City of Culver City, California
City Council and Redevelopment Agency Agenda Item Report
RECOMMENDATION:
Staff recommends the City Council and Culver City Redevelopment Agency adopt
respective resolutions amending the existing Rules and Regulations for
Implementation of the California Relocation Assistance Law” (the “Relocation
Guidelines”) relating to the interpretation of the Last Resort Housing Alternatives
section.
BACKGROUND:
Public agencies must adopt Relocation Guidelines to implement procedures
specified by relocation law in California. Relocation Guidelines address the following
areas: advisory assistance and record keeping; preparation of a relocation plan;
assurance of replacement housing; relocation payments to residents and
businesses; procedures for claims, payment, grievances, property acquisition and
property management practices.
Overland Pacific & Cutler (“OPC”) performs relocation assistance to displaced
persons on behalf of the Agency. OPC is also the firm who prepared an update to
the City and Agency Relocation Guidelines that were adopted by Council Resolution
2006-R069 and Agency Resolution 2006-A2008 on October 3, 2006. Among other
changes made, the updated Relocation Guidelines defined the maximum relocation
payment that a displaced tenant could qualify for as $5,250, which may be applied
toward either the rental of comparable housing or toward the down payment or
closing costs to purchase a dwelling. The maximum amount may be exceeded
however, if households cannot find a replacement dwelling within their financial
Meeting Date: 11/26/07 Item Number: J-1
AGENDA ITEM: JOINT ITEM: Adoption of an Agency Resolution and a Council
Resolution Amending the Rules and Regulations for Implementation of the
California Relocation Assistance Law Relating to the Last Resort Housing
Alternatives Section.
Contact Person/Dept.: Joe Susca Phone Number: (310) 253-5763
Fiscal Impact: Yes [] No [X] General Fund: Yes [] No [X]
Public Hearing: [] Action Item: [] Attachments: [X]
Public Notification:
Master Notification List (11/21/07)
Department Approval:
Sol Blumenfeld
City Attorney Approval:
Carol Schwab (by H. Iker) (11/29/07)
Fiscal Impact Review:
Marlee Chang (by N. Kimball)(11/20/07)
City Manager Approval:
Jerry B. Fulwood (11/29/07) City of Culver City, California
City Council and Redevelopment Agency Agenda Item Report
means. In these situations, the City and Agency obligation is to pay additional funds
as necessary to re-house displaced persons into comparable housing that is within
their financial means.
DISCUSSION:
When interpreting the Relocation Guidelines, ambiguity exists when determining the
Last Resort Housing Alternatives section for displaced residential tenants. Staff has
worked with OPC and the Agency’s General Counsel to propose an amendment to
the Last Resort Housing Alternatives section of the Relocation Guidelines that
adheres to the State of California requirement of comparing 30% of a tenant’s
income to payment of the difference between their new and prior rents for a period of
42 months. Staff recommends the following amendment be made to the Relocation
Guidelines to better clarify this section by adding the following text to section 6. §
413, b., (1) after the first paragraph, but prior to paragraph (2):
For tenants, if the calculated replacement housing benefit in accordance with §
617, is in excess of the monetary limit of § 615, a Last Resort Housing benefit
payment will be made only if a comparable replacement dwelling is not available
within the displaced persons financial means, as determined pursuant to
Paragraph 5 of § 211. In the event the calculated replacement housing benefit is
in excess of the monetary limit and a comparable replacement dwelling is not
available within the displaced persons financial means, the Last Resort Housing
benefit payment will not exceed an amount calculated by multiplying 42 months
times the difference between the monthly rent and utilities necessary to rent a
comparable replacement dwelling (as determined by the Displacing Agency) and
30% of the household’s average gross monthly income. If the calculation of the
Last Resort Housing benefit amount is less than the monetary limit of § 615, the
replacement housing benefit will not, in any event, be less than the monetary limit
of § 615.
In order to receive any Last Resort Housing benefit as identified in this section,
the displaced person must provide adequate income documentation. If no
income documentation is provided or the income documentation is insufficient or
unreasonable, no Last Resort Housing benefit calculation will be made and the
monetary limit of § 615 shall apply.
Staff also recommends that the following phrase be inserted at the beginning of
Paragraph 5 of section 211: "Is within the financial means of the displaced person”
and to change the word "renters" to "tenants" within paragraph 5 of Section 211.
Rental Tenant Examples: City of Culver City, California
City Council and Redevelopment Agency Agenda Item Report
The following two scenarios provide examples of how a tenant’s Last Resort
Housing Alternative benefit would be calculated and assumes in both instances that
utilities are included in their monthly rent. In both examples, we compare a tenant’s
new and prior rent to 30% of their total monthly income:
EXAMPLE 1: 30% of monthly income is: $ 800
Prior Monthly Rent: $ 650
New Monthly Rent: $1,000
Difference in prior/new rents: $ 350
Using this information, two calculations are made to determine what the
Last Resort Housing benefit would be as follows:
Step 1 Prior/new rent difference; ($350) times 42 = $14,700.
Step 2 Compare new rent to 30% of income; ($200) times 42 = $8,400.
In the example above, the Last Resort Housing Benefit would be $8,400 since even
though Step 1 exceeds $5,250; Step 2 concludes that the tenant’s monthly income is
insufficient to pay the increased rent at their new dwelling.
EXAMPLE 2: 30% of monthly income is: $1,000
Prior Monthly Rent: $ 650
New Monthly Rent: $1,000
Difference in prior/new rents: $ 350
Calculation: Step 1 Prior/new rent difference ($350) times 42 = $14,700
Step 2 Compare new rent to 30% of income ($0)
In this example, the Last Resort Housing Alternative Benefit would be $5,250 since
Step 2 concludes that the tenant’s monthly income is sufficient to pay the increased
rent at their new dwelling.
Conclusion:
Altering the Relocation Guidelines by adding and amending the text as indicated
above will clarify the method in which the Last Resort Housing Alternative benefit is
applied.
FISCAL ANALYSIS: City of Culver City, California
City Council and Redevelopment Agency Agenda Item Report
The Last Resort Housing Alternative benefit is only one component of a tenant’s
overall relocation benefit package. Adoption of the revised Relocation Guidelines
will not alter the City’s or Agency’s existing obligations towards displaced residents
and businesses.
ATTACHMENTS:
1. Proposed Agency Resolution No. 2007-A___
2. Proposed Council Resolution No. 2007-R
3. Redlined version of changes to the Relocation Guidelines
MOTION:
That the City Council:
Adopt a Resolution amending the “Rules and Regulations for Implementation of
the California Relocation Assistance Law” and rescinding Resolution No. 2006-
R069;
AND
That the Redevelopment Agency:
Adopt a Resolution amending the “Rules and Regulations for Implementation of
the California Relocation Assistance Law” and rescinding Resolution No. 2006-
A2008.
MEETING DATE: 12/03/07
AGENDA ITEM: Adoption of an Agency Resolution and a Council
Resolution Amending the Rules and Regulations for
Implementation of the California Relocation Assistance
Law Relating to the Last Resort Housing Alternatives
Section.
ATTACHMENTS
Pages
1 Draft Agency Resolution No. 2007-A__ 1-2
2 Draft Council Resolution No. 2007-A__ 3-4
3 Redlined version of changes to the Relocation
Guidelines
5-105
1
RESOLUTION NO. 2007-A
A RESOLUTION OF THE CULVER CITY
REDEVELOPMENT AGENCY OF CULVER CITY,
CALIFORNIA, APPROVING AND ADOPTING UPDATED
RULES AND REGULATIONS FOR RELOCATION
ASSISTANCE AND RESCINDING RESOLUTION No. 2006-
A2008
WHEREAS, California public entities are required to adopt rules and regulations
for implementing payments and administering relocation assistance under the California
Relocation Assistance Law (Section 7260 et seq. of the California Government Code) (the
“Act”); and
WHEREAS, such rules and regulations are required to be in accordance with the
Act and the Relocation “Assistance and Real Property Guidelines (Titles 25, Chapter 6 of the
California Code of Regulations) (the “Guidelines”); and
WHEREAS, the Culver City Redevelopment Agency (the “Agency”) most
recently adopted relocation rules and regulations by Resolution No. 2006-A2008 approved
October 3, 2006 (the “2006 Relocation Rules and Regulations”), since when time the Act and
Guidelines have been periodically amended; and
WHEREAS, the Agency has determined that it is in the best interests of the
Agency for the common benefit of the residents and businesses within the City of Culver City to
adopt updated Rules and Regulations for Relocation Assistance in compliance with the amended
Act and Guidelines which shall amend the 2006 Relocation Rules and Regulations; and
WHEREAS, all other legal prerequisites to the adoption of this Resolution have
occurred.
NOW, THEREFORE, the Agency DOES HEREBY RESOLVE as follows 2
1. The Rules and Regulations for Relocation Assistance attached hereto,
labeled Exhibit “A” and incorporated herein by this reference are hereby approved and adopted
(the “Amended Rules and Regulations”).
2. Resolution No. 2006-A2008 is hereby rescinded.
APPROVED and ADOPTED this _____ day of __________, 2007.
DAVID SCOTT MALSIN, Chairman
Culver City Redevelopment Agency
ATTEST: APPROVED AS TO FORM:
__________________________ __________________________________
Agency Secretary Agency General Counsel
3
RESOLUTION NO. 2007-R
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
CULVER CITY, CALIFORNIA, APPROVING AND
ADOPTING UPDATED RULES AND REGULATIONS FOR
RELOCATION ASSISTANCE AND RESCINDING
RESOLUTION No. 2006-R069.
WHEREAS, California public entities are required to adopt rules and regulations
for implementing payments and administering relocation assistance under the California
Relocation Assistance Law (Section 7260 et seq. of the California Government Code) (the
“Act”); and
WHEREAS, such rules and regulations are required to be in accordance with the
Act and the Relocation “Assistance and Real Property Guidelines (Titles 25, Chapter 6 of the
California Code of Regulations) (the “Guidelines”); and
WHEREAS, the City most recently adopted relocation rules and regulations by
Resolution No. 2006-R069 approved October 3, 2006 (the “2006 Relocation Rules and
Regulations”), since when time the Act and Guidelines have been periodically amended; and
WHEREAS, the City has determined that it is in the best interests of the City for
the common benefit of the residents and businesses within the City of Culver City to adopt
updated Rules and Regulations for Relocation Assistance in compliance with the amended Act
and Guidelines which shall amend the 2006 Relocation Rules and Regulations; and
WHEREAS, all other legal prerequisites to the adoption of this Resolution have
occurred.
NOW, THEREFORE, the City Council of the City of Culver City, DOES
HEREBY RESOLVE as follows 4
1. The Rules and Regulations for Relocation Assistance attached hereto,
labeled Exhibit “A” and incorporated herein by this reference are hereby approved and adopted
(the “Amended Rules and Regulations”).
2. Resolution No. 2006-R069 is hereby rescinded.
APPROVED and ADOPTED this _____ day of __________, 2007.
ALAN CORLIN, MAYOR
City of Culver City, California
ATTEST: APPROVED AS TO FORM:
CHRISTOPHER ARMENTA, City Clerk CAROL A. SCHWAB, City Attorney
5
City of Culver City and
Culver City Redevelopment Agency
RULES AND REGULATIONS
FOR IMPLEMENTATION OF THE
CALIFORNIA RELOCATION ASSISTANCE LAW
DATE ADOPTED: NOVEMBER 26, 2007
Prepared by Overland, Pacific and Cutler, Inc
100 West Broadway, Suite 500
Long Beach, CA 90802
RULES AND REGULATIONS 6
FOR IMPLEMENTATION OF THE
CALIFORNIA RELOCATION ASSISTANCE LAW
TABLE OF CONTENTS
I. [ 100] GENERAL..................................................................................................................... 12
A. [ 101] Purpose............................................................................................................. 12
B. [ 102] Authority ........................................................................................................ 12
C. [ 103] Effective Date; Applicability ........................................................................ 12
D. [ 104] Extent of Relocation Payments .................................................................... 13
E. [ 105] Exemptions from Relocation Assistance Payments.................................... 13
F. [ 106] Priority of Federal Law and Federal Projects ............................................ 13
G. [ 107] Severability .................................................................................................... 13
II. [ 200] DEFINITIONS .......................................................................................................... 14
A. [ 201] Acquisition/Acquires....................................................................................... 14
B. [ 202] Adequate Replacement Dwelling ................................................................... 14
C. [ 203] Agency ............................................................................................................ 14
D. [ 204] Appeals Board................................................................................................ 14
E. [ 205] Appraisal ........................................................................................................ 14
F. [ 206] Average Annual Net Earnings...................................................................... 15
G. [ 207] Average Monthly Income ............................................................................... 15
H. [ 208] Base Monthly Rental Housing Costs ............................................................. 15
I. [ 209] Business............................................................................................................ 15
J. [ 210] City .................................................................................................................. 16
K. [ 211] Comparable Replacement Dwelling ............................................................ 16
L. [ 212] Condominium ................................................................................................ 17
M. [ 213] Date of Acquisition ......................................................................................... 17
N. [ 214] Decent, Safe and Sanitary Housing ............................................................... 17
O. [ 215] Department .................................................................................................... 19
P. [ 216] Director............................................................................................................. 19
Q. [ 217] Displaced Business ........................................................................................ 19
R. [ 218] Displaced Farm Operation ............................................................................. 19
S. [ 219] Displaced Person ............................................................................................ 19
T. [ 220] Displaced Resident........................................................................................... 22
U. [ 221] Displacing Agency ........................................................................................... 22
V. [ 222] Dwelling.......................................................................................................... 22
W. [ 223] Economic Rent.............................................................................................. 24
X. [ 224] Elderly Household ........................................................................................... 24
Y. [ 225] Family............................................................................................................... 24
Z. [ 226] Farm Operation ............................................................................................... 24
AA. [ 227] Federal Project ............................................................................................. 24
BB. [ 228] Gross Income................................................................................................. 24
CC. [ 229] Handicapped Household............................................................................ 25 7
DD. [ 230] Initiation of Negotiations ............................................................................. 25
EE. [ 231] Last Resort Housing ..................................................................................... 25
FF. [ 232] Manufactured Home or Mobile Home...................................................... 25
GG. [ 233] Mortgage....................................................................................................... 25
HH. [ 234] Nonprofit Organization ............................................................................... 25
II. [ 235] Ownership...................................................................................................... 26
JJ. [ 236] Person ............................................................................................................ 26
KK. [ 237] Personal Property ...................................................................................... 26
LL. [ 238] Post-Acquisition Tenant ............................................................................... 26
MM. [ 239] Prepaid Expenses...................................................................................... 27
NN. [ 240] Public Use.................................................................................................... 27
OO. [ 241] Small Business ............................................................................................ 27
PP. [ 242] Tenant............................................................................................................. 27
QQ. [ 243] Unlawful Occupancy.................................................................................. 27
III. [ 300] RELOCATION ADVISORY ASSISTANCE ......................................................... 28
A. [ 301] Advisory Assistance to be Provided by the Displacing Agency ................ 28
B. [ 302] Information Program.................................................................................... 30
1. [ 303] General Information .......................................................................... 30
2. [ 304] Information Statement for Relocation Assistance .......................... 30
3. [ 305] Notice of Eligibility Status................................................................... 32
4. [ 306] Language of Information Material..................................................... 32
5. [ 307] Method of Delivery of Informational Material ................................. 32
C. [ 308] Determination of Relocation Needs ............................................................... 32
1. [ 309] Interviews............................................................................................ 33
a. [ 310] Information to be Obtained from Residential Owner-
Occupants or Tenants................................................................. 33
b. [ 311] Coordination with Other Agencies......................................... 33
c. [ 312] Interview after Person Moves Without Notice .................... 34
2. [ 313] Relocation Records............................................................................... 34
3. [ 314] Updating Information........................................................................ 34
D. [ 315] Relocation Site Office.................................................................................... 34
E. [ 316] Contracting for Relocation Services ............................................................ 34
F. [ 317] Coordination of Relocation Assistance ........................................................ 35
G. [ 318] Relocation Plans ............................................................................................ 35
1. [ 319] Requirement Generally ....................................................................... 35
2. [ 320] Contents of Plan ................................................................................... 35
3. [ 321] Review of Relocation Plan ................................................................... 36
4. [ 322] Conformance to General Plan............................................................. 37
5. [ 323] Update of Relocation Plans ................................................................. 37
H. [ 324] Move to Substandard Dwelling Unit ............................................................. 37
I. [ 325] Waiver of Requirement for Replacement Dwelling Prior to
Displacement ....................................................................................................... 38
IV. [ 400] ASSURANCE OF COMPARABLE REPLACEMENT DWELLINGS; LAST
RESORT HOUSING .................................................................................................... 39
A. [ 401] Survey and Analysis of Available Comparable Replacement Dwellings ... 39 8
1. [ 402] Requirement Generally ....................................................................... 39
2. [ 403] Determining Number of Comparable Replacement Dwellings ....... 39
3. [ 404] Written Analysis................................................................................... 40
4. [ 405] Review of Survey Results..................................................................... 40
5. [ 406] Referrals of Replacement Dwellings................................................... 41
B. [ 407] Determination of Need for Last Resort Housing; Replacement
Housing Plan ....................................................................................................... 41
1. [ 408] Replacement Housing Plan................................................................ 41
2. [ 409] Replacement Housing Committee .................................................... 42
3. [ 410] Submission of Plan for Comment ....................................................... 43
4. [ 411] Determination by Displacing Public Entity of Feasibility and
Compliance ............................................................................................ 43
5. [ 412] Implementation of the Replacement Housing Plan........................... 43
6. [ 413] Last Resort Housing Alternatives....................................................... 44
7. [ 414] Nondiscrimination.............................................................................. 45
8. [ 415] Conformity with Statutes and Regulations...................................... 46
9. [ 416] Conformity with Federal Program Requirements.......................... 46
10. [ 417] Monitoring Housing Production....................................................... 46
11. [ 418] Retention of Benefits Upon Move to Last Resort Housing............. 46
12. [ 419] Post-Acquisition Tenants................................................................... 46
V. [ 500] TEMPORARY RELOCATIONS ............................................................................ 47
A. [ 501] Temporary Replacement Housing................................................................. 47
B. [ 502] Payments and Assistance for Short-Term Relocation of Tenants in
Rental Rehabilitation Projects........................................................................... 47
VI. [ 600] RELOCATION PAYMENTS TO DISPLACED RESIDENTS .......................... 49
A. [ 601] Payments Required ......................................................................................... 49
B. [ 602] Actual Reasonable Moving Expenses .......................................................... 49
C. [ 603] Alternate Payments ......................................................................................... 50
D. [ 604] Replacement Housing Payments for Displaced Homeowners..................... 51
1. [ 605] Amount of Payment ............................................................................. 51
2. [ 606] Eligibility............................................................................................... 51
3. [ 607] Computation of Replacement Housing Payment ............................ 52
a. [ 608] Reasonable Cost of Comparable Replacement Dwelling ..... 52
b. [ 609] Increased Interest Cost.......................................................... 53
c. [ 610]Expense Incidental to the Purchase of the Replacement
Dwelling ....................................................................................... 53
4. [ 611] Multi-Family Dwelling......................................................................... 54
5. [ 612] Homeowner Retention of Dwelling..................................................... 54
6. [ 613] Lease of Condominium ...................................................................... 55
E. [ 614] Replacement Housing Payments for Tenants and Certain Others............. 55
1. [ 615] Amount of Payment ............................................................................. 55
2. [ 616] Eligibility............................................................................................... 55
3. [ 617] Computation of Replacement Housing Payment ............................ 56
a. [ 618] Rent Differential Payment....................................................... 56
b. [ 619] Downpayment........................................................................... 58 9
4. [ 620] Rental Payments for Displaced Homeowners and Dependents ....... 58
a. [ 621] Homeowners ............................................................................. 58
b. [ 622] Dependents.............................................................................. 58
F. [ 623] Payments to Residents Displaced from Manufactured Homes and Mobile
Homes................................................................................................................... 58
1. [ 624] Payments Required ............................................................................ 58
2. [ 625] Moving Expenses: Retention and Move of Manufactured Home or
Mobile Home ........................................................................................... 59
3. [ 626] Replacement Housing Payments......................................................... 59
G. [ 627] Proration of Payments .................................................................................. 60
H. [ 628] Payment After Death .................................................................................... 60
I. [ 629] Hardship Moves…………………………………………………………….49
VII. [ 700] RELOCATION PAYMENTS TO DISPLACED BUSINESSES ......................... 62
A. [ 701] Payments Required ......................................................................................... 62
B. [ 702] Moving Expenses ............................................................................................. 62
1. [ 703] Actual Reasonable Moving Expenses ................................................. 62
2. [ 704] Actual Direct Loss of Tangible Personal Property ........................... 64
3. [ 705] Actual Reasonable Expenses in Searching for a Replacement
Business.................................................................................................. 65
C. [ 706] Actual Reasonable Expenses To Reestablish A Small Business or Nonprofit
Organization...................................................................................................... 65
1. [ 707] Eligible Reestablishment Expenses………...………………………53
2. [ 708] Ineligible Reestablishment Expenses………………...……...………54
D. [ 709] Alternate Payment........................................................................................... 67
1. [ 710] Determination of Payments.............................................................. 67
a. [ 711] Amount of Payment ................................................................. 67
b. [ 712] Determination of Number of Businesses.............................. 67
2. [ 713] Eligibility............................................................................................... 67
a. [ 714] Business ..................................................................................... 67
b. [ 715] Nonprofit Organizations ......................................................... 68
3. [ 716] Loss of Goodwill ................................................................................... 69
4. [ 717] Hardship
Moves…………………………………..……….…………57
VIII. [ 800] CITIZEN PARTICIPATION ............................................................................... 70
A. [ 801] General Requirements .................................................................................. 70
B. [ 802] Relocation Committee ..................................................................................... 70
C. [ 803] Replacement Housing Committee................................................................ 70
IX. [ 900] CLAIM AND PAYMENT PROCEDURES; TERMINATION OF
RELOCATION ASSISTANCE ..................................................................................... 71
A. [ 901] Filing of Claims.............................................................................................. 71
B. [ 902] Documentation in Support of Claim............................................................ 71
1. [ 903] Moving Expenses................................................................................ 71
a. [ 904] Commercial Moves................................................................... 71
b. [ 905] Self-Moves................................................................................. 71
c. [ 906] Exemption from Public Utilities Commission Regulations 71 10
2. [ 907] Loss of Property ................................................................................... 72
3. [ 908] Proof of Earnings ................................................................................. 72
C. [ 909] Payment of Moving Expenses......................................................................... 72
1. [ 910] Advance Payment................................................................................. 72
2. [ 911] Direct Payment ..................................................................................... 72
3. [ 912] Methods Not Exclusive ...................................................................... 72
D. [ 913] Payments for Replacement Dwellings ........................................................... 72
1. [ 914] Payment for Purchase of Comparable Replacement Dwelling...... 72
a. [ 915] Disbursement .......................................................................... 72
b. [ 916] Provisional Payment Pending Condemnation....................... 73
c. [ 917] Certificate of Eligibility.......................................................... 73
2. [ 918] Rent Differential Payments ................................................................. 73
E. [ 919] Assistance Payments - Persons Moving Without Notice….………………61
F. [ 920] Termination of Relocation Assistance ........................................................... 74
X. [ 1000] GRIEVANCE PROCEDURES .............................................................................. 75
A. [ 1001] Purpose........................................................................................................... 75
B. [ 1002] Right of Review............................................................................................ 75
C. [ 1003] Request for Further Written Information................................................ 75
D. [ 1004] Informal Oral Presentation........................................................................ 75
E. [ 1005] Written Request for Review and Reconsideration ..................................... 76
F. [ 1006] Formal Review and Reconsideration by Director .................................... 76
G. [ 1007] Appeals Board Review................................................................................ 77
H. [ 1008] Determination by City Council or Agency Board.................................... 78
I. [ 1009] Time Limits ..................................................................................................... 79
J. [ 1010] Review of Files By Claimant ......................................................................... 79
K. [ 1011] Effect of Determination .............................................................................. 79
L. [ 1012] Right to Counsel .......................................................................................... 79
M. [ 1013] Further Review ............................................................................................. 79
N. [ 1014] Joint Complainants ....................................................................................... 79
O. [ 1015] Judicial Review............................................................................................ 80
XI.[ 1100] ACQUISITION PROCEDURES............................................................................. 81
A. [ 1101] Acquisition of Property by Negotiation....................................................... 81
B. [ 1102] Appraisal of Property.................................................................................. 81
C. [ 1103] Notice of Decision to Appraise ..................................................................... 81
1. [ 1104] Contents of Notice ............................................................................ 81
2. [ 1105] Information Statement: Property Acquisition Procedures.......... 82
D. [ 1106] Prior to Making an Offer to Purchase ...................................................... 83
1. [ 1107] Record Title ...................................................................................... 83
2. [ 1108] Occupants.......................................................................................... 83
3. [ 1109] Notices to Contact Owner................................................................ 84
4. [ 1110] Identity and Address of Owner......................................................... 84
E. [ 1111] Establishment of Just Compensation........................................................... 84
F. [ 1112] Uneconomic Remnant; Donation of Property............................................. 85
G. [ 1113] Initiation of Negotiations............................................................................ 85
1. [ 1114] Written Offer.................................................................................... 85 11
2. [ 1115] Statement of the Basis of Just Compensation................................. 86
H. [ 1116] Right to Obtain Payment............................................................................ 87
I. [ 1117] Loss of Goodwill............................................................................................ 88
J. [ 1118] Compensation for Loss of Goodwill ............................................................. 88
1. [ 1119] Compensation Generally ................................................................... 88
2. [ 1120] Notice of Intent to Claim Loss of Goodwill.................................... 89
3. [ 1121] Conference to Discuss Eligibility to Receive Compensation for Loss
of Goodwill............................................................................................... 89
4. [ 1122] Business Records; Authorization to Negotiate .............................. 89
5. [ 1123] Calculation of Net Amount of Just Compensation for Loss of
Goodwill for Negotiation Purposes ....................................................... 89
6. [ 1124] Eminent Domain................................................................................. 89
K. [ 1125] Negotiations; Eminent Domain.................................................................. 90
L. [ 1126] Notice of Decision Not to Acquire .............................................................. 90
M. [ 1127] Incidental Expenses.................................................................................... 91
N. [ 1128] Purchase Price as Public Information......................................................... 91
O. [ 1129] Service of Notice.......................................................................................... 91
XII. [ 1200] PROPERTY MANAGEMENT PRACTICES..................................................... 92
A. [ 1201] Short Term Rental ...................................................................................... 92
B. [ 1202] Notice to Vacate ............................................................................................. 92
C. [ 1203] Eviction........................................................................................................... 92
D. [ 1204] Status of Post-Acquisition Tenants............................................................ 93
1. [ 1205] Notice of Status................................................................................... 93
2. [ 1206] Notice to Vacate................................................................................ 93
3. [ 1207] Eligibility for Relocation Assistance and Payments...................... 93
4. [ 1208] Move from Permanent Housing...................................................... 93
EXHIBIT ”A” - Model Relocation Plan
EXHIBIT "B” - Relocation Assistance Appeal Complaint Form 12
RULES AND REGULATIONS
FOR IMPLEMENTATION OF
THE CALIFORNIA RELOCATION ASSISTANCE LAW
I. [§ 100] GENERAL
A. [§101] Purpose
The purpose of these Rules and Regulations is to implement the California Relocation
Assistance Law, Government Code, (§)7260, et seq. (the ”Law”) and the Relocation Assistance
and Real Property Acquisition Guidelines adopted by the Department of Housing and
Community Development, Title 25, California Code of Regulations, §6000 et. seq. (the
"Guidelines").
