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HomeMy WebLinkAbout83-100 - Regulations Implementing Relocation AssistanceRESOLUTION NO. 83-100 A RESOLUTICN OF THE CITY COUNCIL OF THE CITY OF COSTA MESA, CALIFORNIA, ADOPTING REGULATICNS AND PROCEDURES IMPLEMENTING RELOCATICN ASSISTANCE. THE CITY COUNCIL OF THE CITY OF COSTA MESA DOES HEREBY RESOLVE AS F0L109S: SECTICN 1. Pursuant to California Goverment Code Sections 7260 et seq., the City of Costa mesa hereby adopts those certain regulations and provisions entitled, "CITY OF COSTA MESA, CALIFOINIA, RULES AND REGULATICNS FOR IMPLEMENTATION OF THE CALIFORNIA RELOCATICN ASSISTANCE LAW, GOVERNMENT CODE SECTIONS 7260 ET SEQ.", attached to this Resolution and marked Exhibit "A", and made a part hereof; said regulations and procedures contain all definitions, eligibility and housing standards, and general provisions concerning relocation payments, moving expense schedules, and specific provisions for moving expenses and replacement housing payments. They are the basic instructions under which all relocation assistance payments will be made by the City of Costa Mesa and these regulations supersede all prior adopted relocation regulations. SECTICN 2. A. The City of Costa Mesa hereby elects to adopt the provisions of Government Code Sections 7260 et seq. as part of the City of Costa Mesa Regulations and Procedures Implementing the Relocation Assistance Law, Government Code Sections 7260 et seq. B. Th the extent that said regulations and procedures are inconsist- ent with the provisions of the California Government Code, the provisions of said State law shall prevail. PASSED AND ADOPTED this 17th day of Octo} r, 1983. Mayor of the City of Costa sa ATTEST: C ty Clerk of the City of Costa sa STATE OF CALIFORNIA ) COUNTY OF ORANGE ) ss CITY OF COSTA MESA ) I, EILEEN P. PHINNEY, City Clerk and ex -officio Clerk of the City Council of the City of Costa Mesa, hereby certify that the above and fore- going Resolution No. 83-100 was duly and regularly passed and adopted by said City Council at a regular meeting thereof, held on the 17th day of October, 1983. IN WITNESS WHEREOF, I have hereunto set my hand and affixed the Seal of the City of Costa Mesa this 18th day of October, 1983. Cit Clerk and ex -officio Clerk ofPthee City Council of the City of Cos sa REDEVELOPMENT AGENCY OF THE CITY OF COSTA MESA, CALIFORNIA RULES AND REGULATIONS FOR IMPLEMENTATION OF THE CALIFORNIA RELOCATION ASSISTANCE LAW GOVERNMENT CODE CHAPTER 16, SECTIONS 7260, ET SEQ. CONTENTS Section Title 1 General 2 Definitions 3 Assurance of Adequate Placement Housing Prior to Displacement 4 Moving and Related Expenses 5 Payments In -Lieu of Moving and Related Expenses 6 Replacement Housing Payment for Homeowners 7 Replacement Housing Payment for Tenants and Certain Others 8 Mobile or Manufactured Homes 9 Relocation Advisory Services 10 Grievance Procedures EXHIBIT "A" Resolution No. 83-100 Page 1 of 21 f] flnnnnnn�� -1.99 1.1 Purpose and Coverage a. These guidelines are to implement Chapter 16, Sections 7260, et seq., of the Goverment Code, Relocation Assistance, hereinafter refer- red to as "the Act," to assure a uniform policy for the fair and equitable treatment of persons displaced by programs of the City of Costa Mesa, California, hereinafter referred to as "the Agency." All references in these guidelines to sections or subsections are references to sections or subsections of the Act. b. In the event of any conflict between these guidelines and the provisions of the Act, or any other applicable law, the statutory provi- sions of the Act are controlling. These regulations and procedures shall not create any legally enforceable rights in any displaced person beyond those rights created by the Act. c. It is the intent of the guidelines to establish policies for the making of relocation assistance payments by the Agency. These guide- lines shall not be construed to limit any other authority which the Agency may have to make other relocation assistance payments, or to make any relo- cation assistance payment in an amount which exceeds the maximum amount for such payment authorized by the Act. d. The Agency may also make any other relocation assistance payment if the making of such payment is required under federal law in order to qualify for federal funds. 1.2 General Eligibility Requirements a. In order to qualify for benefits under the Act as a displaced person, either of two conditions must be fulfilled: (1) The person must have moved (or moved his personal prop- erty) as a result of the receipt of a written notice from the Agency to vacate due to Agency acquisition; or (2) The subject real property must in fact have been acquired by the Agency, or by anyone having an agreement with or acting on behalf of the Agency for public use, in whole or in part, and the person must have moved as a result of its acquisition. b. In addition, claims for benefits provided by the Act must be filed by the displaced person as follows: (1) Within eighteen (18) months from the date on which the displaced person moves fram the real property acquired or to be acquired by the Agency; or (2) Within eighteen (18) months from the date on which the Agency makes the final payment of all costs of that real property, which- ever is the later date. (3) The City Manager (hereinafter referred to as the "Executive Director") or his or her authorized designee may extend this period in writing upon a proper showing of good cause. 2 DEFINITICNS 2.1 Acquisition Obtaining ownership or possession of real property by lawful means. EXHIBIT "A" Resolution No. 83-100 Page 2 of 21 00 2.2 Business Any lawful activity, except a farm operation conducted primarily: a. For the purchase, sale, lease, and rental of personal and real property, and for the manufacture, processing, or marketing of products, commodities, or any other personal property; or b. Flor the sale of services to the public; or c. By a nonprofit organization; or d. Solely for the purpose of Section 7262 for assisting in the purchase, sale, resale, manufacture, processing or marketing of products, canmodities, personal property, or 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. 