RELOCATION AND DISPLACEMENT by vjg9WC

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									                RELOCATION AND DISPLACEMENT
DCA requires that all projects funded with a HOME loan or which receive a tax credit
allocation must ensure that all reasonable steps are taken to minimize the displacement of
persons (families, individuals, businesses, non profit organizations) as a result of the
construction or rehabilitation of the project. All residential tenants in place prior to the
submission of an Application for HOME funding or tax credit allocation must be
provided with the opportunity to lease and occupy a suitable, decent, safe, sanitary and
affordable dwelling unit in the building or development upon completion of the project.
The 2003 Qualified Allocation Plan provides that a detailed relocation plan and project
budget must be submitted in every application. The applicant must also include an
explanation of efforts planned to mitigate the impact of any displacement. DCA will not
approve an application that does not have a detailed relocation plan and budget and
which in DCA’s opinion minimizes displacement of existing tenants (See the Application
Form section of this manual for a complete list of required forms). The Applicant should
consider DCA’s Displacement policy in the structure of the project. DCA’s policy in
regard to displacement and relocation is applicable to HOME applications, 9% tax credit
applications and 4% tax credit applications.

Projects funded with federal assistance or which receive an allocation of tax credits may
be covered by relocation requirements contained in:

   The Uniform Relocation Assistance and Real Property Acquisition Policies Act
    of 1970(URA)- Relocation requirements are triggered whenever displacement occurs
    as a direct result of rehabilitation, demolition or acquisition for a HOME assisted unit.

   Section 104(d) of the Housing and Community Development Act.- a lower income
    person is eligible for Section 104(d) assistance if the unit he or she occupies is
    demolished with HOME funds or the person is displaced as a result of a HOME
    funded conversion.

   DCA QAP Program Requirements- DCA requires that tax credit projects also
    minimize displacement of residents regardless of whether federal financial assistance
    is included in the project.

I. HOME LOANS

All HOME projects are subject to the Uniform Relocation Act (URA) AND Section
104(d) of the Community Development Act of 1974. These laws require that any tenant
who is a legal resident of the project at the time of Application, must move either
permanently or temporarily from his or her dwelling unit as a direct result of
rehabilitation, demolition or acquisition of a HOME assisted project, they are entitled to
relocation assistance. Relocation assistance includes:

        Written Notices of the right to remain or the need to relocate;
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        Advisory services which include notices, information booklets, explanation of
         assistance, referrals to social services, counseling and advice under the Fair
         Housing Act;
        Payments for the cost of temporary relocation;
        Reimbursement of moving and related expenses; and
        Replacement Housing Assistance. (42 months if tenant’s income is 80 percent
         adjustment median income and 60 months if tenant’s income is less than 80
         percent AMI).

Relocation Assistance requirements are applicable to all occupants of a project for which
HOME assistance is sought, even if less than 100% of the units are HOME-assisted.
Relocation and Displacement costs must be paid from sources other than the HOME loan.

II.    TAX CREDIT PROJECTS

Although a tax credit allocation is not considered federal financial assistance under the
Uniform Relocation Act and Section 104(d) of the Community Development Act of
1974, the 2003 Qualified Allocation Plan provide that for Credits projects, DCA will not
allow permanent displacement of tenants, if avoidable. If the Applicant anticipates
displacing tenants, the Applicant must include in the Application a detailed displacement
plan, which sets forth the specifics of the displacement, including a projected budget, and
an explanation of efforts planned by the Applicant to mitigate the impact of the
displacement (See Appendix Form section of this manual for a complete list of required
forms). Any displacement of tenants will be subject to DCA’s prior written approval.
DCA policy requires Applicants for tax credit properties to provide relocation assistance
comparable to that required for projects receiving federal financial assistance including
but not limited to:

        Written Notices of the right to remain or the need to relocate;
        Advisory services which include notices, information booklets, explanation of
         assistance, referrals to social services, counseling and advice under the Fair
         Housing Act;
        Payments for the cost of temporary relocation;
        Reimbursement of moving and related expenses; and
        Replacement Housing Assistance (42 months if tenant’s income is 80 percent
         adjustment median income and 60 months if tenant’s income is less than 80
         percent AMI).

In determining whether displacement has occurred or whether the relocation assistance
provided is sufficient and reasonable, DCA will rely on the requirements of the Uniform
Relocation Act and Section 104(d) of the Community Development Act of 1974.

III. DISPLACEMENT

DCA requires that Owners of projects that receive HOME funding or a tax credit
allocation make every effort not to trigger displacement of existing tenants. Relocation
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costs are very expensive. Owners should offer the tenants the opportunity to lease an
affordable suitable unit within the project if possible. Affordable is generally defined as
housing payments (rent and utilities) which do not exceed 30 percent of the tenants'
adjusted income.

A tenant is considered displaced if they move from the real property, permanently, as a
direct result of rehabilitation, demolition, or acquisition of a HOME and/or Tax Credit
project.

A tenant is not considered displaced if:
 The tenant is evicted for cause, assuming the eviction was not undertaken to evade
    URA obligations.
 The person has no legal right to occupy the property under State or local law (e.g.,
    squatter).
 The tenant moved in after the application was submitted and, before commencing
    occupancy, was provided written notice of the planned project, the possible impact on
    the person (e.g., the person may be displaced, temporarily relocated, or experience a
    rent increase), and the fact that the person would not qualify as a "displaced person"
    as a result of the project.
 Others who DCA determines are not displaced.