The Rules and Regulations are designed to carry out the policies of the Law and Guidelines
with respect to activities of the City of Culver City (the ”City”) and the Culver City
Redevelopment Agency (the ”Agency”). For the purposes of these Rules and Regulations, the term
”Displacing Agency”, individually or collectively, shall mean the City or Agency, as may be
applicable.
B. [§102] Authority
These Rules and Regulations have been adopted by resolution of the Displacing Agency
pursuant to §7267.8(a) of the California Government Code, and are in conformity with the Law and
Guidelines.
C. [§ 103] Effective Date; Applicability
The effective date of these Rules and Regulations shall be the date of their adoption by the
Displacing Agency. These Rules and Regulations supersede all other Rules and Regulations for
Relocation and Acquisition of Real Property previously adopted by the Displacing Agency provided,
however, that these Rules and Regulations shall not be construed to apply retroactively to actions
undertaken by the Displacing Agency prior to their adoption.
In the event there are conflicts between these Rules and Regulations and applicable state and
federal laws or regulations, the applicable state or federal laws or regulations shall control and these
Rules and Regulations shall be deemed amended accordingly.
Nothing in these Rules and Regulations shall require, or be construed to require the
Displacing Agency to provide any relocation or other assistance, payments, or benefits, or to provide
any notices, or to follow any procedures, beyond that required by the Law or Guidelines. No greater 13
rights or obligations beyond those set forth in the Law and Guidelines are created or conferred by
these Rules and Regulations.
D. [§ 104] Extent of Relocation Payments
The Displacing Agency shall provide relocation assistance and relocation payments, required
by law, including such assistance that may be required by federal law for projects financed by the
federal government. In addition, the Displacing Agency may, in its sole and absolute discretion, and
without establishing any precedent, make any additional relocation payments which in the
Displacing Agency’s opinion may be reasonably necessary under the circumstances of the particular
case to carry out the purposes of a project. Such payments shall be subject to the availability of
funds for such purposes; provided, however, that even if such funds are available, the Displacing
Agency shall be under no obligation to provide additional assistance or payments unless it
determines otherwise in its sole and absolute discretion.
E. [§ 105] Exemptions from Relocation Assistance Payments
The requirement to provide relocation assistance and benefits shall not apply to a purchase of
real property which is offered for sale by the owner, property being sold at execution or foreclosure
sale, property being sold pursuant to court order or under court supervision, or purchases to which
§7267.2 of the Act is not applicable. "Offered for sale" means directly offered by the landowner to
the Displacing Agency for a specified price in advance of negotiations by the Displacing Agency,
and/or offered for sale to the general public at an advertised or published specific price set no more
than six months prior to, and still available at the time the Displacing Agency initiates contact with
the owner regarding the public entity’s possible acquisition of the property.
F. [§ 106] Priority of Federal Law and Federal Projects
If the Displacing Agency engages in an acquisition with federal financial assistance that
results in a relocation of a Displaced Person, the Displacing Agency shall make relocation assistance
payments and provide relocation advisory assistance as required under the applicable federal law.
G. [§ 107] Severability
If any provision of these Rules and Regulations or the application thereof to any person or
circumstances is held invalid, such invalidity shall not affect other provisions or applications of the
Rules and Regulations which can be given effect without the invalid provision or application, and to
this end, the provisions of the Rules and Regulations are severable. 14
II. [§ 200] DEFINITIONS
A. [§ 201] Acquisition/Acquires
"Acquisition" or ”acquires” means obtaining ownership or possession of real property by
purchase, eminent domain, or any other lawful means.
B. [§ 202] Adequate Replacement Dwelling
"Adequate replacement dwelling" means a dwelling that meets all of the criteria for a
comparable replacement dwelling, except with respect to the number of rooms, amount of habitable
living space, and type of construction. The dwelling need be only adequate, not comparable.
C. [§ 203] Agency
"Agency" means the Culver City Redevelopment Agency, organized and existing under the
Law of the State of California, and any Agency personnel or consultants, who may be assigned the
duties and responsibilities for implementing the Relocation Law and Guidelines pursuant to these
Rules and Regulations.
D. [§ 204] Appeals Board
”Appeals Board” means the Culver City Relocation Appeals Board. The Appeals Board is
constituted to hear appeals on complaints from a displaced person (as defined in §219) who believes
he or she is aggrieved by an administrative determination by the Displacing Agency as to eligibility
for assistance or the amount of payment relating to relocation resulting from any displacement
activity undertaken by the Displacing Agency.
The Appeals Board shall be constituted and administered pursuant to the California
Community Redevelopment Law, Health and Safety Code, §33417.5, which provides that there shall
be five members of the Appeals Board who shall be appointed by the Mayor, subject to approval of
the City Council. The Executive Director of the Displacing Agency or his or her authorized designee
shall be the Secretary of the Appeals Board. The Secretary shall not be a member of the Appeals
Board and shall not vote or participate on any matter brought and heard before the Appeals Board.
E. [§ 205] Appraisal
"Appraisal" means a written statement independently and impartially prepared by a qualified
appraiser setting forth an opinion of defined value of an adequately described property as of a
specific date, supported by the presentation and analysis of relevant market information. 15
F. [§ 206] Average Annual Net Earnings
"Average annual net earnings" means one-half of any net earnings of a business before
federal, state and local income taxes, during the two taxable years immediately preceding the taxable
year in which such business moves from the real property being acquired, or during such other two
year period as the Displacing Agency determines to be more equitable for establishing such
earnings, and includes any compensation paid by the business to the owner, owner's spouse or
owner's dependents during such period.
For the purpose of determining the average annual net earnings of the ”owner,” the term
"owner" as used herein includes the sole proprietor in a sole proprietorship, the principal parties in a
partnership, and the principal stockholders of a corporation, as determined by the Displacing
Agency. For purposes of determining a principal stockholder, stock held by a person, the person’s
spouse and their dependent children will be treated as one unit.
G. [§ 207] Average Monthly Income
For the purpose of determining Base Monthly Rental Housing Costs, "average monthly
income" means the displaced person’s annual gross income (as defined in §228) divided by twelve.
H. [§ 208] Base Monthly Rental Housing Costs
"Base Monthly Rental Housing Costs" for an acquired dwelling is the lesser of the average
monthly rental paid by the Displaced Person for the three month period prior to the initiation of
negotiations or 30% of the displaced person's average gross monthly income. In case of an
owner-occupant or other person who does not pay rent, the Economic Rent of the acquired dwelling
(as defined §223) is used instead of the average monthly rental to calculate base monthly rental.
I. [§ 209] Business
"Business" means any lawful activity, except a farm operation, provided such lawful activity
is not in unlawful occupancy (as defined in §243), and conducted for any of the following:
1. Primarily for the purchase, sale, lease, or rental of personal and real property,
and for the manufacture, processing, or marketing of products, commodities
or any other personal property;
2. Primarily for the sale of services to the public;
3. Primarily by a nonprofit organization; or
4. Solely for the purpose of a moving expense payment (see §702 of these Rules
and Regulations), for assisting in the purchase, sale, resale, manufacture,
processing or marketing of products, commodities, personal property or 16
services by the erection and maintenance of an outdoor advertising display,
whether or not such display is located on the premises on which any of the
above activities are conducted.
J. [§ 210] City
"City" means the City of Culver City organized and existing under the Law of the State of
California and any City personnel.
K. [§ 211] Comparable Replacement Dwelling
"Comparable replacement dwelling" is a dwelling which satisfies all of the following
standards:
1. Is decent, safe and sanitary (as defined in §214), and comparable to the
acquired dwelling with respect to number of rooms, habitable living space
and type and quality of construction, but not lesser in rooms or living space
than is necessary to accommodate the displaced person. Comparability under
this paragraph shall not require strict adherence to a detailed feature-by-
feature comparison. While a comparable replacement dwelling need not
possess every feature of the displacement dwelling, the principal features
must be present.
2. Is in an area not subjected to unreasonable adverse environmental conditions
from either natural or manmade sources, and not generally less desirable than
the acquired dwelling with respect to public utilities, public and commercial
facilities and neighborhood conditions, including schools and municipal
services, and reasonably accessible to the displaced person’s present or
potential place of employment; provided that a potential place of
employment may not be used to satisfy the accessibility requirement if the
displaced person objects.
The Act, Guidelines, and these Rules and Regulations do not require that the
replacement dwelling be generally as desirable as the acquired dwelling with
respect to environmental characteristics. Although a displaced person does
not have to accept a dwelling subject to unreasonable adverse environmental
conditions, neither is a public entity required to duplicate environmental
characteristics, such as scenic vistas or proximity to the ocean, lakes, rivers,
forests or other natural phenomena.
If the displaced person so wishes, every reasonable effort shall be made to
relocate such person within or near to his existing neighborhood. Whenever
practicable the replacement dwelling shall be reasonably close to relatives,
friends, services or organizations with whom there is an existing dependency
relationship. 17
3. Is available on the private market to the displaced person and available to all
persons regardless of race, color, sex, marital status, religion, or national
origin in a manner consistent with Title VIII of the Civil Rights Act of 1968
or any other applicable state or federal anti-discrimination law.
4. To the extent practicable and where consistent with Paragraph 1 of this
section, is functionally equivalent and substantially the same as the acquired
dwelling, but not excluding newly constructed housing.
5. Is within the financial means of the displaced person. For tenants, a
replacement dwelling is within the financial means of a displaced person if
the rental cost (including utilities and other reasonable recurring expenses),
minus any replacement housing payment available to the person (as provided
in §604 and §614) does not exceed thirty percent (30%) of the person’s
average monthly income (as defined in §206 and §228).
For homeowners, a replacement dwelling is within the financial means of a
displaced person if the purchase price of the dwelling including related
increased interest costs and other reasonable expenses including closing costs
(as described in §604) does not exceed the total of the amount of just
compensation provided for the dwelling acquired and the replacement
housing payment available to the person (as provided in §604).
If the dwelling which satisfies these standards is not available, the Displacing
Agency may consider a dwelling which exceeds them.
L. [§ 212] Condominium
"Condominium" means combination of co-ownership and ownership in severalty. It is an
arrangement under which persons in a housing development hold full title to an one-family dwelling
unit, including an undivided interest in common areas and facilities, and such restricted common
areas and facilities as may be designated.
M. [§ 213] Date of Acquisition
The date on which the deed or other conveyance to the real property being acquired by the
Displacing Agency is recorded in the office of the County Recorder, or the date on which the
Displacing Agency is entitled to possession of the real property pursuant to an order of the County
Superior Court in an eminent domain proceeding.
N. [§ 214] Decent, Safe and Sanitary Housing
18
A dwelling is decent, safe and sanitary housing if it meets all the following minimum
requirements. Exceptions may be made by the Displacing Agency for unusual circumstances or in
unique geographic areas.
1. Conforms to all applicable provisions for existing structures that have been
constructed under state or local building, plumbing, electrical, housing and
occupancy codes and similar ordinances or regulations.
2. Has a continuing and adequate supply of potable water.
3. Has a kitchen or an area set aside for kitchen use which contains a sink in
good working condition connected to hot and cold water and to an adequate
sewage system. The kitchen or kitchen area shall have utility service
connections and adequate space for the installation of a stove and a
refrigerator.
4. Has an adequate heating system in good working order which will maintain a
minimum temperature of 70 degrees in all habitable rooms.
5. Has a bathroom, well-lit and ventilated and affording privacy to a person
within it, containing a lavatory basin and a bathtub or stall shower, properly
connected to an adequate supply of hot and cold running water, and a flush
closet, all in good working order and properly connected to a sewage
disposal system.
6. Has an adequate and safe wiring system for lighting and other electrical
services.
7. Is structurally sound, weather tight, in good repair and adequately
maintained.
8. Has a safe unobstructed means of egress leading to safe open space at ground
level which conforms to building and fire codes.
9. Has at least one room which shall have not less than 150 square feet of floor
area. Other habitable rooms, except kitchens, shall have an area of not less
than 70 square feet. Where more than two persons occupy a room used for
sleeping purposes, the required floor area shall be increased at the rate of 50
square feet for each occupant in excess of two. The floor space is to be
subdivided into sufficient rooms to be adequate for the family. All rooms
must be adequately ventilated. Habitable floor space is defined as that space
used for sleeping, living, cooking, or dining purposes and excludes such
enclosed places as closets, pantries, bath or toilet rooms, service rooms,
connecting corridors, laundries and unfinished attics, foyers, storage spaces,
cellars, utility rooms and similar spaces. 19
A decent, safe and sanitary sleeping room is one which includes the minimum requirements
contained in paragraphs 1, 4, 5, 6, 7, and 8 above and at least 70 square feet of habitable floor space
for the first occupant and 50 square feet of habitable floor space for each additional occupant.
When the term "decent, safe and sanitary" is interpreted under local, state or federal law as
establishing a higher standard, the elements of that higher standard, which exceed the provisions of
this section, are incorporated herein. A unit which is occupied by no more than the maximum
number of people allowed under the State Building Code shall be considered to be in compliance
with the occupancy provisions of this section.
A decent, safe, and sanitary mobile home is one which conforms to the minimum
requirements prescribed by state laws and rules and regulations promulgated pursuant thereto and
bear the insignia of approval issued by the State of California, Department of Housing and
Community Development.
O. [§ 215] Department
"Department" means the California Department of Housing and Community Development.
P. [§ 216] Director
"Director" or designee means that person in charge of the Displacing Agency that will be
responsible for the displacement of any individual, family, business, or non-profit organization for a
public use.
Q. [§ 217] Displaced Business
"Displaced business" means any business which qualifies as a displaced person under §219
hereof.
R. [§ 218] Displaced Farm Operation
"Displaced farm operation" means any farm operation which qualifies as a displaced person
under §219 hereof.
S. [§ 219] Displaced Person
1. "Displaced Person" means both of the following:
a. Any person who moves from real property, or who moves his or her
personal property from real property, either:
(1) As a direct result of a written notice of intent to acquire by
the Displacing Agency or the acquisition of the real property, 20
in whole or in part, for a program or project undertaken by the
Displacing Agency or by any person having an agreement
with or acting on behalf of the Displacing Agency, or as a
result of a written order from the Displacing Agency to vacate
the real property; or
(2) As a direct result of the rehabilitation, demolition or other
displacing activity undertaken as the Displacing Agency may
prescribe under a program or project undertaken by the
Displacing Agency, of real property on which the person is a
residential tenant or conducts a business or farm operation as a
lawful occupant, in any case in which the displacement, except as
provided in Government Code Section 7262.5 (see paragraph 3 of
this Section), lasts longer than 90 days.
For purposes of this section, “residential tenant” includes any
occupant of a residential hotel unit, as defined in subdivision (b)
of §50669 of the California Health and Safety Code, and any
occupant of employee housing, as defined in §17008 of the
California Health and Safety Code, but shall not include any
person who has been determined to be in unlawful occupancy of
the displacement dwelling.
b. Solely for the purpose of Government Code §7261 and §7262, any
person who moves from real property, or moves his or her personal
property from real property, either:
(1) As a direct result of a written notice of intent to acquire or the
acquisition of other real property, in whole or in part, on
which the person conducts a business or farm operation, for a
program or project undertaken by the Displacing Agency.
(2) As direct result of the rehabilitation, demolition, or other
displacing activity as the Displacing Agency may prescribe
under a program and project undertaken by the Displacing
Agency, of other real property on which the person conducts
a business or farm operation, in any case in which the
Displacing Agency determines that the displacement is
permanent.
2. The definition contained in this section shall be construed so that persons
displaced as a result of a Displacing Agency action, receive relocation
benefits in cases where they are displaced as a result of an owner
participation agreement or an acquisition carried out by a private person for 21
or in connection with a public use where the Displacing Agency is otherwise
empowered to acquire the property to carry out the public use.
Except persons or families of low and moderate income, as defined in
§50093 of the Health and Safety Code, who are occupants of housing that
was made available to them on permanent basis by the Displacing Agency
and who are required to move from the housing, ”displaced person” shall not
include any of the following:
(a) Any person who has been determined to be in unlawful
occupancy of the displacement dwellings.
(b) Any person whose right of possession at the time of moving
arose after the date of the Displacing Agency’s acquisition of
the real property.
(c) Any person who has occupied the real property for the
purpose of obtaining assistance under these Rules and
Regulations.
(d) In any case in which the Displacing Agency acquires property
for a program or project (other than a person who was an
occupant of the property at the time it was acquired), any
person who occupies the property for a period subject to
termination when the property is needed for the program or
project.
3. A person residing in any rental project who is displaced from the project for a
period of one year or less as part of a rehabilitation of that project, that is
funded in whole or in part by the Displacing Agency, shall not be deemed a
”displaced person” for purposes of these Rules and Regulations. This section
shall be applicable if all of the following criteria are satisfied:
a. The project is a ”qualified affordable housing preservation project,”
which means any complex of two or more units whose owners enter
into a recorded regulatory agreement, having a term for the useful life
of the project, with any entity for the provision of project
rehabilitation financing. For this purpose, the regulatory agreement
shall require the owner and all successors and assigns of the owner,
as long as the regulatory agreement is in effect, that at least forty-nine
(49) percent of the tenants in the project shall have, at the time of the
recordation of the regulatory agreement, incomes not in excess of
sixty (60) percent of the area median income, adjusted by household
size, as determined by the appropriate agency of the state. In
addition, a project is a qualified affordable housing preservation 22
project only if the beneficiary of the regulatory agreement elects this
designation by so indicating on the regulatory agreement.
b. The resident is offered the right to return to his or her original unit, or
a comparable unit in the same complex if his or her original unit is
not otherwise available due to the rehabilitation, with rent for the first
twelve (12) months subsequent to that return being the lower of the
following: up to five (5) percent higher than the rent at the time of
displacement; or up to thirty (30) percent of household income.
c. The estimated time of displacement is reasonable, and the temporary
unit is not unreasonably impacted by the effects of the construction,
taking into consideration the ages and physical conditions of the
members of the displaced household.
d. All other financial benefits and services otherwise required under this
chapter are provided to the residents temporarily displaced from their
units, including relocation to a comparable replacement unit.
Residents shall be temporarily relocated to a unit within the same
complex, or to a unit located reasonably near the complex if that unit
is in a location generally not less desirable than the location of the
displaced person’s dwelling with respect to public utilities, services,
and the displaced person’s place of employment.
T. [§ 220] Displaced Resident
"Displaced resident" means any individual or family occupant of a dwelling who qualifies as
a displaced person under §219 hereof.
U. [§ 221] Displacing Agency
”Displacing Agency”means the City of Culver City or Culver City Redevelopment Agency,
as applicable, carrying out a program or project which causes a person to be a displaced person for a
public project.
V. [§ 222] Dwelling
"Dwelling" means the place of permanent or customary and usual abode of a person,
including a single-family dwelling, a single-family unit in a two-family dwelling, multi-family or
multi-purpose dwelling, a unit of a condominium or cooperative housing project, a
non-housekeeping unit, a mobile home, a recreational vehicle as described in the Health and Safety
Code §18010, or any other residential unit which either is considered to be real property under state
law or cannot be moved without substantial damage or unreasonable cost. A residence need not be
decent, safe and sanitary to be a dwelling.