2.3 Comparable Replacement Dwelling For the purposes of rendering relocation assistance by making referrals for replacement housing and for canputation of the replacement housing payment, a canparable replacement dwelling is one which is decent, safe, and sanitary and: a. Functionally equivalent and substantially the same as the acquired dwelling, but not excluding newly constructed housing. b. Adequate in size to meet the needs of the displaced family or individual. However, at the option of the displaced person, a replace- ment dwelling may exceed his needs when the replacement dwelling has the same number of roans or the equivalent square footage as the dwelling frau which he was displaced. c. Open to all persons regardless of race, color, religion, source of inane, sex, marital status or national origin, consistent with the requirements of the Civil Rights Act of 1964 and Title VIII of the Civil Rights Act of 1968. d. Located in an area not generally less desirable than the one in which the acquired dwelling is located, with respect to: (1) Neighborhood conditions, including but not limited to municipal services and other environmental factors. (2) Public utilities, and (3) Public and commercial facilities. e. Reasonably accessible to the displaced person's place of employment or potential place of employment. f. Within the financial means of the displaced family or individual. g. Available on the market to the displaced person. 2.4 Condominium "Condaninium" means a canbination of co -ownership and ownership in severalty. It is an arrangement under which a family or individual in a housing development holds full title to a one -family dwelling unit, including an undivided interest in such common areas and facilities, as may be designated. EXHIBIT "A" Resolution No. 83-100 Page 3 of 21 2.5 Conventional Loan 201 "Conventional loan" means a mortgage commonly given by banks and savings and loan associations to secure advances on, or the unpaid purchase price of, real property, payment of which is not insured by any agency of the state or federal governments. 2.6 Counted Room "Counted roan" means that space in a dwelling unit containing the usual quantity of household furniture, equipment and personal library, study, dining roan, kitchen, laundry roan, basement, bedroom, and garage. Roams or storage areas which contain substantial amounts of personal prop- erty equivalent to one or more roams may be counted as additional roams. 2.7 Displaced Person "Displaced person" means any person who moves from real property, or who moves his personal property from real property, as a result of the acquisition of such real property, in whole or in part, by a public entity or by any person having an agreement with or acting on behalf of a public entity, or as the result of a written order from a pubic entity to vacate the real property, for public use. This definition shall be construed so that persons displaced as a result of public action receive relocation benefits in cases where they are displaced as a result of an owner partici- pation agreement or an acquisition carried out by a private person for or in connection with a public use where the public entity 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 Section 50093 of the Health and Safety Code, who are occupants of housing which was made available to them on a permanent basis by a public agency and who are required to move from such housing, a "displaced person" shall not include: a. Any person who, at the time of the public entity's acquisi- tion of the real property, was not a tenant or occupant in lawful posses- sion of the real property and whose right of possession at the time of moving arose after the date of the public entity's acquisiton of the real property and with knowledge of such acquisition; or b. Unless federal law or regulations require such a tenant to be considered a displaced person, any nonresidential tenant or occupant who moves as a result of his breach of his tenancy agreement. 2.8 Dwelling The placement 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 nonhousekeeping unit, a mobile home or manufactured home, 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. A second hone shall be considered to be a dwelling only for the purpose of establishing eligibility for payment for moving and related expenses (as provided in Section 6090). 2.9 Economic Rent The amount of rent the displaced tenant or homeowner would have to pay for a similar unit in an area not generally less desirable than the dwelling unit to be acquired. EXHIBIT "A" Resolution No. 83-100 Page 4 of 21 202 2.10 Eligible Person "Eligible person" means any displaced person who is, or becomes, lawfully entitled to any relocation payment under these regulations. 2.11 Family The term "family" means two or more individuals, one of whom is the head of a household, plus all other individuals regardless of blood or legal ties who live with and are considered a part of the family unit. Where two or more individuals occupy the same dwelling with no identifiable head of household, they shall be treated as individuals for replacement housing payment purposes. 2.12 Farm Operation "Farm operation" means any activity conducted solely or primarily for the production of one or more agricultural products or canmodities, including timber, for sale or hone use and customarily producing such products or canmodities in sufficient quantity to be capable of contribut- ing ontributing materially to the operator's support. 2.13 Federal Project "Federal project" means any direct federal project or any project directly receiving federal financial assistance. 2.14 Gross Inccme Total projected annual income from all sources of each member of the family residing in the household who is at least eighteen (18) years of age. 2.15 Incidental Expenses Reasonable expenses incurred for evidence of title, recording fees, and other closing costs on the purchase of a replacement dwelling, excluding prepaid expenses and fees determined to be a part of the finance charge under the Truth in Lending Act, Title I, Public Law 90-321, and Regulation "Z" (12 CFT Part 226) issued pursuant thereto by the Board of Governors of the Federal Reserve System. 2.16 Initiation of Negotiations The initital written offer made by the acquiring entity to the owner of real property to be purchased, or the owner's representative. 2.17 Mobile Home "Mobile home" means a vehicle, other than a motor vehicle, designed or used for human habitation, for carrying persons and property on its own structure, and for being drawn by a motor vehicle and a "manu- factured hone" as that term is defined in state law. 2.18 Nonprofit Organization "Nonprofit organization" means a corporation, partnership, individual or other public or private entity, engaged in a business, professional or instructional activity on a nonprofit 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. 2.19 Ownership Holding any of the following interests in a dwelling, or a contract to purchase one of the first six interests: EXHIBIT "A" Resolution No. 83-100 Page 5 of 21 �. 