It may also be necessary for households to temporarily relocate to another unit within the
property or to an off site unit during the work. These households will not be considered
displaced persons if:

   The conditions of the move are reasonable
   Appropriate temporary move costs are covered
   They are allowed to return to a decent safe and sanitary unit in the project
   Their rent has not increased or if it has gone up, it has not increased above their
    ability to pay

A tenant who moves permanently from the property before the owner submits an
application for funding under the 2003 QAP shall be considered displaced if DCA
determines that the displacement was a direct result of the rehabilitation, demolition, or
acquisition of the project.

A tenant who moves permanently from the property after submission of the application
may be considered displaced:

              The owner requires the tenant to move permanently because of unit size or
               the unit is eliminated;
              The owner fails to provide timely required notices to the tenant;
              The tenant is required to move temporarily and the owner does not pay all
               actual, reasonable out-of-pocket expenses or because the conditions of the
               move are unreasonable;

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              The tenant moves permanently from the project because the tenant is not
               provided the opportunity to lease a suitable, affordable unit in the project.
               Such tenants are considered economically displaced.

DCA relocation requirements cover two types of households: those who are displaced
and those who remain in the property after completion.

IV. Summary of Relocation Assistance

        All households must receive advisory services including but not limited to
         adequate information, timely notices and counseling.
        Reasonable notice of the date and approximate duration of the temporary
         relocation
        Reasonable notice of the location of suitable decent, safe, and sanitary
         dwelling to be made available for any temporary relocation
        Reasonable notice of the terms and conditions under which a tenant may lease
         and occupy a suitable, decent, safe, and sanitary dwelling in the
         building/complex upon completion of the project
        Displaced households are eligible to receive replacement-housing assistance
         as necessary to enable them to afford a new unit. Rental assistance may be in
         the form of a replacement housing payment.
        Residents who will be forced to temporarily relocate must be offered a
         temporary dwelling that is suitable and decent. All other conditions of the
         move must be reasonable. In addition, the household must receive
         reimbursement for all reasonable out of pocket expenses incurred in
         connection with the temporary move including any increase in monthly
         rent/utility costs.
        Temporary relocation assistance may be required if the tenant is unable to
         occupy or utilize a portion of his unit for as little as one hour during the work.

DCA will review the proposed scope of work in projects where the Applicant provides
information that the rehabilitation will not necessitate the Tenant be relocated to another
unit. If DCA determines that the work will cause an undue burden on the Tenant,
additional relocation assistance may be required of the Applicant. Tenants who are
unable to use their unit for any portion of the day due to the work may be entitled to
relocation assistance in the form of meals, hospitality suites where tenants can go during
the day while work is in progress, or other appropriate assistance.

V. Required Notices

Prior to Application

As part of an Application submitted under the 2003 QAP, each Applicant is
required to include proof that all residents who were legally occupying the units
prior to submission of the application were given a General Notice. These notices
shall be sent by certified mail, return receipt requested or by personal service.
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Documentation of the method of service, as well as the tenants served, shall be submitted
as part of the application. Failure to follow these requirements will result in removal
of the application from further consideration. A sample copy of this notice is set forth
in this tab and can also be found in the Application Form section of this Manual.

Subsequent to Application but before commencement of Work

Tenants moving into potential projects after the Submission of the Application but before
commencement of work should be given notice that they may be displaced and that they
will not be entitled to assistance. Failure to provide this notice will result in these
Tenants becoming entitled to Relocation Assistance if they are relocated or displaced
during the project. A sample copy of this notice is set forth in this tab and can also be
found in the Application Form section of this Manual.

After Award

Notice of Non Displacement: Informs Households who will remain in the project after
completion of the project of their rights and of the terms and conditions of remaining at
the property. This is given to tenants will stay in the same unit or another suitable unit in
the building or complex.

Temporary Relocation Notice – Informs households who will be temporary relocated of
their rights and of the conditions of their temporary move. This notice is only required
when a temporary move is placed and may be combined with the notice of non-
displacement.

Notice of Eligibility – informs households to be displaced of their rights and levels of
assistance. This notice is required for displaced households.

90 and 30 day notices. Informs displaced households of the day by which they must
vacate the property. Displaced households may not normally be given less than 90 days
to vacate their residence. If a specific date is not given with the 90-day notice, a 30-day
notice can provide the specific date.

Poster – Subsequent to award, the owner or property manager must post at least 1
Relocation notification poster in the project rental office and 1 poster in each building.
Posters can be obtained from the DCA Compliance Department.

VI Application Documentation

The following documentation is required as part of an Application for HOME and/or Tax
Credit submitted under the 2003 Qualified Allocation Plan:

1. Certification of sending of General Notice (DCA reserves the right to review certified
   notice receipts)

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2. Completed tenant household data forms for every occupied unit (See Appendix
   Formsection of this manual)
3. Occupancy history for project including current rent roll. (90 day period)
4. Relocation and Displacement Budget
5. Residential antidisplacement and relocation assistance plan




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                            APPLICATION FORMS

              Form HUD-40061, Selection of Most Representative Comparable
               Replacement Dwelling
              Site Occupant Record—Residential
              Site Occupant Record—Nonresidential
              Record of Advisory Assistance and Other Contacts
              Form HUD-40054, Claim for Moving and Related Expenses
              Form HUD-40057, Claim for Replacement Housing Payment for 180-
               Day Homeowner
              Form HUD-40058, Claim for Rental Assistance or Downpayment
               Assistance
              Form HUD-52580, Section 8 Existing Housing Program Inspection
               Checklist
              Form HUD-40055, Claim for Actual Reasonable Moving and Related
               Expenses
              Form HUD-40056, Claim for Fixed Payment in Lieu of Payment for
               Actual Moving and Related Expenses
              Waiver of Relocation Benefits Under The Uniform Relocation Act [and
               Section 104(d) of the Housing and Community Development Act of
               1974]




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