23
A second home shall be considered a dwelling only for the purpose of establishing eligibility
for payment for moving and related expenses under §602 of these Rules and Regulations. 24
W. [§ 223] Economic Rent
"Economic rent" means the amount of rent a tenant or homeowner would have to pay for a
dwelling similar to the acquired dwelling in a comparable area.
X. [§ 224] Elderly Household
"Elderly household" means a household in which the head of household or spouse is
sixty-two (62) years of age or older.
Y. [§ 225] Family
"Family" means two or more individuals, one of whom is the head of household, plus all
other individuals who by blood, marriage, adoption or mutual consent live together as a family unit.
Z. [§ 226] Farm Operation
"Farm operation" means any activity conducted solely or primarily for the production of one
or more agricultural products or commodities, including timber, for sale or home use, and
customarily producing these products or commodities in sufficient quantity to be capable of
contributing materially to the operator's support.
AA. [§ 227] Federal Project
"Federal project" means any project undertaken by a federal agency or any project receiving
federal financial assistance.
BB. [§ 228] Gross Income
"Gross income" means the total annual income of an individual, or where a family is
displaced total annual income of the parents or adult heads of household, less the following:
1. A deduction of $500.00 for each dependent in excess of three.
2. A deduction of ten percent (10%) of total income for an elderly or
handicapped household.
3. A deduction for recurring, extraordinary medical expenses, defined for this
purpose to mean medical expenses in excess of three percent (3%) of total
income, where not compensated for or covered by insurance or other sources,
such as public assistance or tort recovery.
4. A deduction of reasonable amounts paid for the care of children or sick or
incapacitated family members when determined to be necessary to the 25
employment of the head of household or spouse, except that the amount
deducted shall not exceed the amount of income received by the person thus
released.
5. Gross income is divided by twelve to ascertain the average monthly income.
Relocation and property acquisition payments are not to be considered
income for determination of financial means.
CC. [§ 229] Handicapped Household
"Handicapped household" means a household in which any member is handicapped or
disabled.
DD. [§ 230] Initiation of Negotiations
"Initiation of negotiations" means the initial written offer to purchase made by the Displacing
Agency to the owner of the real property to be purchased, or to the owner's representative.
EE. [§ 231] Last Resort Housing
"Last Resort Housing" means comparable replacement dwellings provided by the Displacing
Agency with its funds or funds authorized for the project because existing comparable replacement
dwellings will not otherwise be available as needed.
FF. [§ 232] Manufactured Home or Mobile Home
"Manufactured Home” or ”Mobile Home" means a structure, as described in Health and
Safety Code §18007 and §18008, which is transportable in one or more sections, which is built on a
permanent chassis and designed to be used as a dwelling with or without a permanent foundation
when connected to the required utilities and includes the plumbing, heating, air-conditioning and
electrical systems contained therein. A self-propelled vehicle is not a mobile home.
GG. [§ 233] Mortgage
”Mortgage” means classes of liens that are commonly given to secure advances on, or the
unpaid purchase price of, real property, together with the credit instruments, if any, secured thereby.
HH. [§ 234] Nonprofit Organization
"Nonprofit organization" means a corporation, partnership, individual or other public or
private entity, engaged in a business, professional or institutional activity on a non-profit basis,
necessitating fixtures, equipment, stock in trade, or other tangible property for the carrying on of the
business, profession or institutional activity on the premises.
26
II. [§ 235] Ownership
"Ownership" means holding any of the following interests in a dwelling, or a contract to
purchase one of the first six (6) interests:
1. A fee title;
2. A life estate;
3. A 50-year lease.
4. A lease with at least twenty (20) years to run from the date of acquisition of
the property;
5. A proprietary interest in a cooperative housing project which includes the
right to occupy a dwelling;
6. A proprietary interest in a manufactured home and mobile home;
7. A leasehold interest with an option to purchase.
In the case of one who has succeeded to any of the foregoing interests by devise, bequest,
inheritance or operation of law, the tenure of ownership, but not occupancy, of the succeeding owner
shall include the tenure of the preceding owner.
JJ. [§ 236] Person
"Person" means any individual, partnership, corporation, limited liability company, or
association.
KK. [§ 237] Personal Property
"Personal property" means tangible property which is situated on real property vacated or to
be vacated by a displaced person and which is considered personal property and is non-compensable
(other than for moving expenses) under the state law.
In the case of a tenant, personal property includes fixtures and equipment, and other property
which may be characterized as real property under state or local law, but which the tenant may
lawfully and at his or her election determine to move, and for which the tenant is not compensated in
the real property acquisition.
In the case of an owner of real property, the determination as to whether an item of property
is personal or real shall depend upon how it is identified in the closing or settlement statement with
respect to the real property acquisition.
LL. [§ 238] Post-Acquisition Tenant
"Post-acquisition tenant" means a tenant who lawfully commences to occupy property only
after the Displacing Agency acquires it or who lawfully occupies property after the private
acquisition of property by a person with a written agreement with the public entity for the purpose of
financing the purchase or development of the property. 27
MM. [§ 239] Prepaid Expenses
"Prepaid expenses" means items paid in advance by the seller of real property and pro-rated
between such seller and the buyer of such real property at the close of escrow including, but not
limited to, real property taxes, insurance, homeowners' association dues and assessment payment.
NN. [§ 240] Public Use
"Public use" means a use for which real property may be acquired by eminent domain.
OO. [§ 241] Small Business
"Small Business," as defined in Part 24 of Title 49 of The Code of Federal Regulations,
means a business having not more than 500 employees working at the site being acquired or
displaced by a program or project, which site is the location of economic activity. Sites occupied
solely by outdoor advertising signs, displays, or devices do not qualify as a small business for
purposes of these Rules and Regulations.
PP. [§ 242] Tenant
A tenant is a person who rents or is otherwise in lawful possession of a dwelling, including a
sleeping room, which is owned by another.
QQ. [§ 243] Unlawful Occupancy
A person or business is considered to be in unlawful occupancy if, among other reasons: the
person or business has been ordered to move by a court of competent jurisdiction; or the person’s
tenancy has been lawfully terminated by the owner for cause, the tenant has vacated the premises,
and the termination was not undertaken for the purpose of evading relocation assistance obligations;
or the person is in violation of the lease or rental agreement; or the person’s occupancy is in
violation of applicable local, regional, state, or federal ordinances, laws, or regulations. 28
III. [§ 300] RELOCATION ADVISORY ASSISTANCE
A. [§ 301] Advisory Assistance to be Provided by the Displacing Agency
Programs or projects undertaken by the Displacing Agency shall be planned in a manner that
(i) recognizes, at an early stage in the planning of the programs or projects and before the
commencement of any actions which will cause displacements, the problems associated with the
displacement of individuals, families, businesses, and farm operations; and (ii) provides for the
resolution of these problems in order to minimize adverse impacts on displaced persons and to
expedite program or project advancement and completion. The Displacing Agency shall ensure the
relocation assistance advisory services described in this §301 are made available to all persons
displaced by the Displacing Agency.
In accordance with California Government Code §7261(a), the Displacing Agency may
provide relocation advisory assistance (but not benefits, payments or other forms of assistance) if it
determines, in its sole discretion, that any person occupying property immediately adjacent to the
property where the displacing activity occurs is caused substantial economic injury as a result
thereof.
Notwithstanding §219, in any case in which the Displacing Agency acquires property for a
program or project, any person who occupies the property on a rental basis for a short term
commencing after Displacing Agency acquisition or a period subject to termination when the
property is needed for the program or project, shall be eligible for advisory services but not benefits,
payments or other forms of assistance to the extent determined by the Displacing Agency in its sole
discretion.
The relocation advisory assistance to be provided by the Displacing Agency shall include
such measures, facilities and/or services as may be necessary or appropriate in order to do all of the
following:
1. Fully inform eligible persons within 60 days of initiation of negotiations but
no later than the close of escrow on the property, as to the availability of
relocation benefits and assistance and the eligibility requirements therefore,
as well as the procedures for obtaining such benefits and assistance;
2. Determine and make timely recommendations on the needs and preferences,
if any, of displaced persons for relocation assistance;
3. Assure eligible displaced residents that within a reasonable period of time
prior to displacement, there will be available comparable replacement
dwellings sufficient in number and kind for and available to such eligible
residents;
4. Provide current and continuing information on the availability, sales prices,
and rentals of comparable sales and rental housing, and comparable 29
commercial properties and locations, and as to security deposits, closing
costs, typical down payments, interest rates and terms for residential property
in the area;
5. Assist each eligible, displaced person to complete applications for payments
and benefits;
6. Assure that, within a reasonable time period prior to displacement, to the
extent that it can be reasonably accomplished, there will be available in areas
not generally less desirable in regard to public utilities and public and
commercial facilities, and at rents or prices within the financial means of
displaced families and other individuals, decent, safe and sanitary dwellings,
sufficient in number to meet the needs of, and available to, those displaced
persons requiring those dwellings and reasonably accessible to their places of
employment, except that, in the case of a federally funded project, a waiver
may be obtained from the federal government.
7. Assure that each eligible, displaced resident shall not be required to move
from a dwelling unit unless such person has had a reasonable opportunity to
relocate to a comparable replacement dwelling, except in the case of any of
the following:
a. A major disaster as defined in §102(2) of the “Hazard and Mitigation
and Relocation Act Assistance Act of 1993, 42 U.S.C. §5121, and/or
California National Disaster Act”.
b. A state of emergency declared by the President or Governor.
c. Any other emergency which requires the person to move immediately
from the dwelling because continued occupancy of the dwelling by
the person constitutes a substantial danger to the health or safety of
the person.
8. Assist each eligible, displaced business in obtaining and becoming
established in a suitable replacement location;
9. Provide services required to insure that the relocation process does not
discriminate on any basis that is in violation of applicable state and federal
anti-discrimination laws.
10. Supply to eligible persons information concerning federal and state housing
programs, disaster loan and other programs administered by the Small
Business Administration, and other federal or state programs offering
assistance to displaced persons;
30
11. Provide other advisory assistance to eligible persons to minimize their
hardships, such as counseling and referrals with regard to housing, financing,
employment, training, health and welfare;
12. Inform all persons who are expected to be displaced about the eviction
policies to be pursued in carrying out the project.
B. [§ 302] Information Program
1. [§ 303] General Information
The Displacing Agency shall establish and maintain an information program utilizing
meetings, newsletters, and other mechanisms, including local media, available to all persons, for
keeping occupants of the property which the Displacing Agency is acquiring informed on a
continuing basis about its relocation program. The criterion for selecting among various alternative
mechanisms shall be the likelihood of actually communicating information to such persons. Legal
publications, legal ads in local newspapers of general circulation and similar means are inadequate if
they are likely to go unnoticed.
2. [§ 304] Information Statement for Relocation Assistance/Personal Contact
Within 60 days following the initiation of negotiations to acquire a parcel of real property or
interest therein, but not later than the close of escrow on the property, informational material,
appropriate to the displaced person or business, shall be distributed to describe the nature of
available relocation benefits and assistance, eligibility requirements and procedures for obtaining
such benefits and assistance.
Contact shall be direct and personal except where repeated efforts indicate that such contact
is not possible. Such contact may be made at the time and as part of the interview to ascertain
relocation needs conducted pursuant to §310. All persons shall be advised and encouraged to visit
the Displacing Agency’s relocation office for information and assistance. The Displacing Agency
shall maintain personal contacts with occupants of the property to the maximum extent practicable.
For projects by private parties with an agreement with the Displacing Agency, the ”initiation
of negotiations” shall be the later of (i) the date of acquisition, or (ii) the date of the written
agreement between the private entity and the Displacing Agency for purposes of acquiring or
developing the property for the project.
The Displacing Agency and/or the private entity shall provide each occupant of such
property with a written statement containing the following information:
a. A general description of the nature and types of activities that will be
undertaken and identification of the displacement area involved,
including a diagrammatic sketch of such area.
31
b. A statement that Displacing Agency action may result in
displacement, but that no person or business lawfully occupying the
real property will be required to move without at least 90 days written
notice from the Displacing Agency.
c. A statement to residents that families and individuals will not be
required to move from their dwellings before reasonable offers of
decent, safe and sanitary and otherwise comparable replacement
dwellings within their financial means have been made, except for
cause including under the circumstances provided for in §1203 of
these Rules and Regulations. [This subparagraph is not applicable to
business relocations.]
d. A general description of types of relocation payments available,
including general eligibility criteria, and a caution against premature
moves that might result in loss of eligibility for a payment.
e. Identification of the Displacing Agency’s relocation program and a
description of relocation services and aids that will be available.
Such services shall not result in different or separate treatment on
account of race, color, religion, national origin, sex, martial status,
familial status, or any basis protected by state or federal anti-
discrimination laws, or any other arbitrary circumstances.
f. Encouragement to visit the Displacing Agency’s relocation office and
to cooperate with staff. Information regarding the relocation office
shall include the address, telephone number and hours the office is
open.
g. Information to residents on replacement dwellings, including:
(1) A brief description of what constitutes a replacement
dwelling, including physical standards;
(2) A layman's description of applicable federal, state and local
fair housing laws;
(3) A statement that the Displacing Agency will identify
available comparable replacement dwellings within the
financial means of, and otherwise available to, the Displaced
Person, and will provide assistance to persons in obtaining
housing of their choice, including assistance in referring
complaints of discrimination to the appropriate federal, state
or local fair housing enforcement agency.
32
(4) A statement that persons may seek their own housing
accommodations, and urging them, if they do so, to notify the
Displacing Agency prior to making a commitment to
purchase or occupy the property.
h. A statement to businesses that the Displacing Agency will provide
assistance in locating relocation accommodations, including
consultation with the Small Business Administration and other
governmental agencies which might be of assistance.
i. A statement to businesses describing the requirement for prior
notification to the Displacing Agency of the business concern's
intention to move.
j. A summary of the Displacing Agency’s eviction policy.
k. A statement describing the Displacing Agency’s grievance procedure,
its purpose and how it may be used.
l. Any additional information that the Displacing Agency believes
would be helpful. Where appropriate, separate information statements
shall be prepared for residential and non-residential occupants.
3. [§ 305] Notice of Eligibility Status
In addition to disseminating general information of the type described above, the Displacing
Agency shall provide each Displaced Person with individual, written notification of his or her
eligibility status as soon as it has been established.
4. [§ 306] Language of Information Material
Information material shall be prepared in the language(s) most easily understood by the
recipients. In displacement areas where there are significant concentrations of persons who do not
read, write, or understand English fluently, the native language of the people should be used and all
informational material should be provided in the native language(s) and English.
5. [§ 307] Method of Delivery of Informational Material
To assure receipt of the informational material, the Displacing Agency shall arrange to have
the material either hand-delivered to each occupant of the property with a request for a written
receipt, or sent by certified mail, return receipt requested.
C. [§ 308] Determination of Relocation Needs
33
1. [§ 309] Interviews
Immediately following the initiation of negotiations to acquire a parcel of real property, the
Displacing Agency shall interview each eligible person occupying such property to obtain
information upon which to plan for housing and other accommodations, as well as counseling and
assistance needs. The interview shall be by direct, personal contact, except where repeated efforts
indicate that such contact is not possible. The Displacing Agency shall carefully explain and discuss
fully with each person interviewed the purpose of the interview.
When a person cannot be interviewed or the interview does not produce the information to be
obtained, reasonable efforts shall be made to obtain the information by other means.
a. [§ 310] Information to be Obtained from Residential Owner-
Occupants or Tenants
The Displacing Agency shall endeavor to obtain the following information from eligible
persons.
(1) Income;
(2) Whether a person is elderly or handicapped;
(3) Size of family;
(4) Age of children;
(5) Location of job and factors limiting accessibility;
(6) Area of preferred relocation;
(7) Type of unit preferred;
(8) Ownership or tenant preference;
(9) Need for social and public services, special schools and other
services;
(10) Eligibility for publicly assisted housing;
(11) With reference to the present dwelling:
(a) Rent;
(b) Type and quality of construction;
(c) Number of rooms and bedrooms;
(d) Amount of habitable living space;
(e) Locational factors including, among others, public
utilities, public and commercial facilities (including
transportation and schools) and neighborhood conditions
(including municipal services).
(12) Such other matters that concern a household as its members
contemplate relocation.
b. [§ 311] Coordination with Other Agencies
In order to avoid duplication of effort and to ensure that necessary information is available at
the appropriate time, the Displacing Agency should coordinate its interview activities with the 34
survey activities, if any, of other agencies. Gathering of data pertinent to social service referrals of
eligible persons should be planned in cooperation with social service agencies and a referral system
should be established.
c. [§ 312] Interview after Person Moves without Notice
If the interview of any eligible person does not occur prior to such person moving from the
dwelling, the Displacing Agency shall make every reasonable effort to identify, locate, and interview
such person who has moved so that their relocation needs can be determined. The Displacing
Agency shall offer such persons all relocation assistance and benefits for which they otherwise
qualify and, in addition, the Displacing Agency shall compensate such persons for all costs
occasioned by the Displacing Agency’s failure to provide timely notice and offers of relocation
assistance and benefits, if such failure is the fault of the Displacing Agency.
2. [§ 313] Relocation Records
Based on information obtained during interviews and from other sources as applicable, the
Displacing Agency shall prepare and maintain an accurate relocation record for each person to be
displaced. The record shall contain a description of the pertinent characteristics of the persons to be
displaced and the assistance deemed to be necessary. A Displaced Person (or any person authorized
in writing by such person) shall have the right to inspect such documents containing information
relating to that Displaced Person to the extent and in the manner provided by law.
3. [§ 314] Updating Information
Information pertaining to the relocation needs of eligible persons occupying each parcel of
real property with respect to which the Displacing Agency has initiated negotiations for acquisition
shall be up-dated at least annually. Eligible persons shall be encouraged to bring any change in their
needs to the attention of the Displacing Agency.
D. [§ 315] Relocation Site Office
The Displacing Agency may, as it deems necessary, establish a site office which is accessible
to all area residents and businesses who may be displaced to provide relocation assistance. Any
such office shall be staffed with trained and/or experienced relocation personnel. Office hours may
be scheduled to accommodate persons unable to visit the office during normal business hours. The
Displacing Agency may also make provisions for meeting with displaced persons in their homes or
places of business.
E. [§ 316] Contracting for Relocation Services
The Displacing Agency may enter into a contract with any individual, firm, association,
corporation, or governmental agency having an established organization for conducting relocation
assistance programs, for the purpose of providing relocation advisory assistance.
35
F. [§ 317] Coordination of Relocation Assistance
The Displacing Agency shall coordinate its relocation assistance program with other work
necessitating displacement of persons, and with activities of other public entities in the City or
nearby areas, for the purpose of planning relocation activities and coordinating the availability of
replacement dwelling resources in the implementation of the Displacing Agency’s relocation
assistance program.
G. [§ 318] Relocation Plans
1. [§ 319] Requirement Generally
As soon as possible following the initiation of negotiations and prior to proceeding with any
phase of a project or other activity that will result in displacement, the Displacing Agency shall
prepare a Relocation Plan and submit it for approval to the City Council unless the Displacing
Agency’s action will only result in an insignificant amount (as determined by the Displacing
Agency) of non-residential displacement, in which case the Displacing Agency shall provide
assistance and benefits as required by the Act, Guidelines, and these Rules and Regulations, but shall
not be required to prepare a Relocation Plan as is described in §318 et seq. For residential projects
of 15 households or less, the Displacing Agency shall prepare a Model Relocation Plan, a sample of
which is provided in Exhibit ”A”. This Model Relocation Plan shall be presumed to be in
compliance with the planning requirements of §318 et seq.
2. [§ 320] Contents of Plan
If a Specific Relocation Plan is required, it shall include the following;
a. A diagrammatic sketch of the displacement area;
b. Projected dates of displacement;
c. A written analysis of the aggregate relocation needs of all persons to
be displaced, in accordance with §401, and a detailed explanation as
to how these needs are to be met;
d. A written analysis of replacement housing resources, in accordance
with §404;
e. A detailed description of the relocation advisory services program,
including specific procedures for locating and referring eligible
persons to comparable replacement housing;
f. A description of the relocation payments to be made in accordance
with §600 and a plan for disbursement;
36
g. A cost estimate for carrying out the plan and identification of the
source of the necessary funds;
h. A detailed plan by which any last resort housing as described in §408
is to be built and financed (if applicable);
i. A standard information statement to be sent to all persons displaced
in accordance with §305;
j. Temporary relocation plans, if any;
k. A description of relocation office operation procedures;
L. Plans for citizen participation;
m. An enumeration of the coordination activities undertaken pursuant to
§318;
n. The comments of the relocation committee, if any (pursuant to §800).
o. A written determination by the Displacing Agency that the necessary
resources will be available as required.
3. [§ 321] Review of Relocation Plan
The Relocation Plan shall be submitted to the Relocation Committee (see §802) for review
and comment at least 30 days prior to submitting the Relocation Plan to the City Council for
approval. Copies of the proposed Relocation Plan shall be made available to the Relocation
Committee and the public, upon request. A copy of the final relocation plan shall be forwarded to
the Department which shall act as a central repository.
A general notice of the Relocation Plan shall also be provided. The general notice shall be
designed to reach the occupants of the property, shall be in accordance with §303 and §307 of these
Rules and Regulations, and shall be provided 30 days prior to submission to the City Council for
approval.
All persons who will be displaced, neighborhood groups, and the Relocation Committee (if
constituted) shall be given an opportunity to participate in reviewing the relocation plan and
monitoring the relocation assistance program.
Any displaced person or interested organization may petition the Department to review the
Relocation Plan. Such review shall be undertaken in the time constraints and procedures as adopted
by the Department.
37
4. [§ 322] Conformance to General Plan
Relocation Plans prepared by the Displacing Agency shall be consistent with the Housing
Element of the City's General Plan.
5. [§ 323] Update of Relocation Plans
In the event of delay of more than one year in the implementation of a relocation program,
the Relocation Plan shall be updated prior to the implementation of the program.
H. [§ 324] Move to Substandard Dwelling Unit
The Displacing Agency shall inspect each replacement dwelling prior to the time a displaced
resident occupies it. The Displacing Agency shall not induce or encourage a displaced resident to
acquire a dwelling which does not satisfy the standards of a comparable replacement dwelling.
If a displaced resident occupies a dwelling unit to which he or she is referred by the
Displacing Agency and the dwelling unit does not satisfy the standard of a comparable replacement
dwelling, the Displacing Agency shall offer to locate a comparable replacement dwelling for the
displaced resident and to pay again all moving and related expenses.
If a displaced resident chooses not to move from a substandard dwelling unit he or she has
occupied, the displaced resident shall nevertheless be eligible to receive relocation assistance and
payments if one of the following conditions is met:
1. If he or she occupied the substandard dwelling unit following referral by the
Displacing Agency; or
2. If the rental or purchase of the substandard dwelling unit is the result of the
Displacing Agency’s failure to identify a reasonable number of comparable
replacement dwellings; or
3. If the purchase of the substandard dwelling unit is not the result of the
Displacing Agency’s referral or failure to refer, when the substandard
dwelling unit is brought into compliance with the decent, safe and sanitary
standard.
In the event the condition is met in paragraph 3, any replacement housing payment shall be
limited to the amount that would be provided in connection with the purchase of a similar,
comparable replacement dwelling, or the sum of the actual costs of acquisition (including incidental
expenses) and rehabilitation, whichever is less. 38
I. [§ 325] Waiver of Requirement for Replacement Dwelling Prior to Displacement
When immediate possession of the real property is of crucial importance and one of the
following circumstances exists, the Displacing Agency may require an eligible displaced resident to
move from his or her dwelling before a comparable replacement dwelling or temporary adequate
replacement dwelling is available:
1. When displacement is necessitated by a major disaster as defined in §102(2)
of the Hazard Mitigation and Relocation Assistance Act of 1993 (42
U.S.C.§5121) and/or the California Natural Disaster Assistance Act;
2. During periods of declared national or state emergency;
3. When such other extraordinary or emergency situations occur where
immediate possession of real property is of crucial importance.