203 a. A fee title. b. A life estate. c. A 50 -year or longer lease. d. A lease with at least twenty (20) years to rim from the date of acquisition of the property. e. A proprietary interest in a cooperative housing project or community apartment project which includes the right to occupy a dwelling. f. A proprietary interest in a mobile home or manufactured hone. g. 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. 2.20 Person Person means any individual, partnership, corporation, or association. 2.21 Personal Property (Tangible Personal Property) Tangible property which is situated on the real property vacated or to be vacated by a displaced person and which is considered personal property and is nonccmpensable under the state law of eminent domain and machinery and equipment and other property which may be characterized as an improvement pertaining to the real property under state law, but which the owner may lawfully, and at his election, determine to move and for which the owner is not compensated in the real property acquisition. Provided, however, that no item of property which is compensable under state law to the owner of real property in the real property acquisi- tion may be treated as tangible personal property in computing relocation payments. 2.22 Public Use "Public use" means a use for which real property may be acquired by eminent domain. 2.23 Purchase For the purposes of Section 7263, "purchase" of a dwelling includes: a. Acquires or constructs a dwelling; b. Purchases a rehabilitated dwelling, or purchases a sub- standard dwelling and rehabilitates it to standard condition; c. Enters into a contract for construction of a dwelling to be constructed on a site to be provided by a builder or developer or on a site which the displaced person owns or acquires for that purpose. d. Leases a condominium for a 99 -year period, or for a term which exceeds the life expectancy of the displaced person as determined from the most recent life tables in Vital Statistics of the United States, as published by the Public Health Service of the Department of Health Service of the Department of Health, Education and Welfare. EXHIBIT "A" Resolution No. 83-100 Page 6 of 21 ENgo-J"i 3 ASSURANCE OF ADEQUATE REPLACEMENT HOUSING PRIOR TO DISPLACEMENT 3.1 Replacement Housing a. Assurances of Availability The availability of adequate replacement housing shall be assured by the Agency prior to the execution of any project sponsored by the Agency which will cause displacement of families or individuals from residential dwellings. Requirements of the relocation plans of the Agency as they may from time to time be approved and adopted shall be followed with regard to such assurances. b. Provision of Replacement Housing If comparable housing is not available and it is determined that such housing cannot otherwise be made available, the Agency will take steps to provide such housing in accordance with Section 7264.5. c. Standards for Decent, Safe, and Sanitary Dwellings Relocation standards set forth in the relocation plans of the Agency as they may frau time to time be approved and adopted will be fol- lowed for all projects for which the Act is applicable. Such plans shall be initiated when significant displacement is anticipated and shall be prepared for the purpose of providing uniform and fair implementation of this section as expressed in sub -paragraphs a. and b. above. d. When substantial displacement is anticipated the Agency shall provide the affected citizens with access to the documents and information about the relocation program except when specific material may be protected by law or its disclosure prohibited by law. The Agency will additionally provide technical assistance if necessary to facilitate interpretation of elements of such plan. 4 MaVING AND RELATED EXPENSES 4.1 Specific Eligibility Requirements Any person who moves from real property or moves his personal property fran real property: 1) as a result of the acquisition of such real property by the Agency, or by anyone having an agreement with or acting on behalf of the Agency for public use, in whole or in part; or 2) as a result of a written notice of the Agency to vacate real property due to Agency acquisition, is eligible to receive a payment for moving expenses. 4.2 Actual Reasonable Expenses in Moving a. Allowable Moving Expenses Include: (1) Transportation of individuals, families, and personal property from the acquired site to the replacement site, not to exceed a distance of fifty (50) miles, except where the Executive Director deter- mines that relocation beyond this 50 -mile area is justified. (2) Packing and unpacking, crating and uncrating of personal property. (3) Storage of personal property for a period not to exceed twelve (12) months when the Executive Director determines that storage is necessary in connection with relocation. (4) Insurance premiums covering loss and damage of personal property while in storage or transit. EXHIBIT "A" Resolution No. 83-100 Page 7 of 21 05 (5) Removal, dismantling, reassembly, and reinstallment of machinery, equipment, appliances, and other personal property of the speci- fic displaced business (including goods and inventory kept for sale) not acquired or to be acquired as part of the real property. Such moving expense of the displaced business shall not include the costs of any alterations or improvements to any structure at the new location, except in those cases where the Executive Director has determined that compensa- tion for such alteration or improvement is required by law for the specific displaced business and/or is necessary for the reestablishment of the specific displaced business. Under the described limited circumstances, compensation for alterations or improvements herein shall only be approved if the displaced business demonstrates each of the following: (a) Costs of such alteration of improvement are reason- able in amount. (b) No suitable relocation site not requiring such alterations or improvements or requiring substanti- ally reduced alterations or improvements to their structure is in fact available. (c) The business was not entitled to and did not receive compensation for comparable alterations or improvements at the old location. (d) No alternative means of providing the necessary alterations or improvements (such as property improvements made by a lessor under the terms of a proposed lease) to the new location are available. b. Limitations (1) When the displaced person accomplishes the move himself, the amount of reimbursement shall not exceed the estimated cost of moving commercially, unless the Executive