for relocation assistance

Distribute after GIN ONLY IF Developer owns the property

Not required if tenants will/must receive relocation assistance (i.e., PHA, Voucher, HAP or Supportive Housing)

Use TDHCA sample – Appendix 515

Two Types of Relocation Assistance:

URA and Section 104(d)

Relocation Timeline

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Notice to

Tenants

Notice to

Tenants

Notice to

Tenants

Demolition?

Two Types of Relocation Assistance

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Concerning “Illegal Aliens”

URA prohibits providing relocation assistance to “illegal aliens” but still obligates Developer to send required Notices & provide “pro rata” RA to lawful household members

“States Public Law 105-117, “illegal aliens” are not eligible for relocation assistance under the Uniform Relocation Act”

Section 104(d) is silent concerning the provision of relocation assistance to “illegal aliens”; therefore, they are not excluded from RA if low-income and displaced

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Differences between URA and 104(d)

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URA 104(d)No Income Cap Must be Low Income

(LI)

Applies to Acquisition, Rehab, & Demo

Applies to Demo or Conversion

RA multiplied by 42 months OR down payment

RA multiplied by 60 months OR down payment for co-op or mutual housing

If tenant is in Assisted Housing, same must be provided, if available

May offer Housing Choice Voucher instead of cash

Cash in three payments LI tenant choice to select URA in lieu of 104(d)

Pay Security Deposit, if non-refundable only

Pay Security Deposit, refundable or NOT

Household Assessments

Relocation Timeline

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Notice to

Tenants

Notice to

Tenants

Notice to

Tenants

Non-Displaced or Permanently Displaced?

Non-Displaced or Permanently Displaced?

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Non-Displaced DisplacedEligible to return after rehab or reconstruction

Ineligible to return after rehab or reconstruction

Evicted for cause or lease violation (support docs required)

Evicted intentionally to expedite sale or avoid RA payments

Received Move-in Notice (cannot be PHA, HAP or Voucher tenant)

Tenant moves without receipt of required URA/104(d) Notices

Temporary unit – up to 12 months ONLY

Temporary housing exceeds 12-months

Household Assessments

Relocation Assistance (RA) assessment:complete for each household to determine: Eligibility to return Tenant status – Displaced or non-

displaced RA finalized (moving costs and rental

assistance). Use: TDHCA Household Relocation Budget Assistance Calculator (Appendix 6) or

HUD Claim Form (1378 – Appendix 14)

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Initiation of Negotiations (ION) –

Critical Milestone

Relocation Timeline

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Notice to

Tenants

Notice to

Tenants

Notice to

Tenants

Written Agreement?

Notice Distribution: Initiation of Negotiations (ION)

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Notice of Non-Displacement (NND)

Distribute at ION Return tenant-signed copy to

TDHCA with written agreement Confirm non-displacement status

and eligibility to return to project States temporary relocation move-

out instructions, timeframe and return estimate

Specifies temporary eligible moving expenses and replacement housing costs (Not to exceed 12 months)

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Notice of Non-Displacement (NND)

Tenant’s right to appeal, details given

Permissible to combine NND with GIN ONLY if :Applicant owns propertyTenant eligibility is confirmed Notice contains NND required

language Use TDHCA NND (Appendix 7) as a guide

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Eligible Relocation Costs for Non-DisplacedTemporary Displacement (NND) Moving costs (actual or owner paid) Rental assistance and eligible Security

Deposit Storage Utility connection fees Cable, telephone, and internet

connections TDHCA Per diem meal allowance (hotel

stay) – listed in Relocation HandbookRA in leased unit for a period NOT to

exceed 12 months or becomes permanently displaced

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NOE for Displaced Tenants

Distribute Notice of Eligibility at ION Return tenant-signed copy to TDHCA

with written agreement Confirms displaced status, specifies

eligible moving expenses and replacement housing costs (URA 42 months or 104(d) 60 months) OR eligible down payment assistance

Lists at least three comparable units

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Definition of “Comparable Unit”

Must meet Decent, Safe and Sanitary (DSS) inspection standards Use TDHCA DSS form (Appendix 11)

Must accommodate household size needs

Must be located in Project service area

Must use local equivalent rents Must not use HUD Fair Market Rent

(FMR) cap unless required by Program (i.e. PHA or Voucher)

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NOE for Displaced Tenants

Notice of Eligibility Provides move-out instructions

Explains tenant’s right to appeal

Use TDHCA NOE as a guide (Appendix 8 in the Handbook)

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Eligible Relocation Costs for Displaced

Permanent Displacement (NOE)Moving costs (actual or HUD

Fixed http://www.fhwa.dot.gov/realestate/fixsch96.htm)

Rental assistance (cash or Voucher)

Security Deposit (URA or 104(d))Utility connection feesCable, telephone, and internetDown payment assistance 34

Other Actions: At ION

Implementation of Relocation PlanIdentify Relocation CoordinatorTenant-level impacts and dates -- specifyID comparable temporary and permanent units

Estimate all relocation costs – update total relocation budget

Comply with URA or 104(d) Rental Assistance payment and down payment assistance

Move-In Notice: Issue to any tenants moving in after ION date

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Notice to Move

Relocation Timeline

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Notice to

Tenants

Notice to

Tenants

Notice to

Tenants

Tenant status

confirmed?

Relocation: 90-Day Notice

Distribute after tenants’ non-displaced or displaced status is confirmed

Stipulates move deadline date States Public Law 105-117, “illegal

aliens” are not eligible for relocation assistance under the Uniform Relocation Act Remember: URA still obligates

Developer to send required Notices & provide “pro rata” RA to lawful household members

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Relocation: 90-Day Notice

Permissible to combine NOE and 90-Day notice if construction schedule requires

Permissible to send NND a 30-Day notice for temporary moves if in-house or less than 6 months

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Relocation Requirements and

Enforcement

TDHCA Requirements and Penalties

Developer may be required to pay or escrow an amount equal to maximum entitlement RA amount up to 18 months, if tenants are not properly classified or notified

Disbursements require relocation compliance

TDHCA monitors relocation and enforces compliance

One-to-one replacement is required for Projects that demolish units

TDHCA enforces tenants’ rights to appeal

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Follow timelines Ensure tenants receive required

Notices Account for ALL tenants listed on

Rent Roll at GIN and ION to avoid need to find missed tenants and pay RA benefits out-of-pocket

Include all eligible RA costs in Relocation Budget for ALL tenants on Rent Roll to avoid out-of-pocket costs

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Updated HOME Final Rule and URA and

Section 104(d)

URA Clarifications and Changes

ION date change Existing agreements (loan

commitments) will not change ION will possibly occur at Loan

Closing hereafter 24 CFR §5.628 replaces 24 CFR

§5.613 Enforces Total Tenant Payment

(TTP) calculation at 30% of monthly adjusted income and determines Welfare TTP if standard monthly pay is “ratably” affected (proportioned based on income or appraised assets)

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URA Clarifications and Changes

Permits HOME Tenant-Based Rental Assistance as optionTenants who receive TBRA as RA

option must not be required to participate in self-sufficiency program as condition of relocation assistance

Encourages use of acquisition down payment assistant for relocation

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Minimizing Resident Displacement

Carmen A. RoldanRelocation Specialist

carmen.roldan@tdhca.state.tx.us

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