Any waiver of the requirement for replacement dwellings prior to displacement shall be
supported by appropriate findings and a determination of the necessity for the waiver. 39
IV. [§ 400] ASSURANCE OF COMPARABLE REPLACEMENT DWELLINGS; LAST
RESORT HOUSING
A. [§ 401] Survey and Analysis of Available Comparable Replacement Dwellings
1. [§ 402] Requirement Generally
To confirm the availability of comparable replacement dwellings, the Displacing Agency,
within 60 days of the initiation of negotiations to acquire a parcel of real property, shall initiate a
survey of available comparable replacement dwellings. If a recent survey that provides the required
information is not available, the Displacing Agency shall conduct a survey of the housing market. If
a recent survey is available, but it does not reflect more recent, significant changes in housing
market conditions, the survey shall be updated or it shall not be relied upon. The survey shall be
updated at least annually. The survey area shall be reasonably related to the displacement area and
to the needs and preferences of the persons to be displaced. The survey area shall have relevant
characteristics specified for comparable replacement dwellings which equal or exceed those of the
neighborhood from which persons are to be displaced.
2. [§ 403] Determining Number of Comparable Replacement Dwellings
Only dwelling units which satisfy the standards of comparable replacement dwellings,
including the locational criteria, shall be counted as a relocation resource. The following types of
dwellings shall be included only if the applicable criteria are met:
Uncompleted new construction or rehabilitation shall only be counted toward the gross
number of comparable replacement dwellings if there is a substantial likelihood that the dwelling
units will be available when needed and at housing prices or rental costs within the financial means
of the prospective occupants.
a. Publicly subsidized housing, as defined pursuant to Article XXXIV of the
California Constitution and §37000 through §37002 of the California Health
and Safety Code, shall only be counted toward the gross number of
comparable replacement dwellings if it reasonably can be established that:
(1) The dwelling units will be available when needed;
(2) The governmental body providing the subsidy has made, in writing, a
reasonably binding commitment of assistance;
(3) The dwelling units have been inspected and determined to be decent,
safe and sanitary and the income ceilings, rent ranges and age
restrictions, if any, have been considered;
(4) The number of dwelling units available in the City exceeds the
number of households in need of the units. This requirement can be 40
waived by the Department if the Displacing Agency can establish that
such units will be replaced within two years. To establish that last
resort housing will be developed as required, the Displacing Agency
must have site control with permissive zoning, preliminary plans and
conditional commitments for subsidy and financing, or the
equivalent, and must identify ownership;
(5) With respect to uncompleted new construction or rehabilitation, such
publicly subsidized dwelling units are being subsidized to provide
relocation resources.
b. The gross number of comparable replacement dwellings in the survey area
shall be discounted to reflect concurrent displacement and the extent to
which turnover is represented. Concurrent displacement by the federal
government and its agencies, including federally assisted projects, as well as
displacement by other public entities shall be taken into account.
3. [§ 404] Written Analysis
Based on the survey, a written analysis of replacement dwelling needs shall be prepared that
includes:
a. Separate information concerning home ownership and rental units;
b. The number of units identified by cost for each size category;
c. Needs of elderly and handicapped households shown separately,
including information on the number of such households requiring
special facilities and the nature of such facilities;
d. Description of the locational characteristics of the displacement area
neighborhoods corresponding to the requirements of comparable
replacement dwellings;
e. Information concerning proximity to present employment sources,
medical and recreational facilities, parks, community centers,
shopping, transportation and schools;
f. Information concerning proximity to other relevant needs and
amenities.
4. [§ 405] Review of Survey Results
When more than fifteen (15) households will be displaced, the written analysis (i.e., the
results of the survey of comparable replacement dwellings) shall be submitted for review to local 41
housing, development and planning agencies and shall be compared to other existing information on
housing.
Notwithstanding the analysis of the results of the survey of comparable replacement
dwellings, if the demand for housing is such that there are no vacancies other than those permitted
by turnover, the Displacing Agency may proceed to displace residents from dwellings, but only to
the extent that the Displacing Agency obtains referrals of comparable replacement dwellings for
such residents in accordance with the provisions of §406.
5. [§ 406] Referrals of Replacement Dwellings
The Displacing Agency shall obtain at least three referrals of comparable replacement
dwellings for each displaced resident, provided that where the Displacing Agency determines that,
due to special circumstances three (3) is not a reasonable number, fewer than three (3) referrals may
be deemed sufficient. Such referrals shall be in writing, in a language understood by the displaced
resident.
The Displacing Agency’s obligation to obtain a comparable replacement dwelling for any
displaced resident shall be deemed to be satisfied if such resident is offered and refuses, without
justification, the number of specifically identified comparable replacement dwellings provided for in
this section and which satisfy the criteria set forth in §211.
B. [§ 407] Determination of Need for Last Resort Housing; Replacement Housing Plan
If the Director of the Displacing Agency, on the basis of data derived from the replacement
dwelling survey and analysis, determines that comparable replacement dwellings will not be
available, the Director shall determine whether to modify, suspend, or terminate the project causing
the displacement or to use the Displacing Agency’s funds or the funds authorized for the project to
provide such necessary comparable replacement housing. If the Director determines that the
Displacing Agency’s funds or funds authorized for the project shall be used to insure the availability
of comparable replacement housing (which housing is, in this situation, commonly referred to as
”last resort housing”), the Displacing Agency shall prepare a ”replacement housing plan” that
provides for a sufficient number of last resort housing units.
1. [§ 408] Replacement Housing Plan
If a Replacement Housing Plan is required, it shall address the following issues:
a. How, when and where the housing will be provided;
b. How the housing will be financed and the amount of funds to be
allocated to such housing;
c. The prices at which the housing will be rented or sold to the families
and individuals to be displaced; 42
d. The arrangements for housing management and social services, as
appropriate;
e. The suitability of the location and environmental impact of the
proposed housing;
f. The arrangements for maintaining rent levels appropriate for the
persons to be rehoused;
g. The disposition of proceeds from rental, sale, or resale of such
housing;
h. Any referendum or zoning requirements, which present an obstacle,
shall be addressed.
2. [§ 409] Replacement Housing Committee
a. If the need for last resort housing exceeds 25 units, the Displacing
Agency shall establish a ”Replacement Housing Committee” which
will consult with and provide advice and assistance to the Displacing
Agency in the development of the replacement housing plan. The
Committee should include appointed representatives of the
Displacing Agency and state and local agencies knowledgeable
regarding housing in the area, including but not limited to the local
housing authority. In addition, the Committee should include
representatives of other appropriate groups (for example, local and
area wide planning agencies) and private groups knowledgeable
regarding housing and the problems of housing discrimination.
b. The Replacement Housing Committee shall include representatives of
the residents to be displaced. These representatives may be
appointed by the Displacing Agency or elected by the residents, as
the residents wish. Resident representatives shall, at a minimum,
constitute one-third of the Committee membership. Votes shall be
allocated so that the total votes of resident representatives shall equal
one-half of the total votes of the Committee membership.
c. The Replacement Housing Plan must be approved by the vote of a
simple majority of the Replacement Housing Committee
membership. In the event the Committee fails to approve the plan,
the City Council may substitute its approval.
d. The Displacing Agency may consult or contract with the Department,
a local housing authority, or other agency or organization having 43
experience in the administration or conduct of housing programs to
provide technical assistance and advice in the development of the
replacement housing plan.
3. [§ 410] Submission of Plan for Comment
The Displacing Agency shall submit the Replacement Housing Plan and all
significant amendments to the local housing and planning agencies for comment and to
assure that the plan accurately reflects housing conditions and needs in the relocation area.
Reviewing agencies shall have 30 calendar days following receipt of the plan to prepare their
comments. Copies of all comments received shall be forwarded to the committee and
available to all interested persons.
General notice of the plan shall be provided. Notice shall be designed to reach the
residents of the relocation area, shall be in accordance with the provisions of §303 and §307,
and shall be provided 30 days prior to submission to the Replacement Housing Committee,
or the City Council for approval.
4. [§ 411] Determination by Displacing Public Entity of Feasibility and
Compliance
Upon receipt and consideration of the comments, the Displacing Agency shall
determine whether or not:
a. The Replacement Housing Plan is feasible.
b. The Replacement Housing Plan complies with applicable
environmental standards and procedures.
c. The Replacement Housing Plan is compatible with the local general
plan and housing element and the area wide housing plan or strategy.
If any of the above determinations by the Displacing Agency is negative the
Displacing Agency shall revise the plan as necessary. Substantial modifications in the plan
shall be re-submitted for review and comment in accordance with §410. If necessary for
timely implementation of the plan or execution of the project, the Displacing Agency may
shorten the time allowed for review of modifications.
5. [§ 412] Implementation of the Replacement Housing Plan
The Displacing Agency may expend funds and take such other actions as necessary to
provide, rehabilitate, or construct last resort housing pursuant to an approved replacement housing
plan for last resort housing through methods including but not limited to the following:
a. Transfer of funds to state and local housing agencies; 44
b. Contract with organizations experienced in the development of
housing;
c. Direct development; rehabilitation or construction by the Displacing
Agency;
d. Financing of development, rehabilitation or construction by the
Displacing Agency;
e. Provide housing subsidies as permitted by law.
Whenever practicable, the Displacing Agency should utilize the services of federal, state, or
local housing agencies, or other agencies having experience in the administration or conduct of
similar housing programs. Where several agencies are administering programs resulting in
residential displacement, opportunities shall be sought for joint development and financing to
aggregate resources in order to most efficiently provide last resort housing in sufficient quantity to
satisfy the aggregate needs of such programs.
6. [§ 413] Last Resort Housing Alternatives
a. Whenever comparable replacement dwellings are not available, or are
not available within the monetary limits of §605 or §615, as
appropriate, the Displacing Agency shall provide additional or
alternative assistance under the provisions of this part.
b. The methods of providing replacement housing of last resort include,
but are not limited to:
(1) A replacement housing payment calculated in accordance
with the provisions of §607 or §617, as appropriate, even if
the calculation is in excess of the monetary limits of sections
605 and 615. The first $5,250 of a rental assistance payment
under this part shall be paid to the displaced person in a lump
sum and the remainder of the payment shall be paid to the
displaced person in periodic payments over a period not to
exceed 42 months unless otherwise specified by statute or, at
the discretion of the Displacing Agency, the entire rental
assistance payment under this part could be paid to the
displaced person in a lump sum.
For tenants, if the calculated replacement housing benefit in
accordance with § 617, is in excess of the monetary limit of §
615, a Last Resort Housing benefit payment will be made
only if a comparable replacement dwelling is not available 45
within the displaced persons financial means, as determined
pursuant to Paragraph 5 of § 211. In the event the calculated
replacement housing benefit is in excess of the monetary limit
and a comparable replacement dwelling is not available
within the displaced persons financial means, the Last Resort
Housing benefit payment will not exceed an amount
calculated by multiplying 42 months times the difference
between the monthly rent and utilities necessary to rent a
comparable replacement dwelling (as determined by the
Displacing Agency) and 30% of the household’s average
gross monthly income. If the calculation of the Last Resort
Housing benefit amount is less than the monetary limit of §
615, the replacement housing benefit will not, in any event,
be less than the monetary limit of § 615.
In order to receive any Last Resort Housing benefit as
identified in this section, the displaced person must provide
adequate income documentation. If no income documentation
is provided or the income documentation is insufficient or
unreasonable, no Last Resort Housing benefit calculation will
be made and the monetary limit of § 615 shall apply.
(2) Major rehabilitation of and/or additions to an existing
replacement dwelling in a sum equal to or greater than the
payment to which the displaced person is entitled under
subsection b(1).
(3) The construction of a new replacement dwelling in a sum
equal to or greater than the payment to which the displaced
person is entitled under subsection b(1) of this section.
(4) The relocation and, if necessary, rehabilitation of a dwelling.
(5) The purchase of land and/or a replacement dwelling by the
displacing agency and subsequent sale or lease to, or
exchange with a displaced person.
(6) For purposes of accommodating the needs of handicapped
persons, the removal of barriers to the handicapped.
7. [§ 414] Nondiscrimination
The nondiscrimination provisions of applicable law shall apply to all contracts and
subcontracts for the construction, rehabilitation or management of last resort housing let by the
Displacing Agency. 46
8. [§ 415] Conformity with Statutes and Regulations
The provision of last resort housing by the Displacing Agency shall be in accord with the
provisions of all applicable federal and state non-discrimination laws and regulations issued pursuant
thereto.
9. [§ 416] Conformity with Federal Program Requirements
The Displacing Agency shall comply with all federal requirements related to programs for
which it receives federal financial assistance.
10. [§ 417] Monitoring Housing Production
The Displacing Agency shall monitor the production of the last resort housing to ensure that
it is in accordance with the replacement housing plan for last resort housing approved by the
Displacing Agency.
11. [§ 418] Retention of Benefits upon Move to Last Resort Housing
The Displacing Agency shall not require a displaced resident to accept last resort housing in
lieu of the displaced resident's acquisition payment, if any, for the real property from which he or she
is displaced or the relocation payments for which he or she may be eligible.
12. [§ 419] Post-Acquisition Tenants
Post-acquisition tenants are entitled to last resort housing payments only at the discretion of
the Displacing Agency. 47
V. [§ 500] TEMPORARY RELOCATIONS
A. [§ 501] Temporary Replacement Housing
Except as provided for in §502, the Displacing Agency may not relocate a displaced person
to temporary replacement housing for a period greater than 90 days without the consent of the
displaced person. Such housing, when provided, shall meet the standards of an adequate
replacement dwelling. The Displacing Agency shall minimize, to the greatest extent feasible, the use
of temporary replacement housing. The Displacing Agency shall provide displaced residents who
move to temporary replacement housing with relocation assistance, services and benefits designed to
achieve permanent relocation of such residents into comparable replacement dwellings.
Prior to any temporary move, the Displacing Agency shall determine and provide written
assurance to each displaced resident that:
1. Comparable replacement dwellings will be made available at the earliest
possible time, and in any event within twelve (12) months from the date of
the move to the temporary replacement housing, provided however that the
temporarily housed persons may agree to extend the 12 month limitation.
2. Comparable replacement dwellings will be made available, on a priority
basis, to the individual or family who has been temporarily rehoused;
3. The move to temporary replacement housing will not affect a claimant's
eligibility for a replacement housing payment nor deprive him of the same
choice of replacement dwelling units that would have been made available
had the temporary move not been made and the costs of a temporary move
will not be considered as all or a part of relocation payments to which a
displaced resident is entitled;
4. If a project plan anticipates moves back into housing accommodations in the
project area, the resident who has been temporarily displaced will be given
priority opportunity to obtain such housing accommodations;
5. The Displacing Agency will pay all costs in connection with the move to
temporary replacement housing, including increased housing costs.
B. [§ 502] Payments and Assistance for Short-Term Relocation of Tenants in Rental
Rehabilitation Projects
Notwithstanding §7265.3 of the Government Code or any other provision of law, tenants
residing in any rental project who are displaced from the project for a period of one year or less as
part of a rehabilitation of that project, that is funded in whole or in part by the Displacing Agency,
shall not be eligible for permanent housing assistance benefits pursuant to §600 of these Rules and
Regulations, if all of the following criteria are satisfied: 48
1. The project is a ”qualified affordable housing preservation project,” which means
any complex of two or more units whose owners enter into a recorded regulatory
agreement, having a term for the useful life of the project, with any entity for the
provision of project rehabilitation financing. For this purpose, the regulatory
agreement shall require of the owner and all successors and assigns of the owner, as
long as the regulatory agreement is in effect, that forty-nine (49) percent of the
tenants in the project shall have, at the time of the recordation of the regulatory
agreement, incomes not in excess of sixty (60) percent of the area median income,
adjusted by household size as determined by the Department. In addition, a project
is a qualified affordable housing preservation project only if the beneficiary of the
regulatory agreement elects this designation by so indicating on the regulatory
agreement.
2. The resident is offered the right to return to his or her original unit, or a comparable
unit in the same complex if his or her original unit is not otherwise available due to
rehabilitation, with rent for the first twelve (12) months subsequent to that return
being the lower of the following: up to five (5) percent higher than the rent at the
time of displacement; or up to thirty (30) percent of household income.
3. The estimated time of displacement is reasonable, and the temporary unit is not
unreasonably impacted by the effects of the construction, taking into consideration
the ages and physical conditions of the members of the displaced household.
4. All other financial benefits and services otherwise required under this chapter are
provided to the residents temporarily displaced from their units, including relocation
to a comparable replacement unit. Residents shall be temporarily relocated to a unit
within the same complex if that unit is in a location generally not less desirable than
the location of the displaced person’s dwelling with respect to public utilities,
services, and the displaced person’s place of employment. 49
VI. [§ 600] RELOCATION PAYMENTS TO DISPLACED RESIDENTS
A. [§ 601] Payments Required
The Displacing Agency shall compensate a displaced resident for the expenses described in
§602 or §603 and in §604 or §614. A displaced resident who lawfully resides on his or her business
property may be eligible for both the payments described in this §600 and the payments to a
displaced business provided under §700. A person who moves from his or her dwelling or who
moves his or her personal property there from because he or she is displaced by the Displacing
Agency from other real property on which he or she conducts a business shall be eligible only for
payments provided for under §602 or §603.
B. [§ 602] Actual Reasonable Moving Expenses
A displaced resident shall be compensated for the actual reasonable expenses incurred in
moving himself or herself and his or her family, including moving personal property. In all cases the
amount of a payment shall not exceed the reasonable cost of accomplishing the activity in
connection with which a claim has been filed. The actual reasonable expenses incurred by the
displaced resident for moving and related expenses shall be compensated by the Displacing Agency
on the basis of the lower of three (3) comparable, competitive bids from professional movers, unless
otherwise waived by the Displacing Agency.
The moving and related expenses for which claims may be filed shall include:
1. Transportation of persons and property not to exceed a distance of fifty (50)
miles from the site from which the resident was displaced, except where the
Displacing Agency determines that relocation beyond such distance of fifty
(50) miles is justified;
2. Packing, crating, unpacking and uncrating personal property;
3. Such storage of personal property, for a period generally not to exceed
twelve (12) months, as determined by the Displacing Agency to be necessary
in connection with relocation;
4. Insurance of personal property while in storage or transit;
5. The reasonable replacement value of property lost, stolen, or damaged (not
through the fault of the displaced resident, his or her agent or employee) in
the process of moving, where insurance covering such loss, theft or damage
is not reasonably available;
6. Cost of disconnecting, disassembling, dismantling, removing, reassembling,
reconnecting and reinstalling machinery, equipment or other personal 50
property not acquired by the Displacing Agency, including connection
charges imposed by public utilities for starting utility service.
The Displacing Agency reserves the right, on a case by case basis, to
authorize the replacement of fixtures and equipment with substitute fixtures
and equipment. Under no circumstances is it the Displacing Agency’s
intention to upgrade and/or substitute fixtures and equipment which have
superior value, usage capacity, or which exceeds the value, usage or quality
of the fixtures and equipment being substituted. The Displacing Agency
reserves the right, on a case by case basis, to authorize substitute fixtures and
equipment when it is deemed cost effective because the actual cost to move
eligible owned fixtures and equipment exceeds the cost to provide
replacement substitute fixtures and equipment. In order to provide a cost
effective, satisfactory substitute replacement item, the Displacing Agency
will consider all relevant criteria necessary to establish a cost effective
substitute valuation. For evaluation purposes, the Displacing Agency may
utilize any appropriate measures, including but not limited to the following:
(1) The purchase of used substitute fixtures and equipment;
(2) The existing value of the fixtures and equipment under consideration
for substitution. This would also allow for a consideration of the
depreciation of such fixtures and equipment identified in the appraisal report.
(3) The Displacing Agency’s agreement to be responsible for a proration
of the cost of replacement equipment when it is deemed that the replacement
items exceed the value or quality of the fixtures and equipment being
replaced.
A person electing to apply for substitute fixtures and equipment shall request
written authorization from the Displacing Agency’s designee prior to
incurring any eligible expenses. Written authorization, if approved, shall
confirm the Displacing Agency’s limitation as to the amount eligible for
substitute fixtures and equipment. In the event substitute fixtures and
equipment are approved, the claimant shall quitclaim any interest in the
fixtures and equipment being substituted, which will remain at the
replacement site and become the possession of the Displacing Agency.
C. [§ 603] Alternate Payments
A displaced resident who is eligible for a payment for actual reasonable moving expenses
may elect to receive, and shall be paid, in lieu of such payment, a moving expense and dislocation
allowance which shall be determined according to a schedule established by the Displacing Agency.
The schedule shall be consistent with the residential moving expense and dislocation allowance
payment schedule established by Part 24 of Title 49 of The Code of Federal Regulations. 51
D. [§ 604] Replacement Housing Payments for Displaced Homeowners
1. [§ 605] Amount of Payment
The Displacing Agency shall make, to a displaced homeowner who meets the eligibility
requirements of §606, a payment not to exceed a combined total of $22,500 for:
a. The amount, if any, which when added to the acquisition cost of the
dwelling acquired for the project equals the reasonable cost of a
comparable replacement dwelling (see §608) . This amount shall not
exceed the difference between the acquisition price of the acquired
dwelling and the actual purchase price of the replacement dwelling;
b. The amount, if any, to compensate the displaced resident for any
increased interest cost he or she is required to pay for financing the
acquisition of a replacement dwelling. The payment shall not be
made unless the dwelling acquired by the Displacing Agency was
encumbered by a bona fide mortgage which was a valid lien on the
dwelling for not less than 180 days prior to the initiation of
negotiations for acquisition of such dwelling. (This time requirement
may be modified in accordance with the provisions of §606b);
c. Reasonable expenses incurred by the displaced resident incident to
the purchase of the replacement dwelling, but not including prepaid
expenses;
d. The cost of rehabilitating a dwelling which does not satisfy the
decent, safe and sanitary standard.
2. [§ 606] Eligibility
A displaced resident is eligible for a replacement housing payment if such person satisfies
the following conditions:
a. Is displaced from a dwelling that is acquired.
b. Has actually owned and occupied the dwelling from which he or she
is displaced as a permanent or customary and usual place of abode for
not less than 180 days prior to the initiation of negotiations for
acquisition of such dwelling. If an owner satisfies all but the 180 day
requirement and can establish to the satisfaction of the Displacing
Agency that he or she bought the dwelling with the intention of
making it his or her place of residence, that the move was not
motivated by a desire to receive relocation assistance and benefits, 52
and that he or she neither knew nor should have known that public
acquisition was intended, the Displacing Agency may reduce the
requirement as necessary.
c. Purchases and occupies a replacement dwelling within one year
subsequent to the later of (i) the date on which he or she received
final payment from the Displacing Agency for all costs of the
acquired dwelling, or (ii) the date the Displacing Agency fulfills its
obligation to make available at least one comparable replacement
dwelling to the Displaced Person. Where for reasons beyond the
control of the displaced resident completion of construction,
rehabilitation, or relocation of a replacement dwelling is delayed
beyond the date by which occupancy is required, the Displacing
Agency shall determine the date of occupancy to be the date the
displaced resident enters into a contract for such construction,
rehabilitation, or relocation or for the purchase, upon completion, of a
dwelling to be constructed or rehabilitated, if, in fact the displaced
resident occupies the replacement dwelling when the construction or
rehabilitation is completed. Where for reasons of hardship or
circumstances beyond the control of the displaced resident, such
person is unable to occupy the replacement dwelling by the required
date, the Displacing Agency may extend the deadline in its sole
discretion. No person otherwise eligible for payment, shall be denied
such eligibility as a result of being unable, because of a major state or
national disaster, to meet the occupancy requirements contained
herein.
