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HomeMy WebLinkAbout08-11-09 CC Item 08CITY OF LADE L LSINOIJE ` DREAM EXTREME. JOINT REPORT TO CITY COUNCIL AND REDEVLEOPMENT AGENCY BOARD TO: HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL HONORABLE CHAIRMAN AND MEMBERS OF THE REDEVELOPMENT AGENCY BOARD FROM: ROBERT A. BRADY CITY MANAGER/EXECUTIVE DIRECTOR DATE: AUGUST 11, 2009 SUBJECT: RESIDENTIAL ANTIDISPLACEMENT AND RELOCATION PLAN FOR THE POTTERY COURT PROJECT BACKGROUND Overland, Pacific & Cutler, Inc. ("OPC"), an experienced relocation assistance and property management firm, was selected by the Agency and BRIDGE Housing to provide relocation assistance services in connection with the Pottery Court project. In accordance with their proposal for services, OPC prepared a Residential Antidisplacement and Relocation Assistance Plan for the Pottery Court project (the "Relocation Plan"). A copy of the Relocation Plan is attached to this Staff Report for your review. The general purpose of a relocation plan is to describe the circumstances of affected potential displaced persons and families, the availability of replacement housing, and programs to provide required technical and financial assistance. To develop the plan, each household is personally interviewed to gather information appropriate to the determination of needs and preferences regarding replacement of existing accommodations and facilities. Prior to any displacement, displacees are provided with referrals for comparable units and relocation benefits in accordance with the rules and regulations of the California Relocation Assistance Law and Real Property Acquisitions. Every reasonable effort will be made to ensure that the relocation process occurs with a minimum of delay and hardship. CC August 11, 2009 Item No. 8 Page 1 of 40 Joint Report to City Council and Agency Board - Pottery Court Relocation Plan August 11, 2009 Page 2 Pursuant to Health & Safety Code section 33411 and Government Code section 7260 et seq., the Relocation Plan outlines a feasible method and plan for relocation of families and persons that will be permanently displaced from housing facilities as a result of the Pottery Court project. The Pottery Court project site is currently comprised of 23 parcels, which are improved with four (4) single family residences, one (1) duplex, and a five (5) unit structure (the `Residential Structures"). Collectively, the Residential Structures are occupied by ten (10) households comprised of one (1) owner occupied household and nine (9) tenant households. Two of the units are vacant. The Residential Structures that exist on the Pottery Court project site will be demolished and replaced by a 113 unit residential apartment project, with 111 affordable units available to very low income households and 2 market rate manager units. The Relocation Plan outlines the relocation benefits available to displacees including advisory assistance and relocation payments. According to the Relocation Plan, there is an adequate supply of comparable decent, safe, and sanitary housing available. OPC will provide all required relocation assistance to the households that will be permanently displaced. FISCAL IMPACT The total cost for relocation consultant services and relocation payments is estimated at $459,000. Funding for the relocation expenses will come from monies that have been allocated to the Pottery Court project by the Agency through the DDA and by the City through the HOPE VI Predevelopment Loan Agreement. No additional funds are required. 1. That the Redevelopment Agency of the City of Lake Elsinore adopt the attached Resolution No. 2009-_ approving the Residential Antidisplacement and Relocation Assistance Plan for Pottery Court, Lake Elsinore, California (on file with the Agency Secretary). 2. That the City Council of the City of Lake Elsinore adopt the attached Resolution No. 2009- approving the Residential Antidisplacement and Relocation Assistance Plan for Pottery Court, Lake Elsinore, California (on file with the City Clerk). CC August 11, 2009 Item No. 8 Page 2 of 40 Joint Report to City Council and Agency Board - Pottery Court Relocation Plan August 11, 2009 Page 3 Prepared by: Barbara Leibold City Attorney/Agency Counsel Approved by: Robert A. Brady City Manager/Executive Director Attachments: 1. Residential Antidisplacement and Relocation Assistance Plan for the Pottery Court Project 2. Agency Resolution No. 2009-_, approving the Residential Antidisplacement and Relocation Assistance Plan for Pottery Court 3. City Council Resolution No. 2009-_, approving the Residential Antidisplacement and Relocation Assistance Plan for Pottery Court, Lake Elsinore, California CC August 11, 2009 Item No. 8 Page 3 of 40 RESIDENTIAL ANTIDISPLACEMENT AND RELOCATION ASSISTANCE PLAN FOR THE POTTERY COURT PROJECT LAKE ELSINORE, CA PREPARED FOR BRIDGE HOUSING CORPORATION BY OVERLAND, PACIFIC & CUTLER, INC. 438 CAMINO DEL RIO SOUTH, SUITE 213 SAN DIEGO, CA 92108 (619) 688-7980 April, 2009 CC August 11, 2009 Item No. 8 Page 4 of 40 ANTIDISPLACEMENT AND RELOCATION PLAN FOR THE POTTERY COURT PROJECT INTRODUCTION Bridge Housing Corporation (Developer) plans to acquire a 4.29 acre site consisting of 23 parcels and demolish the existing improvements on properties located at 304 W. Pottery, 307 through 323 N. Riley and 312 V 2N. Langstaff in Lake Elsinore, California. The subject properties are improved with four single family residences, one duplex and a five unit property located in Lake Elsinore, California. The Developer intends to acquire and demolish the existing dwellings and construct a new 113 unit apartment development providing affordable rental housing to qualified households. The project will be funded in part by the following sources: Redevelopment Set Aside Funds, HUD HOPE VI Main Street Grant, County HOME Funds and Low Income Housing Tax Credit Equity. The Pottery Court (Project) will provide 113 units of new affordable housing for families earning at or below 60% of area median income. The proposed project consists of 20 one- bedroom one-bath units, 48 two-bedroom one-bath units and 45 three-bedroom two-bath units. This Project will ultimately require the permanent displacement and relocation of nine current residential tenant households and one owner occupied household. The Project, which is the subject of this Plan, is located at 304 W. Pottery, 307 through 323 N. Riley and 312 N. Langstaff, Lake Elsinore, CA, as illustrated on the Project Site Maps shown in Attachment 1. Overland, Pacific & Cutler, Inc. (OPC), an experienced relocation consulting firm, has been selected to prepare this Residential Antidisplacement and Relocation Assistance Plan (the Plan). OPC will provide all required relocation assistance to the tenant households, who will be permanently displaced. In compliance with statutory requirements, this Relocation Plan has been prepared to primarily evaluate the present circumstances and replacement requirements of the permanent displacees. Overland, Pacific & Cutler, Inc. 2 CC August 11, 2009 Item No. 8 Page 5 of 40 ANTIDISPLACEMENT AND RELOCATION PLAN FOR THE POTTERY COORT PRoIECT RESIDENTIAL ANTIDISPLACEMENT PLAN Background Part of the relocation planning process requires that grantees receiving federal CDBG, Section 108 loan funds or HOME assistance assure that they have taken all reasonable steps to minimize the displacement of persons as a result of activities assisted with these funds. The Pottery Court (Project) is anticipated to utilize HOME funds to fund a portion of the project. Consequently, the entire Project is subject to HUD regulations governing relocation and minimization of displacement. These regulations are found in Section 104(d) of the Housing and Community Development Act of 1974, (the Act) as amended [42 United States Code, Section 5304(d)] and implementing regulations at 24 Code of Federal Regulations, Part 42. In planning for the Project, the Developer spent considerable time in selecting the proposed property for the development of the affordable housing. They considered the impact displacement would have on the area and tried to avoid displacement to the extent possible, while still retaining the integrity of the development goals. One-for-One Replacement Units The Pottery Court Project requires the demolition of the existing Project Site occupied or occupiable housing units. The Developer will replace all occupied and vacant occupiable lower income housing demolished or converted to a use other than lower income housing in connection with funds provided under the HOME loan program. The Developer's Pottery Court Project will create 113 new affordable housing units that will meet and exceed the Developer's replacement housing requirement. All replacement housing will be provided within four years after the commencement of the demolition or conversion. Pottery Court demolition activities should start in late 2009. Before entering into a contract committing the Developer to provide funds for a project that will directly result in demolition or conversion, the Developer will make public by publication in a newspaper of general circulation and submit to HUD the following information in writing: 1. A description of the proposed assisted project; 2. The address, number of bedrooms and location on a map of lower income housing that will be demolished or converted to a use other than as lower income housing as a result of an assisted project; 3. A time schedule for the commencement and completion of the demolition or conversion; 4. To the extent known, the address, number of bedrooms and location on a map of the replacement housing that has been or will be provided; 5. The source of funding and a time schedule for the provision of the replacement housing; Overland, Pacific & Cutler, Inc. 3 CC August 11, 2009 Item No. 8 Page 6 of 40 ANTIDISPLACEMENI AND RELOCATION PLAN FOR THE POTTERY COURT PROJECT 6. The basis for concluding that the replacement housing will remain lower income housing for at least ten years from the date of initial occupancy; 7. Information demonstrating that any proposed replacement of dwelling units with smaller dwelling units (e.g., a 2-bedroom unit with two I-bedroom units), is appropriate and consistent with the needs and priorities identified in the approved Comprehensive Housing Affordability Strategy (CHAS). To the extent that the specific location of the replacement housing and other data in Items 4 through 7 above are not available at the time of the general submission, the Developer will identify the general location of such housing on a map and complete the disclosure and submission requirements as soon as the specific data are available. Consistent with the goals and objectives of activities assisted under the Housing and Community Development Act of 1992 as well as the Uniform Relocation Assistance and Real Property Acquisition Policies Act of 1970, as amended, the Developer will provide relocation assistance to displaced occupants as described in this Relocation Plan. Overland, Pacific & Cutler, Inc. is responsible for processing claims to provide relocation payments and for providing other relocation assistance to any lower income or overcrowded person displaced by the Project of any housing or the conversion of lower income housing to another use. Overland, Pacific & Cutler, Inc. 4 CC August 11, 2009 Item No. 8 Page 7 of 40 ANTIDISPLACEMENT AND RELOCATION PLAN FOR THE POTTERY COURT PROJECT RELOCATION PLAN This Relocation Plan has been prepared in accordance with the provisions of the Uniform Relocation Assistance and Real Property Acquisition Policies Act of 1970, as amended, (Uniform Act), California Relocation Law. Government Code Section 7260, et seq. (Law) and the Relocation Assistance and Real Property Acquisition Guidelines, Title 25, California Code of Regulations Section 6000 et seq. (Guidelines). In addition, because the project will utilize HOME funds administered by the U. S. Department of Housing and Urban Development (HUD), permanent relocation benefits may exceed the amount calculated under the Uniform Act, and instead, be calculated as dictated by Section 104(d) of the Housing and Community Development Act of 1974, (the Act) as amended [42 United States Code, Section 5304(d)]. No displacement activities will take place prior to the required reviews and approval of this Plan. In order to attain its overall development goals for the Project, it is the Developer's intention to provide a fair and equitable relocation program for all eligible Project displacees. A. METHODOLOGY AND ASSESSMENT OF NEEDS To obtain information necessary for the preparation of this Plan, personal interviews were conducted with the Project occupants in March 2009. At the time of the interviews, there were nine tenant occupied households, one owner occupied household and two vacant dwellings. OPC was successful in interviewing and obtaining information from all 10 occupied households. Inquiries made of the residential occupants included household size and composition, ages of occupants, rental and income information, length and type of occupancy, ethnicity, language first spoken in the home, disabilities/health problems, and preferences related to replacement housing and location. All information supplied by the occupants was anecdotal and not validated by documentary evidence that otherwise would be required to comply with program qualifying criteria. B. FIELD SURVEY DATA - ASSESSMENT OF NEEDS Survey data from the 10 households was recorded and summarized in Table 1 following, which shows some of the household characteristics and needs of the Project households surveyed. Overland, Pacific & Cutler, Inc. 5 CC August 11, 2009 Item No. 8 Page 8 of 40 ANTIDISPLACEMENT AND RELOCATION PLAN FOR THE POTTERY COURT PROJECT TABLE 1: PROJECT HOUSEHOLDS' CHARACTERISTICS Composition Adults/Children Current Rent Current Bedrooms Bedrooms Needed Elderly/ Physically Disabled Language 7/4 $1,200 4 4 No English 2/1 $690 1 1 No English 2/2 $685 1 2 No Spanish 3/1 $650 1 2 No Spanish 3/3 $750 2 3 No Spanish 2/3 $800 2 2 No Spanish 2/2 N/A 2 2 No Spanish 2/1 $500 1 1 No Spanish 1/0 $400 studio studio No English 115 $1,100 3 3 No English The table in Attachment 2 shows the most current income limits for the "extremely low", "very low", "lower", "moderate" and "median" income categories as established for the year 2008 by HUD for Riverside County. C. PROJECT OCCUPANCY/OVERCROWDING For purposes of determining whether overcrowding conditions exist, an occupancy standard of two persons per sleeping room plus one person in a non-sleeping room was adopted. Based on the adopted Occupancy Standard, there are three overcrowded units on the Project site. The overcrowded households will be provided a referral to replacement housing that has one additional bedroom than their current dwelling. Replacement housing referrals to other households will reflect the need for accommodations of the same size unit they currently occupy. D. REPLACEMENT HOUSING RESOURCES One of the primary purposes of a Relocation Plan is to demonstrate the availability of comparable, affordable, decent, safe and sanitary housing prior to the displacement of residential occupants. In order to adequately relocate the Project households to be permanently displaced, one studio unit, two 1-bedroom units, three 2-bedroom units, two 3-bedroom units and one 4- bedroom unit will be required to meet tenant rehousing needs. One 2-bedroom for-sale dwelling will be needed to meet owner rehousing needs. A housing survey was made during March and April 2009 to identify available comparable, decent, safe and sanitary units available for rent and for sale in Lake Elsinore. Based on the Overland, Pacific & Cutler, Inc. 6 CC August 11, 2009 Item No. 8 Page 9 of 40 AN (DISPLACEMENT AND RELOCATION PLAN FOR THE POTTERY COURT PROJECT results of that survey, it appears that comparable replacement dwelling units will be available during the relocation period to meet the potential needs of the households, who will be permanently displaced. Table 3 below outlines the resource study and shows the number of available units and their corresponding rents. TABLE 3: AVAILABILITY AND COST OF RENTAL HOUSING Bedroom Size Studio One Two Three Four #Found needed) 1 (1) 9(2) 15(4) 31(2) 19(1) Rent Range $600 $600-$795 $800-$1,050 $950-$1,500 $1,200-$1,725 Market Median Rent $600 $725 $895 $1,300 $1,600 The resource survey identified four 4-bedroom homes available for sale ranging in price from $135,000 to $227,900 with a median price of $218,750. E. CONCURRENT RESIDENTIAL DISPLACEMENT Based on the needs of the Project, there are no known projects that may cause concurrent displacement, and impact the ability to relocate the displaced households. F. TEMPORARY HOUSING No need for temporary housing is anticipated, however, the Developer will provide temporary housing should the need arise. G. PROGRAM ASSURANCES AND STANDARDS Adequate funds are available to relocate the permanently displaced households. Relocation assistance 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 permanently displaced without 90 days advance written notice and unless "comparable" replacement housing can be made available. Generally, a comparable replacement dwelling must satisfy the following criteria: Overland, Pacific & Cutler, Inc. 7 CC August 11, 2009 Item No. 8 Page 10 of 40 ANTIDISPLACEMENT AND RELOCATION PLAN FOR THE POTTERY COURT PROJEcr (a) The unit is decent, safe and sanitary - electrical, plumbing and heating systems in good repair - no major, observable hazards or defects. The unit adequate in size and is 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 as necessary to accommodate the displaced person. The unit is functionally equivalent, including principle features. (b) The unit is located in an area not subjected to unreasonable adverse environmental conditions from either natural, or man-made sources, and not generally less desirable with respect to public utilities, transportation, public and commercial facilities, including schools and municipal services and reasonably accessible to the displaced person's place of employment. (c) The unit is available both on the private market and to all persons regardless of race, color, sex, marital status, religion or, national origin. (d) The monthly rental rate is within the financial means of the displaced residential tenant The relocation program to be implemented by the Developer conforms to the standards and provisions set forth under the Uniform Act and implementing regulations at 49 CFR Part 24 and by Section 104(d) of the Housing and Community Development Act of 1974, (the Act) as amended [42 United States Code, Section 5304(d)]. H. RELOCATION ASSISTANCE PROGRAM OPC staff is available to assist the permanently displaced households with questions about relocation and/or assistance in relocating. Relocation staff can be contacted at (619) 688-7980 from 9:00 a.m. to 5:00 p.m. Monday through Friday. A comprehensive relocation assistance program, with technical and advisory assistance, will be provided to the households being permanently displaced. Close personal contact will be maintained with the households. Specific activities will include: 1. Distribute appropriate written information concerning the Developer's relocation program, including the appropriate Informational Statement included as Attachments 3 & 4; 2. Fully inform eligible project occupants of the nature of, and procedures for, obtaining relocation assistance and benefits; 3. Determine the needs of each displacee eligible for assistance, including any special needs of the elderly and disabled; 4. Provide an adequate number of referrals to comparable, decent, safe and sanitary housing units, including special facilities needed for the elderly or disabled, Overland, Pacific & Cutler, Inc. 8 CC August 11, 2009 Item No. 8 Page 11 of 40 ANTIDISPLACEMENT AND RELOCATION PLAN FOR THE POTTERY COURT PROJECT within a reasonable time prior to displacement, and assure that no residential occupant is required to move without a minimum of 90 days written notice to vacate; 5. Provide assistance that does not result in different or separate treatment due to race, color, religion, national origin, sex, marital status or other arbitrary circumstances; 6. Supply information concerning federal and state programs and other governmental programs providing assistance to displaced persons; Assist each eligible residential occupant to complete applications for benefits; 8. Make benefit determinations and payments in accordance with federal and Developer adopted relocation guidelines; 9. Inform all persons subject to displacement of the Developer's policies with regard to eviction and property management; and 10. Establish and maintain a formal grievance procedure for use by displaced persons seeking administrative review of the Developer's decisions with respect to relocation assistance. 1. CITIZEN PARTICIPATION/PLAN REVIEW This Relocation Plan will be made available to the Project households and to the public for the mandatory thirty (30) day review period. Comments to this Plan, if any, will be included as a Plan addendum prior to submission to the local legislative body for approval. J. RELOCATION BENEFIT CATEGORIES It is anticipated that nine residential tenant households and one owner occupied household will be permanently displaced by the Project. Eligible tenant occupants will be eligible for Rental Assistance and Moving Expense Payments. Eligible owner occupants will be eligible for Replacement Housing and Moving Expense Payments. Permanent relocation benefits will be paid upon submission of required claim forms and documentation in accordance with approved procedures. Last resort housing payments will be made in installments or one lump sum at the discretion of the Developer. Residential Moving Expense Payments All residential occupants to be relocated will be eligible to receive a payment for moving expenses. Moving expense payments will be made based upon the actual cost of a professional move or a fixed payment based on a room-count schedule. Overland, Pacific & Cutler, Inc. 9 CC August 11, 2009 Item No. 8 Page 12 of 40 ANTIDISPLACEMENT AND RELOCATION PLAN FOR THE POTTERY COURT PROJECT a. Actual Cost (Professional Move) Displacees may elect to have a licensed professional mover perform the move. The actual cost of the moving services, based on at least two acceptable bids, will be compensated by the Developer in the form of a direct payment to the moving company upon presentation of an invoice. Transportation costs are limited to a distance of 50 miles in either case. In addition to the actual move, costs associated with utility re-connections (i.e., gas, water, electricity, telephone, and cable, if any), are eligible for reimbursement. b. Fixed Payment (based on Room Count Schedule) An occupant may elect to receive a fixed payment for moving expenses which is based on the number of rooms occupied in the displacement dwelling. In this case, the person to be relocated takes full responsibility for the move. The fixed payment includes all utility connections as described in (a), above. At a minimum, the fixed schedule payment for single occupancy efficiency units, furnished with the tenants own personal property, is $625 including all utility connections at the replacement location. The current schedule for fixed moving payments is set forth in Table 4 following: TABLE 4: SCHEDULE OF FIXED MOVING PAYMENTS (effective 08-22-08) Unfurnished Dwelling Oneroom $625 Two rooms $800 Three rooms $1,000 Four rooms $1,175 Five rooms $1,425 Six rooms $1,650 Seven rooms $1,900. Eight rooms $2,150 each additional room $225 Furnished Dwelling First Room $400 Each additional room $65 Overland, Pacific & Culler, Inc. 10 CC August 11, 2009 Item No. 8 Page 13 of 40 ANTIDISPLACEMENT AND RELOCATION PLAN FOR THE POTTERY COURT PROJECT Rental Assistance For Tenant Occunants To be eligible to receive the rental assistance benefits, the displaced tenant household has to rent or purchase and occupy a decent, safe, and sanitary replacement dwelling within one year from the date they move from the displacement dwelling. Based upon the available data regarding Project displacees, the displaced household may qualify for, and may be eligible to apply for relocation benefits under URA provisions or Section 104(d). Rental Assistance Payments will be calculated based upon the monthly housing need over a 60 month period for eligible occupants whose income level does not exceed 80% of the median income for the County of Riverside, as established by the United States Department of Housing and Urban Development (HUD). Recipients of 104(d) benefits would also be eligible to receive reimbursement for security deposit and credit check fees. Except in the case of Last Resort Housing situations, payments to those households whose income level exceeds 80% of the area median income will be payable over a 42 month period and limited to a maximum of $5,250 as stated under URA guidelines. The differences between the two programs are explained in detail in the informational brochures provided to each household (see Attachments 3 & 4). Table 5 provides an example of how a 104(d) rental assistance eligibility amount is determined: TABLE 5: EXAMPLE COMPUTATION OF 104(D) RENTAL ASSISTANCE 1. Adjusted Gross Income $600 30% of Household's Monthly Adjusted Gross Income* -or- 2. Gross Income $300 10% of Gross Monthly Household Income 3. Greater of lines 1 and 2 $600 Total Tenant Payment Subtracted from the lesser of: 4. Actual New Rent $795 Actual New Rent (includes utilities) -or- s. Comparable Rent $815 Determined by Developer (includes utilities) 6. Lesser of lines 4 and 5 $795 7. Monthly Need Amount $195 Subtract line 3 from line 6 Rental Assistance $11,700 Multiply line 7 (Monthly Need) by 60 months *Adjusted gross income means the total annual income of an individual household less the following: (1) a deduction of $480 for each dependent; (2) a deduction of $400 for an elderly household; (3) a deduction for recurring extraordinary medical expenses; defined for this purpose to mean medical expenses in excess of 3% of total income, where not compensated for, or covered by insurance or other sources; (4) a deduction of reasonable amounts paid for the care of children or sick or incapacitated family members when determined to be necessary to employment of the head of household or spouse, except that the amount deducted shall not exceed the amount of income received by the person who would not otherwise be able to seek employment in the absence of such care. Overland, Pacific & Cutler, Inc. 11 CC August 11, 2009 Item No. 8 Page 14 of 40 ANTIDISPLACEMENT AND RELOCATION PLAN FOR THE POTTERY COURT PROIECr Table 6 portrays the benefits determination under the URA: TABLE 6: EXAMPLE COMPUTATION OF URA RENTAL ASSISTANCE 1. Old Rent $650 Old Rent and Utilities or 2. Ability to Pay $700 30% of the Gross Household Income (for Low Income Households) 3. Lesser of lines I or 2 $650 Base Monthly Rental Subtracted From: 4. Actual New Rent $750 Actual New Rent and Utilities or 5. Comparable Rent $775 Determined by Developer (includes utilities) 6. Lesser of lines 4 or 5 $750 7. Yields Monthly Need: $100 Subtract line 3 from line 6 Rental Assistance $4,200 Multiply line 7 by 42 months Rental Assistance payment amounts are equal to 42 times the difference between the base monthly rent and the lesser of: (i) The monthly rent and estimated average monthly cost of utilities for a comparable replacement dwelling; or (ii) The monthly rent and estimated average monthly cost of utilities for the decent, safe, and sanitary replacement dwelling actually occupied by the displaced person. The base monthly rent for the displacement dwelling is the lesser of: (i) The average monthly cost for rent and utilities at the displacement dwelling for a reasonable period prior to displacement, as determined by the Developer. For owner- occupants or households, which paid little or no rent, fair market rent will be used as a substitute for actual rent; or (ii) Thirty percent (30%) of the displaced person's average, monthly gross household income if the amount is classified as "low income" by the U. S. Department of Housing and Urban Development's (HUD) Annual Survey of Income Limits for the Public Housing and Section 8 Programs. HUD's Survey is shown as Attachment 2. If a displacee refuses to provide appropriate evidence of income or is a dependent, the base Overland, Pacific & Cutler, Inc. 12 CC August 11, 2009 Item No. 8 Page 15 of 40 ANTIMPLACEMENT AND RELOCATION PLAN FOR THE POTTERY COURT PROJECT monthly rent shall be determined to be the average monthly cost for rent and utilities at the displacement dwelling; or (iii) The total of the amount designated for shelter and utilities if receiving a welfare assistance payment from a program that designated the amounts for shelter and utilities Last Resort Housing Payments There is adequate "comparable replacement housing" available to meet the needs of the Project occupants, according to the housing survey. However, a combination of factors, including the income levels of the tenants, Project rents, and the higher cost of replacement dwellings, will create the need for last resort housing. Whenever replacement dwellings are not available, or are not available within the monetary limits of the applicable regulations, additional assistance, known as Last Resort Housing assistance, is provided. A displaced person is entitled to Last Resort Housing assistance when, in a single residential case, the computed total of rental assistance eligibility exceeds $5,250. This type of situation is likely to develop among low-income or large families or in environments where project area rents are particularly low. Downpavment Assistance Payment to Tenants who Purchase The displaced households may opt to apply the entire benefit amount for which they are eligible toward the purchase of a replacement unit (Guidelines 49 CFR 24.402(b) and HUD 1378). There are, however, two restrictions when 104(d) regulations govern the relocation process: (1) if the Developer (or the County of Riverside) has a Section 8 voucher and available comparable Section 8 housing to offer a displaced household, the household may not opt for 60 months of replacement housing payments (the family may then select URA coverage and receive 42 months of cash benefits) and (2) if a displaced household decides to purchase a replacement dwelling, they may use their 104(d) 60 months of cash benefits to buy a cooperative or mutual housing unit only (under URA they can choose any type of unit, including conventional housing, but the benefits are calculated over a 42 month period). A displaced household, who chooses to utilize up to the full amount of their rental assistance eligibility (including any Last Resort benefits) to purchase a home, will have the funds deposited in an open escrow account, provided that the entire amount is used for the downpayment and eligible, incidental costs associated with the purchase of a decent, safe, and sanitary replacement home. A provision shall be made in the escrow arrangements for the prompt return of the Developer's funds, in the event escrow should fail to close within a reasonable period of time. Final determination about the type of relocation benefits and assistance for which the household is eligible will be determined upon verification of the household's occupants and income. Overland, Pacific & Cutler, Inc. 13 CC August 11, 2009 Item No. 8 Page 16 of 40 ANTIDISPLACEMENT AND RELOCATION PLAN FOR THE POTTERY COURT PROJECT Replacement Housing Payments For Residential Owner-occupants Residential owner-occupants who have established residency for at least 180 days prior to the Developer's offer to purchase may be eligible for up to $22,500 in replacement housing assistance, prior to consideration of eligibility for Last Resort Housing benefits. The amount of the Replacement Housing Assistance Payment will be determined on the basis of three separate elements: a) Purchase Price Differential; b) Mortgage Interest Differential; and, c) Incidental Expenses. a) Purchase Price Differential The Purchase Price Differential is based on three factors: Acquisition Price - The price paid by the Developer for the Project area dwelling; Actual Purchase Price - The actual price paid for a replacement dwelling; and, Comparable Replacement Cost - The cost of a decent, safe and sanitary dwelling comparable to the dwelling acquired by the Developer. The purchase price differential amount is determined by comparing the price of the acquired dwelling (including any proceeds obtained through condemnation) to the lesser of the actual cost paid for a replacement home versus the price of the comparable dwelling used to compute eligibility in the Notice-of-Eligibility issued to the displaced owner. b) Mortgage Interest Differential The purpose of the Mortgage Interest Differential Payment is to compensate homeowners for increased interest costs between the acquired dwelling and the replacement dwelling. The payment for increased mortgage interest cost shall be the amount which will reduce the mortgage balance on a new mortgage to an amount which could be amortized with the same monthly payment for principal and interest as that for the mortgage(s) on the displacement dwelling. In addition, payments shall include other debt service costs, if not paid as part of incidental costs. To be eligible for this payment, the mortgage on the dwelling being acquired must have been in place, as a valid lien, for at least 180 days prior to the Developer's initial written offer to purchase. c) Incidental Expenses - Closing Costs One-time, non-recurring closing costs associated with the purchase of a comparable, replacement dwelling are compensable. Examples of such compensable expenses include costs for: a property survey; preparation of a legal description and deed; recording fees; title insurance; revenue stamps and transfer taxes; loan application fees; loan origination fees; appraisal fees; a credit report; certification for structural soundness; and, termite Overland, Pacific & Cutler, Inc. 14 CC August 11, 2009 Item No. 8 Page 17 of 40 ANTIDISPLACEMENT AND RELOCATION PLAN FOR THE POTTERY COURT PROJECT inspection, when required. Prepaid recurring expenses for mortgage interest, property taxes and insurance are not compensable. The total Replacement Housing Payment is the sum of the Purchase Price Differential, Mortgage Interest Differential, and compensable Incidental Expenses. K. PAYMENT OF RELOCATION BENEFITS Relocation benefit payments will be made expeditiously. Claims and supporting documentation for relocation benefits must be filed with the Developer within 18 months from the date the claimant moves from the displacement property. Procedures for preparing and filing of claims and processing and delivering of payments are included as Attachment 5. No household will be displaced until "comparable" housing is located as defined above. 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 24.2 (a) (8) of the Uniform Act. No household will be entitled to a rental assistance or replacement housing payment if it chooses to move to a replacement unit which does not meet the standards of decent, safe, and sanitary housing. L. EVICTION POLICY The Developer 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 cause the forfeiture of a displacee's right to relocation assistance or benefits. Relocation records will be documented to reflect the specific circumstances surrounding any eviction action. Eviction may be undertaken for one, or more of the following reasons: (a) Failure to pay rent, except in those cases where the failure to pay is due to the owner's failure to keep the premises in habitable condition; is the result of harassment or retaliatory action; or, is the result of discontinuation, or a substantial interruption of services; (b) Performance of a dangerous, and/or illegal act in the unit; (c) A material breach of the rental agreement, and failure upon notification to correct said breach within 30 days of Notice; (d) Maintenance of a nuisance, and failure to abate such nuisance upon notification within a reasonable time following Notice; Overland, Pacific & Cutler, Inc. 15 CC August 11, 2009 Item No. 8 Page 18 of 40 ANTIDISPLACEMENT AND RELOCATION PLAN FOR THE POTTERY COURT PROJEcr (e) Refusal to accept one of a reasonable number of offers of replacement dwellings; and/or, (1) A requirement under State, or local law or emergency circumstances that cannot be prevented by reasonable efforts on the part of the Developer. M. APPEALS POLICY The appeals policy will follow the standards described in section 24.10 of the Uniform Act. 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. N. IMMIGRATION STATUS Federal legislation (PL105-117) prohibits the payment of relocation assistance benefits under the Uniform Act to any alien not lawfully present in the United States unless such ineligibility would result in an exceptional and extremely unusual hardship to the alien's spouse, parent, or child any of whom is a citizen or an alien admitted for permanent residence. Exceptional and extremely unusual hardship is defined as significant and demonstrable adverse impact on the health or safety, continued existence of the family unit, and any other impact determined by the Developer to negatively affect the alien's spouse, parent or child. The Developer may elect to authorize the payment of relocation assistance benefits to any otherwise eligible displacee from non-federally authorized reimbursable funds. In order to track and account for relocation assistance and benefit payments, relocation staff will be required to seek immigration status information from each displacee 18 years and older by having them self-certify as to their legal status. If 104(d) rules apply to a household, based on the procurement of HOME funds for the proposed Project, legal presence in the United States is not required in order to receive eligible relocation assistance and benefits. 0. PROJECTED DATES OF DISPLACEMENT All displaced occupants will receive a 90 day notice to vacate before they are required to move. The earliest these notices are expected to be issued is the Summer of 2009. Overland, Pacific & Cutler, Inc. 16 CC August 11, 2009 Item No. 8 Page 19 of 40 ANTIDISPLACEMENT AND RELOCATION PLAN FOR THE POTTERY COURT PROJECT P. ESTIMATED RELOCATION COSTS The estimate of total relocation payments for ten permanently displaced households, which includes a 10% contingency, is $418,000. This estimated relocation budget does not include relocation administrative services or provision for any other services necessary for the implementation of the Plan and Project. Overland, Pacific & Cutler, Inc. 17 CC August 11, 2009 Item No. 8 Page 20 of 40 ANrIDISPLACEMEmT AND RELOCATION PLAN FOR THE POTTERY COURT PROJECT TABLE OF ATTACHMENTS Attachment 1: Project Site Map Attachment 2: HCD Income Category Limits for Riverside County Attachment 3: Residential Informational Brochure - Uniform Act Attachment 4: Residential Informational Brochure - Section 104(d) Attachment 5: Relocation Payment Policy Regarding Procedures for Payment of Relocation Claims Attachment 6: Public Review and Comments Overland, Pacific & Cutler, Inc. 18 CC August 11, 2009 Item No. 8 Page 21 of 40 AxrtDISPLACEMENT AND RELOCATION PLAN FOR THE POTTERY COURT PROJECT ATTACHMENT 1: PROJECT SITE MAPS Overland, Pacific & Culler, Inc. 19 CC August 11, 2009 Item No. 8 Page 22 of 40 ANTIDISPLACEMENT AND RELOCATION PLAN FOR THE POTTERY COURT PROJECT ATTACHMENT 2: H.U.D. ANNUAL INCOME LIMITATIONS RIVERSIDE COUNTY The following figures are approved by the U. S. Department of Housing and Urban Development (H.U.D.) for use in the County of Riverside to define and determine housing eligibility by income level. Area Median: $64,500 Family Size Extremely Low Very Low Lower Median Moderate 1 Person 14,000 23,300 37,300 45,150 54,200 2 Person 16,000 26,650 42,650 51,600 61,900 3 Person 18,000 29,950 47,950 58,050 69,650 4 Person 20,000 33,300 53,300 64,500 77,400 5 Person 21,600 35,950 57,550 69,650 83,600 6 Person 23,200 38,650 61,850 74,800 89,800 7 Person 24,800 41,300 66,100 80,000 96,000 8 Person 26,400 43,950 70,350 85,150 102,150 Figures are per the Department of Housing and Community Development (California), Division of Housing Policy Development, April 2, 2009. Overland, Pacific & Cutler, Inc. 20 CC August 11, 2009 Item No. 8 Page 23 of 40 ANTTDISPLACEMENT AND RELOCATION PLAN FOR THE POTTERY COURT PROJECT ATTACHMENT 3: RESIDENTIAL INFORMATIONAL BROCHURE - URA 1. GENERAL INFORMATION II. ASSISTANCE IN LOCATING A REPLACEMENT DWELLING III. MOVING BENEFITS IV. REPLACEMENT HOUSING PAYMENT - TENANTS AND CERTAIN OTHERS V. REPLACEMENT HOUSING PAYMENT - HOMEOWNERS VI. QUALIFICATION FOR AND FILING OF RELOCATION CLAIMS VH. LAST RESORT HOUSING ASSISTANCE VIII. RENTAL AGREEMENT IX. APPEAL PROCEDURES - GRIEVANCE X. TAX STATUS OF RELOCATION BENEFITS XI. LEGAL PRESENCE REQUIREMENT XII. ADDITIONAL INFORMATION AND ASSISTANCE AVAILABLE 1. GENERAL INFORMATION The building in which you now live is in an area to be improved by Bridge Housing Corporation (Developer). As the project schedule proceeds, it may be necessary for you to move from your dwelling. If you are required to relocate, you will be notified in a timely manner as to the date by which you must move. Please read this information as it will be helpful to you in determining your eligibility and the amount of your relocation benefits under the federal and/or state law. We suggest you save this informational statement for reference. The Developer has retained the services of Overland, Pacific & Cutler, Inc., a qualified professional relocation firm, to assist you. The firm is available to explain the program and benefits. Their address and telephone number is: 438 Camino del Rio South, Suite 213 San Diego, CA 92108 (619) 688-7980 Spanish speaking representatives are available. Si necesita esta informaci6n en Espanol, por favor flame a su representante. PLEASE DO NOT MOVE PREMATURELY. THIS IS NOT A NOTICE TO VACATE YOUR DWELLING. However, if you desire to move sooner than required, you must contact your representative with Overland, Pacific & Cutler, Inc. so you will not jeopardize any benefits. This is a general informational brochure only, and is not intended to give a detailed description of either the law or regulations pertaining to the Developer's relocation assistance program. Overland, Pacific & Cutler, Inc. 21 CC August 11, 2009 Item No. 8 Page 24 of 40 ANTIDISPLACEMENT AND RELOCATION PLAN FOR TIIE POTTERY COURT PROJECT H. ASSISTANCE IN LOCATING A REPLACEMENT DWELLING The Developer, through its representatives, will assist you in locating a comparable replacement dwelling by providing referrals to appropriate and available housing units. You are encouraged to actively seek such housing yourself. When a suitable replacement dwelling unit has been found, your relocation consultant will carry out an inspection and advise you as to whether the dwelling unit meets decent, safe and sanitary housing requirements. A decent, safe and sanitary housing unit provides adequate space for its occupants, proper weatherproofing and sound heating, electrical and plumbing systems. Your new dwelling must pass inspection before relocation assistance payments can be authorized. III. MOVING BENEFITS If you must move as a result of displacement by the Developer, you will receive a payment to assist in moving your personal property. There are two types of moving payments. You have the option of selecting either one of the following types of moving payments: A. Fixed Moving Payment A Fixed Moving Payment is based upon the number of rooms you occupy and whether or not you own your own furniture. The payment is based upon a schedule approved by the Developer, and ranges, for example, from $400 for one furnished room to $2,150 for eight rooms in an unfurnished dwelling. (For details see the table below). Your relocation representative will inform you of the amount you are eligible to receive if you choose this type of payment. Overland, Pacific & Cutler, Inc. 22 CC August 11, 2009 Item No. 8 Page 25 of 40 ANTIDISPLACEMENT AND RELOCATION PLAN FOR THE POTTERY COURT PROJECT If you select a fixed payment, you will be responsible for arranging for your own move and the Developer will assume no liability for any loss or damage of your personal property. B. Actual Moving Expense (Professional Move) If you wish to engage the services of a licensed commercial mover and have the Developer pay the bill, you may claim the ACTUAL cost of moving your personal property up to 50 miles. Your relocation representative will inform you of the number of competitive moving bids (if any) which may be required, and assist you in developing a scope of services for the Developer's approval. IV. REPLACEMENT HOUSING PAYMENT - TENANTS AND CERTAIN OTHERS You may be eligible for a payment of up to $5,250 to assist you in renting or purchasing a comparable replacement dwelling. A. Rental Assistance. If you qualify, and wish to rent your replacement dwelling, your rental assistance benefits will be based upon the difference over a 42 month period between the rent you must pay for a comparable replacement dwelling and the lesser of your current rent or 30% of your gross monthly household income if the amount is classified as "low income" by the U. S. Department of Housing and Urban Development's (HUD) Annual Survey of Income Limits for the Public Housing and Section 8 Programs. You will be required to provide your relocation representative with monthly rent and household income verification prior to the determination of your eligibility for this payment. - OR- B. Down-payment Assistance. If you qualify, and wish to purchase a home as a replacement dwelling, you can apply up to the total amount of your rental assistance payment towards the down-payment and non-recurring incidental expenses. Your relocation representative will clarify procedures necessary to apply forth is payment. V. REPLACEMENT HOUSING PAYMENT - HOMEOWNERS A. If you owned and occupied a dwelling purchased by the Developer for at least 180 days prior to the first offer to purchase, you may be eligible to receive a payment of up to $22,500 to assist you in purchasing a comparable replacement unit. If you owned and occupied the displacement dwelling for at least 90 days but not more than 180 days immediately prior to the date of the Developer's offer to purchase, you may be eligible for a payment of up to $5,250. This payment is intended to cover the following items: Overland, Pacific & Cutler, Inc. 23 CC August l 1, 2009 Item No. 8 Page 26 of 40 ANTIDISPLACEMENT AND RELOCATION PLAN FOR THE POTTERY COURT PROJECT 1. Purchase Price Differential - An amount which, when added to the amount for which the Developer purchased your property, equals the lesser of the actual cost of your replacement dwelling; or the amount determined by the Developer as necessary to purchase a comparable replacement dwelling. Your relocation representative will explain both methods to you. 2. Mortgage Interest Differential - The amount which covers the increased interest costs, if any, required to finance a replacement dwelling. Your relocation representative will explain limiting conditions. 3. Incidental Expenses - Those one time costs incidental to purchasing a replacement unit, such as escrow fees, recording fees, and credit report fees. Recurring expenses such as prepaid taxes and insurance premiums are not compensable. B. Rental Assistance Option - If you are an owner-occupant and choose to rent rather than purchase a replacement dwelling, you may be eligible for a rental assistance payment in an amount not to exceed the calculated price differential payment. The payment will be based on the difference between the fair market rent of the dwelling you occupy and the rent you must pay for a comparable replacement dwelling. If you receive a rental assistance payment, as described above, and later decide to purchase a replacement dwelling, you may apply for a payment equal to the amount you would have received if you had initially purchased a comparable replacement dwelling, less the amount you have already received as a rental assistance payment. VI. QUALIFICATION FOR AND FILING OF RELOCATION CLAIMS To qualify for a Replacement Housing Payment, you must rent or purchase and occupy a comparable replacement unit within one year from the later of the following: 1. For a tenant, the date you move from the displacement dwelling 2. For an owner-occupant, the date you receive final payment for the displacement dwelling, or, in the case of condemnation, the date the full amount of estimated just compensation is deposited in court, or 3. The date the Developer fulfills its obligation to make available comparable replacement dwellings. All claims for relocation benefits must be filed with the Developer within 18 months from the date on which you receive final payment for your property, or the date, on which you move, whichever is later. Overland, Pacific & Culler, Inc. 24 CC August 11, 2009 Item No. 8 Page 27 of 40 ANTIDISPLACENIENT AND RELOCATION PLAN FOR THE POTTERY COURT PROJECT VII. LAST RESORT HOUSING ASSISTANCE If comparable replacement dwellings are not available when you are required to move, or if replacement housing is not available within the monetary limits described above, the Developer will provide Last Resort housing assistance to enable you to rent or purchase a replacement dwelling on a timely basis. Last Resort housing assistance is based on the individual circumstances of the displaced person. Your relocation representative will explain the process for determining whether or not you qualify for Last Resort assistance. If you are a tenant, and you choose to purchase rather than rent a comparable replacement dwelling, the entire amount of your rental assistance and last resort eligibility must be applied toward the down-payment of the home you intend to purchase. VIII. RENTAL AGREEMENT As a result of the Developer's action to purchase the property where you live, you may become a tenant of the Developer. If this occurs, you will be asked to sign a rental agreement which will specify the monthly rent to be paid, when rent payments are due, where they are to be paid and other pertinent information. Except for the causes of eviction set forth below, no person lawfully occupying property to be purchased by the Developer will be required to move without having been provided with at least 90 days written notice from the Developer. Eviction will be undertaken only in the event of one or more of the following infractions: A. Failure to pay rent; except in those cases where the failure to pay is due to the 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; B. Performance of dangerous illegal act in the unit; C. Material breach of the rental agreement and failure to correct breach within 30 days of notice; D. Maintenance of a nuisance and failure to abate within a reasonable time following notice; E. Refusal to accept one of a reasonable number of offers of replacement dwellings; or F. The eviction is required by State or local law and cannot be prevented by reasonable efforts on the part of the public entity. Overland, Pacific & Cutler, Inc. 25 CC August 11, 2009 Item No. 8 Page 28 of 40 ANTIDISPLACEMENT AND RELOCATION PLAN FOR THE POTTERY COURT PROIECr IX. APPEAL PROCEDURES - GRIEVANCE Any person aggrieved by a determination as to eligibility for a relocation payment, or the amount of a payment, may have his/her claim reviewed or reconsidered in accordance with the Developer's appeals procedure. Complete details on appeal procedures are available upon request from the Developer. X. TAX STATUS OF RELOCATION BENEFITS Relocation benefit payments are not considered as income for the purpose of the Internal Revenue Code of 1986 or the Personal Income Tax Law, Part 10 (commencing with Section 17001) of Division 2 of the Revenue and Taxation Code, or the Bank and Corporation Tax law, Part I1 (commencing with Section 23001) of Division 2 of the Revenue and Taxation Code. XI. LAWFUL PRESENCE REQUIREMENT Federal legislation (PL105-117) prohibits the payment of relocation assistance benefits under the Uniform Act to any alien not lawfully present in the United States unless such ineligibility would result in an exceptional and extremely unusual hardship to the alien's spouse, parent, or child any of whom is a citizen or an alien admitted for permanent residence. Exceptional and extremely unusual hardship is defined as significant and demonstrable adverse impact on the health or safety, continued existence of the family unit, and any other impact determined by the Developer to negatively affect the alien's spouse, parent or child. In federal projects, any member of the household who is not lawfully present in the United States or declines to provide this information may be denied relocation benefits. Relocation benefits will be prorated to reflect the number of household members with certified lawful presence in the US. XII. ADDITIONAL INFORMATION AND ASSISTANCE AVAILABLE Those responsible for providing you with relocation assistance hope to assist you in every way possible to minimize the hardships involved in relocating to a new home. Your cooperation will be helpful and greatly appreciated. If you have any questions at any time during the process, please do not hesitate to contact your relocation representative. Overland, Pacific & Cutler, Inc. 26 CC August 11, 2009 Item No. 8 Page 29 of 40 ANTIDISPLACEMENT AND RELOCATION PLAN FOR THE POTTERY COURT PROJECT ATTACHMENT 4: RESIDENTIAL INFORMATIONAL BROCHURE - (104(D)) 1. GENERAL INFORMATION II. ASSISTANCE IN LOCATING A REPLACEMENT DWELLING III. MOVING BENEFITS IV. REPLACEMENT HOUSING PAYMENT - TENANTS AND CERTAIN OTHERS V. QUALIFICATION FOR AND FILING OF RELOCATION CLAIMS VI. LAST RESORT HOUSING ASSISTANCE VII. EVICTION VIII. APPEAL PROCEDURES - GRIEVANCE IX. TAX STATUS OF RELOCATION BENEFITS X. ADDITIONAL INFORMATION AND ASSISTANCE AVAILABLE 1. GENERAL INFORMATION The building in which you now live is in an area to be improved by Bridge Housing Corporation (Developer). As the project schedule proceeds, it will be necessary for you to move from your dwelling. You will be notified in a timely manner as to the date by which you must move. Please read this information as it will be helpful to you in determining your eligibility and the amount of your relocation benefits under the federal and/or state law. We suggest you save this informational statement for reference. The Developer has retained the services of Overland, Pacific & Cutler, Inc., a qualified professional relocation firm, to assist you. The firm is available to explain the program and benefits. Their address and telephone number is: 438 Camino del Rio South, Suite 213 San Diego, CA 92108 Telephone: (619) 688-7980 Spanish speaking representatives are available. Si necesita esta informaci6n en Espanol, por favor Ilame a su representante. PLEASE DO NOT MOVE PREMATURELY. THIS IS NOT A NOTICE TO VACATE YOUR DWELLING. However, if you desire to move sooner than required, you must contact your representative with Overland, Pacific & Cutler, Inc., so you will not jeopardize any benefits. This is a general informational brochure only, and is not intended to give a detailed description of either the law or regulations pertaining to the Developer's relocation assistance program. Please continue to pay your rent to your current landlord, otherwise you may be evicted and jeopardize the relocation benefits to which you may be entitled to receive. Overland, Pacific & Cutler, Inc. 27 CC August 11, 2009 Item No. 8 Page 30 of 40 ANTIDISPLACEMENT AND RELOCATION PLAN FOR THE POTTERY COURT PROJECT R. ASSISTANCE IN LOCATING A REPLACEMENT DWELLING The Developer, through its representatives, will assist you in locating a comparable replacement dwelling by providing referrals to appropriate and available housing units. You are encouraged to actively seek such housing yourself. When a suitable replacement dwelling unit has been found, your relocation consultant will carry out an inspection and advise you as to whether the dwelling unit meets decent, safe and sanitary housing requirements. A decent, safe and sanitary housing unit provides adequate space for its occupants, proper weatherproofmg and sound heating, electrical and plumbing systems. Your new dwelling must pass inspection before relocation assistance payments can be authorized. III. MOVING BENEFITS If you must move as a result of displacement by the Developer, you will receive a payment to assist in moving your personal property. The actual, reasonable and necessary expenses for moving your household belongings may be determined based on one, or a combination of the following methods: A. Fixed Moving Payment (Self Move) A Fixed Moving Payment is based upon the number of rooms you occupy and whether or not you own your own furniture. The payment is based upon a schedule approved by the Developer, and ranges, for example, from $400 for one furnished room to $2,150 for eight rooms in an unfurnished dwelling. Your relocation representative will inform you of the amount you are eligible to receive if you choose this type of payment. Occupant owns furniture Occupant does NOT own furniture 1 room $625.00 1 room $400.00 2 rooms $800.00 each additional room $65.00 3 rooms $1,000.00 4 rooms $1,175.00 5 rooms $1,425.00 6 rooms $1,650.00 7 rooms $1,900.00 8 rooms $2,150.00 each additional room $225.00 Overland, Pacific & Cutler, Inc. 28 CC August 11, 2009 Item No. 8 Page 31 of 40 ANTIDISPLACEMENT AND RELOCATION PLAN FOR THE POTTERY COURT PROJECT If you select a fixed payment, you will be responsible for arranging for your own move and the Developer will assume no liability for any loss or damage of your personal property. B. Actual Moving Expense (Professional Move) If you wish to engage the services of a licensed commercial mover and have the Developer pay the bill, you may claim the ACTUAL cost of moving your personal property up to 50 miles. Your relocation representative will inform you of the number of competitive moving bids (if any) which may be required, and assist you in developing a scope of services for the Developer's approval. IV. REPLACEMENT HOUSING PAYMENT Tenants and homeowner-occupants may be eligible for a payment up to $5,250 to assist in renting or purchasing a comparable replacement dwelling. A. Rental Assistance. If you wish to rent your replacement dwelling, under section 104(d) guidelines, your rental assistance benefits will be based upon the difference over a sixty (60) month period between the rent you must pay for a comparable replacement dwelling and your Total Tenant Payment (TTP). The TTP is the amount a tenant is expected to contribute towards the monthly rent. It is the highest of: 1) 30% of a family's adjusted monthly income; or 2) 10% of the family's monthly gross income; or 3) a designated allowance under certain welfare programs. You will be required to provide your relocation representative with monthly rent and household income verification prior to the determination of your eligibility for this payment. You are also eligible for assistance in paying a security deposit at your replacement home, if applicable, and a credit check fee associated with securing your replacement dwelling. - OR - B. Down-payment Assistance. If you qualify, and wish to purchase a home as a replacement dwelling, you can apply up to the total amount of your rental assistance payment towards the down-payment and non-recurring incidental expenses to secure a mutual housing unit or cooperative housing unit. If you wish to purchase a house that is not mutual housing or cooperative housing, your purchase assistance would be provided under URA guidelines - an amount that may be less than the section 104(d) amount. Your relocation representative will clarify procedures necessary to apply for this payment. V. QUALIFICATION FOR AND FILING OF RELOCATION CLAIMS To qualify for a Replacement Housing Payment, you must rent or purchase and occupy a comparable replacement unit within one year from the later of the following: Overland, Pacific & Cutler, Inc. 29 CC August 11, 2009 Item No. 8 Page 32 of 40 ANTIDISPLACEMENF AND RELOCATION PLAN FOR THE POTTERY COURT PROJECT The date you move from the displacement dwelling; or 2. The date the Developer fulfills its obligation to make available comparable replacement dwellings. All claims for relocation benefits must be filed with the Developer within 18 months from the date on which you move. VI. LAST RESORT HOUSING ASSISTANCE If comparable replacement dwellings are not available when you are required to move, or if replacement housing is not available within the monetary limits described above, the Developer will provide Last Resort housing assistance to enable you to rent or purchase a replacement dwelling on a timely basis. Last Resort housing assistance is based on the individual circumstances of the displaced person. Your relocation representative will explain the process for determining whether or not you qualify for Last Resort assistance. If you are a tenant, and you choose to purchase rather than rent a comparable replacement dwelling, the entire amount of your rental assistance and last resort eligibility must be applied toward the down-payment of the home you intend to purchase. VII. EVICTION Eviction for cause must conform to applicable State and local law. Any person who occupies the real property and is not in unlawful occupancy on the date of initiation of negotiations, is presumed to be entitled to relocation benefits, unless the Developer determines that: • The person received an eviction notice prior to the initiation of negotiations and, as a result, was later evicted; or • The person is evicted after the initiation of negotiations for serious or repeated violation of material terms of the lease; and • In either case, the eviction was not undertaken for the purpose of evading relocation assistance regulations. If evicted for cause, a displacee will forfeit any relocation benefits to which they may have been entitled. VIII. APPEAL PROCEDURES - GRIEVANCE Any person aggrieved by a determination as to eligibility for a relocation payment, or the amount of a payment, may have his/her claim reviewed or reconsidered in accordance with the Developer's appeals procedure. Complete details on appeal procedures are available upon request from the Developer. Overland, Pacific & Cutler, Inc. 30 CC August 11, 2009 Item No. 8 Page 33 of 40 ANTIDISPLACEMENT AND RELOCATION PLAN FOR THE POTTERY COURT PROJECT IX. TAX STATUS OF RELOCATION BENEFITS Relocation benefit payments are not considered as income for the purpose of the Internal Revenue Code of 1986 or the Personal Income Tax Law, Part 10 (commencing with Section 17001) of Division 2 of the Revenue and Taxation Code, or the Bank and Corporation Tax law, Part 1 I (commencing with Section 23001) of Division 2 of the Revenue and Taxation Code. X. ADDITIONAL INFORMATION AND ASSISTANCE AVAILABLE Those responsible for providing you with relocation assistance hope to assist you in every way possible to minimize the hardships involved in relocating to a new home. Your cooperation will be helpful and greatly appreciated. If you have any questions at any time during the process, please do not hesitate to contact your relocation representative. Overland, Pacific & Cutler, Inc. 31 CC August 11, 2009 Item No. S Page 34 of 40 ANTIDISPLACEMENT AND RELOCATION PLAN FOR THE POTTERY COURT PROJECT ATTACHMENT 5: RELOCATION PAYMENT POLICY REGARDING PROCEDURES FOR PAYMENT OF RELOCATION CLAIMS Claims and supporting documentation for relocation benefits must be filed with the Developer within 18 months from the date the claimant moves from the acquired property. The procedure for the preparation and filing of claims and the processing and delivery of payments will be as follows: 1. Claimant(s) will provide all necessary documentation to substantiate eligibility for assistance. 2. Assistance amounts will be determined in accordance with the provisions of the Uniform Act. 3. Required claim forms will be prepared by relocation personnel in conjunction with claimant(s). Signed claims and supporting documentation will be submitted by relocation personnel to the Developer. 4. The Developer will review and approve claims for payment or request additional information. 5. The Developer will issue benefit checks which will be delivered to the Claimants by relocation staff, unless circumstances dictate otherwise. 6. Final payments will be issued after confirmation that the Project area premises have been completely vacated and actual residency at replacement unit is verified. 7. Receipts of payment will be obtained and maintained in the relocation case file. Overland, Pack & Cutler, Inc. 32 CC August 11, 2009 Item No. 8 Page 35 of 40 ANTIDISPLACEMENT AND RELOCATION PLAN FOR THE POTTERY COURT PROJECT ATTACHMENT 6: PUBLIC REVIEW AND COMMENTS Overland, Pacific & Cutler, Inc. 33 CC August 11, 2009 Item No. 8 Page 36 of 40 Page 1 of 3 RESOLUTION NO. 2009- RESOLUTION OF THE CITY COUNCIL OF THE CITY OF LAKE ELSINORE APPROVING THE RESIDENTIAL ANTIDISPLACEMENT AND RELOCATION ASSISTANCE PLAN FOR POTTERY COURT, LAKE ELSINORE, CALIFORNIA WHEREAS, the City Council (the "City Council") of the City of Lake Elsinore (the "City") has adopted and amended, from time to time, the Redevelopment Plan for the Rancho Laguna Redevelopment Project No. I, which sets forth a plan for redevelopment of the Rancho Laguna Redevelopment Project Area No. I; WHEREAS, Pottery Court Housing Associates, L.P., a California Limited Partnership (the "Developer") will acquire, pursuant to the DDA (defined below), and will renovate certain improved real property generally bounded by Pottery Street and Sumner Avenue between the outflow channel of Lake Elsinore and Langstaff Street (the 'Property"); and WHEREAS, the Redevelopment Agency of the City of Lake Elsinore (the "Agency") has entered into a Disposition and Development Agreement (the "DDA") with the Developer, which provides for the sale of the Property to Developer and a purchase money loan to the Developer of $4,061,000 to assist in financing the acquisition, construction, and completion of the Project (defined below) by Developer; and WHEREAS, City has been awarded One Million Dollars ($1,000,000) (the "HOPE VI Main Street Grant") from the United States Department of Housing and Urban Development ("HUD") pursuant to the federal HOPE VI Program; and WHEREAS, City and HUD have entered into that certain Grant Agreement dated as of May 21, 2009, (the "Grant Agreement") for purposes of setting forth specific terms and conditions relating to the use of the HOPE VI Main Street Grant funds; and WHEREAS, on July 14, 2009, the City Council adopted Resolution No. 2009-45 authorizing a loan of up to One Million Dollars ($1,000,000) of HOPE VI Main Street Grant funds to Developer for purposes of financing certain eligible predevelopment costs that Developer will incur in connection with the Project (defined below); and WHEREAS, the Developer intends to develop approximately one-hundred eleven (111) units restricted to occupancy by very low income households at an affordable rent, two (2) manager units, and community space which will provide a study room, a music practice room, a great room for parties, a full kitchen, a pool, BBQs and one tot lot all in accordance with the Project Description attached as Attachment No. 3 to the DDA, the Development Proposal submitted to HUD under the Grant Agreement and Tentative Parcel Map 36193 and Residential Design Review No. 2009-02 approved by the City Council of City on June 23, 2009 (the "Project'); and CC August 11, 2009 Item No. 8 Page 37 of 40 CC Resolution No. 2009- Page 2 of 3 WHEREAS, construction of the Project will entail demolition of the structures that are currently built on the Property and the relocation of the existing residents of the Property; and WHEREAS, the Agency and the Developer and their consultants have prepared a draft relocation plan (the "Relocation Plan") in accordance with Section 6038 of the California Department of Housing and Community Development Relocation Regulations (the "Relocation Regulations"); and WHEREAS, timely general notice of the Relocation Plan designed to reach the occupants of the property was made in accordance with the provisions of Paragraph 6046(a)(3) and Subsection 6046(b) of the Relocation Regulations, as required by Section 6038(e)(2) of the Relocation Regulations; and WHEREAS, the City Council has considered the proposed Relocation Plan and the comments of interested persons submitted to the City on August 11, 2009. NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF LAKE ELSINORE DOES HEREBY RESOLVE, DETERMINE AND ORDER AS FOLLOWS: SECTION 1. The City Council hereby finds and determines that the above recitals are true and correct. SECTION 2. The City Council hereby finds and determines that the Relocation Plan is consistent with the Housing Element of the City of Lake Elsinore General Plan. SECTION 3. The City Council hereby approves the Relocation Plan. SECTION 4. This Resolution shall take effect from and after the date of its passage and adoption. PASSED, APPROVED AND ADOPTED at a regular meeting of the City Council of the City of Lake Elsinore, California, this 11th day of August 2009. ATTEST: DEBORA THOMSEN CITY CLERK APPROVED AS TO FORM: BARBARA LEIBOLD CITY ATTORNEY ROBERT E. MAGEE, MAYOR CITY OF LAKE ELSINORE CC August 11, 2009 Item No. 8 Page 38 of 40 Page 3 of 3 STATE OF CALIFORNIA COUNTY OF RIVERSIDE SS CITY OF LAKE ELSINORE I, DEBORA THOMSEN, City Clerk of the City of Lake Elsinore, California, hereby certify that Resolution No. 2009- was adopted by the City Council of the City of Lake Elsinore at a regular meeting held on the 11th day of August 2009, and that the same was adopted by the following vote: AYES: NOES: ABSTAIN: ABSENT: DEBORA THOMSEN CITY CLERK CC August 11, 2009 Item No. 8 Page 39 of 40