Director determines in writing a greater amount is justified. (2) When an item of personal property which is used in con- nection with any business or farm operation is not moved but sold and pranptly replaced with a comparable item, reimbursement shall not exceed the replacement cost minus the proceeds received from the sale, or the estimated costs of moving, whichever is less. (3) When personal property which is used in connection with any business or farm operation to be moved is of low value and high bulk, and the cost of moving would be disproportionate in relation to the value, the reimbursement for the expense of moving the personal property shall not exceed the difference between the salvage value of the property and the cost of replacing the same with a camparable item available on the market. This provision will be applicable in the case of moving of junk yards, stockpiled sand, gravel, minerals, metals, and similar type items of personal property. The amount of payment shall be based on an appraisal of the salvage value and estimates of moving expenses and replacement costs. (4) If the cost of moving or relocating an outdoor advertis- ing display or displays is determined to be equal to or in excess of the in-place value of the display, consideration will be given to acquiring such display or displays as a part of the real property. 4.3 Non -Allowable Moving Expenses and Losses The following expenses are not reimbursable as a "moving expense" under Section 7262: a. Additional expenses incurred because of living in a new location. EXHIBIT "A" Resolution No. 83-100 Page 8 of 21 l. ,-eU6 b. Cost of moving structures or other capital improvements except as otherwise provided by law. c. Improvements to the replacement site, except as provided by Section 4.2a(5). d. Interest on loans to cover moving expenses. e. Loss of profits. f. Loss of trained employees. g. Personal injury. h. Tangible and intangible property interests for which canpen- sation was received under the Eminent Domain Law of California. i. Cost of preparing the application for moving and related expenses. j. Payment for searching expenses in connection with locating a replacement dwelling. 4.4 Expenses in Searching for Replacement Business or Farm a. Allowable (1) Actual travel costs. (2) Extra costs for meals and lodging while searching. (3) Time spent in searching at the rate of the displaced person's salary or earnings, but not to exceed Ten Dollars ($10) per hour. (4) Necessary broker, real estate or other professional fees to locate a replacement business or farm operation. b. Limitation The total amount a displaced person may be paid for searching expenses may not exceed Five Hundred Dollars ($500) unless the Executive Director determines in writing that a greater amount is justified based on the circumstances involved. 5 PAYMENTS IN LIEU OF MOVING AND RELATED EXPENSES 5.1 Dwellings - Schedules Section 7262(b) provides that at the option of the displaced person, he may receive a moving expense allowance not to exceed Three Hundred Dollars ($300) based on schedules established by each agency. Moving allowance schedules maintained by the State Highway Department not to exceed Three Hundred Dollars ($300) shall be used as the basis for the Agency's fixed moving schedule. In addition, a displaced person shall receive a dislocation allowance of Two Hundred Dollars ($200). 5.2 Business - Eligibility a. A person displaced from his business, as defined in Section 7260(d) is eligible under Section 7262(c) for a payment in lieu of moving and related expenses. b. In the case of an outdoor advertising display, payment under Section 7262(c) is limited to the amount necessary to physically move or replace such display. EXHIBIT "A" Resolution No. 83-100 Page 9 of 21 2®'7 c. Mere a displaced person is displaced from his place of business, no payment shall be made under Section 7262(c) until after the Executive Director determines: (1) That the business cannot be relocated without a sub- stantial loss of existing patronage; and (2) The business is not a part of a commercial enterprise having another establishment which is not being acquired for the project and is engaged in the same or similar business; and (3) The business contributes materially to the inane of the displaced owner. A material contribution is based on the average earnings for the two years preceding displacement and defined as any one of the following: (a) Gross inane of at least $2,000. (b) Net inane of at least $1,000. (c) The net inane of the business exceeds one-third (1/3) of the owner's total net inane. d. A non-profit organization may receive an in -lieu payment in the amount of $2,500 (Two Thousand Five Hundred Dollars) if the Executive Director determines: (1) The non-profit organization cannot be relocated without a substantial loss of its patronage. The term "patronage" as used in connection with a non-profit organization includes the persons, canmunity or clientele served or affected by the activities of the non-profit organi- zation; and (2) That the non-profit organization is not part of an organization having at least one other establishment not being acquired which is engaged in the same or similar activity. 5.3 Net Earnings The term "average annual net earnings" as used in Section 7262(c) means one-half of any net earnings of the business or farm operation, before federal, state and local inane taxes, during the two taxable years immediately preceding the taxable year in which such business or farm operation moves frau the real property acquired for such project, or during such other period as the Executive Director determines to be more equitable for establishing such earnings, and includes any canpensation paid by the business or farm operation to the owner, his spouse or his dependents dur- ing such two years or such other period. In the case of a corporate owner, earnings shall include any canpensation paid to the spouse or dependents of the owner of a majority interest in the corporation. Fbr the purpose of determining ownership, stock held by a husband, his wife and their depend- ent children shall be treated as one unit. 5.4 Patronage The term "patronage" as used in Section 7262(c) means the average dollar volume of business transacted during the two taxable years immedi- ately preceding the taxable year in which the business is displaced. 5.5 Amount of Business Fixed Payment The fixed payment to a business or farm operation shall be in an amount equal to the average annual net earnings of the business or farm operation, except that such payment shall not be less than $2,500 nor more than $10,000. EXHIBIT "A" Resolution No. 83-100 Page 10 of 21 17e 0s 5.6 Claim Procedures To be eligible for the payment authorized by this section, the business or farm operation shall make available its inane tax returns and its financial statements and account records for audit for confidential use to determine the payment authorized by this section and Section 7262(c). 6 REPLACEMENT HOUSING PAYMENT FOR HOMEOMERS 6.1 Eligibility a. A displaced person who owns and occupies property acquired by the Agency is eligible for a replacement housing payment, not to exceed $15,000 (Fifteen Thousand Dollars) authorized by Section 7263, if both of the following requirements are met: (1) Actually owned and occupied the acquired dwelling frau which displaced for not less than 180 days prior to the initiation of negotiations for the property. (2) Purchases and occupies a replacement dwelling, which is decent, safe and sanitary, not later than the end of the one-year period beginning on the date on which he receives frau the displacing agency the final payment of all costs of the acquired dwelling, or on the date on which he moves frau the acquired dwelling, whichever is the later. b. A displaced owner -occupant determined to be ineligible under this chapter may be eligible for a replacement housing payment under Chapter 7. 6.2 Comparable Replacement Dwelling For the purposes of rendering relocation assistance by making referrals for replacement housing and for canputation of the replacement housing payment, a camparable replacement dwelling is one which is safe, decent, sanitary and: a. Functionally equivalent and substantially the same as the acquired dwelling, but not excluding newly constructed housing. b. Adequate in size to meet the needs of the displaced family or individual. However, at the option of the displaced person, a replacement dwelling may exceed his needs when the replacement dwelling has the same number of roans or the equivalent square footage as the dwelling frau which he was displaced. c. Open to all persons regardless of race, color, religion, sex or marital status, or national origin, consistent with the requirements of the Civil Rights Act of 1964 and Title VIII of the Civil Rights Act of 1968. d. Located in an area not generally less desirable than the one in which the acquired dwelling is located, with respect to: (1) Neighbor- hood conditions, including but not limited to municipal services and other environmental factors. (2) Public utilities, and (3) Public and carnnercial facilities. e. Reasonably accessible to the displaced person's place of employment or potential place of employment. f. Within the financial means of the displaced family or individual. EXHIBIT "A" Resolution No. 83-100 Page 11 of 21 209 g. Available on the market to the displaced person. If housing meeting the requirements of paragraph 6.2 is not available on the market, the Executive Director may, upon a proper finding or the the need therefor, consider available housing exceeding these basic criteria. 6.3 Computation of Replacement Housing Payment The replacement housing payment shall not exceed $15,000 (Fifteen Thousand Dollars) and comprises the following: a. Differential Payment for Replacement Housing The Executive Director may determine the amount which, if any, when added to the acquisition cost of the dwelling acquired by the displacing agency, is necessary to purchase a comparable replacement dwelling. (1) Schedule Method The Executive Director may establish a schedule of reasonable acquisition costs for dwellings available to the displaced person meeting the definition of comparable replacement dwellings. The schedule shall be based on a current market analysis sufficient to support determinations of the amounts established as necessary to acquire compar- able replacement housing. (2) Comparative Method The Executive Director may determine the price of a comparable replacement dwelling by selecting a dwelling or dwellings most representative of the dwelling unit acquired, which is available to the displaced person, and which meets the definition of comparable replacement dwelling. A single dwelling shall be used only when additional comparable dwellings are not available. (3) Alternate Method The Executive Director may develop other criteria for determining the price of a comparable replacement dwelling when neither the schedule method nor the comparative method is deemed feasible. (4) Limitations (a) The differential payment shall be limited to $15,000 (Fifteen Thousand Dollars) and shall be the difference between the acquisition cost of the dwelling acquired by the displacing agency and the amount necessary to purchase a comparable replace- ment dwelling. (b) If the displaced person purchases and occupies a decent, safe and sanitary dwelling at a price less than the amount established as necessary to pur- chase comparable housing, the replacement housing payment will be reduced to that amount required to pay the difference between the acquisition price of the acquired dwelling and the actual purchase price of the replacement dwelling. (c) If the displaced person purchases and occupies a decent, safe, and sanitary dwelling at a price less than the acquisition price of the acquired dwelling, no differential payment shall be made. EXHIBIT "A" Resolution No. 83-100 Page 12 of 21 210 b. Interest Payment (1) The Executive Director shall determine the amount, if any, necessary to compensate a displaced person for any increased interest costs, including loan fees paid by the purchaser. Such amount shall be paid only if the acquired dwelling was encumbered by a "bona fide mortgage" as defined below in subsection (5). The increased interest payment shall be based on and limited to the lesser of the following amounts: (a) The present worth of the right to receive the monthly difference in mortgage payments on the existing mortgage using the old and new interest rates; or (b) The present worth of the right to receive the monthly difference in mortgage payments on the new mortgage using the old and new interest rates; (2) Zb the lesser of the above amounts will be added: (a) The amount actually paid by the claimant as points on the new loan not to exceed the amount which would have been necessary to refinance the original mortgage; and/or (b) The fee paid by the claimant as an origination or service fee, if such fees are normal to real estate transactions in the area. (3) The discount rate shall be the prevailing interest rate paid on savings deposits by commercial banks in the Costa Mesa area. (4) The interest rate on the mortgage for the replacement dwelling to be used in the interest differential computation shall be the actual rate. (5) A "bona fide mortgage" is one which was a valid lien on the acquired dwelling for not less than 180 days prior to the initiation of negotiations. c. Incidential Expenses (1) The Executive Director shall determine the amount, if any, necessary to reimburse a displaced person for actual costs incurred by him incident to the purchase of the replacement dwelling, provided such expenses shall be reasonable and legally required or customary in the caarmunity, such as: (a) Legal, closing and related costs including title search, preparing plats, and charges incident to recordation. (b) Lenders', FHA or VA, appraisal fees. (c) FHA application fee. (d) Certification of structural soundness when required by lender, FHA or VA. (e) Credit report. (f) Title policies or abstracts of title. (g) Escrow agent's fee. EXHIBIT "A" Resolution No. 83-100 Page 13 of 21 . 211 (h) State revenue stamps or sale or transfer taxes. (2) No fee, cost, charge, or expense is reimbursable which is determined to be a part of the finance charge under the Truth in Lending Act, Title I, Public Law 90-321, and Regulation "Z" (12 CFR Part 226) issued pursuant thereto by the Board of Governors of the Federal Reserve System. 6.4 Joint Occupants of a Single -Family Dwelling If the individuals are joint occupants of a single-family unit acquired for a project, each eligible claimant shall be paid a prorated share of the total payment applicable to a single individual. The total payment made to all such claimants shall not exceed the total applicable to a single individual. Each eligible family jointly occupying a single-family dwelling shall be paid the maximum amount for which they separately qualify. 7 REPLACEMENT HOUSING PAYMENTS FOR TENANTS AND CERTAIN OTHERS 7.1 Purpose The purpose of the Replacement Housing Payment for Tenants and Certain Others is to provide assistance to displaced families and individ- uals in renting or purchasing camparable standard replacement dwellings. 7.2 Amount and Use of Payment A Replacement Housing Payment for Tenants and Certain Others may be in an amount not to exceed $4,000 and may be either (a) a payment to assist a displaced person in making a downpayment toward the purchase of replacement housing, or (b) a payment to assist a displaced person in the rental of replacement housing for a period not to exceed four years. The amount of the payment shall be canputed in accordance with the instructions set forth in these regulations. 7.3 Eligibility Requirements A family or individual may be eligible for a Replacement Housing Payment for Tenants and Certain Others if the following requirements are met: a. The family or individual moves frau a dwelling as a result of (1) the acquisition of the dwelling by the Agency, or by anyone having an agreement with or acting on behalf of the Agency for public use, or (2) the written notice of the Agency to vacate the dwelling due to Agency acquisi- tion. b. Fbr tenants, the family or individual lawfully occupied the rental dwelling frau which he moved for a period of not less than 90 days prior to the initiation of negotiations for acquisition of the dwelling. c. For haneowners, the family or individual occupied the dwell- ing fram which he was displaced for a period of not less than 90 days prior to the intitiation of negotiations for acquisition of the dwelling, and is not eligible for or does not elect to receive a Replacement Housing Payment for Haneowners. d. The family or individual rents or purchases and occupies a ccmparable replacement dwelling. 7.4 Joint Occupants of a Single -Family Dwelling If individuals are joint occupants of a single-family unit acquired for a project, each eligible claimant shall be paid a prorated EXHIBIT "A" Resolution No. 83-100 Page 14 of 21 share of the total payment applicable to a single individual. The total payment made to all such claimants shall not exceed the total applicable to a single individual. Each eligible family jointly occupying a single-family dwelling shall be paid the maximum amount for which they separately qualify. 7.5 Payment for Claimant Who Rents a. Basic Ccmputation The amount of the rental assistance payment shall be computed by determining the difference between the base monthly rental previously paid by the displaced person and the monthly rental for a canparable replacement dwelling. The difference is multiplied by 48 to determine the total arnount of the payment. If the amount exceeds $4,000, it must be reduced to $4,000. The payment may be made monthly, annually, or in a lump sum according to the determination of the Executive Director. b. Base Monthly Rental The base monthly rental shall be the average monthly rent, paid by the displaced person for the three-month period prior to intitia- tion of negotiations, except that: (1) The base monthly rental shall be the economic rent for similar dwellings in an area not generally less desirable than that of the dwelling from which the person is displaced if: (a) The displaced person was the owner of the dwelling frau which he was displaced; (b) The displaced person was not required to pay rent for the dwelling frau which he was displaced; or (c) The local agency finds that the rent previously paid by the displaced person was substantially higher or lower than the economic rent for a comparable dwelling. (2) The base monthly rental may not exceed twenty-five percent (25%) of the displaced person's average monthly inane. c. Monthly Rental for Comparable Unit The monthly rental for a canparable unit may be computed by any of the three methods described below. (1) Schedule The Executive Director may use a Schedule of Average Prices of Canparable Rental Housing in Locality. The schedule shall be based on a current analysis of the market to determine an appropriate average rental for each type of dwelling required. It should reflect the monthly rental for camparable, decent, safe, and sanitary dwellings avail- able on the private market in areas not generally less desirable than the dwelling units acquired for the project. (2) Comparative Method The cost of a comparable unit may be determined on a case-by-case basis, using the average month's rent for one or more dwell- ings. EXHIBIT "A" Resolution No. 83-100 Page 15 of 21 213 determined by the Executive Director to be most representative of the acquired dwelling and conforming to the definition of "comparable replace- ment housing." (3) Alternative Method When the Executive Director determines that neither the schedule nor the comparative method is feasible in a given situation, a reasonable alternative method may be developed and used. d. Limitation If the claimant was eligible for a Replacement Housing Pay- ment for Haneowners but elected to rent rather than to purchase a dwelling, the amount of the rental assistance payment may not exceed the amount of the Replacement Housing Payment for Haneowners to which he would have been entitled or $4,000, whichever is less. 7.6 Inspection of Replacement Housing Unit a. Initial and Annual Inspections For the purpose of determining eligibility for a rental assistance payment the Agency shall inspect the dwelling unit to which the claimant moves to determine that it meets applicable standards. If the rental assistance payment is being made in monthly or annual installments, the Agency shall inspect the claimant's dwelling unit annually. If annual inspections are deemed impractical, a representative number of units may be inspected to determine the need to inspect the units of all eligible claim- ants, or provide for self -inspection. The annual inspection is limited to a determination of standardness arra does not require a recanputation of the amount of the payment. b. Substandard Dwelling If the claimant's dwelling unit is determined to be sub- standard, the Agency shall notify the claimant of his ineligibility to receive or to continue to receive a rental assistance payment unless the dwelling is brought up to approved standards or he moves to a standard unit. 7.7 Payment for Claimant Who Purchases a. General If a displaced person elects to purchase instead of rent, he may receive a payment of up to $4,000 for a downpayment toward the purchase of a replacement dwelling unit, including the reasonable costs of inciden- tal expenses. b. Computation of Payment The payment shall be an amount which is necessary to make a downpayment on the comparable replacement dwelling, subject to the follow- ing : (1) The amount of the payment shall not exceed the amount which would be required as a downpayment for a convential loan on a compar- able dwelling, or on the replacement dwelling chosen by the claimant, whichever is lower. (2) Incidental expenses shall be those described in Section 6.3(c). (3) If the claim is for more than $2,000, the claimant must match dollar for dollar the amount in excess of $2,000 up to the maximum payment of $4,000. EXHIBIT "A" Resolution No. 83-100 Page 16 of 21 f1 �.` 8 MOBILE OR MANUFACTURED HOMES 8.1 General Provision The provisions for moving expenses and replacement housing pay- ments under Parts 4, 6 and 7 of these regulations are also applicable to owners and tenants of mobile or manufactured homes (hereafter "mobile hares"). 8.2 Partial Acquisition of Mobile Hone Park Where the public agency determines that a sufficient portion of a mobile home park is taken to justify the operator of such park to move his business or go out of business, the owners and occupants of the mobile home dwellings not within the actual taking but who are forced to move shall be eligible to receive the same payments as though their dwellings were within the actual taking. 8.3 Mobile Homes as Replacement Dwellings A mobile home may be considered as a replacement dwelling pro- vided: a. The mobile home meets standards of decent, safe and sanitary housing; b. The mobile home is placed in a fixed location; (1) In a mobile home park which is licensed and operating under state law; or (2) In a mobile home subdivision wherein the displaced person owns the land on which the mobile hone is placed; or (3) On real property owned or leased by the displaced person in other than a mobile home subdivision, provided such placement is in accordance with state and local laws or ordinances. 8.4 Computation on Next Highest Type When a canparable mobile home is not available, it will be neces- sary to calculate the replacement housing payment on the basis of the next highest type of dwelling that is available and meets the applicable requirements and standards, i.e., a higher type mobile hone or conventional dwelling. "Not available" for purposes of these regulations include, but is not limited to, those cases where mobile homes cannot be relocated in mobile home parks within a reasonable distance from the place of disloca- tion because of a lack of available spaces or because of the standards and rules of the mobile home parks where spaces are available. 9 RELOCATIM ADVISORY SERVICES 9.1 Type of Services Advisory services will be those required by Section 7261 and described in the relocation plans of the Agency as they may from time to time be approved and adopted. 9.2 Eligibility Advisory services shall be offered to the following: a. Any person, business, or farm operation displaced because of the acquisition of real property by the Agency for public use. EXHIBIT "A" Resolution No. 83-100 Page 17 of 21 b. Any person, business, or farm operation who moves as a result of an Agency -sponsored rehabilitation or demolition program, or because of enforcement of City Building Codes. c. Any person, business, or farm operation occupying property immediately adjacent to real property acquired by the Agency for public use if the Executive Director determines that the person, business, or farm operation has been caused substantial economic injury because of such acquisition. 10 GRIEVANCE PROCEDURES 10.1 Right of Review Any person who believes himself aggrieved by a determination as to eligibility, the amount of payment, the failure of the Agency staff to provide comparable permanent or adequate temporary replacement housing or the Agency's property management practices may, at his election, have his claim reviewed and reconsidered by the Agency in accordance with the procedures set forth in this Section. 10.2 Notification of Decision If the Executive Director denies or refuses to consider a claim, the notification to the claimant of this determination shall inform the claimant of the reasons and the applicable procedures for obtaining review of the decision. If necessary to provide the information in a language more easily understood by the recipient, such notification shall be printed in a language other than English. 10.3 Stages of Review a. Request for Further Written Information A complainant may request the Executive Director to provide him with a full written explanation of his/her determination and the basis therefor, if he feels that the explanation accompanying the payment of the claim or notice of the Director's determination was incorrect or inadequate. The Executive Director shall provide such an explanation to the complainant within four (4) weeks of his/her receipt of the request. b. Informal Oral Presentation A complainant may request an informal oral presentation to the Executive Director before seeking formal review and reconsideration by the Agency Board. The right to formal review and reconsideration shall not be conditioned upon requesting an informal oral presentation. Within fifteen (15) days of the request the Executive Direc- tor shall afford the complainant the opportunity to make such presentation. The complainant may be represented by an attorney or other person of his choosing. This oral presentation shall enable the complain- ant to discuss the claim with the Executive Director. The Executive Director shall make a summary of the matters discussed in the oral presen- tation to be included as part of its file. The Executive Director shall notify the complainant in writing of his/her final determination within fifteen (15) days of the oral presentation. c. Formal Review and Reconsideration (1) Request for Review At any time within the period described in Section 10.4, EXHIBIT "A' Resolution No. 83-100 Page 18 of 21 e16 a complainant may file a written request for formal review and reconsidera- tion by the Agency Board. The complainant may include in the request for review any statement of fact within the complainant's knowledge or belief or other material which may be relevant to the appeal. If the complainant requests more time to gather and prepare additional material for considera- tion or review and demonstrates a resonable basis therefor, the complainant may be granted additional time. The Agency Board shall consider every aggrieved person's written complaint regardless of form and shall, if necessary, provide assistance in preparing the written request for review. (2) Notice of Procedures When a complainant seeks review, the Agency Board shall inform him that he has the right to be represented by an attorney, to present his case by oral or documentary evidence, to submit rebuttal evi- dence, to conduct such cross-examination as may be required for a full and true disclosure of facts, and to seek judicial review once he has exhausted administrative remedy(s). The Agency staff may present oral and documentary evi- dence to the Agency Board at the formal review and reconsideration of a claim. The Agency's relocation consultant may submit written findings and recommendation or oral evidence to the Agency Board. (3) Review by Agency Board The Agency Board shall promptly hear all complaints brought by aggrieved persons of a redevelopment project area relating to relocation and shall determine if the Agency staff has complied with the provisions of Chapter 4 of the California Community Redevelopment Law per- taining to relocation, the Relocation Assistance Law and Guidelines, these Rules and Regulations and, where applicable, with federal law and regula- tions. The Agency Board shall conduct a hearing de novo with respect to the claim. The complainant shall be given at least ten (10) days' written notice prior to the matter being heard. (4) Final Determination by Agency Board (a) Scope of Review The Agency Board at the de novo hearing shall receive and review the evidence and reconsider the initial determination of the Executive Director. The Agency Board shall base its final decision on the claim upon the record of the de novo hearing held by the Agency Board. (b) Final Determination The final determination on review by the Agency Board shall include, but is not limited to: 1) The Agency Board's decision on consideration of the claim; 2) The factual and legal basis upon which the deci- sion rests, including any pertinent explanation or rationale; 3) A statement to the complainant that administra- tive remedies have been exhausted, if such be the case, and that judicial review may be sought. EXHIBIT "A" Resolution No. 83-100 Page 19 of 21 117, f%w The final determination of the Agency Board shall be in writing and a copy thereof shall be provided to the complainant. The Agency Board shall issue its determination as soon as possible, but no later than four (4) weeks from receipt by the Agency Board of the written findings and recommendations of the Executive Director. In the case of complaints dismissed for untimeliness or for any reason not based on the merits of the claim, the time limit for issuing such determination shall be reduced to ten (10) days. 10.4 Time Limit for Requesting Review Any request for review under Section 10.3a or Section 10.3c(3) shall be filed in writing with the specified reviewing authority within thirty (30) days following the date the complainant receives notice of the decision being appealed. Such time limit may be extended for good cause by the Agency. 10.5 Joint Canplainants Where more than one person is aggrieved by the failure of the Agency to refer them to canparable permanent or adequate temporary replace- ment housing, the canplainants may join in filing a single written request for review. A determination shall be made as herein provided for each of the canplainants. 10.6 Right to Counsel Any aggrieved party has a right to representation by legal or other counsel at his expense at any and all stages of the proceedings. 10.7 Review of Files by Claimant Except to the extent that confidentiality of material is protected by law or its disclosure is prohibited by law, the Agency shall permit the claimant to inspect all files and records bearing upon his claim or the prosecution of the claimant's grievance. The Agency may impose reasonable conditions on such right to inspect. If a claimant is improperly denied access to any relevant material bearing on the claim, such material may not be relied upon in reviewing the initial deter- mination. 10.8 Recommendations by Third Part Upon agreement between the claimant and the Agency, a mutually acceptable third party or parties may review the claim and make advisory recanmendations thereon to the Agency for its final determination. In reviewing the claim and making recommendations to the Agency, the third party or parties shall be guided by Section 10.3c(3) of these Rules and Regulations. 10.9 Effect of Determination on Other Persons The principles established in all determinations by the Agency shall be considered as precedent for all eligible persons in similar situations regardless of whether or not a person has filed a written request for review. All written determinations shall be kept on file and available for public review. EXHIBIT "A" Resolution No. 83-100 Page 20 of 21 10.10 Judicial Review Nothing in these Rules and Regulations shall in any way preclude or limit a claimant from seeking judicial review of his claim upon exhaus- tion of administrative remedies. EXHIBIT "A" Resolution No. 83-100 Page 21 of 21