3. [§ 607] Computation of Replacement Housing Payment
a. [§ 608] Reasonable Cost of Comparable Replacement Dwelling
In determining the reasonable cost of a comparable replacement dwelling, the Displacing
Agency shall use one of the following methods:
(1) Comparative Method. On a case by case basis by
determining the listing price of dwellings which have been
selected by the Displacing Agency and which are most
representative of the acquired dwelling unit and meet the
definition of a comparable replacement dwelling. Whenever
possible the listing price of at least three dwellings shall be
considered.
(2) Schedule Method. Where the Displacing Agency determines
the comparative method is not feasible, it may establish a
schedule of reasonable acquisition costs for the various types 53
of comparable replacement dwellings. The Displacing
Agency shall cooperate with other entities causing
displacement in the area to establish a uniform schedule. The
schedule shall be based on a current analysis of the market to
determine a reasonable cost for each type of dwelling to be
purchased. In large urban areas, the analysis may be
confined to the sub-area from which persons are displaced or
may cover several different sub-areas; if they satisfy or
exceed the criteria for a comparable replacement dwelling.
To assure the greatest comparability of dwellings in any
analysis, the analysis shall be divided into classifications of
the type of construction, number of bedrooms, and price
ranges.
(3) Alternative Method. Where the Displacing Agency
determines that neither the schedule, nor comparative method
is feasible in a given situation, the Displacing Agency may
use another reasonable method.
Whichever method is selected, the cost shall be updated to within three months of the date of
purchase of the replacement dwelling.
b. [§ 609] Increased Interest Cost
Increased interest cost shall be equal to the discounted present value of the difference
between the aggregate interest applicable to the amount of the principal of the mortgage on the
acquired dwelling over its remaining term at the time of acquisition, and other debt service costs,
and the aggregate interest paid on the mortgage on the replacement dwelling, and other debt service
costs. The term and amount of the mortgage on the replacement dwelling for the purposes of this
section shall be the lesser of the remaining term and amount of the mortgage on the acquired
dwelling, or the actual term and amount of the mortgage on the replacement dwelling. The amount
of the debt service cost with respect to the replacement dwelling shall be the lesser of the debt
service cost based on the cost required for a comparable replacement dwelling, or the debt service
cost based on the actual cost of the replacement dwelling.
Prepaid interest or "points" shall be considered in the determination of the aggregate interest.
In calculating the amount of compensation, increased interest cost shall be reduced to
discounted present value using the prevailing interest rate paid on savings deposits by commercial
banks in the general area in which the replacement dwelling is located.
c. [§ 610] Expense Incidental to the Purchase of the Replacement
Dwelling
54
The replacement housing payment shall include the amount necessary to reimburse the
displaced resident for actual, reasonable costs incurred, incident to the purchase of the replacement
dwelling, including but not limited to the following:
(1) Reasonable legal, closing, and related costs including title
search, preparing conveyance contracts, notary fees, surveys,
preparing drawings or plans, and charges paid incident to
recordation;
(2) Lender, FHA, VA or similar appraisal costs;
(3) FHA, VA, or similar application fee;
(4) Cost for certification of structural soundness;
(5) Credit report charges;
(6) Charge for owner's and mortgagee's evidence or assurance of
title;
(7) Escrow agent's fee;
(8) Sales and transfer taxes.
Payment for any such expenses shall not exceed the amount attributable to the purchase of a
replacement dwelling. Such expenses shall be reasonable and legally required or customary within
the boundaries of the City.
Reimbursement shall not be made under the provisions of this section for any fee, cost,
charge, or expense which is determined to be a part of the debt service or finance charge under Title
I of the Truth in Lending Act and Regulation Z issued pursuant thereto by the Board of Governors
of the Federal Reserve System. Any such sum should be considered in the determination of
increased interest cost.
4. [§ 611] Multi-Family Dwelling
In the case of a displaced homeowner who is required to move from a one-family unit of a
multi-family building which he or she owns, the replacement housing payment shall be based on the
cost of a comparable one-family unit in a multi-family building of approximately the same density or
if that is not available in a building of the next less density, or, if a comparable one-family unit in
such a multi-family building is not available, the cost of any otherwise comparable single-family
structure.
5. [§ 612] Homeowner Retention of Dwelling
If a displaced homeowner elects to retain, move, and occupy his or her dwelling, the amount
payable as the replacement housing payment is the difference between the acquisition price of the
acquired property and the sum of the moving and restoration expenses, the cost of correcting decent,
safe, and sanitary deficiencies, if any, and the actual purchase price of a comparable relocation site.
The payment shall not exceed the amount of the replacement housing payment to which the
homeowner would otherwise be entitled. 55
6. [§ 613] Lease of Condominium
For the purpose of §604 through §612, the leasing of a condominium for a 99-year period, or
for a term which exceeds the life expectancy of the displaced resident as determined by the most
recent life tables in Vital Statistics of the United States, as published by the Public Health Service of
the Department of Health, Education and Welfare or successor acceptable index, shall be deemed a
purchase of the condominium.
E. [§ 614] Replacement Housing Payments for Tenants and Certain Others
1. [§ 615] Amount of Payment
The Displacing Agency shall make, to a displaced tenant who meets the eligibility
requirements of §616, a payment not to exceed $5,250.00 for either:
a. An amount necessary to enable such person to lease or rent a
comparable replacement dwelling for a period not to exceed 42
months; or
b. An amount necessary to enable such person to make a down payment
on the purchase of a decent, safe and sanitary replacement dwelling
(including incidental expenses described in §610).
2. [§ 616] Eligibility
A displaced resident is eligible for a replacement housing payment if such person satisfied
the following conditions:
a. Has actually and lawfully occupied the dwelling from which he or
she is displaced for a period of not less than 90 days prior to the
initiation of negotiations for acquisition of such dwelling. If a
resident satisfies all but the 90-day requirement and can establish to
the satisfaction of the Displacing Agency that he or she occupied the
dwelling with the intention of making it his or her place of residence,
that the move was not motivated by a desire to receive relocation
assistance and benefits, and that he or she neither knew nor should
have known that public acquisition was intended, the Displacing
Agency may reduce the requirements as necessary.
b. Is not eligible to receive a replacement housing payment for
homeowners or elects not to receive such payment. Where the
displaced resident is the owner-occupant of the dwelling for at least
90 days but not more than 180 days immediately prior to the
initiation of negotiations for the acquisition of the dwelling, the 56
payment made under §615b shall not exceed the amount of payment
to which the resident would be entitled under §605.
c. The displaced resident shall within one year from the date of
displacement rent or purchase (as the case may be) and occupy a
replacement dwelling. Where for reasons beyond the control of the
displaced resident, completion of construction, rehabilitation, or
relocation of a replacement dwelling is delayed beyond the date by
which occupancy is required, the Displacing Agency shall determine
the date of occupancy to be the date the displaced resident enters into
a contract for such construction, rehabilitation, or relocation or for
rental or purchase, upon completion, of a dwelling to be constructed
or rehabilitated, if, in fact, the displaced person occupies the
replacement dwelling when the construction or rehabilitation is
completed. Where for reasons of hardship or circumstances beyond
the control of the displaced resident, such person is unable to occupy
the replacement dwelling by the required date; the Displacing
Agency may extend the deadline at its sole discretion. No person
otherwise eligible for payment shall be denied such eligibility as a
result of his or her being unable, because of a major state or national
disaster, to meet the occupancy requirements contained herein.
3. [§ 617] Computation of Replacement Housing Payment
a. [§ 618] Rent Differential Payment
The amount of payment necessary for a displaced resident to lease or rent a comparable
replacement dwelling shall be computed by subtracting forty-two (42) times the base monthly rental
of the displaced resident, from forty-two (42) times the monthly rental for a comparable replacement
dwelling; provided, that in no case may such amount exceed the difference between forty-two (42)
times the base monthly rental and forty-two (42) times the monthly rental actually required for the
replacement dwelling occupied by the displaced resident.
(1) Base Monthly Rental. The base monthly rental shall be the
lesser of:
(a) the average monthly rental paid by displaced resident
for the 3-month period prior to initiation of
negotiations; or
(b) thirty percent (30%) of the displaced resident's
average monthly gross income.
Where the displaced resident was the owner of the dwelling from which he or she was
displaced or was not required to pay rent for that dwelling, or where the rental is unrealistically low, 57
the economic rent shall be used in lieu of the average monthly rental to calculate base monthly
rental.
(2) Rental for Comparable Replacement Dwelling. The monthly
rental for a comparable replacement dwelling shall be
determined by the Displacing Agency using one of the
following methods:
(a) Comparative Method. On a case by case basis by
determining the listing rental of dwellings which are
most representative of the acquired dwelling and meet
the definition of a comparable replacement dwelling.
Whenever possible the listing rental of at least three
dwellings shall be considered.
(b) Schedule Method. Where the Displacing Agency
determines the comparative method is not feasible, it
may establish a schedule of reasonable rental charges
for the various types of comparable replacement
dwellings. The Displacing Agency shall cooperate
with other entities causing displacement in the area to
establish a uniform schedule. The schedule shall be
based on a current analysis of the market to determine
a reasonable rental charge for each type of dwelling to
be rented. The analysis may be confined to other
sub-areas from which the persons are displaced or
may cover several different sub-areas if they satisfy or
exceed the criteria for a comparable replacement
dwelling. To assure the greatest comparability of
dwellings in any analysis, the analysis shall be
divided into classifications of the type of construction,
number of bedrooms, and range of rental charges.
(c) Alternative Method. Where the Displacing Agency
determines that neither the schedule, nor comparable
method is feasible in a given situation, the Displacing
Agency may use another reasonable method.
Whichever method is selected the cost shall be
updated to within three (3) months of the date of
rental of the replacement dwelling.
In calculating the base monthly rental and the rental
for a comparable replacement dwelling the Displacing
Agency will include as a component of rent the cost 58
or estimated cost of utilities, but not including
telephone service.
b. [§ 619] Downpayment
The downpayment, for which a payment specified in §615b may be made, shall not exceed
the amount of a reasonable downpayment for the purchase of a comparable replacement dwelling
where such purchase is financed, plus expenses incident to the purchase of a replacement dwelling
computed in accordance with §610. The full amount of a downpayment shall be applied to the
purchase of the replacement dwelling and shall be shown on the closing statement or other document
acceptable to the Displacing Agency.
4. [§ 620] Rental Payments for Displaced Homeowners and Dependents
a. [§ 621] Homeowners
A displaced homeowner who elects to rent rather than purchase a replacement dwelling and
who meets the eligibility requirements of §616 is eligible for the rent differential payment specified
in §618.
b. [§ 622] Dependents
A dependent who is residing separate and apart from the person or family providing support,
whether such separate residence is permanent or temporary, shall be entitled to payment under §614,
but such payment shall be limited to the period during which the displaced dependent resides in the
replacement dwelling. For the purposes of this section, "dependent" shall be a person who derives
fifty-one percent (51%) or more of his or her income in the form of gifts, from any private person or
any academic scholarship or stipend. Full time students shall be presumed to be dependents but this
presumption may be rebutted by demonstrating that fifty percent (50%) or more of their income is
derived from sources other than gifts from another private person or academic scholarship or
stipends.
Dependents residing with the family of which they are a part shall not be entitled to any
payment except as a part of the family.
F. [§ 623] Payments to Residents Displaced from Manufactured Homes and Mobile
Homes
1. [§ 624] Payments Required
The eligibility requirements and payment provisions of §600 through §619 are applicable to
displaced residents who are owners or tenants of manufactured homes and mobile homes.
59
2. [§ 625] Moving Expenses: Retention and Move of Manufactured Home or
Mobile Home
If a manufactured home or mobile home is moved to another site and the displaced resident
elects to be compensated for actual reasonable moving expenses (and not an alternate payment
pursuant to §603), then the displaced resident shall be paid an amount for moving expenses
determined in accordance with the applicable provisions of §703, Actual Reasonable Moving
Expenses for a displaced business.
3. [§ 626] Replacement Housing Payments
The Displacing Agency shall make a replacement housing payment to a displaced resident
who is displaced from his or her manufactured home and mobile home in the following situations:
a. A resident who owns a manufactured home or mobile home and site
and as a replacement, purchases both a dwelling and site shall be
provided a payment in accordance with §604. A resident, who owns
a manufactured home or mobile home and site and, as a replacement,
rents both a dwelling and site, shall be provided a payment in
accordance with §614.
b. A resident who rents a manufactured home or mobile home and site
and, as a replacement, rents or purchases a dwelling and site, shall be
provided a payment in accordance with §614.
c. A resident who owns a manufactured home or mobile home and site,
and, as a replacement, purchases a dwelling and rents a site, shall be
provided a payment in accordance with §604 and §614. The payment
shall be limited to the lesser of:
(1) The amount necessary to purchase a conventional comparable
replacement dwelling; or
(2) The amount necessary to purchase a replacement
manufactured home or mobile home (in accordance with
§604) plus the amount necessary to rent a replacement site (in
accordance with §614). In calculating this amount, the
economic rent for the site shall be used in lieu of average
monthly rental to determine base monthly rent.
d. A resident who owns a site from which he or she moves a
manufactured home and mobile home shall be provided a payment
under §604 if he or she purchases a replacement site and under §614
if he or she rents a replacement site.
60
e. A resident who owns a manufactured home or mobile home which is
acquired and rents the site shall be provided payment as follows:
(1) If a manufactured home or mobile home is not available the
amount required to purchase a conventional replacement
dwelling (in accordance with §604);
(2) The amount necessary to purchase a replacement
manufactured home or mobile home (in accordance with
§604) plus the amount necessary to lease, rent or make a
down payment on a replacement site (in accordance with
§614); or
(3) If he or she elects to rent a replacement manufactured home
or mobile home and site, the amount required to do so in
accordance with §614. In calculating this payment, the
average monthly rental shall equal the economic rent for the
manufactured home or mobile home plus the actual rent for
the site.
f. Similar principles shall be applied to other possible combinations of
ownership and tenancy upon which a claim for payment might be
based.
G. [§ 627] Proration of Payments
For the purpose of calculating an alternate payment under §603, or a replacement housing
payment under §604 or §614, two or more individuals (whether they are members of one family or
not) living together in, and displaced from, a single dwelling shall be regarded as one displaced
resident. If two or more such individuals submit more than one claim, an eligible claimant for a
payment may be paid only his or her reasonable pro rata share (as determined by the Displacing
Agency) of the total payment applicable to a single displaced resident. The total of the payments
made to all such claimants moving from the dwelling unit shall not exceed the total payment allowed
to be made to a single displaced resident.
Where a tenant is sharing a single-family dwelling with an owner-occupant, the tenant shall
not be entitled to more than one-half of the rental assistance payment otherwise payable. The
owner-occupant shall not be required to share the replacement housing payment to which he or she
is entitled or to accept a prorated amount.
H. [§ 628] Payment after Death
A replacement housing payment is personal to the displaced person and upon his or her death
the undistributed portion of any such payment shall not be paid to his or her heirs or assigns, except
that: 61
1. The cost attributable to the displaced person's actual occupancy of the
replacement housing shall be paid;
2. The full payment shall be disbursed in any case in which a member of a
displaced family dies and the other family members continues to occupy the
replacement dwelling selected in accordance with the regulations in this part;
and
3. That portion of a replacement housing payment necessary to satisfy the legal
obligation of an estate in connection with the selection of a dwelling by or on
behalf of a deceased person shall be disbursed to the estate.
I. [§ 629] Hardship Moves
The Agency may make all or part of the payments prescribed in these Rules and Regulations,
and may provide advisory assistance under these Rules and Regulations, to a person who moves
from a dwelling as a result of the pending acquisition by the Agency of the real property from
which he/she moves, but who is not otherwise a displaced person hereunder, as necessary to
alleviate hardship to such person. 62
VII. [§ 700] RELOCATION PAYMENTS TO DISPLACED BUSINESSES
A. [§ 701] Payments Required
The Displacing Agency shall compensate the owner of a displaced business for the expenses
described in §702 through §706 or §707 through §713. Whenever the acquisition of real property
used for a business causes the business to move from other real property upon which the same
business is conducted, or to move its personal property there from, such business shall receive
payments for moving and related expenses under §702 and §703 in connection with its move from
such other real property.
B. [§ 702] Moving Expenses
1. [§ 703] Actual Reasonable Moving Expenses
A displaced business shall be compensated for the actual reasonable expenses incurred for
moving the business including moving personal property. In all cases the amount of payment shall
not exceed the reasonable cost of accomplishing the activity in connection with which a claim has
been filed.
The moving and related expenses for which claims may be filed shall include:
a. Transportation of persons and property not to exceed a distance of
fifty (50) miles from the site from which the business was displaced,
except where the Displacing Agency determines that relocation
beyond such distance of fifty (50) miles is justified;
b. Packing, crating, unpacking, and uncrating personal property;
c. Such storage of personal property for a period generally not to exceed
twelve (12) months, as determined by the Displacing Agency to be
necessary in connection with relocation;
d. Insurance of personal property while in storage or transit;
e. The reasonable replacement value of property lost, stolen, or
damaged (not through the fault or negligence of the displaced
business, its agents or employee) in the process of moving, where
insurance covering such loss, theft, or damage is not reasonably
available;
f. The cost directly related to displacement of modifying the machinery,
equipment, or other personal property to adapt it to the replacement
location or to utilities available at the replacement location or
modifying the power supply. 63
Claims for payment under this subsection shall be subject to the
following limitations:
(1) Reimbursement costs shall be reasonable in amount.
(2) The cost could not be avoided or substantially reduced at an
alternate available and suitable site to which the business was
referred.
g. The cost of any license, permit, or certification required by a
displaced business concern to the extent such cost is necessary to the
reestablishment of its operation at a new location;
h. The reasonable cost of consultants including: architects, engineers,
or others provide general or specialized services necessary for (i)
planning the move of the personal property, or (ii) moving the
personal property, or (iii) installing the relocated personal property at
the replacement location. For purposes of this paragraph, and in
order to avoid duplication of payment, all such services shall not be
deemed "necessary" when the services have been or will be provided
by the Displacing Agency or consultants retained by the Displacing
Agency. The necessity of other services not provided by the
Displacing Agency shall be determined by the Displacing Agency.
Payment for all of the above necessary services must be approved in
writing by the Displacing Agency prior to their use. Information on
the area of expertise and the qualifications of such persons must be
provided for review and a reasonable hourly rate or fee must be
approved by the Displacing Agency before any costs are incurred,
otherwise, such services are not reimbursable. An itemized statement
of all services shall be provided to the Displacing Agency stating the
dates of such services; the location where services were provided; the
name, address and telephone of person or firm providing services.
i. Where an item of personal property which is used in connection with
any business is not moved but is replaced with a comparable item,
reimbursement in an amount not to exceed the lesser of:
(1) The reasonable replacement cost of the personal property,
minus net proceeds (if any) realized from the sale of all or
part of the property,
(2) The estimated reasonable cost of moving the personal
property, as determined by the Displacing Agency.
64
In order to obtain a payment under this paragraph, the displaced
business shall make a bona fide effort to sell the personal property for
which the payment is claimed at the highest price offered after
reasonable efforts have been made over a reasonable period of time to
interested prospective purchasers. The displaced business shall be
reimbursed for the reasonable costs of such effort to sell the tangible
personal property.
j. Where, in the judgment of the Displacing Agency, the cost of moving
any item of personal property of low value and high bulk which is
used in connection with any business would be disproportionate in
relation to its value, the allowable reimbursement for the expense of
moving such property shall not exceed the difference between the
cost of replacing the same with a comparable item available on the
market and the amount which would have been received for such
property on liquidation. This provision may, in appropriate
situations, be applied to claims involving the moving of junk yards,
stockpiles, sand, gravel, minerals, metals, and similar property.
k. A displaced business which conducts a lawful activity primarily for
assisting in the purchase, sale, resale, manufacture, processing, or
marketing of products, commodities, personal property, or services
by the erection and maintenance of outdoor advertising displays is
entitled to payment for the reasonable cost of moving such displays
or their in-place value, whichever is less.
2. [§ 704] Actual Direct Loss of Tangible Personal Property
A displaced business shall be compensated for the actual direct loss of tangible personal
property of the displaced business or farm operation attributable to moving or discontinuing such
business. The total amount of the payment by the Displacing Agency for such loss shall not exceed
an amount equal to the estimated, reasonable cost of moving the personal property, as determined by
the Displacing Agency. Subject to such limitation, the actual direct loss of personal property for
which claims may be filed shall be determined by appraising either:
a. The in-use value (fair market value of the personal property for
continued use at its location prior to displacement) minus net
proceeds realized from the sale of all or part of the property; or
b. The estimated reasonable costs of relocating the property.
The actual direct loss of personal property shall be computed and based on an appraisal
obtained by either the Displacing Agency or the displaced business, and approved by the Displacing
Agency.
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In order to obtain a payment for the actual direct loss of personal property, the displaced
business shall make a bona fide effort to sell the personal property for which the loss is claimed at
the highest price offered after reasonable efforts have been made over a reasonable period of time to
interested prospective purchasers. The reasonable cost of an effort to sell the personal property shall
be added to the determination of loss under this section.
In the event personal property which is sold or abandoned is promptly replaced with a
comparable item, no payment for the actual direct loss of such personal property shall be made to the
displaced business by the Displacing Agency; instead, the displaced business shall be paid the
amount specified in §703j.
3. [§ 705] Actual Reasonable Expenses in Searching for a Replacement Business
Actual Reasonable Expenses incurred in searching for a replacement business site which may
include: transportation within a radius of fifty (50) miles from the boundaries of the City, meals and
lodging if necessary, an amount to cover time spent during normal working hours and proven
reasonable fees paid to a real estate broker or agent to locate to a new site. The maximum total
amount of reimbursement for searching expenses for a new location is One Thousand and No/100
($1,000.00) Receipted invoices, bills, receipts, and a completed Displacing Agency Searching Cost
Form must be certified and submitted for all expenses claimed. Costs incurred in inspecting sites
beyond a fifty (50) mile radius are not eligible.
C. [§ 706] Actual Reasonable Expenses To Reestablish A Small Business or Nonprofit
Organization
1. [§ 707] Eligible Reestablishment Expenses
In addition to moving expense payments, a farm, nonprofit organization or small business
shall be entitled to actual and reasonable reestablishment expenses, not to exceed $10,000.00.
Reestablishment expenses shall be only those expenses that are reasonable and necessary and
include, but are not limited to:
a. Repairs or improvements to the replacement property as required by
federal, state or local law, code or ordinance.
b. Modifications to the replacement property to accommodate the
business operation or make replacement structures suitable for
conducting the business.
c. Construction and installation costs for exterior signing to advertise
the business.
d. Provision of utilities from right-of-way to improvements on the
replacement site.
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e. Redecoration or replacement of soiled or worn surfaces at the
replacement site, such as paint, paneling or carpeting.
f. Licenses, fees and permits when not paid as part of moving expenses.
g. Feasibility surveys, soil testing and marketing studies.
h. Advertisement of replacement location.
i. Professional services in connection with the purchase or lease of a
replacement site.
j. Estimated increased costs of operation during the first 2 years at the
replacement site for such items as:
(1) Lease or rental charges,
(2) Personal or real property taxes,
(3) Insurance premiums, and
(4) Utility charges, excluding impact fees.
k. Impact fees or one-time assessments for anticipated heavy usage.
l. Other items essential to the reestablishment of the business.
2. [§ 708] Ineligible Reestablishment Expenses
The following is a nonexclusive listing of reestablishment expenditures not considered to be
reasonable, necessary, or otherwise eligible:
a. Purchase of capital assets, such as, office furniture,, machinery, or
trade fixtures.
b. Purchase of manufacturing materials, production supplies, product
inventory, or other items used in the normal course of the business
operation.
c. Interior or exterior refurbishment at the replacement site which are
for aesthetic purposes, except as provided in §706 1.e., above.
d. Interest on money borrowed for move or purchase of replacement
property.
e. Payment to a part-time business in the home which does not
contribute materially to the household income.
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D. [§ 709] Alternate Payment
1. [§ 710] Determination of Payments
a. [§ 711] Amount of Payment
A displaced business which moves or discontinues, and which meets the eligibility
requirements of §711, may elect to receive and shall be paid, in lieu of the payments for which it is
otherwise entitled under §702, a payment equal to the average annual net earnings of the business,
except that such payment shall not be less than one thousand dollars ($1,000.00) or more than
twenty thousand dollars ($20,000.00). Said dollar limitation shall apply to a single business
regardless of whether it is carried on under one or more legal entities. In regard to an outdoor
advertising display, payment pursuant to this Section shall be limited to the lesser of the amount
necessary to physically move or replace that display.
b. [§ 712] Determination of Number of Businesses
In determining whether one or more legal entities, all of which have been acquired, constitute
a single business, the following factors among others, shall be considered:
(1) The extent to which the same premises and equipment are
shared;
(2) The extent to which substantially identical or intimately
interrelated business functions are pursued and business and
financial affairs are commingled;
(3) The extent to which such entities are held out to the public,
and to those customarily dealing with such entities, as one
business;
(4) The extent to which the same person or closely related
persons owns, control, or manage the affairs of the entities.
2. [§ 713] Eligibility
a. [§ 714] Business
A displaced business is eligible for the payment provided for in §707 only if the Displacing
Agency determines that:
(1) The business is not operated solely for rental purposes and
cannot be relocated without a substantial loss of its existing
patronage, based on a consideration of all pertinent
circumstances including such factors as the type of business
conducted, the nature of the clientele, the relative importance 68
to the displaced business of its present and proposed location,
and the availability of a suitable relocation site;
(2) The business is not part of a commercial enterprise having
more than three (3) other establishments which are not being
acquired for a project and which is engaged in the same or
similar business. Whenever the sole remaining facility of a
business has been displaced from its principal location:
(a) Has been in operation for less than two years;
(b) Has had average annual gross receipts of less than
$2,000.00 during the two taxable years prior to
displacement of the major component of the business;
or
(c) Has had average annual net earnings of less than
$1,000.00 during the two taxable years prior to
displacement of the major component of the business,
the remaining facility will not be considered another
”establishment” for purposed of this section; and
(3) The displaced business:
(a) Has average annual gross receipts of at least
$5,000.00 during the two taxable years prior to
displacement; or
(b) The displaced business had average annual net
earnings of a least $1,000.00 during the two taxable
years prior to displacement; or
(c) The displaced business contributed at least 331/3
percent of the total gross income of the owner(s)
during each of the two taxable years prior to
displacement. If in any case, the Displacing Agency
determines that the two year period prior to
displacement is not representative of average receipts,
earnings or income, the Displacing Agency may make
use of a more representative period.
(d) If application of the above criteria creates an inequity
or hardship, the Displacing Agency may use other
criteria as permitted in 49 CFR 24.306.
b. [§ 715] Nonprofit Organizations
For purposes of applying §707 to nonprofit organizations, no payment shall be made unless
the Displacing Agency determines that:
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a. The nonprofit organization cannot be relocated without a
substantial loss of its existing patronage (the term ”existing
patronage” as used in connection with a nonprofit
organization includes the membership, persons, community,
or clientele served by the activities of the nonprofit
organization); and
b. The nonprofit organization is not a part of an enterprise
having more than three (3) other establishments not being
acquired which is engaged in the same or similar activity.
3. [§ 716] Loss of Goodwill
When payment under this section will precede settlement of a claim for compensation for
loss of goodwill under the Eminent Domain Law, the Displacing Agency, before tendering payment,
shall state in writing what portion of the payment, if any, is considered to be compensation for loss
of goodwill and shall explain in writing that any payment made pursuant to Code of Civil
Procedures 1263.510 et seq., (the Eminent Domain Law, Chapter 9, Article 6 – ”Compensation of
Loss of Goodwill”) will be reduced in the same amount. The portion considered to be compensation
for loss of goodwill shall not exceed the difference between the payment made under this section
and an amount which reasonably approximates the payments for which the displaced person
otherwise would be eligible to receive under §703 through §706. Failure to provide such written
statement and explanation shall constitute a conclusive indication that no portion of the payment is
considered to be compensation for loss of goodwill for the purposes of that portion of the Code of
Civil Procedure referenced above.
4. [§717] Hardship Moves
The Displacing Agency may make all or part of the payments prescribed in these Rules and
Regulations, and may provide advisory assistance under these Rules and Regulations, to a person
who moves or discontinues his or her business, as a result of the pending acquisition by the
Displacing Agency of the real property from which he/she moves, but who is not otherwise a
displaced person hereunder, as necessary to alleviate hardship to such person. 70
VIII. [§ 800] CITIZEN PARTICIPATION
A. [§ 801] General Requirements
The Displacing Agency shall assure the following:
1. Timely and full access to all documents relevant to the relocation program.
The Displacing Agency may reasonably restrict access to material where its
confidentiality is protected by law or its disclosure is prohibited by law.
The Displacing Agency shall ensure that the information in documents, the
provision of which would result in disclosure of the identity of eligible
persons, is provided in a manner designed to avoid such disclosure. This
obligation to avoid improper disclosure shall not affect the right of the person
to which the information relates, or any other person authorized in writing by
such person, to inspect such documents.
2. The provision of technical assistance necessary to interpret elements of the
relocation plan and other pertinent materials.
3. The right to submit written or oral comments and objections, including the
right to submit written comments on the relocation plan and to have these
comments attached to any Relocation Plan when it is forwarded to the City
Council. (See §319 et. seq.)
4. Prompt, written responses to any written objections or criticisms.
B. [§ 802] Relocation Committee
When a substantial number of persons will be displaced from their dwellings, the Displacing
Agency shall encourage the residents and community organizations in the displacement area to form
a relocation committee. The committee shall include, when applicable, residential owner occupants,
residential tenants, business people, and members of existing organizations within the area. In lieu
of initiating a new process of citizen participation, public entities which have conducted or are
conducting a citizen participation process, such as a project area committee or similar entity, as part
of an existing development program may substitute such process if it satisfied the requirements of
this section.
If a substantial number of persons will not be displaced from their dwellings, the Displacing
Agency shall at least consult with and obtain the advice of residents and community organizations
and make the relocation plan available to such persons and organizations prior to submitting it to the
legislative body for approval.
C. [§ 803] Replacement Housing Committee
The Displacing Agency shall establish a Replacement Housing Committee when required as
described in §409. 71
IX. [§ 900] CLAIM AND PAYMENT PROCEDURES; TERMINATION OF RELOCATION
ASSISTANCE
A. [§ 901] Filing of Claims
All claims for relocation assistance and payments filed with the Displacing Agency shall be
submitted within eighteen (18) months of the date on which the claimant receives final payment for
the property or the date on which claimant moves, whichever is later. The Displacing Agency may,
in its sole discretion, extend this period upon a proper showing of good cause.
B. [§ 902] Documentation in Support of Claim
1. [§ 903] Moving Expenses
a. [§ 904] Commercial Moves
Except in the case of a displaced resident or displaced business electing to ”self move”, a
claim for payment of actual reasonable moving expenses shall be supported by a bill or other
evidence of expenses incurred.
Each claim in excess of one thousand dollars ($1,000) for the costs incurred by a displaced
business in moving the business operation shall be supported by at least three (3) competitive bids.
If the Displacing Agency determines that compliance with the bid requirement is impractical, or if
estimates in an amount less than one thousand dollars ($1,000) are obtained, a claim may be
supported by estimates in lieu of bids.
b. [§ 905] Self-Moves
Approval of a self-move shall be conditioned upon whether the displaced business has a
permanent replacement site to move to. If so, the Displacing Agency may, at its sole discretion,
approve a payment for moving expenses, in an amount not to exceed the lowest acceptable bid or
estimate obtained by the Displacing Agency. A self-move to storage may be approved by the
Displacing Agency at its sole discretion.
c. [§ 906] Exemption from Public Utilities Commission Regulations
Whenever the Displacing Agency must pay the actual cost of moving a displaced person or
business, the costs of such move shall be exempt from regulation by the Public Utilities
Commission. The Displacing Agency may solicit competitive bids from qualified bidders for
performance of the work. Bids submitted in response to such solicitations shall be exempt from
regulation by the Public Utilities Commission. 72
2. [§ 907] Loss of Property
A claim by a displaced business for payment for the actual direct loss of tangible personal
property pursuant to §704 shall be supported by written evidence of loss which may include
appraisals, certified prices, bills of sale, receipts, canceled checks, copies of advertisements, offers to
sell, auction records, and other records appropriate to support the claim or the Displacing Agency
may agree as to the value of the property left in place.
3. [§ 908] Proof of Earnings
If a displaced business elects to receive an alternate payment pursuant to §707 of these Rules
and Regulations, the business shall provide proof of its earnings to the Displacing Agency. Proof of
earnings for the last five (5) business years may be established by income tax returns, financial
statements and accounting records or similar evidence acceptable to the Displacing Agency.
C. [§ 909] Payment of Moving Expenses
1. [§ 910] Advance Payment
An eligible displaced resident or displaced business may be paid for his or her anticipated
moving expenses in advance of the actual move. The Displacing Agency shall provide advance
payment whenever later payment would result in financial hardship. Particular consideration shall be
given to the financial limitations and difficulties experienced by low and moderate income residents
and small farm and business operations.
2. [§ 911] Direct Payment
By prearrangement between the Displacing Agency, the displaced resident or displaced
business, and the mover, evidenced in writing, the claimant or the mover may present an unpaid
moving bill to the Displacing Agency, and the Displacing Agency may pay the mover directly.
3. [§ 912] Methods Not Exclusive
The specific provisions of these Rules and Regulations are not intended to preclude the
Displacing Agency’s reliance upon other reasonable means of effecting a move, including
contracting moves and arranging for assignment of moving expense payments by displaced persons.
D. [§ 913] Payments for Replacement Dwellings
1. [§ 914] Payment for Purchase of Comparable Replacement Dwelling
a. [§ 915] Disbursement
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When the Displacing Agency has determined the amount of the payment for purchase of a
comparable replacement dwelling to which the displaced resident is entitled and has verified that the
displaced resident occupies a comparable replacement dwelling, payment shall be made to the
displaced resident.
b. [§ 916] Provisional Payment Pending Condemnation
If the exact amount of a replacement housing payment cannot be determined because of a
pending condemnation suit, the Displacing Agency may, at the Displacing Agency’s sole discretion,
make a provisional replacement housing payment to the displaced homeowner equal to the
difference between the Displacing Agency’s maximum offer for the property and the reasonable cost
of a comparable replacement dwelling, but only if the homeowner enters into an agreement that upon
final adjudication of the condemnation suit the replacement housing payment will be recomputed on
the basis of the acquisition price determined by the court. If the acquisition price as determined by
the court is greater than the maximum offer upon which the provisional replacement housing
payment is based, the difference shall be refunded by the homeowner to the Displacing Agency. If
the acquisition price as determined by the court is less than the maximum offer upon which the
provisional replacement housing payment is based, the difference shall be paid to the homeowner.
An agreement shall be entered into between the Displacing Agency and the displaced homeowner
setting forth terms and conditions for payment and refund of such amounts.
c. [§ 917] Certificate of Eligibility
Upon request by a displaced homeowner or tenant who has not yet purchased and occupied a
comparable replacement dwelling, but who is otherwise eligible for a replacement housing payment,
the Displacing Agency shall certify to any interested party, financial institution or lending agency,
that the displaced homeowner or tenant will be eligible for the payment of a specific sum if he or she
purchases and occupies a dwelling within the time limits prescribed.
2. [§ 918] Rent Differential Payments
When the Displacing Agency has determined the amount of the rent differential payment to
which the displaced resident is entitled and has verified that the displaced resident occupies a
comparable replacement dwelling, payment shall be made in a lump sum to the displaced resident
unless the payment is, as determined by the Displacing Agency in its sole discretion, in excess of the
maximum amount set forth in §615, in which case payments may be made in periodic installments.
E. [§ 919] Assistance Payments – Persons Moving Without Notice
If the Displacing Agency fails to inform any eligible displaced Person of the relocation
payments and assistance that may be made available by the Displacing Agency in a timely and
effective manner, the Agency shall make every reasonable effort to identify and locate such person
who has moved. Eligible displaced Persons who move without offers of assistance and benefits,
after the Displacing Agency was required to offer assistance and benefits, shall be provided all such
assistance and payments for which they otherwise qualify. When appropriate, the Displacing 74
Agency shall also compensate such persons for additional costs incurred as a result of the Displacing
Agency’s failure to provide timely notice and offers of relocation assistance and benefits.
F. [§ 920] Termination of Relocation Assistance
The Displacing Agency’s relocation obligations cease under the following circumstances:
1. A displaced resident moves to a comparable replacement dwelling and
receives all assistance and payments to which he or she is entitled;
2. The displaced resident moves to substandard housing and refuses reasonable
offers of additional assistance in moving to a decent, safe and sanitary
replacement dwelling and receives all payments to which he or she is
entitled;
3. All reasonable efforts to trace a person have failed;
4. The business concern or farm operation has received all assistance and
payments to which it is entitled and has been successfully relocated or has
ceased operations;
5. A person displaced from his or her dwelling, business or farm operation
refuses reasonable offers of assistance, payments and comparable
replacement dwellings.
The Displacing Agency determines a relocatee is not a Displaced Person or is
otherwise not entitled to relocation assistance. 75
X. [§ 1000] GRIEVANCE PROCEDURES
A. [§ 1001] Purpose
The purpose of the Grievance Procedures is to attempt to resolve disputes between the
claimant and the Displacing Agency at the lowest possible administrative level while affording the
claimant an opportunity to have a full and fair review of his or her case. Therefore, all relevant
evidence should be presented at the lowest level of these proceedings. In any case where such
evidence could have been presented at a lower level and the claimant failed to do so, the Relocation
Appeals Board may refer the matter back to the lower level for consideration and determination prior
to their considering such evidence.
B. [§ 1002] Right of Review
Any displaced person who is not satisfied with a determination as to eligibility, amount of
payment, and failure by the Displacing Agency to provide comparable permanent or adequate
temporary replacement housing or the Displacing Agency’s property management practices, or not
properly applying appropriate regulations, at his or her election may have his or her claim reviewed
and reconsidered in accordance with the following procedures.
C. [§ 1003] Request for Further Written Information
A claimant shall first request the Displacing Agency’s designated representative to provide
him with a full written explanation of the determination and the basis therefore, which explanation
shall be provided to the claimant within three weeks from the date of receipt of the request. This
request must be made within the same 18 month period described in §1009.
If the Displacing Agency denies or refuses to consider a claim, the Displacing Agency’s
notification to the claimant of its determination shall inform the claimant of its reasons and the
applicable procedures for obtaining review of the decision. If necessary to provide the information
in the language most easily understood by the recipient, such notification shall be printed in a
language other than English.
D. [§ 1004] Informal Oral Presentation
If the claimant feels that the written explanation is incorrect or inadequate, he or she may
request an informal hearing with the Community Development Director (Director). All such
requests shall be in writing and shall be accompanied by a relocation complaint form (in substantial
form similar to Exhibit “B”) if required by the Displacing Agency. The request for an informal
hearing must be submitted to the Director within the same 18 month period described in §1009.
Within fifteen (15) days from the date of receipt of claimant's written request, including a
relocation complaint form (incorporated as Exhibit “B”), claimant shall be afforded an opportunity
to make an oral presentation to the Director to enable the claimant to discuss the claim with the 76
Director. The claimant may be represented by an attorney or other person of his or her choosing at
the oral hearing (at the cost of the claimant).
The Director shall prepare a summary of the matters discussed and determinations made
during the informal oral hearing, place a copy of the summary in claimant’s file, and serve a copy
thereof upon the claimant.
E. [§ 1005] Written Request for Review and Reconsideration
At any time within the period described in §1009 a claimant may file a written request for
formal review and reconsideration. The claimant may include in the request for review any
statement of fact within the claimant’s knowledge or belief or other material which may have a
bearing on the appeal. If the claimant requests more time to gather and prepare additional material
for consideration or review and demonstrates a reasonable basis therefor, the claimant’s request shall
be granted.
F. [§ 1006] Formal Review and Reconsideration by Director
1. The Director shall consider the request for review and shall decide whether a
modification of the initial determinations necessary. The Director shall have
the authority to revise the initial determination or the determination of a
previous oral presentation. The Director shall consider every aggrieved
person’s complaint regardless of form, and shall if necessary provide
assistance to the claimant in preparing the written claim. When a claimant
seeks review, the Director shall inform claimant he or she has the right to be
represented by an attorney, to present his or her case by oral or documentary
evidence, to submit rebuttal evidence, and to conduct such cross-
examination, as may be required, for a full and true disclosure of facts, and to
seek judicial review once claimant has exhausted administrative appeal.
2. The Director shall review and consider the initial determination of the
claimant’s case in light of:
a. All material upon which the Displacing Agency based its original
determination including all applicable rules and regulations, except
that no evidence shall be relied upon where a claimant has been
improperly denied an opportunity to controvert the evidence or cross-
examine the witness.
b. The reasons given by the claimant for requesting review and
reconsideration of his or her claim.
c. Any additional written or relevant documentary material submitted
by the claimant.
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d. Any further information which the Director may, in his or her
discretion, obtain by request, investigation or research, to insure fair
and full review of the claim.
3. The determination on review by the Director shall include, but is not limited
to:
a. The Director's decision on reconsideration of the claim.
b. The factual and legal basis upon which the decision is based,
including any pertinent explanation or rationale.
c. A statement of claimant's right to seek further review of his or her
claim by the Relocation Appeals Board and an explanation of the
steps the claimant must take to obtain this review.
The Director shall issue his or her determination of review as soon as possible but no
later than forty-five (45) days from receipt of the last material submitted for consideration by the
claimant or the date of the hearing, whichever is later.
In case of complaints dismissed for untimeliness or for any other reason not based on
the merits of the claim, the Director shall furnish a written statement to claimant stating the reason
for the dismissal of the claim as soon as possible but not later than fifteen (15) days from receipt of
the last material submitted by the claimant or the date of the hearing, whichever is later.
G. [§ 1007] Appeals Board Review
If the claimant feels that the Director's determination following the informal oral hearing or
written review by the Director is incorrect or inadequate, he or she may request a formal hearing
before a Relocation Appeals Board.
To obtain a formal hearing before a Relocation Appeals Board the claimant must request in
writing that the Director schedule such a hearing. Such request shall be made within the period
described in §1009.
1. Within fifteen (15) days from the date of receipt of claimant’s written
request, he or she will be notified of the formal hearing date. If the claimant
requests additional time to prepare material for consideration and shows good
cause therefor, the hearing date shall be continued to another date.
2. The Relocation Appeals Board shall have the authority to revise the prior
determination of the Director.
3. The Relocation Appeals Board shall, at the time it gives notice of the formal
hearing date, notify the claimant that he or she has the right to be represented 78
by an attorney or others at his or her own expense, to present his or her case
by oral or documentary evidence; the right to submit oral or documentary
evidence; the right to submit rebuttal evidence to conduct such cross
examination as may be required for a full and true disclosure of facts; and the
right to seek judicial review once claimant has exhausted administrative
appeal.
4. The Relocation Appeals Board shall review the initial determination or the
determination made at an informal hearing taking into consideration all
material upon which the challenged determination was made, all applicable
rules and regulations, the reasons given by the claimant for requesting
review, any additional relevant evidence, oral or documentary, submitted by
either the claimant or the Displacing Agency’s representatives. No evidence
may be relied upon by the Relocation Appeals Board where the claimant has
been improperly denied an opportunity to rebut evidence or cross-examine a
witness.
5. The Relocation Appeals Board shall make its recommendation within six
weeks from the date on which the formal hearing is concluded or the date of
receipt of the last material submitted, whichever is later.
6. The Relocation Appeals Board's recommendation shall be made in writing
and shall contain its recommendation, the factual and legal basis upon which
the recommendation is made and a statement informing the claimant of his or
her right to seek judicial review.
7. The claimant and the Displacing Agency’s governing body shall be promptly
served with a copy of the Relocation Appeals Board's recommendation.
H. [§ 1008] Determination by City Council or Agency Board
Upon reviewing the recommendation of the Relocation Appeals Board, the Director shall
refer the recommendation to the City Council or Agency Board, as applicable, at its next regular
meeting and the City Council or Agency Board shall thereupon fix a time for considering the matter,
which time shall be not less than thirty (30) days from the time the recommendation is delivered to
the City Council or Agency Board by the Director.
On the date thus fixed, or on the date to which the matter shall have been continued, the City
Council or Agency Board shall proceed to consider the recommendation of the Relocation Appeals
Board and shall make and enter on its minutes its final determination therein, which may confirm,
modify, or set aside the findings of the Relocation Appeals Board. The City Council’s or Agency
Board’s determination in the matter shall be final and conclusive. The Displacing Agency shall
provide a written determination to the claimant.
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The claimant shall be deemed to have exhausted his/her administrative remedies upon the
Displacing Agency taking action upon his/her appeal or the failure of the claimant to timely pursue
its rights hereunder.
I. [§ 1009] Time Limits
A claimant desiring either an informal oral presentation or seeking a formal review and
reconsideration, including seeking the review of the Relocation Appeals Board, shall make a request
within eighteen (18) months following the later of (i) the date he/she moves from the property or (ii)
the date he/she receives final compensation for the property. The Director may, but is not required
to, extend any of the time limits specified in this Article upon a showing of good cause. Any refusal
to waive a time limit may be reviewed in accordance with the procedures set forth in sections 1003
and 1007 above; except that such written request for review shall be filed within ninety (90) days of
claimant’s receipt of the Displacing Agency’s determination.
J. [§ 1010] Review of Files by Claimant
The claimant may inspect all files and records bearing upon his or her claim or the
prosecution of the claimant's grievance, except to the extent the confidentiality of the material
sought or the disclosure thereof is protected or prohibited by law.
K. [§ 1011] Effect of Determination
Determinations made by the Displacing Agency with respect to acquisition and relocation
policies and procedures shall be applicable to all eligible persons in similar situations regardless of
whether any such eligible person seeks a review. All written determinations shall be filed in the
records of the Displacing Agency and available for public inspection.
L. [§ 1012] Right to Counsel
Any claimant has the right to be represented by an attorney at his or her expense at any and
all stages of the proceedings set forth in this Article.
M. [§ 1013] Further Review
If the Displacing Agency, as set forth in §1008, denies the eligibility of a claimant for a
payment, or disapproves the full amount claimed, or refuses to consider the claim on its merits
because of untimely filing, or any other ground, the Displacing Agency’s notification to the claimant
of its determination shall inform the claimant of its reasons therefor, and shall also inform the
claimant of the applicable procedures for obtaining further review of this determination.
N. [§ 1014] Joint Complainants
Where more than one person is aggrieved by the failure of the Displacing Agency to refer
them to comparable permanent or adequate temporary replacement housing, the complainants may 80
join in filing a single written request for review. A determination shall be made as herein provided
for each of the complainants.
O. [§ 1015] Judicial Review
Nothing in this section shall in any way preclude or limit a claimant from seeking judicial
review of a claim upon exhaustion of such administrative remedies as are available under these
Rules and Regulations. 81
XI.[§ 1100] ACQUISITION PROCEDURES
These acquisition procedures are intended to comply with the guidelines set forth in §7267,
§7267.1 and §7267.2 of the Government Code which the Displacing Agency shall follow prior to the
adoption of a Resolution of Necessity. Compliance with these procedures shall enable the
Displacing Agency to declare upon adopting a Resolution of Necessity that it has found and
determined pursuant to Code of Civil Procedure §1245.230, that either the offer required by §7267.2
of the Government Code has been made to the owner or owners of record, or the offer has not been
made because the owner cannot be located with reasonable diligence. These acquisition procedures
shall only apply to those acquisitions by the Displacing Agency that are subject to the provisions set
forth in sections 7267 to 7267.7, inclusive, of the Government Code.
A. [§ 1101] Acquisition of Property by Negotiation
The Displacing Agency shall make every reasonable effort to acquire property by negotiation
and to do so expeditiously. These acquisition procedures shall not apply to the entry upon property
pursuant to §1245.010 of the Code of Civil Procedure in order to make photographs, studies,
surveys, examinations, tests, soundings, borings, samplings or appraisals or to engage in similar
activities reasonably related to acquisition or use of the property for that use, nor shall these
acquisition procedures apply to the acquisition of any easement, right-of-way, covenant, or other
non-possessory interest in real property to be acquired for the construction, reconstruction,
alteration, enlargement, maintenance, renewal, repair, or replacement of subsurface sewers,
waterlines or appurtenances, drains, septic tanks, or storm water drains.
At the time of making an offer to acquire property under this Section, the Displacing
Agency shall notify the property owner in writing, of the following:
1. The Displacing Agency’s plans for developing the property to be acquired
or the surrounding property; and
2. Any relocation assistance and benefits provided pursuant to state law
which the property owner may be foregoing.
B. [§ 1102] Appraisal of Property
Before negotiations are initiated to acquire property, the Displacing Agency shall have the
property appraised, and shall give the owner or his or her designated representative an opportunity,
by reasonable advance written notice, to accompany the appraiser during the inspection of the
property. The Displacing Agency shall not be required to have the property appraised where the
property is "offered for sale" within the meaning of Government Code §7267.2(b), or where the
property is acquired by donation to the Displacing Agency.
C. [§ 1103] Notice of Decision to Appraise
1. [§ 1104] Contents of Notice 82
The Displacing Agency shall provide the owner with written notice of its decision to appraise
the real property as soon as possible after the decision to appraise has been reached. The notice
shall, at a minimum, contain the following:
a. A statement that a specific area is being considered for a particular
public use, i.e., the project;
b. A statement that the owner's property is located within the project
area;
c. A statement that the owner's property, which shall be generally
described, may be acquired in connection with the public use; and
d. A statement that the owner or his or her representative (designated in
writing) shall be given the opportunity to accompany each appraiser
during his or her inspection of the property.
2. [§ 1105] Information Statement: Property Acquisition Procedures
At the time the Displacing Agency notifies an owner of its decision to appraise real property,
it shall furnish the owner with a written explanation of its land acquisition procedures, describing in
non-technical, understandable terms the Displacing Agency’s acquisition procedures and the
principal rights and options available to the owner. Such statement shall inform the owner that if the
Displacing Agency decides to acquire the subject property, certain prescribed land acquisition
procedures will be followed. The statement shall also include the following explanations:
a. A description of the basic objective of the Displacing Agency’s land
acquisition program and a reference to the availability of the
Displacing Agency’s written explanation concerning the relocation
benefits to which an owner-occupant may be eligible.
b. A statement that, if the acquisition of any part of the real property
would leave the owner with an uneconomic remnant, the Displacing
Agency will offer to acquire the uneconomic remnant, if the owner so
desires.
c. A statement that, if the owner of real property is also the owner of a
business conducted on the real property to be acquired, or on any
remainder parcel, the owner may have a right to compensation for
loss of goodwill. The Displacing Agency shall include a copy of the
pertinent provisions of the Eminent Domain Law pertaining to
compensation for loss of goodwill set forth in Code of Civil
Procedure, §1263.510 et seq., as well as a copy of the sections of
these Rules and Regulations commencing with §1116. 83
d. A statement that, if the owner is not satisfied with the Displacing
Agency’s offer of just compensation, the owner will be given a
reasonable opportunity to present any relevant material, which the
Displacing Agency will carefully consider, and that if a voluntary
agreement cannot be reached, the Displacing Agency, as soon as
possible, will either hold a hearing in connection with the matter of a
Resolution of Necessity or give notice that it does not intend, at this
time, to proceed with acquisition of the property.
e. A statement that the Displacing Agency shall schedule the
construction or development of a project such that, to the greatest
extent practicable, no person lawfully occupying real property shall
be required to move from a dwelling (assuming a comparable
replacement dwelling will be available) or to move his or her
business without at least 90 days written notice from the Displacing
Agency of the date by which the move is required.
f. A statement that if the Displacing Agency arranges to rent the
property to an owner or his or her tenant for a short term, or for a
period subject to termination by the Displacing Agency on short
notice, the rental will not exceed the lesser of the fair rental value of
the property to a short term occupier or the pro rata portion of the fair
market value for a typical rental period. If the owner or tenant is an
occupant of a dwelling, the rental for the dwelling shall be within his
or her financial means.
D. [§ 1106] Prior to Making an Offer to Purchase
Prior to making an offer to purchase the property, the Displacing Agency shall make
reasonable efforts to determine the identity of the owner and other interested parties.
1. [§ 1107] Record Title
The Displacing Agency shall obtain reasonably current preliminary title reports,
litigation guarantees, reports, lot book reports, county assessment records or other
information reasonably accessible from the public records of the County, to identify the
name and address of the record owner of the property.
2. [§ 1108] Occupants
The Displacing Agency shall conduct a reasonable visual inspection of the property
to identify tenants, residents, businesses, or other persons in possession of the property who
have, or, by their occupation of the property, may have, a compensable interest in the 84
property and shall make a reasonable inquiry of the record owner as to the owner’s
knowledge concerning such occupants.
3. [§ 1109] Notices to Contact Owner
Any notifications or other attempts to contact the owner and other interested parties
shall be made at the property if the owner or other interested parties are present on the
property. Otherwise, such notifications and contacts shall be made at the last known or most
current address of the owner or other interested parties, as may be reasonably available to the
Displacing Agency.
4. [§ 1110] Identity and Address of Owner
If the identity and address of the owner or other interested parties cannot be located
by search of the public records or by inspection of the property, in order to attempt to obtain
such information, the Displacing Agency shall make further good faith efforts to identify and
locate the owner and other interested parties, including, for example, contact with utility
companies servicing the property, and inquiry of the Displacing Agency’s licensing
department, building and safety department, and any other departments to which property
owners make reports, file applications or otherwise transact business. The Displacing
Agency shall also consult other probable sources of such information.
E. [§ 1111] Establishment of Just Compensation
1. Before negotiations are initiated to acquire property, the Displacing Agency
shall establish an amount it believes to be just compensation for the property
to be acquired, which amount shall, in no event, be less than the Displacing
Agency’s approved appraisal of the fair market value of the property. The
appraisal shall not be deemed approved unless it has been reviewed to the
satisfaction of the Displacing Agency or its designated officer and the
Displacing Agency or its designated officer has determined in writing that
the appraisal is approved. The Displacing Agency may initiate negotiations
without first having obtained an appraisal in the event the property to be
acquired has a low market value not justifying, in the opinion of the
Displacing Agency the expense or delay of an appraisal and the owner of the
property agrees, in writing, to sell or donate the property without an appraisal
having first been obtained and approved by the Displacing Agency.
The determination of just compensation shall be based upon consideration of:
a. The real property being acquired;
b. Where the real property acquired is part of a larger parcel, any
damages to the remainder; and
85
c. Loss of goodwill where the owner of the property is also the owner of
a business conducted on the property to be acquired or on the
remainder, and where the provisions of the Eminent Domain Law
pertaining to compensation for loss of goodwill are satisfied.
2. Notwithstanding subdivision 1 of this section , the Displacing Agency may
make an offer to the owner or owners of record to acquire real property for
less than an amount which it believes to be just compensation thereof if (1)
the real property is offered for sale by the owner at a specified price less than
the amount the Displacing Agency believes to be just compensation therefor,
(2) the Displacing Agency offers a price which is equal to the specified price
for which the property is being offered by the landowner, and (3) no federal
funds are involved in the acquisition, construction, or project development.
3. As used in subdivision 2 of this section, the term "offered for sale" means
any of the following:
a. Directly offered by the landowner to the Displacing Agency for a
specified price in advance of negotiations by the Displacing Agency.
b. Offered for sale to the general public at an advertised or published,
specified price set no more than six (6) months prior to and still
available at the time the Displacing Agency initiates contact with the
landowner regarding the Displacing Agency’s possible acquisition of
the property.
F. [§ 1112] Uneconomic Remnant; Donation of Property
1. Whenever a portion of property is to be acquired by the Displacing Agency
for a public use and the remainder will be left in such size, shape or condition
as to constitute an uneconomic remnant, the Displacing Agency shall offer to
acquire the entire property if the owner so desires. An uneconomic remnant
is a parcel of real property in which the owner retains an interest after partial
acquisition of the property and which has little or no utility or value to such
owner.
2. A person whose real property is being acquired, may, after the person has
been fully informed of his or her right to receive just compensation for the
property, donate the property, any part thereof, any interest therein, or any
compensation paid therefor to a public entity determined by the person.
G. [§ 1113] Initiation of Negotiations
1. [§ 1114] Written Offer 86
The Displacing Agency shall make its first written offer to acquire the property as soon as
practicable following service of the Notice of Decision to Appraise. Such offer shall be made as
soon as possible after the amount of just compensation is established by the appraisal. The offer
shall include the full amount of just compensation established, unless otherwise indicated in the
offer, and shall represent the fair market value of the property identified in the offer to be acquired
without apportionment between the parties who may claim a compensable interest in the property.
2. [§ 1115] Statement of the Basis of Just Compensation
At the time the Displacing Agency makes its offer to acquire the property it shall provide the
owner with a written statement of the basis for its determination of just compensation. The
statement shall include the following:
a. A general statement of the public use for which the property is to be
acquired;
b. A description of the location and extent of the property to be taken,
with sufficient detail for reasonable identification and the interest to
be acquired;
c. An inventory identifying the buildings, structures, fixtures, and other
improvements;
d. A recital of the amount of the offer and a statement that such amount:
(1) Is the full amount believed by the Displacing Agency to be
just compensation for the property taken;
(2) Is not less than the approved appraisal of the fair market
value of the property;
(3) Disregards any decrease or increase in the fair market value
of the real property to be acquired prior to the date of
valuation caused by the project for which the property is to be
acquired, or by the likelihood that the property would be
acquired for such project, other than that due to physical
deterioration within the reasonable control of the owner or
occupant;
(4) Does not reflect any consideration of or allowance for any
relocation assistance and payments or other benefits which
the owner is entitled to receive under an agreement with the
Displacing Agency except for an amount to compensate the 87
owner for that portion of loss of goodwill provided in
accordance with §6100 of the state Guidelines;
e. If the owner of real property to be acquired is also the owner of a
business conducted upon the property or the remainder, the statement
shall include an indication of the amount of compensation for loss of
goodwill, if any.
f. If after receiving the Displacing Agency’s offer the owner requests
additional information regarding the determination of just
compensation, the Displacing Agency shall provide the following
information to the extent that the determination of just compensation
is based thereon:
(1) The date of valuation used.
(2) The highest and best use of the property.
(3) The applicable zoning.
(4) The principal transactions, reproduction or replacement cost
analysis, or income capitalization analysis, supporting the
determination of value.
(5) If the property is a portion of a larger parcel, a description of
the larger parcel, with sufficient detail for reasonable
identification.
g. With respect to each sale, contract, or lease provided in accordance with
subdivision f.(4) of §1115 above, the following data should be provided:
(1) The names and business or residence addresses, if known, of
the parties to the transaction.
(2) The location of the property subject to the transaction.
(3) The date of the transaction.
(4) The price and other significant terms and circumstances of
the transaction, if known. In lieu of stating the other terms
and circumstances, the Displacing Agency may, if the
document is available for inspection, state the place where
and the times when it is available for inspection.;
h. The requirements of this subsection do not apply to requests made after an
eminent domain proceeding is commenced.
H. [§ 1116] Right to Obtain Payment
Nothing in these acquisition procedures shall be construed to deprive a tenant of the right to
obtain payment for his or her property interest as otherwise provided by law.
88
I. [§ 1117] Loss of Goodwill
As soon as practicable after the initiation of negotiations the Displacing Agency shall
provide written notification to the owner of a business conducted on the real property to be acquired
or on the remainder, who is not also the owner of the real property, concerning his or her possible
right to compensation for loss of goodwill. The Displacing Agency shall include a copy of the
provisions of the Eminent Domain Law pertaining to compensation for loss of goodwill set forth in
Code of Civil Procedure, §1263.510. The Displacing Agency shall also include a copy of the
portion of these Rules and Regulations pertaining to compensation for loss of goodwill.
J. [§ 1118] Compensation for Loss of Goodwill
The procedure for determining and offering compensation for loss of goodwill in connection
with the Displacing Agency’s acquisition of any property shall be governed by §1118 through
§1124, inclusive, of these Rules and Regulations.
1. [§ 1119] Compensation Generally
With respect to the owner of a business conducted on property acquired by the Displacing
Agency, or on the remainder if such property is part of a larger parcel, the amount of just
compensation to be paid by the Displacing Agency may include consideration of loss of goodwill, to
the extent required by law and these Rules and Regulations.
Within the meaning of these Rules and Regulations, "goodwill" consists of the benefits that
accrue to a business as a result of its location, reputation for dependability, skill or quality, and any
other circumstances resulting in probable retention of old or acquisition of new patronage.
The owner of a business shall be compensated for loss of goodwill if the owner proves all of
the following:
a. The loss is caused by the taking of the property or the injury to the
remainder;
b. The loss cannot reasonably be prevented by the relocation of the
business or by taking steps and adopting procedures that a reasonably
prudent person would take and adopt in preserving the goodwill;
c. Compensation for the loss will not be included in payments under
§700 of these Rules and Regulations or under §7262 of the
Government Code;
d. Compensation for the loss will not be duplicated in the compensation
otherwise paid to the owner. 89
2. [§ 1120] Notice of Intent to Claim Loss of Goodwill
The owner of a business conducted on property acquired by the Displacing Agency, or on the
remainder if such property is part of a larger parcel, may, at any time prior to relocating from, or
discontinuing its operation on, the property, notify the Displacing Agency of its intent to provide any
information, materials, or data in order to satisfy the requirements of subdivisions (a) through (d),
inclusive, of §1118.
3. [§ 1121] Conference to Discuss Eligibility to Receive Compensation for Loss
of Goodwill
Upon receipt of the notice required by §1120, the Director or his or her designee shall confer
with the business owner regarding the owner’s claim for compensation for loss of goodwill. Based
upon review and consideration of information presented at the conference, the Director shall
determine whether a goodwill appraisal should be made.
4. [§ 1122] Business Records; Authorization to Negotiate
If the determination to appraise loss of goodwill is made as provided in §1120, the owner of
the business shall provide to the Displacing Agency such business records as the Displacing Agency
may require, including, but not limited to state income tax returns, financial statements, and any
accounting records. The Displacing Agency shall preserve the confidentiality of the financial
records, and shall not use such records for any purpose other than to determine the business owner’s
entitlement to, or amount of, compensation for loss of goodwill.
5. [§ 1123] Calculation of Net Amount of Just Compensation for Loss of
Goodwill for Negotiation Purposes
The Displacing Agency shall calculate the amount it believes to be the net amount of just
compensation for loss of goodwill to which the business is entitled. In making this calculation, the
Displacing Agency shall consider the following:
a. The amount the Displacing Agency believes to be the total amount of
loss of goodwill to which business owner is entitled; and
b. Any compensation for loss of goodwill the Displacing Agency
determines is included in payments made or to be made under §700
of these Rules and Regulations.
6. [§ 1124] Eminent Domain
Notwithstanding any other provision contained in the acquisition procedures, in the event an
eminent domain proceeding is brought by the Displacing Agency to acquire any property, the owner
of any business located on the property, or the remainder if such property is part of a larger parcel, 90
may claim compensation for loss of goodwill in connection with such proceeding. The business
owner/claimant’s failure to do so shall constitute a waiver of any compensation for loss of goodwill.
K. [§ 1125] Negotiations; Eminent Domain
Prior to the commencement of an eminent domain proceeding to acquire real property:
1. The Displacing Agency shall make reasonable efforts to discuss with the
owner its offer to purchase the owner's real property;
2. The owner shall be given reasonable opportunity to present material which
he or she believes to be relevant as to the question of value and to suggest
modification in the proposed terms and conditions of the purchase, and the
Displacing Agency shall carefully consider the owner's presentation;
3. If the evidence presented by an owner or a material change in the character or
condition of the property indicates the need for a new appraisal or if a
significant delay has occurred since the determination of just compensation,
the Displacing Agency shall have its appraisal updated;
4. If a modification in the Displacing Agency’s determination of just
compensation is warranted, an appropriate price adjustment shall be made
and the new amount determined to be just compensation shall be promptly
offered in writing to the owner.
In no event shall the Displacing Agency either advance the time of condemnation, or defer
negotiations or condemnation or the deposit of funds in court for the use of the owner, or take any
other action coercive or misleading in nature, in order to compel or induce an agreement on the price
to be paid for the property.
If the Displacing Agency holds the required hearing and adopts a resolution of necessity to
acquire any interest in property, the Displacing Agency shall promptly institute formal
condemnation proceedings. The Displacing Agency shall not intentionally make it necessary for an
owner to institute legal proceedings to prove the fact of the taking of his or her property.
L. [§ 1126] Notice of Decision Not to Acquire
Whenever the Displacing Agency has forwarded a Notice of Intent to Displace, a Notice of
Decision to Appraise, or has made a firm offer and subsequently decides not to acquire the property,
the Displacing Agency shall serve a notice in writing on the owner, all persons occupying the
property and all other persons potentially eligible for relocation payments and assistance. This
notice shall state that the Displacing Agency has decided not to acquire the property. It shall be
served not later than ten (10) days following the date of the Displacing Agency’s decision not to
acquire. Upon receipt of such notice any person shall be deemed not to be a displaced person. 91
M. [§ 1127] Incidental Expenses
If the real property is acquired by purchase, the Displacing Agency shall reimburse the owner
for all reasonable expenses the owner necessarily incurred incidental to the conveyance of such
property to the Displacing Agency. The following expenses shall be reimbursed to the owner:
1. Recording fees, transfer taxes and similar expenses incidental to conveying
the real property;
2. The pro rata portion of charges for public service, such as water, sewage, and
trash collection, which are allocable to the period subsequent to the date of
transfer of title to the Displacing Agency, or the effective date of possession
of such property by the Displacing Agency, whichever is earlier.
The Displacing Agency shall inform the owner that he or she may apply for a rebate of the
pro rata portion of any real property taxes paid, which are allocable to the period subsequent to the
date of transfer of the property to the Displacing Agency or the effective date of possession of such
property by the Displacing Agency, whichever is earlier.
N. [§ 1128] Purchase Price as Public Information
The purchase price and other consideration paid by the Displacing Agency for real property
is public information and shall be made available upon request.
O. [§ 1129] Service of Notice
Service of all notices required by these acquisition procedures shall be made either by first
class mail or by personal service upon the person to be notified. 92
XII. [§ 1200] PROPERTY MANAGEMENT PRACTICES
A. [§ 1201] Short Term Rental
If the Displacing Agency permits an owner or tenant to occupy the acquired real property on
a rental basis for a short term or for a period subject to termination by the Displacing Agency on
short notice, the amount of rent required shall not exceed the lesser of the fair rental value to a short
term occupier or a pro rata portion of the fair rental value for a typical rental period. If the owner or
tenant is an occupant of a dwelling, the rental for the dwelling shall be within his or her financial
means.
B. [§ 1202] Notice to Vacate
The construction or development of a project shall be so scheduled that no eligible person
occupying real property shall be required to move from a dwelling, or to move his or her business,
without at least ninety (90) days written notice from the Displacing Agency of the date by which
such move is required. The Displacing Agency shall notify each individual tenant to be displaced as
well as each owner-occupant.
C. [§ 1203] Eviction
Eviction is permissible only as a last resort. Relocation records must be documented to
reflect the specific circumstances surrounding the eviction. Eviction may be undertaken for one or
more of the following reasons:
1. Failure to pay rent, except in those cases where the failure to pay is the result
of lessor's failure to keep the premises in habitable condition, is the result of
harassment or retaliatory action or is the result of discontinuation or
substantial interruption of services;
2. Remaining in possession after expiration or termination of the term;
3. Performance of a dangerous or illegal act on the property;
4. Material breach of the rental agreement and failure to correct such breach
within thirty (30) days of notice;
5. Maintenance of a nuisance and failure to abate within a reasonable time
following notice;
6. Refusal to accept one of a reasonable number of offers of replacement
dwellings;
7. The eviction is required by state or local law and cannot be prevented by
reasonable efforts on the part of the Displacing Agency. 93
8. Failure to execute a rental agreement with the Displacing Agency provided
the 90 day notice to vacate had been given, relocation information had been
given at least 90 days prior to eviction, and referrals to comparable
replacement housing have been given.
D. [§ 1204] Status of Post-Acquisition Tenants
1. [§ 1205] Notice of Status
The Displacing Agency shall inform prospective post-acquisition tenants, before they
occupy the property, that the property has been acquired for a public use and will be available only
in the interim between acquisition and development and that development for such use may result in
termination of the tenancy sooner than would otherwise be expected.
The Displacing Agency shall also inform prospective post-acquisition tenants regarding the
projected date of displacement and, periodically, shall inform post-acquisition tenants of any
changes in such date.
2. [§ 1206] Notice to Vacate
A post-acquisition tenant who occupies acquired real property on a rental basis for a short
term and who is informed that the property has been acquired for a public use shall be given any
notices required by law.
3. [§ 1207] Eligibility for Relocation Assistance and Payments
Post-acquisition tenants are not eligible for relocation assistance and payments if, before
occupying the property, they are informed by the Displacing Agency that the property has been
acquired for a public use and will be available only in the interim between acquisition and
development and that development for such use may result in termination of the tenancy sooner than
would otherwise be expected. When so informed, post-acquisition tenants are not eligible even
though they move as a result of a written order from the Displacing Agency to vacate the real
property.
Persons, who become post-acquisition tenants after the effective date of these Rules and
Regulations, who are not so informed and who move as a result of a written order from the
Displacing Agency to vacate, are eligible for relocation assistance and payments, except where they
are evicted in accordance with §1203 of the Rules and Regulations.
4. [§ 1208] Move from Permanent Housing
Where the Displacing Agency, on property it owns, is making housing available on a
permanent basis (i.e., not pending development), a post-acquisition tenant who moves as a result of a
written order from the Displacing Agency to vacate is eligible for relocation assistance and 94
payments if the order to vacate is related to a plan to demolish or rehabilitate such dwelling units. A
post-acquisition tenant who is required to move as a result of the sale of such dwelling units to a
private person for demolition or rehabilitation is eligible without need for a written order to vacate
from the Displacing Agency. 95
Exhibit ”A”
MODEL RELOCATION PLAN
For Displacement of Fifteen Households or less
INTRODUCTION
Please choose and complete one of the following paragraphs, whichever best describes your project. Any of the
following paragraphs may be modified, made clearer, or rewritten to better describe your project or situation.
(1) _______________________________________________ has entered or will be entering into an
Agreement with __________________________________ to rehabilitate rental housing units
within the City/County of ________________________. _____ households will have to be
permanently displaced for this project to go forward. _______ households will have to be
temporarily displaced for the project to go forward. The location of this housing, which is the
subject of this relocation plan, is generally described as
follows:___________________________________________________________
(See attached project site map -- Attachment 1)
(2) _________________________________________ has entered into an Agreement with
____________________ to purchase and develop property within the City/County of
______________________. As a result, some housing will be affected and _____ households will
have to be permanently displaced for this project to go forward. The location of this housing, which
is the subject of this relocation plan, is generally described as follows:
(See attached project site map -- Attachment 1)
(3) ________________________________________ has taken action which may result in the
purchase and development of property within the City/County of _____________________. As a
result, some housing will be affected and ______ households will have to be permanently displaced
for this project to go forward. The location of this housing, which is the subject of this plan, is
generally described as follows:
_____________________________________________________________________(See
attached project site map -- Attachment 1)
(4) (If you wish, you may use the following space to describe your
project.)________________________________________________________________________
_______________________________________________________________________________
_________________________________________.
(The name of the entity or consultant preparing the plan) ___________________ has prepared and
will administer this Relocation Plan (the”Plan”), under the direction of or involvement with (name
of public agency involved with the project) _______________________. This Plan provides the
results of a needs assessment survey, a housing resource study and details of the displacing entity’s
proposed relocation program. This Plan sets forth policies and procedures necessary to conform
with statutes and regulations established by the California Relocation Assistance Law, California
Government Code section 7260 et seq. (the "CRAL") and the California Relocation Assistance and
Real Property Acquisition Guidelines, Title 25, California Code of Regulations, chapter 6, section
6000 et seq. (the "Guidelines").
If there are federal funds involved in this project, this Plan and benefits may also need to conform with the Uniform
Relocation Act (46 U.S.C. § 4600 et seq.), it’s implementing regulations (49 C.F.R. part 24) and other requirements
and regulations of the applicable funding source.
No displacement activities will take place prior to the required reviews and approval of this Plan. 96
A. ASSESSMENT OF NEEDS
To obtain information for the preparation of this Plan, a personal interview was conducted with (number) ____ of
the households living on the Project site. (If a personal interview was not done with any of the households, briefly
explain how the relevant information was obtained.)
_____________________________________________________________________________________________
_____________________________________________________________________________________________
__
A table is attached showing some of the household characteristics and needs. (See -- Attachment 2)
Attached are the most current income limits for the ”very low-“, ”low-“, and ”moderate–“ income categories as
established by HUD for ________________ County. (Attach the most current HUD income category limits for your
county -- Attachment 3.) The attached table shows the income categories for each of the households. (Attachment
2)
Briefly, describe the neighborhood demographics and characteristics:
_____________________________________________________________________________________________
_____________________________________________________________________________________________
_____________________________________________________________________________________________
__________________________.
Briefly describe any location needs and preferences for housing (such as preference for home ownership or tenancy,
preferred area of relocation, proximity to public transportation, employment, schools, medical facilities,
public/social services and agencies, recreational services, parks, community centers, and shopping) and any other
special needs (such as the need for a unit with disabled access or special services, special language needs, special
schools, etc.) of each of the displaced households
_____________________________________________________________________________________________
_____________________________________________________________________________________________
_____________________________________________________________________________________________
__________________________________________.
B. REPLACEMENT HOUSING RESOURCES
A resource survey was made on or about ______________ to identify available comparable, decent, safe and
sanitary units available in close proximity to the Project site. _____ three bedroom units, _____ two bedroom units,
and ______ one bedroom units will be required to adequately relocate the Project site households. (If larger units
are needed, please indicate :) ____________________________________. Therefore, the survey focused on
confirming the availability of this number and size of bedroom units. Attached is a copy of the resource survey
showing the number and size of the available units found in the survey and their rent or purchase levels and
location. (Please create and attach a housing survey which conforms to the housing needs and preferences
identified elsewhere in this Plan -- Attachment 4.)
Briefly describe how the replacement housing resources meet the specific needs identified in section A.
_____________________________________________________________________________________________
_____________________________________________________________________________________________
___________________________________________________________________________________________.
C. CONCURRENT RESIDENTIAL DISPLACEMENT
97
Briefly describe any current or proposed displacing activities in your jurisdiction which may impact upon the ability
to relocate the displaced households.
D. TEMPORARY HOUSING
Please check any of the following numbered paragraphs, whichever is applicable:
_____ (1) There is no anticipated need for temporary housing. Should such a need arise, the displacing entity will
respond appropriately and in conformance with all applicable laws and requirements. (If you check this
paragraph, you may skip to section E.)
_____ (2) There is a need to provide temporary housing, for not more than 180 days, for those households as
indicated in the attached table of housing characteristics and needs (Attachment 2). This project is a
”Qualified Affordable Housing Preservation Project” as defined in Government Code sections 7260,
subdivision (c)(3)(B)(ii), and 7262.5. ______ households are expected to be temporarily displaced and they
will be entitled to the following benefits and assurances:
(a) The right to a temporary unit inside or, with the written consent of the household, outside the
project as long as such unit meets the standards of ”comparable replacement housing” as defined in
section E below; and
(b) The cost of the replacement housing, including rent and average monthly utility costs, will not
exceed 30% of the household’s average monthly income or their current rent amount, whichever is
less; and
(c) The right to return to their original unit; and
(d) The rent for the first 12 months upon returning to the original unit, will not exceed the lower of the
following: (1) up to 5% higher than the rent at the time of displacement; or (2) up to 30% of the
household’s income; and
(e) The estimated time for displacement will be reasonable; and
(f) The temporary replacement housing will not be unreasonably impacted by the rehabilitation
construction, taking into account the age and physical condition of household members; and
(g) Moving expenses. See section H for an explanation of allowable moving expenses.
It is estimated that the temporary displacement for each of the households will occur on or about
_______________________________________________________________________________.
It is estimated that the length of time of displacement for each household (not to exceed 180 days) will
be____________________________________________________________________________.
_____ (3) As a result of rehabilitation, some households will be temporarily displaced for a period not to exceed
90 days. The attached table identifies households which will be displaced for no more than 90 days
(Attachment 2). These households are entitled to the following benefits and assurances:
(a) The right to move back into their original unit; and
(b) The right to be temporarily relocated to ”comparable” replacement housing as defined in section E
below; and
98
(c) The cost of the replacement housing, including rent and average monthly utility costs, will not
exceed 30% of the household’s average monthly income or their current rent amount, whichever is
less; and
(d) For the first 12 months upon return to their original units, the rent shall not exceed the lesser of the
rent levels prior to displacement or 25% of the household’s average monthly income; and
(e) Moving expenses. See section H for allowable moving expenses.
_____ (4) The displacing entity may need to temporarily move some households until such time that permanent
comparable replacement housing is available. The displacing entity may only use this option under the
following conditions and written assurances to the displaced households:
(a) The displaced household agrees to such temporary relocation; and
(b) The temporary housing must be adequate; and
(c) Permanent comparable housing must be made available to the displaced household no later than 12
months after the temporary move. The household, however, may agree to extend the 12 month
period; and
(d) Permanent comparable replacement housing will be made available on a priority basis to the
household and if the project plan anticipates moves back into the project area, the temporarily
displaced household will be given priority to obtain such housing; and
(e) The temporary move will not affect the household’s eligibility for replacement housing benefits or
relocation assistance. Also, the temporary move will not deprive the household of the choice of
replacement units that would have been available had the temporary move not taken place, and the
costs of the temporary move will not be considered as part of the relocation payments to which the
household is entitled; and
(f) The displacing entity will pay all costs in connection with the move to temporary housing,
including increased housing costs.
E. PROGRAM ASSURANCES AND STANDARDS
There are adequate funds to relocate all the households. Services will be provided to ensure that displacement does
not result in different or separate treatment of households based on race, nationality, color, religion, national origin,
sex, marital status, familial status, disability or any other basis protected by the federal Fair Housing Amendments
Act, the Americans with Disabilities Act, Title VI of the Civil Rights Act of 1964, Title VIII of the Civil Rights Act
of 1968, the California Fair Employment & Housing Act, and the Unruh Act, as well as any other arbitrary or
unlawful discrimination.
No one will be displaced without 90 days notice and unless ”comparable” replacement housing can be located.
”Comparable” housing includes standards such as: decent, safe, and sanitary (as defined in § 6008(d) of the
Guidelines); comparable as to the number of bedrooms, living space, and type and quality of construction of the
acquired unit but not lesser in rooms or living space than necessary to accommodate the displaced household; in an
area that does not have unreasonable environmental conditions; not generally less desirable than the acquired unit
with respect to location to schools, employment, health and medical facilities, and other public and commercial
facilities and services; and within the financial means of the displaced household as defined in section 6008,
subdivision 8)(5) of the Guidelines. The relocation program to be implemented by the displacing entity conforms
with the standards and provisions set forth in Government Code section 7260 et seq., the Guidelines, California
Health and Safety Code section 33410 et seq., if applicable, and all other applicable regulations and requirements. 99
F. RELOCATION ASSISTANCE PROGRAM
Staff is available to assist any displaced household with questions about relocation and/or assistance in relocating.
Relocation staff can be contacted at _____________ from _____ a.m. to _____ p.m. The Relocation Office is
located at ___________________________________________________________. A comprehensive relocation
assistance program, with technical and advisory assistance, will be provided to the households being displaced.
Close contact will be maintained with each household. Specific activities will include:
Distribution of informational brochures. (Attach sample brochures and notices to be given to displaced
households -- Attachment 5.)
1. Timely referrals to at least three comparable replacement units as defined above and, if necessary,
transportation will be provided to inspect potential replacement units.
2. Assistance with completion and filing of relocation claims, rental applications, and appeals forms,
if necessary.
G. CITIZEN PARTICIPATION/PLAN REVIEW
This Plan will be provided to each household and will be made available to the public for the mandatory thirty (30)
day review period. Comments to this Plan will be included as a Plan addendum prior to submission for approval
before the (name of responsible agency) ___________________________________. A copy of the approved Plan
will be forwarded to the California Department of Housing and Community Development (HCD).
H. RELOCATION BENEFIT CATEGORIES
This section generally explains the benefits available to displaced tenants and homeowner households only. If you
have households that are mobilehome/manufactured homeowners, or homeowner households that wish to retain and
move their units, you should consult the CRAL, the Guidelines, and other applicable regulations and requirements
for additional information.
Relocation benefits will be provided in accordance with the CRAL, the Guidelines, and all other applicable
regulations and requirements. Benefits will be paid upon submission of required claim forms and documentation in
accordance with approved procedures. The displacing entity will provide appropriate benefits for each displaced
household as required by the above laws and requirements.
Residential Moving Expense Payments
The subject households will be eligible to receive a payment for moving expenses. Payments will be made
based upon either a fixed room count schedule or an invoice for actual reasonable moving expenses from a
licensed professional mover. For temporary moves, moving expenses will be paid for both the move to
temporary replacement housing and the move back to the rehabilitated unit.
1) Fixed Payment - A fixed payment for moving expenses based on the number of rooms containing
furniture or other personal property to be moved. The fixed moving payment will be based upon
the most recent Federal Highway Administration schedules maintained by the California
Department of Transportation. (If using fixed payment, attach the most current moving schedules --
Attachment 6.)
- OR -
100
2) Actual Reasonable Moving Expense Payments - The displaced households may elect to have a
licensed, professional mover perform the move; if so, the displacing entity will pay for the actual
cost of the move up to 50 miles and all reasonable charges for packing, unpacking, insurance, and
utility connection charges. The payment will be made directly to the mover or as reimbursement to
the displaced household.
Rental Assistance/Down Payment Assistance
Displaced households who are residential tenants and who have established residency within the Project site
for a minimum of 90 days prior to the ”initiation of negotiations” will be eligible for both Rental Assistance
and Moving Expense Payments. Check one of the following:
_____ (1) [Public Agency Acquisition] ”Initiation of Negotiations” is defined as the first written offer to
buy the property from which the households will be displaced. In this case, the estimated or actual
date of the first written offer to purchase the properties of the tenant households is (if known at this
time) ___________________________________.
_____ (2) [Private Entity Acquisition] ”Initiation of Negotiations” is defined as the later of the actual
date of acquisition or the date of the Agreement between the private entity and the public agency
for purposes of acquiring and developing or rehabilitating the subject property. In this case, the
estimated or actual date of ”initiation of negotiations” is (if known at this time)
_________________________________________________.
Except in the case of Last Resort situations, Rental Assistance Payments will be limited to a maximum of
$5,250 based upon the monthly housing need over a forty-two (42) month period. In addition, the
households may opt to apply the amount to which they are entitled toward the purchase of a replacement
unit.
Last Resort Housing Payment
Check one of the following statements, whichever is applicable:
_____ (1) There is adequate ”comparable replacement housing” according to the attached housing survey
(Attachment 4). Therefore, there is no need to provide Last Resort Housing Payments. (If you
checked this paragraph, you may skip to Assistance to Homeowners below.)
_____ (2) There is a lack of ”comparable replacement housing” according to the attached housing survey
(Attachment 4). Therefore, there is a need to provide Last Resort Housing Payments.
”Last Resort Housing” payments are authorized by statute if affordable ”comparable replacement housing”
cannot be found for the displaced tenant household (i.e., housing not more than 30% of the household’s
average monthly income.) In this case, payments may be made beyond the $5,250 statutory cap up to 42
months worth of rental assistance. The supplemental increment beyond $5,250 may be paid in installments
or in a lump sum at the discretion of the displacing entity. Briefly specify your policy concerning allowing
lump sum or installment payments.
______________________________________________________________________________________
________________________________________________________.
If a household chooses to purchase a replacement home rather than rent, the household will have the right to
request a lump sum payment of the entire balance to which they are entitled.
Assistance to Homeowners
101
Check one of the following statements, whichever is applicable:
_____ (1) No homeowners will be displaced by this Project. (If you check this paragraph, you may skip
the rest of this section.)
_____ (2) It is anticipated that _____ homeowners will be displaced by this Project.
Homeowners displaced by this Project will be eligible for relocation replacement housing payments if the
following conditions are met:
(a) The household has owned and occupied their unit for not less than 180 days prior to the
”Initiation of Negotiations.” (See, Rental Assistance/Down Payment Assistance above); and
(b) The household purchases and occupies a replacement unit within one year from: (i) the date
that the household receives the final payment from the displacing entity for all the costs of the
acquired unit - or- (ii) the date that the household vacates the acquired unit, whichever is later.
Displaced homeowner households will receive assistance in locating a”comparable replacement” unit and
will be eligible for the following benefits, not to exceed $22,500:
1. Purchase Price Differential:
The displaced households will be entitled to receive an amount equal to the difference between the price
paid for the acquired unit and the amount required to purchase a ”comparable replacement” unit. The
displacing entity is allowed the following options in paying any price differential as explained in section
6102 of the Guidelines: (Check which option is being used.) 102
_____ (a) Comparative Method: On a case-by-case basis, the displacing entity will determine the price of
a ”comparable replacement” unit, which is most representative of the acquired unit, by selecting
and considering the listing price of at least three (whenever possible) ”comparable replacement”
units.
(b) Schedule Method: If the Comparative Method is not feasible, the displacing entity may
establish a schedule of reasonable acquisition costs of ”comparable replacement” units based on a
current analysis of the housing market.
_____ (c) Alternative Method: When neither the Comparative nor Schedule Methods are feasible, the
displacing entity may use another reasonable method.
(Attach a more detailed explanation of the method used, and, if appropriate, why other methods were not
used. Include an estimate of price differentials for each displaced homeowner, a schedule of acquisition
costs, and, to the extent that such information is not included in Attachment 4, a survey of any ”comparable
replacement” units used in your method -- Attachment 7.)
2. Other Payments:
Moreover, displaced homeowners will receive the following assistance:
(a) Payments to cover the cost between the difference of the household’s current debt or mortgage
service and any increase in debt or mortgage costs necessary to acquire a ”comparable
replacement” housing unit; and
(b) Incidental and reasonable one-time costs for acquiring a replacement unit, such as escrow
costs, and recording and credit reporting fees.
3. Rental Assistance Option:
If a displaced homeowner household, which has purchased and occupied its current unit at least 180 days
prior to the ”initiation of negotiations,” desires to rent instead of purchase a replacement unit, the household
is eligible for all the benefits and assistance that is available to tenant households. However, such
replacement housing payments may not exceed the payments the household would have been entitled to if it
had elected to purchase a replacement unit.
4. Last Resort Housing Payments:
Check one of the following statements, whichever is applicable:
_____ (1) There is adequate ”comparable replacement housing” for homeowner households. (If you check
this paragraph, you may skip the rest of this section.)
_____ (2) There is a lack of ”comparable replacement housing” for homeowner households.
If there is not enough ”comparable replacement housing” available, the displacing entity shall pay whatever
costs are necessary beyond the statutory cap of $22,500 to acquire a ”comparable replacement” unit,
including reasonable incidental expenses.
A displaced homeowner household which has purchased and occupied its current unit for less than 180 days
but at least 90 days prior to the ”initiation of negotiations” is eligible for all the assistance and benefits that
are available to a tenant household. 103
I. PAYMENT OF RELOCATION BENEFITS
Relocation benefit payments will be made expeditiously. Claims and supporting documentation for relocation
benefits must be filed with the displacing entity within eighteen (18) months from: (i) the date the claimant moves
from the acquired property; -or- (ii) the date on which final payment for the acquisition of real property is made,
whichever is later. Procedures for preparing and filing of claims and processing and delivering of payments are
attached. (Attach a brief description of your relocation policy regarding procedures for relocation payments and
assistance -- Attachment 8.)
No household will be displaced until ”comparable” housing is located as defined above and in section 6008,
subdivisions (c) and (d) of the Guidelines. Relocation staff will inspect any replacement units to which referrals are
made to verify that they meet all the standards of decent, safe, and sanitary as defined in section 6008, subdivision
(d) of the Guidelines. However, no household will be denied benefits if it chooses to move to a replacement unit
which does not meet the standards of decent, safe, and sanitary housing.
J. EVICTION POLICY
The displacing entity recognizes that eviction is permissible only as a last resort and that relocation records must be
documented to reflect the specific circumstances surrounding any eviction. Eviction will only take place in cases of
nonpayment of rent, serious violation of the rental agreement, a dangerous or illegal act in the unit, or if the
household refuses all reasonable offers to move. Eviction will not affect the eligibility of a person legally entitled to
relocation benefits.
K. APPEALS POLICY
The appeals policy will follow the standards described in section 6150 et seq. of the Guidelines. Briefly stated, the
displaced household will have the right to ask for review when there is a complaint regarding any of its rights to
relocation and relocation assistance, such as a determination as to eligibility, the amount of payment, or the failure
to provide a comparable replacement housing referral. A copy of the established appeals policy and procedures is
attached. (Attachment 9)
L. PROJECTED DATES OF DISPLACEMENT
Households will receive a 90 day notice to vacate before they are required to move. These notices are expected to
be issued on or about (give best estimate) ____________________________.
Relocation is expected to be completed for all households on or about (give best estimate)
________________________________________________.
M. ESTIMATED RELOCATION COSTS
The displacing entity anticipates using the following funds for the Project: _______________________________.
Any and all required financial assistance will be provided. The budget estimate for this Project is:
_____________________________________________. 104
TABLE OF ATTACHMENTS
Attachment 1: Attach Project Site Map.
Attachment 2: Attach Table of Household Characteristics and Needs.
(Complete and attach HCD’s model Table)
Attachment 3: Attach most current HUD Income Category Limits for your County.
(Information may be obtained from HCD)
Attachment 4: Attach Housing Resource Survey.
Attachment 5: Attach Sample Notices and/or Brochures to be given to Displaced Households.
Attachment 6: Attach the most current Fixed Payment Moving Schedule.
(A schedule of payments may be obtained from HCD.)
Attachment 7: Attach, if applicable, Explanation of Purchase Price Differential Method, Schedule of
Acquisition Costs, and Survey of Comparable Homeowner Housing.
Attachment 8: Attach Relocation Payment Policy regarding Procedures for Relocation Payments and
Assistance.
Attachment 9: Attach Copy of Established Appeals Policy and Procedures.
Attachment 10: Attach Plan Addendum.
(Comments submitted regarding the Plan by the Public or HCD.)
Attach any other information that you believe is important or helpful. 105
Exhibit ”B”
RELOCATION ASSISTANCE APPEAL COMPLAINT FORM
PERSONAL INFORMATION NOTICE: Pursuant to the Federal Privacy Act (P.L. 93-579) and the Information Practices Act of 1977 (Civil Code
Sections 1798, et seq.), notice is hereby given for the request of personal information by this form. The requested personal information is voluntary. The
principal purpose of the voluntary information is to facilitate the processing of this form. The failure to provide all or any part of the requested
information may delay processing of this form. No disclosure of personal information will be made unless permissible under Article 6, Section 1798.24
of the IPA of 1977. Each individual has the right upon request and proper identification, to inspect all personal information in any record maintained
on the individual by an identifying particular. Direct any inquiries on information maintenance to your local IPA Office.
Address of Subject Parcel:
Print or type your full name(s):
Present mailing address:
INSTRUCTIONS TO APPELLANTS:
State nature of your complaint and reasons for this
appeal in space at bottom. Attach
extra pages if needed. You will be
notified of the date when your
complaint will be considered. Sign
and date this form and mail to:
Attn: [NAME]
[CITY/AGENCY]
[DEPARTMENT]
[ADDRESS]
[CITY, STATE ZIP]
Day telephone number: ( ) -
Evening telephone number: ( ) -
FOR DISPLACING AGENCY USE ONLY
Will you be present at the hearing?: [ ] Yes [ ] No
Assessor Parcel No:
Will you be represented by counsel?: [ ] Yes [ ] No
R/W No:
This appeal is based on: [ ] Eligibility only
[ ] Amount of Payment only
[ ] Eligibility amount
Other:
The Appellant is: [ ] Residential Owner-Occupant
[ ] Residential Tenant
[ ] Business Owner/Operator
Appellant’s Statement:
This is an appeal of a determination made by the Displacing Agency under the California Relocation Assistance Law (Government Code,
Section 7260 et seq.) or Federal Uniform Relocation Assistance and Real Property Acquisition Policies Act of 1970, as amended (42 USC
§?4601 et. seq.). The nature of my complaint and the reasons why I believe the determination is improper are stated below and/or on the
attached pages.
Appellant’s Signature:
Date: