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HomeMy WebLinkAboutReso 2005-052 - CA Relocation Assistance Law e e RESOLUTION NO. 2005-52 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF REDDING AMENDING THE CITY'S RULES AND REGULATIONS FOR IMPLEMENT A TION OF THE CALIFORNIA RELOCATION ASSIST ANCE LAW AND PROPERTY ACQUISITION PROCEDURES AND INCORPORATING THOSE RULES INTO A NEWLY EST ABLISHED CITY COUNCIL POLICY 1903. WHEREAS, to ensure consistent and fair treatment for owners of real property to be acquired, to encourage and expedite acquisition by agreement with owners of such property in order to avoid litigation and relieve congestion in courts, and to promote confidence in public land acquisition; and City of Redding staff has developed long range financial plans to assist the City with this key responsibility; and WHEREAS, to ensure that uniform, fair and equitable treatment is afforded persons displaced from their homes or businesses as a result of the actions of the City, in order that such persons shall not suffer disproportionate injury as a result of action taken for the benefit of the public as a whole; and WHEREAS, in order to implement the California Relocation Assistance Law; NOW, THEREFORE, IT IS RESOLVED by the City Council of the City of Redding that the attached City Council Policy 1903 is hereby adopted incorporating by reference Rules and Regulations for Implementation of the California Relocation Assistance Law and Property Acquisition Procedures. I HEREBY CERTIFY that the foregoing resolution was introduced, read, and adopted at a regular meeting of the City Council on the 3rd day of May 2005, by the following vote: AYES: NOES: ABSENT: ABSTAIN: COUNCIL MEMBERS: COUNCIL MEMBERS: COUNCIL MEMBERS: COUNCIL MEMBERS: Dickerson, Murray, Pohlmeyer, Stegall, and Mathena None None None -, , , , " .-- t1 R. M . HENA, Mayor Atte,st: ,> ' ..: " ,,'-~ {' : (: \:: -:;', .. j Form Approved: ~ . ,:~~. CONNIE ST RI~~~orneY ~ , t') r e e SUBJECT RESOLUTION NUMBER POLICY NUMBER EFFECTIVE DATE PAGE RELOCATION ASSISTANCE AND REAL PROPERTY ACQUISITION PROCEDURES 1903 1 BACKGROUND The City of Redding is statutorily authorized to acquire real property in anyone of the following alternative ways: eminent domain, grant, purcha.se, lease, gift, devise or by contract. However, both state and federal law dictate that certain procedures be followed in the acquisition of real property and the displacement of persons caused by such acquisition. PURPOSE The purpose of this Policy is to incorporate by reference certain rules and regulations to implement the California Relocation Assistance Law (Government Code, Section 7260, et seq.) and to establish real property acquisition procedures for the City which conform to applicable statutory guidelines describ(~d in Cal. Gov' Code ~~ 767 et seq and 25 Cal. Code Regs ~~ 6000. POLICY OBJECTIVES A. The City desires to ensure that uniform, fair and equitable treatment is afforded peJrsons displaced from their homes or businesses as a result of the actions ofthe City, in order that such persons shall not suffer disproportionate injury as a result of action taken for the benefit of the public as a whole; and B. The City desires to ensure consistent and fair treatment for owners of real property to be acquired by the City and to encourage and expedite acquisition by agreement with owners of such property in order to avoi~ litigation and relieve congestion in courts, and to promote confidence in public land acquisition. POLICY As a means 'to accomplish the purpose and objectives ofthis Policy, the City incorporates by reference into this Policy the "City of Redding Rules and Regulations for Implementation of the California Relocation Assista,,"ce Law and Property Acquisition Procedures" as approved by City Council Resolution R- . The document is on file in its entirety in the Office of the City Clerk. The cover page and table of contents are attached to this Policy as Attachment A. ~-.J-- - a-.e - e e Cll~Y OF REDDING RULES AND REGULATIONS FOR IMPLEMENTATION OF THE CALIFORNIA RELOCATION ASSISTANCE LAW AND '\ PROPERTY ACQUISITION PROCEDURES DATE ADOPTED: June 6. 1995 DATE AMENDED: August 4.1998 DATE AMENDED: Mav. 2005 Prepared by Pacific Relocation Consultants, revised April 1995 First Amendment prepared by City staffin August 1998 Second Amendment prepared by City staff in May 2005 At1:achment A e e RULES AND REGULATIONS FOR~ IMPLEMENTATION OF THE CALIFORNIA RELOCATION ASSISTANCE LAW ANl) PROPER.TY ACQUISITION PROCEDURES TABLE OF CONTENTS I. [~ 100] GENERAL ................................................................ I A. [~ 101] Purpose. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. 1 B. [~ 102] Authority .......................................................... I C. [~ 103] Effective Date; Applicability. . . . . . . . . . . . . . . . . . . . . . . . ~ . . . . . . . . . . . . . . . . .. 1 D. [~ 104] Extent of Relocation Payments ......................................... 2 E. [~ 105] Exception from Relocation Requirement ................................. 2 F. [~ 106] Priority of Federal Law ............................................... 2 G. [~ 107] Severability ........................................................ 3 II. [~ 200J DEFINITIONS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. 3 A. [~ 201] Acquisition. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ; . . . . . . . . .. 3 B. [~ 202] Adequate Replacement Dwelling ....................................... 3 C. [~ 203] Appraisal .......................................................... 3 D. [~204] Average Annual Net Earnings. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. 3 E. [~ 205] Average MontWy Income ............................................. 4 F. [~ 206] Base MontWy Rental Housing Costs. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. 4 G. [~ 207] Business. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. 4 H. [~ 208] Reserved. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. 4 I. [~ 209] City. . . . . . . . . . . . . . . ',' . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. 4 J. [~ 210] Comparable Replacement Dwelling ..................................... 4 K. [~ 211] Condominium. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. 5 L. [~ 212] Date of Acquisition .................................................. 5 M. [~ 213] Decent, Safe and Sanitary Housing. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. 6 N. [~ 214] Department. . . . . . . . . : . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. 6 O. [~ 215] Displaced Business ................................... 0 0 . . . . . . . . . . . .. 6 P. [~ 216] Displaced Farm Operation. . . . 0 0 . . . . . . . . . . . . . . . . . . . . . 0 . . . . . . . . . . . . . . 0 .. 6 Q. [~ 217] Department Head . . . . . . . . . . . . . 0 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 0 . . . . . .. 6 R. [~ 218] Displaced Person ... . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 0 . . . . . . . . . . . . . .. 7 S. [~ 219] Displaced Resident . 0 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 0 . . . . . . . . . . . 0 . . . . .. 9 T. [~ 220] Dwelling. . . . . . 0 . . . . . . . . . .. 0 . . 0 . . . . . . . . . . . 0 0 . . . . . . . . . 0 . . 0 . . . . 0 . . . . .. 9 U. [~ 221] Economic Rent. . . 0 . . 0 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 0 . . . . . . . . . . . . . .. 9 V. [~ 222] Elderly Household. . . . . . . . . . . . . . . . 0 . . 0 . 0 .0 . . . 0 . . . . . . . . . . . . . . . . 0 . . . . .. 9 w. [9 223] Family .......... 0 . . . . . 0 . . . . . . . . 0 . . 0 . . . 0 . . 0 . 0 . . . . . . . 0 . . . . 0 . . 0 0 . . . .. 9 x. [9224] Farm Operation .....0..000........... 0 . . . . . . . 0 . . . . . . . . 0 . . . . . . 0 . . . .. 10 Y. [9 225] Federal Project. 0 ~. . . . . . . . . . . 0 . . . . . . . . . 0 . . . . . . . . . . . 0 . . . . . . . . . . 0 . . . .. 10 z. [9 226] Gross Income . . . . . . . . . . . . . . . . . . 0 . . . . . 0 . . 0 . . . . . . . . . . . 0 . . . . . . . 0 . . . . " 10 AA. [9227] Handicapped Household .........0............................... 0 . .. 10 BB. [9228] Initiation of Negotiations . . . . . . . . . . . . . . . . . . . . 0 . . 0 . . . . . . . . . . . 0 . . . . . . . .. 10 CCo [9229] Last Resort Housing. . 0 . . . . 0 0 . 0 . . 0 . . 0 . . 0 0 . 0 . . . 0 0 . . . . . . . . 0 0 . . . 0 . . . 0 . .. 11 DD. [9 230] Manufactured Home or Mobilehome 0 . . . 0 . . . . . . . 0 0 . . . 0 . . . 0 0 . . . 0 . 0 . . . . . .. 11 EE. [9231] Mortgage ...... 0 . . . 0 . . . 0 0 . . . . 0 . . . . . . . . . . . . . . 0 . . . 0 . . . . . . . . . 0 0 . . 0 . o. 11 ill. [~ 300] RELOCATION ADVISORY ASSISTANCE. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. 13 14 14 14 15 15 16 17 17 17 17 17 e e FF. [~ 232] Nonprofit Organization .............................................. 11 GG. [~233] Ownership. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. 11 HR. [~234] Person. . . . . . . . . . '.' . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . " 12 II. [~ 235] Personal Property. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. 12 n. [~ 236] Post-Acquisition Tenant ............................................. 12. KK. [~237] Prepaid Expenses. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. . . . .. 12 LL. [~ 238] Public Use ........................................................ 12 MM. [~239] Small Business. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. 12 NN. [~ 240] Tenant ........................................................... 13 00. [~241] Unlawful Occupancy . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. 13 A. B. [~ 301] Advisory Assistance to be Provided by the City. . . . . . . . . . . . . . . . . . . . . . . . . . . [~ 302J fuformation Program ............................................ . . . . 1. [~ 303] General fuformation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2. [~ 304] Personal. Contact. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3. [~ 305] Payment After Death ............................................ 4. [~ 306] fuformation Statement for Relocation Assistance ...................... 5. [~307] Notice of Eligibility Status. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6. [~308] Language of fuformation Material . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7. [~ 309] Method of Delivery oflnformational Material ........................ [~310] Determination of Relocation Needs. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1. [~311] futerviews . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . a. [~ 312] fuformation to be Obtained from Residential Owner Occupants or Tenants ....................................... 18 b. [~313] Coordination with Other Agencies. . . . . . . . . . . . . . . . . . . . . . . . . . . . .. 19 c. [~ 314] futerview after Person Moves Without Notice '. . . . . . . . . . . . . . . . . . . " 19 2. [~ 315] Relocation Records ............................................. 19 3. [~316] Updating fuformation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. 19 [~ 317] Relocation Site Office ..................... . . . . . . . . . . . . . . . . . . . . . . . . .. 19 [S 318] Contracting for Relocation Services .................................... 19 [S 319] Coordination of Relocation Assistance ............................,..... 20 C. D. E. F. IV. [~400J RELOCATION PI~ANS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. . . . .. 20 A. [S 401] Requirements Generally. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. 20 B. [S 402] Contents of Plan . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. 20 1. [S 403] Analysis of Replacement Dwelling Needs. . . . . . . . . . . . . . . . . . . . . . . . . . .. 21 2. [S 404] Analysis of Replacement Dwelling Resources ........................ 22 3. [S 405] Method of Providing Last Resort Housing ........................... 22 4. [S 406] fuformation Required . .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. 23 C. [~ 407] Review of Relocation Plan ........................................... 23 D. [S 408] Conformance to General Plan ......................................... 24 E. [S 409] Update of Relocation Plans ............ . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. 24 v. [~ 500] ASSURANCE OF COMPARABLE REPLACEMENT DWELLINGS ........... 24 A. [~ 501] Requirement Generally .............................................. 24 B. [S 502] Procedures for Identifying Comparable Replacement Dwellings .. . . . . . . . . . . .. 24 1. [S 503] Survey of Available Replacement Dwellings ......................... 24 2. [S 504] fuformation To Be Obtained ...................................... 25 a. [S 505] Survey Area ............................................... 25 b. [S 506] Gross Number of Comparable Replacement Dwellings. . . . . . . . . . . . .. 25 (I) [~507] Standard Generally. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. 25 e e (2) [~508] Uncompleted New Construction or Rehabilitation ............. 25 (3) [~509] Publicly Subsidized Housing. . . . . . . . . . . . . . . . . . . . . . . . . . . . .. 25 c. [~ 510] Adjustment for Concurrent Displacement ........................ 26 3. [~511] Review of Survey Results ........................................ 26 C. [~ 512] Referrals of Replacement Dwellings. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. 26 D. [~ 513] Temporary Move. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. 27 1. [~514] Use of Temporary Replacement Housing ............................ 27 2. [~ 515] Relocation Assistance and Payments. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. 27 3. [~516] Assurances Prior to Temporary Move. . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. 27 E. [~ 517] Provision of Last Resort Housing ...................................... 28 1. [~ 518] Authorization; Methods. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. 28 2. [~ 519] Nondiscrimination .............................................. 28 3. [~ 520] Confonnity with Statutes and Regulations. . . . . . . . . . . . . . . . . . . . . . . . . . .. 29 4. [~ 521] Monitoring Housing Production. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . " 29 5. [~ 522] Retention of Benefits Upon Move to Last Resort Housing. . . . . . . . . . . . . .. 29 F. [~ 523] Move to Substandard Dwelling Unit. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. 29 G. [~ 524] Waiver of Requirement for Replacement Dwelling Prior to Displacement . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. 30 VI. [~600J RELOCATION PAYMENTS TO DISPLACED RESIDENTS. . . . . . . . . . . . . . . . .. 30 A. [~ 601] Payments Required ................................................. 30 B. [~ 602] Actual Reasonable Moving Expenses. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. 30 C. [~ 603] Alternate Payments ................................................. 31 D. [~ 604] Replacement Housing Payments for Displace~ Homeowners. . . . . . . . . . . .. . . . .. 31 1. [~605] Amount of Payment .......................................,..... 31 2. [~ 606] Eligibility ......................... . . . . . . . . . . . . . . . . . . . . . . . . . . .. 32 3. [~ 607] Computation of Replacement Housing Payment. . . . . . . . . . . . . . . . . . . . . .. 33 a. [~ 608] Reasonable Cost of Comparable Replacement Dwelling. . . . . . . . . . . .. 33 b. [~ 609] Increased Interest Cost ....................................... 33 c. [~ 610] Expense Incidental to the Purchase of the Replacement Dwelling . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. 34 4. [~ 611] Multi-Family Dwelling. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . " 34 5. [~ 612] Homeowner Retention of Dwelling . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. 35 6. [~ 613] Lease of Condominium .......................................... 35 E. [~ 614] Replacement Housing Payments for Tenants and Certain Others. . . . . . . . . . . . .. 35 1. [~ 615] Amount of Payment ............................................. 35 2. [~ 616] Eligibility. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . " 35 3. [~617] Computation of Replacement Housing Payment. . . . . . . . . . . . . . . . . . . . . .. 36 a. [~ 618] Rent Differential Payment .................................... 36 b. [~ 619] Downpayment . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . " 39 4. [~ 620] Rental Payments for Displaced Homeowners and Dependents. . . . . . . . . . .. 39 a. [~ 621] Homeowners. . . . . . . . . . . . . . . . . . , . . . . . . . . . . . . . . . . . . . , . . . . . . '" 39 b. [~622] Dependents ............................................... 39 F. [~ 623] Payments to Residents Displaced from Manufactured Homes and Mobilehomes . 40 1. [~624] Payments Required. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . '" 40 2. [~ 625] Moving Expenses: Retention and Move of Mobile Home. . , . . . . . . . . . . . " 40 3. [~ 626] Replacement Housing Payments ................................... 40 G. [~ 627] Proration of Payments ............................................... 41 VII. [~ 700] RELOCATION PAYMENTS TO DISPLACED BUSINESSES ................. 42 A. [~ 701] Payments Required ................................................. 42 B. [~ 702] Moving Expenses. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. 42 e e VIII. [~800] CITIZEN PARTICIPATION ............................................ 49 A. [9801] Requirement Generally .............................................. 49 B. [9 802] Relocation Committee .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. 49 C. [9 803] Minimum Requirements ............................................. 49 1. [9703] Actual Reasonable Moving Expenses ............................... 42 2. [9704] Actual Direct Loss of Tangible Personal Property ..................... 44 3. [9705] Actual Reasonable Expenses in Searching for a Replacement Business ......................................... 45 C. [9706] Actual Reasonable Expenses To Reestablish A Small Business or Nonprofit Organization ...................."................ 45 D. [9707] Alternate Payments ................................................. 47 1. [9708] Deternrination of Payments . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. 47 a. [9709] Amount of Payment ......................................... 47 b. [9 710] Determination of Number of Businesses ......................... 47 2. [9 711] Eligibility ..................................................... 47 a. [9 712] Business .................................................. 47 IX. [~900] CLAIM AND PAYMENT PROCEDURES . . . . . . . . . . . . " . . . . . . . . . . . . . . . . . . .. 50 50 50 50 50 50 A. B. [9901] Filing of Claims . . . . . . . . . .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . [9 902] Documentation in Support of Claim .................................... 1. [9903] Moving Expenses. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . a. [9904] Commercial Moves. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . b. [9 905] Self Moves ................................................ c. [9 906] Exemption from Public Utilities Commission Regulations. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2. [9 907] Loss of Property . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3. [9 908] Proof of Earnings ......................................... . . . . . . [9 909] Payment of Moving Expenses ...... . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. . . . . . 1. [9910] Advance Payment. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . " . . . . . 2. [9911] Direct Payment. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. . . . . . 3. [9 912] Methods Not Exclusive ........................................... [9913] Payments for Replacement Dwellings. . . . . . . . . . . . . . . . . . . . . . . . . . . ". . .. . . . . . 1. [9914] Payment for Purchase of Comparable Replacement Dwelling ......,..... a. [9915] Disbursement .............................................. b. [9916] Provisional Payment Pending Condemnation. . . . . . . . . . . . . . . . . . . . . . c. [9917] Certificate of Eligibility ....................................... 2. "[9918] Rent Differential Payments ....................................... [9919] Assistance and Payments to Persons Moving without Notice ................ [9 920] Termination of Relocation Assistance. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 50 51 51 51 51 51 51 51 51 51 52 52 52 52 53 x. [~ 1000] GRIEVANCE PROCEDURES ........ . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. 53 A. [9 1 001] Purpose . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. 53 B. [9 1002] Right of Review . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. 53 C. [9 1003] Informal Oral Presentation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. 54 D. [9 1004] City Council Review .......................................... . . . .. 55 E. [9 1005] Time Limits .................. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. 56 F. [9 1006] Review of Files By Claimant. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. 56 G. [9 1007] Effect of Determination . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. 56 H. [9 1008] Right to Counsel .................................................. 56 I. [9 1009] Further Review . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. 56 J. [9 1010] Severability ...................................................... 57 C. D. E. F. e e K. [~ 1011] Application of Rules & Regulations ................................... 57 L. [~ 1012] Amendments ..................................................... 57 M. [~ 1013] Joint Complainants ................................................ 57 N. [~ 1014] Judicial Review ................................................... 57 XI. [~1100J ACQUISITION PROCEDURES ......................................... 57 A. [~ 11 01] Acquisition of Property by Negotiation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . " 57 B. [~ 1102] Appraisal of Property . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. 58 C." [~ 1103] Notice ofDecisioll to Appraise. . . . . . . . . . . . . . . . . . . . . . . . . . . . .". . . . . . . . .. 58 1. [~1104] Contents of Notice ............................................. 58 2. [~1105] Information Statement: Property Acquisition Procedures. . . . . . . . . . . . . .. 59 D. [~ 1106] Establishment oOust Compensation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. 60 E. [~ 1107] Uneconomic Remnant .............................................. 60 F. [~ 1108] htitiation of Negotiations . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . " 61 1. [~1109] Written Offer ................................................. 61 2. [~1110] Statement of the Basis oOust Compensation. . . . . . . . . . . . . . . . . . . . . . .. 61 G. [~ 1111] Loss of Goodwill ..................................... . . . . . . . . . . . " 62 H. [~ 1112] Compensation for Loss of Goodwill ..................................". 63 1. [~1113] Compensation Generally ........................................ 63 2. [~1114] Notice of Intent to Claim Loss of Goodwill . . . . . . . . . . . . . . . . . . . . . . . . .. 63 3. [~1115] Conference to Discuss Eligibility to Receive Compensation for Loss of Goodwill. . .. . . . . . . . . . . . . . . . . . . . . . . . . . " 64 4. [~1116] Business Records; Authorization to Negotiate ....................... 64 5." [~1117] Calculation of Net Amount of Just Compensation for Loss of Goodwill for Negotiation Purposes ...................... 64 6. [~1118] Notice to Owner; Written Offer. . . . . . . .. . . . . . . . . . . . . . . . . . . . . . . . . .. 64 7. [~1119] Eminent Domain. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. 64 I. [~ 1120] Negotiations; Eminent Domain. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. 65 J. [~ 1121] Notice of Decision Not to Acquire .................................... 65 K. [~ 1122] Incidental Expenses . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . " 66 L. [~ 1123] Purchase Price as Public Information .................................. 66 M. [~ 1124] Service of Notice ............................................ . . . . .. 66 XII. [~1200J PROPERTY MANAGEMENT PRACTICES. . . . . . . . . . . . . . . . . . . . . . . . .. . . . .. 66 A. [~ 1201] Short Term Rental ......................................;........... 66 B. [~ 1202] Notice to Vacate. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. . . . :. 66 C. [~ 1203] Eviction .......................................,.................. 67 D. [~ 1204] Status of Post-Acquisition Tenants ..................................... 67 1. [~1205] Notice of Status ................................................ 67 2. [~1206] Notice to Vacate. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. . . . .. 68 3. [~1207] Eligibility for Relocation Assistance and Payments .................... 68 4. [~1208] Move from Permanent Housing . . . . . . . . . . . . . . . . .. . . . . . . . . . . . . . . . .. 68 5. [~1209] Service of Notice .............................................. 68 v e e RULES AND REGULATIONS F'OR lIMPLEMENTATION OF THE CALIFORNIA RELOCATION ASSISTANCE LAW AND PROPERTY ACQUISITION PROCEDURES I. [~100] GENERAL A. [~ 101] Purpose The purpose of these Rules and Regulations is to implement the California Relocation Assistance Law (Government Code, Section 7260, et seq.) and establish acquisition procedures. The Rules and Regulations are designed to carry out the following polieies of the Relocation Assistance Law with respect to activities of the City: 1. To ensure that unifarm, fair and equitable treatment is afforded persons: displaced fram their homes or businesses as a result of the actions of the City, in order that such persons shall not suffer disproportionate injury as a result of action taken for the benefit of the public as a whole; and 2. In the acquisition of real property by the City, to ensure consistent and fair treatment for owners of real property to be acquired, to encourage and expedite acquisition by agreement with owners of such property in order ta avoid litigation and relieve congestion in courts, and to promote confidence in public land acquisition. B. [~ 102] Authority These Rules and Regulations have been adopted by resolution of the City pursuant to Section 7267.8(a) of the C~lifomia Government Code, and are in conformity with the Relocation Assistance Law and the Relocation Assistance and Real Property Acquisition Guidelines adopted by the Department of Housing and Cammunity Development; Title 25 Code of Regulations, Section 6000 et. seq. (the "Guidelines"). c. [~ 103] Effective Date; Applicability The effective date of these Rules and Regulations shall be the date of their adoption by the City. These Rules and Regulations shall be applicable to all displacement and acquisition occurring after their adoption by the City. - 1 - (\ \,,-,j ,~ \., / These Rules and Regulations supersede all other Rules and Regulations for Relocation previously adopted by the City provided, however, that these Rules and Regulations shall not be construed to apply retroactively to actions undertaken by the City prior to their adoption. ' In the event there are conflicts between these rules and Regulations and the relocation and property acquisition state laws and guidelines and eminent domain laws (the "State Laws") as they currently exist or as they may be amended, the State Laws shall take precedence and City staffis authorized to automatically, without further approval of the City Council, amend these Rules and Regulations accordingly. D. [~ 104] Extent of Relocation Payments The City shall provide relocation assistance and shall make all ofthe relocation payments required by law, including the making of such payments for projects financed by the federal government. In addition, the City may make any additional relocation payments which in the City's opinion may be reasonably necessary under the circumstances of the particular case to carry out the purposes of a project. Such payments shall be subject to the availability of funds for such purposes. E. [~ 105] Exception from Relocation Requirement The requirement to provide relocation assistance and benefits shall not apply to a purchase of real property which is offered for sale by the owner, property being sold at execution or foreclosure sale, or property being sold pursuant to court order or under court supervision ifthe property in any of the foregoing situations is either occupied by the owner or is unoccupied, and if the offer"for sale is not induced by City disposition, planned condemnation, or redevelopment of surrounding lands, and if the sales price is fair market value or less, as determined by a qualified appraiser, and if no federal funds are involved in the acquisition, construction, or project development. "Offered for sale" means either advertised for sale in a publication of general circulation published at least once a week or listed with a licensed real estate broker and published in a multiple listing, pursuant to section 1087 of the California Civil Code. At the time of making the offer to acquire property under this Section, the City shall notify the property owner in writing, of the following: 1. The City's plans for developing the property to be acquired or the surrounding property; and 2. Any relocation assistance and benefits provided pursuant to law which the property owner may be foregoing. F. [~ 106] Priority of Federal Law Make any relocation assistance payment, or make any relocation assistance payment in an amount which exceeds the maximum amount for such payment authorized by these - 2 - e e Rules and Regulations, if the making of such payment, or the payment in such amount, is required under federal law, except that to the extent an obligation to provide relocation assistance and benefits imposed by state law is not imposed by federal law, tlle state law obligation to impose such obligation shall apply to such federally funded project. G. [~ 107] Severability If any provision of these Rules and Regulations or the application thereof to any person or circumstances is held invalid, such invalidity shall not affect other provisions or applications of the Rules and Regulations which can be given effect without the invalid provision or application, and to this end, the provisions of the Rules and Regulations are severable. II. [~ 200] DEFINITIONS A. [~ 201] Acquisition "Acquisition" means obtaining ownership or possession of real property by purchase, eminent domain, or any other lawful means. B. [~ 202] Adequate Replacement Dwelling "Adequate replacement dwelling" means a dwelling which meets all of the criteria for a comparable replacfment dwelling, except that with respect to the number of rooms, habitable living spa.ce and type of construction the dwelling need be only adcequate, not comparable. c. [~ 203] Appraisal "Appraisal" means a written statement independently and impartially prepared by a qualified appraiser setting forth an opinion of defined value of an adequately described property as of a specific date, supported by the presentation and analysis of relevant market information. D. [~204] Average Annual Net Earnings "Average annual net earnings" means one-half of any net earnings of a business before federal, state and local income taxes, during the two taxable years immediately preceding the taxable year in which such business moves from the real property being acquired, or during such other period as the City determines to be more equitable for establishing such earnings, and includes any compensation paid by the business to the owm~r, owner's spouse or owner's dependents during such period. The term "owner" as used herein includes the sole proprietor in a sole proprietorship, the principal parties in a partnership, and the principal stockholders of a corporation, as determined by the City. For purposes of determining a principal stockholder, stock held by a person, his or her spouse and their dependent children will be treated as one unit. - 3 - ,r-\ '" // /~ "', j E. [~ 205] Average Monthly Income "Average monthly income" means total annual gross income divided by twelve. F. [~ 206] Base Monthly Rental Housing Costs The base monthly rental housing cost for an acquired dwelling is the lesser of the average monthly rental paid by the displaced person for the 3 month period prior to initiation of negotiations and 25% ofthe displaced person's average monthly income. For owners, the "Economic Rent" is used instead of the average monthly rental in the above formula. Section 221 of the regulations defines Economic Rent. G. [~ 207] Business "Business" means any lawful activity, except a farm operation, provided such lawful activity is not in an unlawful occupancy as defined in Section 241, conducted primarily: 1. For the purchase, sale, lease, or rental of personal and real property, and for the manufacture, processing, or marketing of products, commodities or any other personal property; 2. For the sale of services to the public; 3. By a nonprofit organization; or 4. Solely for the purpose of Section 702 of these Rules and Regulations, for assisting in the purchase, sale, resale, manufacture, processing or marketing of products, commodities, personal property or services by the erection and maintenance of any outdoor advertising display, whether or not such display is located on the premises on which any of the above activities are conducted. H. [~ 208] Reserved I. [~ 209] City "City" means the City of Redding and any City staff, consultants, assignees, delegates and City departments who may be assigned the duties and responsibilities for implementing the Relocation Assistance Law pursuant to these Rules and Regulations. J. [~210] Comparable Replacement Dwelling "Comparable replacement dwelling" means any dwelling that is all of the following: 1. Decent, safe, and sanitary; 2. Adequate in size to accommodate the occupants; - 4- e e 3. In the case of a displaced person who is a renter, within the financial means of the displaced person. A comparable replacement dwelling is within the financial means of a displaced person if the monthly rental cost of the dwelling minus any replacement housing payment available to the,person does not exceed thirty (30%) of the person's average monthly income; 4. Comparable with respect to the number of rooms, habitable space, and type and quality of construction. Comparability under this paragraph shall not require strict adherence to a detailed, feature-by-feature comparison. While a comparable replacement dwelling need not possess every feature of the displacement dwelling the principal features shall be present; 5. In an area not subjected to unreasonable adverse environmental conditions; 6. In a location generally not less desirable than the location of the displaced person's dwelling with respect to public utilities, facilities, services, and the displaced person's place of employment; 7 . Available on the private market to the displaced person and available to all persons regardless of race, color, sex, marital status, religion, familial status or national origin in a manner consistent with Title VIII ofthe Civil Rights Act of 1986 or any other applicable state or federal anti-discrimination law. If a dwelling which satisfies these standards is not available, the City may consider a dwelling which exceeds them. "Replacement Dwelling" as herein defined does not refer to "replacement dwelling unit "as that term is used and defined in Section 33411.2 (c) of the California Community Redevelopment Law. K. [~211] Condominium "Condominium" means combination of co-ownership and ownership in seve:ralty. It is an arrangement under which persons in a housing development hold full title to a one-family dwelling unit, including an undivided interest in common areas and facilities, and such restricted common areas and facilities as may be designated. L. [~ 212] Date of Acquisition The date on which the deed or other conveyance to the real property being al::quired by the City within the project area is recorded in the office of the Shasta County Recorder, or the date on which the City is entitled to possession of the real property pursuant to an order of the Shasta County Superior Court in an eminent domain proceeding. - 5 - (\, '~/ (\ "-- / M. [~ 213] Decent, Safe and Sanitary Housing "Decent, safe, and sanitary" means: Housing in sound, clean, and weather-tight condition, in good repair, and adequately maintained in conformance with the applicable state or local building, plumbing, electrical, housing and occupancy codes or similar ordinances or regulations and meets the following minimum standards: 1. Each housekeeping unit shall include a kitchen with a fully useable sink, a stove or connection for a stove, a separate and complete bathroom, hot and cold running water in both bathroom and kitchen, an adequate and safe wiring system for lighting and other electrical services and heating as required by climatic conditions and local codes. 2. Each nonhousekeeping unit shall be in conformance with State and local standards for boarding houses, hotels, and other dwellings for congregate living. A decent, safe, and sanitary mobile home is one which conforms to the minimum requirements prescribed by State laws and rules and regulations promulgated pursuant thereto and bears the insignia of approval issued by the State of California, Department of Housing and Community Development. N. [~214] Department "Department" means the California Department of Housing and Community Development. O. [~ 215] Displaced Business "Displaced business" means any business which qualifies as a displaced person under Section 218 hereof. P. [~216] Displaced Farm Operation "Displaced farm operation" means any farm operation which qualifies as a displaced person under Section 218 hereof. Q. [~ 217] Department Head Department Head means that person in charge of any City Department that will be responsible for the displacement of any individual, family, business or non-profit organization for a public use. - 6 - e tit .' R. [~ 218] Displaced Person "Displaced Person" means any person who moves from real property, or who moves his or her personal property from real property, either: 1. As a result of a written notice of intent to acquire or the acquisition of the real property, in whole or in part, for a program or project undertaken by the City or by any person having an agreement with or acting on behalf ofthe City, or as the result of a written order from the City to vacate the real property for public use; or. 2. As a result of the rehabilitation.. demolition, or other displacing activity undertaken by the City or by any person having an agreement with or acting on behalf of the City, of real property on which the person is in lawful occupancy or conducts a business or farm operation, and the displacement, except as provided in Government Code Sections 7260( c )(3) and 7262.5, lasts longer than 90 days. When the term "dec:ent, safe and sanitary" is interpreted under local, state or federal law as establishing a higher standard, the elements of that higher standard are incorporated herein. A unit which is occupied by no more than the maximum number of people allowed under the State Building Code shall be considered to be in compliance with the occupancy proVISIons 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 participation agreement or an acquisition carried out by a private person for or in connection with a public use where the City is otherwise empowered to acquire the property to carry out the public use. Except persons or families oflow 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 the housing, a "displaced" person shall not include the following: (1) Any person who has been determined to be in unlawful occupancy of the displacement dwelling. (2) Any person who is a post-acquisition tenant. (3) Any person who has occupied the real property for the purpose of obtaining relocation benefits and assistance. (4) In any case in which the public entity acquires property for a program or project (other than a person who was an occupant for the property at the time it was acquired), any person who occupies the property for a period subject to termination when the property is needed for the program or project. - 7 - \.. j ,~ '''--- j ("\ (5) Any person who is an occupant of a "Qualified affordable housing preservation project" and who is temporarily displaced for not more than 180 days, and who is offered occupancy of a comparable replacement unit located within the same apartment complex that contains the unit from which he or she has been displaced, shall not be deemed a "displaced person for the purposes of these Rules and Regulations. This exception shall apply only if all of the following conditions are complied with: (a) All other financial benefits and services otherwise required under these Rules and Regulations are provided to the tenants temporarily displaced from their units. (b) The resident is offered the right to return to his or her original unit, with rent for the first 12 months subsequent to that return being the lower of the following: (1) up to 5 percent higher than the rent at the time of displacement; or (2) up to 30 percent of household income. (3) The temporary unit is not unreasonably impacted by the effects ofthe construction, taking into consideration the ages and physical conditions of the members of the displaced household, and the estimated period of displacement is reasonable. For the purposes of this exception, "apartment complex" means four or more residential rental units subject to common ownership and financing that are also located on the same or contiguous parcels; and "qualified affordable housing project" is any complex of four or more units whose owners enter into a recorded regulatory agreement, having a term for the useful life of the project, with any entity for the provision of project rehabilitation financing. For this purpose, the regulatory agreement shall require ofthe owner and all successors and assigns of the owner, as long as the regulatory agreement is in effect, that at least 49 percent of the tenants in the project shall have, at the time of the recordation of the regulatory agreement required by this exception, incomes not in excess of 60 percent of the area median income, adjusted by household size, as determined by the appropriate agency of the State of California. In addition, a project shall be defined as a qualified affordable housing preservation project only if the beneficiary or the regulatory agreement elects this designation by so indicating on the regulatory agreement. (6) Any person occupying private property (not otherwise entitled to relocation benefits as a result of an acquisition, rehabilitation, or demolition program) who is required to move as a result of the displacing agency's routine enforcement of building, housing, or health codes unless the code enforcement is undertaken - 8 - e e for the purpose of causing displacement in coordination with an identified rehabilitation, construction, or demolition program or project. (7) A person who is not required to move permanently or temporarily as, a result of the project as long as they are notified they are not required to move and the project dQl;~s not impose an unreasonable change in the character or use of the property. (8) An owner occupant who moves as a result of an acquisition meeting the requirements of Govemment Code Section 7277. s. [~ 219] Displaced Resident "Displaced resident" means any individual or family occupant of a dwelling who qualifies as a displaced person under Section 218 hereof. T. [~220] Dwelling "Dwelling" means the place of permanent or customary and usual abode of a person, including a single-family building, a single-family unit in a two-family dwelling, multi-family or multi-purpose dwelling, a unit of a condominium or cooperative housing project, a non-housekeeping unit, a mobile home, a recreational vehicle as d4~scribed in Health & Safety Code Section 18010, or any other residential unit which either is considered to be real property under state law or cannot be moved without substantial damage or unreasonable cost. A residence need not be decent, safe and sanitary to be a dwelling. A second home shall be considered a dwelling only for the purpose of establishing eligibility for payment for moving and related expenses under S 602 of these Rules and Regulations. u. (~221] Economic Rent "Economic rent" means the amount of rent a tenant or homeowner would have to pay for a dwelling similar to the acquired dwelling in a comparable area. v. (~222] Elderly Household "Elderly household" means a household in which the head of household or spouse is sixty-two (62) years of age or older. w. (~223] Family "Family" means two or more individuals, one of whom is the head ofhousehoild, plus all other individuals who by blood, marriage adoption or mutual consent live together as a family unit. - 9 - (\ \"j ~\ '-, / x. [~ 224] Farm Operation "Farm operation" means any activity conducted solely or primarily for the production of one or more agricultural products or commodities, including timber, for sale or home use, and customarily producing such products or commodities in sufficient quantity to be capable of contributing materially to the operator's support. Y. [~ 225] Federal Project "Federal project" means any direct federal project or any project receiving federal financial assistance. z. [~ 226] Gross Income "Gross income" means the total annual income of an individual, or where a family is displaced total annual income of the parents or adult heads of household, less the following: 1. A deduction of$500.00 for each dependent in excess of three. 2. A deduction of ten percent (10%) of total income for an elderly or handicapped household. 3. A deduction for recurring, extraordinary medical expenses, defined for this purpose to mean medical expenses in excess ofthree percent (3%) oftotal income, where not compensated for or covered by insurance or other sources, such as public assistance or tort recovery. 4. A deduction of reasonable amounts paid for the care of children or sick or incapacitated family members when determined to be necessary to employment of the head or spouse, except that the amount deducted shall not exceed the amount of income received by the person thus released. 5. Gross income is divided by twelve to ascertain the average monthly income. Relocation and property acquisition payments are not to be considered income for determination of financial means. AA. [~ 227] Handicapped Household "Handicapped household" means a household in which any member is handicapped or disabled. BB. [~228] Initiati~n of Negotiations "Initiation of negotiations" means the initial written offer to purchase made by the City to the owner of the real property to be purchased, or to the owner's representative. - 10 - e e ce. [~ 229] Last Resort Housing "Last Resort Housing" means comparable replacement dwellings provided by the City with its funds or funds authorized for the project because existing comparable replacement dwellings will not otherwise be available as needed. Last Resort Housing as herein defined does not refer to "replacement dwelliing unit" as that term is used and defined in Section 33411.2(c) of the California Community Redevelopment Law (Health and Safety Code). DD. [~ 230] Manufactured Home or Mobilehome "Manufactured Home" or "Mobilehome" means a structure described in Health and Safety Code Sections 18007 and 18008. EE. [~231] Mortgage Those classes of liens as are commonly given to secure advances on, or the unpaid purchase price of, real property, together with the credit instruments, if any, secured thereby including but not limited to deeds of trusts and land sales contracts. FF. [~ 232] Nonprofit Organization "Nonprofit organization" means a corporation, partnership, individual or otht~r public or private entity, engaged in a business, professional or institutional activity on a non-profit basis, necessitating fixtures, equipment, stock in trade, or other tangible property for the carrying on of the business, profession or institutional activity on the premis.es. GG. [~ 233] Ownership "Ownership" means holding any ofthe following interests in a dwelling, or a contract to purchase one of the first six (6) interests: 1. A fee title; 2. A life estate; 3. A 50-year lease; 4. A lease with at least twenty (20) years to run from the date of acquisition of the property; 5. A proprietary interest in a cooperative housing project which includes the right to occupy a dwelling; 6. A proprietary interest in a mobile home; - 11 - ("\ ~.j ~, "-./ 7. A leasehold interest with an option to purchase. In the case of one who has succeeded to any ofthe foregoing interest 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. BB. [~ 234J Person "Person" means any individual, family, partnership, corporation, limited liability corporation or association. II. [~ 235J Personal Property "Personal property" means tangible property which is situated on a real property vacated or to be vacated by a displaced person and which is considered personal property and is non-compensable (other than for moving expenses) under the state law of eminent domain. In the case of a tenant, personal property includes fixtures and equipment, and other property which may be characterized as real property under state or local law, but which the tenant may lawfully and at his election determine to move, and for which the tenant is not compensated in the real property acquisition. In the case of an owner of real property, the determination as to whether an item of property is personal or real shall depend upon how it is identified in the closing or settlement statement with respect to the real property acquisition. JJ. [~236J Post-Acquisition Tenant "Post-acquisition tenant" means a tenant who lawfully commences to occupy property only after the City acquires it. KK. [~ 237J Prepaid Expenses "Prepaid expenses" means items paid in advance by the seller of real property and pro-rated between such seller and the buyer of such real property at the close of escrow including, but not limited to, real property taxes, insurance homeowners' association dues and assessment payment. LL. [~238J Public Use "Public use" means a use for which real property may be acquired by eminent domain. MM. [~ 239J Small Business "Small Business" means a business as defined in Part 24 of Title 49 of The Code of Federal Regulations. - 12 - e e NN. [~ 240] Tenant A person who rents or is otherwise in lawful possession of a dwelling, including a sleeping room, which is owned by another. 00. [~241] Unlawful Occupancy A person is considered to be in unlawful occupancy if the person has been ordered to move by a court of competent jurisdiction or ifthe person's tenancy has been lawfully terminated by the owner for cause, the tenant has vacated the premise:s, and the termination was not undertaken for the purpose of evading relocation assistance obligations. III. [~300] RELOCATION ADVISORY ASSISTANCE A. [~301] Advisory Assistance to be Provided by the City Programs or projects undertaken by the City shall be planned in a manner that recognizes, at an early stage ,in the planning of the programs' or projects and before the commencement of any actions which will cause displacements, the problems associated with he displacement of individuals, families, businesses, and farm operations; and provides for the resolution of these problems in orderto minimize adverse impact on its relocation assistance of other displacing programs or activities which may be carried out in the same area. The City shall ensure the relocation assistance advisory services described in this Section 301 are made available to all persons displaced by the City. In addition the City may provide relocation advisory assistance to any person occupying property immediately adjacent to the real property acquired and who the City determines is caused substantial economic injury because of the acquisition. Not withstanding Section 218, in any case in which the City acquires property for a program or project, any person who occupies the property on a rental basis for a short term or a period subject to termination when the property is needed for the program or project, shall be elibrible for advisory services to the extent determined by the City. The relocation advisory assistance to be provided by the City shall inc:lude such measures, facilities and/or services as may be necessary or appropriate in ord'er to do all of the following: 1. Fully inform eligible persons as to the availability of relocation benefits and assistance and the eligibility requirements therefore, as well as the procedures for obtaining such benefits and assistance; 2. Determine and make timely recommendations on the needs and preferences, if any, of displaced persons for relocation assistance; 3. Assure eligible displaced residents that within a reasonable period of time prior to displacement, to the extent that it can be reasonably accomplished, there will be - 13 - f'\ f\ \"-.. / \ : , / available comparable replacement dwellings sufficient in number and kind for and available to such eligible residents; 4. Provide current and continuing information on the availability, prices, and rentals of comparable sales and rental housing, and comparable commercial properties and locations, and as to security deposits, closing costs, typical down payments, interest rates and terms for residential property in the area; 5. Assist each eligible, displaced person to complete applications for payments and benefits; 6. Assist each eligible, displaced resident to obtain and move to a comparable replacement dwelling; 7. Assist each eligible, displaced business in obtaining and becoming established in a suitable replacement location with a minimum of delay and loss of earnings; 8. Provide any services required to insure that the relocation process does not result in different or separate treatment on account ofrace, color, religion, ancestry, national origin, sex, marital status or other arbitrary circumstances. Such relocation process shall satisfy the requirements of Title VI of the Civil Rights Act of 1964, Title VIII of the Civil-Rights Act of 1968, the Unruh Civil Rights' Act, the Rumford Act and applicable state and federal anti-discrimination laws; 9. Supply to eligible persons information concerning federal and state housing programs, disaster loan and other programs administered by the Small Business Administration, and other federal or state programs offering assistance to displaced persons; 10. Provide other advisory assistance to eligible persons to minimize their hardships, such as counseling and referrals with regard to housing, financing, employment, training, health and welfare; 11. Inform all persons who are expected to be displaced about the eviction policies to be pursued in carrying out the project. B. [~ 302J Information Program 1. [~ 303J General Information The City shall establish and maintain an information program utilizing meetings, newsletters, and other mechanisms, including local media, available to all persons, for keeping occupants of the property which the City is acquiring informed on a continuing basis about its relocation program. The criterion for selecting among various alternative mechanisms shall be the likelihood of actually communicating information to such persons. Legal publications, legal ads in local newspapers of - 14- e e general circulation and similar means are inadequate if they are likely to go unnoticed. 2. [~ 304] Personal Contact Within sixty (60) days following the initiation of negotiations to acquire a parcel of real property, but not later than the close of escrow on the property, the City shall contact each eligible person occupying such property to carefully explain and discuss fully with such person the extent of relocation paYments and assistance that may be made available by the City. For projects by private parties with an agre1ement with the City, the "initiation of negotiations" shall be the later of the date of acquisition or the date of the written agreement between the private entity and the City. Such contact shall be direct and personal except where repeated efforts indicate that such contact is not possible. Such contact may be made at the time and as part of the interview to ascertain relocation needs conducted pursuant to Section 311. All persons shall be advised and encouraged to visit the City's relocation office for information and assistance. The City shall maintain personal contacts with occupants of the property to the maximum extent practicable. 3. [~ 305] Payment After Death A replacement housing paYment is. personal to the displaced person and upon his death the undistributed portion of any such paYment shall not be paid to his heirs or assigns, except that: a. The cost attributable to the displaced person's actual occupan.cy of the replacement housing shall be paid; b. The full paYment shall be disbursed in any case in which a member of a displaced family dies and the other family members continues to occupy the replacement dwelling selected in accordance with the regulations in this part; and c. That portion of a replacement housing paYment necessary to satisfY the legal obligation of an estate in connection with the selection of a dwelling by or on behalf of a deceased person shall be disbursed to the estate. Example (1) Cost incurred for an actual move conducted by a professional moving company; and (2) Rental charges incurred prior to receipt of relocation benefits. - 15 - ('\ r\ ~/ ~/ 4. [~ 306] Information Statement for Relocation Assistance Within 60 days of the initiation of negotiations to acquire a parcel of real property or interest therein, the City shall provide each occupant of such property with a written statement containing the following information: a. A general description of the nature and types of acti vi ties that will be undertaken and identification ofthe displacement area involved, including a diagrammatic sketch of such area; b. A statement that City action may result in displacement, but that no person lawfully occupying the real property will be required to move without at least 90 days written notice from the City and until 90 days after the provision of information; c. A statement to residents that families and individuals will not be required to move from their dwellings before reasonable offers of decent, safe and sanitary and otherwise comparable replacement dwellings within their financial means have been made, except under limited circumstances provided for in Section 1203 of these Rules and Regulations; d. A general description of types of relocation payments available, including general eligibility criteria, and a caution against premature moves that might result in loss of eligibility for a payment; e. Identification of the City's relocation program and a description of relocation services and aids that will be available; f. Encouragement to visit the City's relocation office and cooperate with staff, and the address, telephone number and hours of the relocation office; g. Information to residents on replacement dwellings, including; (1) A brief description of what constitutes a replacement dwelling, including physical standards; (2) A layman's description of applicable federal, state and local fair housing laws; (3) A statement that the City will identify available comparable replacement dwellings and will provide assistance to persons in obtaining housing of their choice, including assistance in referring complaints of discrimination to the appropriate federal, state or local fair housing enforcement City; (4) A statement that persons may seek their own housing accommodations, and urging them, ifthey do so, to notify the City prior to making a commitment to purchase or occupy the property. - 16 - e e h. A statement to businesses that the City will provide every possible assistance in locating relocation accommodations, including consultation with the Small Business Administration and other governmental agencies which might be of assistance; 1. A statement to businesses describing the requirement for prior notification to the City of the business concern's intention to move; J. A summary of the City's eviction policy; k. A statement describing the City's grievance procedure, its purpose and how it may be used; 1. Any additional information that the City believes would be helpful. Where appropriate, separate information statements shall be prepared for residential and non-residential occupants. 5. [~ 307] Notice of Eligibility Status In addition to disseminating general information of the type described in Sections 302 and 303, the City shall provide each occupant of the property with individual, written notification of their eligibility status as soon as it has been established. 6. [~ 308] Language of Information Material Information material shall be prepared in the language(s) most easily understood by the recipients. In displacement areas where there are significant concentrations of persons who do not read, write, or understand English fluently, the native language of the people should be used and all informational material should be provided in the native language(s) and English. 7. [~309] Method of Delivery of Informational Material To assure receipt of the informational material, the City shall an-ange to have the material either hand-delivered to each occupant of the property with a request for a written receipt, or sent by certified mail, return receipt requested. c. [~ 310] Determination of Relocation Needs 1. [~ 311] Interviews Immediately following the initiation of negotiations to acquire a parcel of real property, the City shall interview each eligible person occupying such property to obtain information upon which to plan for housing and other accommodations, as well as counseling and assistance needs. The interview shall be by direct, personal contact, except where repeated efforts indicate that such contact is not possible. The - 17 - ~ "'/ 1\ '-- j City shall carefully explain and discuss fully with each person interviewed the purpose of the interview. When a person cannot be interviewed or the interview does not produce the information to be obtained, reasonable efforts shall be made to obtain the information by other means. a. [~312] Information to be Obtained from Residential Owner Occupants or Tenants The City shall endeavor to obtain the following information from eligible persons. (1 ) Income; (2) Whether a person is elderly or handicapped; (3) Size of family; (4) Age of children; (5) Location of job and factors limiting accessibility; (6) Area of preferred relocation; (7) Type of unit preferred; (8) Ownership or tenant preference; (9) Need for social and public services, special schools and other services; (10) Eligibility for publicly assisted housing; (11) With reference to the present dwelling: (a) the rent; (b) type and quality of construction; ( c) number of rooms and bedrooms; (d) amount of habitable living space; ( e) locational factors including, among others, public utilities, public and commercial facilities (including transportation and schools) and neighborhood conditions (including municipal services). (12) Such other matters that concern a household as its members contemplate relocation. - 18 - e e b.. [~313J Coordination with Other Agencies In order to avoid duplication of effort and to ensure that necessary information is available at the appropriate time, the City shall coordinate its interview activities with the survey activities, if any, of other agencies. Gathering of data pertinent to social service referrals of eligible persons shall be planned in cooperation with social service agencies. c. [~ 314] Interview after Person Moves Without Notice If the City fails to conduct the required interview of any eligible person in a timely and effective manner, the City shall make every reasonable effort to identify, locate and interview such person who has moved so that their relocation needs can be determined. 2. [~315] Relocation Records Based on information obtained during interviews and from other sources as applicable, the City shall prepare and maintain an accurate relocation record for each person to be displaced. The record shall contain a description of the pertinent characteristics of the persons to be displaced and the assistance deemed to be , necessary. A displaced person (or any person authorized in writing by such person) . shall have the right to inspect such documents containing information relating to him to the extent and in the manner provided by law. 3. [~ 316] Updatmg Information Information pertaining to the relocation needs of eligible persons occupying each parcel of real property with respect to which the City has initiated negotiations for acquisition shall be up-dated at least annually. Eligible persons shall be encouraged to bring any change in their needs to the attention of the City. D. [~ 317] Relocation Site Office The City may, as it deems necessary, establish a site office which is accessible to all area residents and businesses who may be displaced to provide relocation assistance. Any such office shall be staffed with trained and/or experienced relocation personnel. Office hours shall be scheduled to accommodate persons unable to visit the office during normal business hours. The City may also make provision for meeting with displaced persons in their homes or places of business. E. [~ 318J Contracting for Relocation Services The City may enter into a contract with any individual, firm, association, corporation or governmental City having an established organization for conducting relocation assistance prognims, for the purpose of providing relocation advisory assistance. - 19 - (\ \, "/ ,~, ',/' F. [~319] Coordination of Relocation Assistance The City shall coordinate its relocation assistance program with other work necessitating displacement of persons, and with activities of other public entities in the City or nearby areas, for the purpose of planning relocation activities and coordinating the availability of replacement dwelling resources in the implementation of the City's relocation assistance program. IV. [~400] RELOCATION PLANS A. [~401] Requirements Generally As soon as possible following the initiation of negotiations and prior to proceeding with any phase of a project or other activity that will result in displacement, the City shall prepare a Relocation Plan and submit it for approval to the City Council. When the City's action will only result in an insignificant amount of non-residential displacement or residential displacement will not exceed 15 households, the requirements of this section need not be satisfied. B. [~ 402] Contents of Plan A Relocation Plan shall include the following; ~ A diagrammatic sketch of the displacement area; ~ Projected dates of displacement; ~ An written analysis of the aggregate relocation needs of all persons to be displaced, in accordance with Section 403, and a detailed explanation as to how these needs are to be met; ~ An written analysis of replacement housing resources, in accordance with Section 404; ~ A detailed description of the relocation advisory services program, including specific , procedures for locating and referring eligible persons to comparable replacement housing; ~ A description ofthe relocation payments to be made in accordance with Section 600 and a plan for disbursement; ~ A cost estimate for carrying out the plan and identification of the source of the necessary funds; ~ A detailed plan by which any last resort housing as described in Section 405 is to be built and financed; - 20- e e ~ A standard information statement to be sent to all persons displaced in accordance with Section 306; ~ Temporary relocation plans, if any; ~ A description of relocation office operation procedures; ~ Plans for citizen participation; ~ An enumeration of the coordination activities undertaken pursuant to Section 319; ~ The comments of the relocation committee, if any; ~ A written determination by the City that the necessary resources will be available as required. 1. [~ 403] Analysis of Replacement Dwelling Needs A written analysis of replacement dwelling needs shall be prepared. It shall be prepared in sufficient detail to enable determination of the availability for all potential displacees of housing which meets the standards set forth in the: definition of comparable replacement dwelling. The written analysis of replacement dwelling needs shall include: a. Separate information concerning homeownership and rental units; b. The number of units identified by cost for each size category; c. Needs of elderly and handicapped households shown separately, including information on the number of such households requiring special facilities and the nature of such facilities; d. Description of the locational characteristics of the displacement area neighborhoods corresponding to the requirements of comparable replacement dwellings; e. Information concerning proximity to present employment sources, medical and recreational facilities, parks, community centers, shopping, transportation and schools; f. Information concerning proximity to other relevant needs and amenities. - 21 - i\ \,/ (\ ,,- /' 2. [~ 404] Analysis of Replacement Dwelling Resources A written analysis of replacement dwelling resources shall be prepared in sufficient detail to enable a determination of the availability for all potential displacees of housing which meets the standard for comparable replacement dwelling. The written analysis of replacement dwelling resources shall include: a. Separate information concerning homeownership and rental units; b. The number of units available by cost for each size category; c. Resources available to meet the needs of elderly and handicapped households shown separately, including information on the number of units with special facilities and the nature of such facilities; d. Description ofthe locational characteristics ofthe neighborhoods in the survey area (established pursuant to Sections 503-505 below) corresponding to the requirements of comparable replacement dwellings. e. Information concerning proximity to present employment sources, medical and recreational facilities, parks, community centers, shopping, transportation and schools; f. Information concerning proximity to other relevant needs and amenities. 3. [~ 405] Method of Providing Last Resort Housing If the City determines to use its funds or the funds authorized for the project to provide last resort housing, the City shall, as part of the Relocation Plan, prepare a plan for producing such last resort housing. The Plan shall specify: a. How, when and where the housing will be provided; b. How the housing will be financed and the amount of funds to be allocated to such housing; c. The prices at which the housing will be rented or sold to the families and individuals to be displaced; d. The arrangements for housing management and social services, as appropriate; e. The suitability of the location and environmental impact of the proposed housing; f. The arrangements for maintaining rent levels appropriate for the persons to be rehoused; - 22- e e g. The disposition of proceeds for rental, sale or resale of such housing; h. Any referendum or zoning requirements, which presents an obstade, shall be addressed and the appropriate procedures to be followed. 4. [~ 406] Information Required The Relocation Plan shall contain sufficient facts to show that: a. Fair and reasonable relocation payments will be provided to eligible: persons as required by state law and these Rules and Regulations; b. A relocation advisory assistance program will be established in conformance with state law and these Rules and Regulations; c. Eligible persons will be adequately informed of the assistance, benefits, policies, practices and procedures, including grievance procedures, provided for by state law and these Rules and Regulations; d. Based upon recent survey and analysis of both the housing needs of persons who will be displaced and available replacement housing and considering competing demands for that housing, comparable replacement dwellings will be available, or provided, if necessary, within a reasonable period of timle prior to displacement sufficient in number, size and cost for the eligible pe:rsons who require them; e. Adequate provisions have been made to provide orderly, timely, and efficient relocation of eligible persons to comparable replacement dwellings available without regard to race, color, religion, ancestry, national origin, sex or marital status, with minimum hardship to those affected; f. A relocation plan meeting the requirements of state law and these Rules and Regulations has been prepared; g. The necessary relocation resources will be available as required; h. With respect to the acquisition of real property, to the greatest extent practicable, adequate provisions have been made to be guided by the applicable provisions of state law and these Rules and Regulations. c. [~ 407] Review of Relocation Plan The Relocation Plan shall be submitted to the Department Head or designee forreview and comment. Following review of the Relocation Plan by the Department Head or designee, and at least 30 days prior to submitting the Relocation Plan to the City Council for approval, the proposed Relocation Plan shall be submitted to the relocation committee, if - 23 - 1'\ \ / ....._"'/ .~ \~ / applicable, for review, and notice of availability of the proposed Relocation Plan for review shall be provided to the occupants to be displaced. Any displaced person or interested organization may petition the Department (HCD) to review the specific Relocation Plan required to be submitted by the City. D. [~ 408] Conformance to General Plan Relocation plans prepared by the City in accordance with Sections 400 through 407 shall be consistent with the Housing Element of the City's General Plan. E. [~409] Update of Relocation Plans In the event of delay of more than one year in the implementation of a Specific Relocation Plan prepared by the City, such Specific Relocation Plan shall be updated prior to implementation of the relocation program. v. [~ 500] ASSURANCE OF COMPARABLE REPLACEMENT DWELLINGS A. [~501] Requirement Generally No displaced resident shall be required to move from his dwelling unless, within a reasonable period of time prior to displacement, a comparable replacement dwelling is available to him. The City shall assure that, within a reasonable period of time prior to displacement, to the extent that it can be reasonably accomplished, there will be available comparable replacement dwellings equal in number to the number of displaced residents who requjre such dwellings. In any event, permanent housing facjlities are not available at the time of displacement, the City may relocate persons to temporary replacement housing, provided the permanent replacement housing is made available wi thin 12 months of the date of the temporary move. B. [~ 502] Procedures for Identifying Comparable Replacement Dwellings 1. [~503] Survey of Available Replacement Dwellings Within 60 days of the initiation of negotiations to acquire a parcel of real property, the City shall initiate a survey of available comparable replacement dwellings. If a recent survey that provides the information identified in Section 504 is not available, the City shall conduct a survey of the housing market. If a recent survey is available, but it does not reflect more recent, significant changes in housing market conditions, the survey shall be updated or it shall not be relied upon. In the event of delay in carrying out the implementation activity to which the survey pertains, the survey shall be updated at least annually. - 24- e e 2. [~504] Information To Be Obtained a. [~ 505] Survey Area The survey area shall be reasonably related to the displacement area and to the needs and preferences of the persons to be displaced. The survey area shall have relevant characteristics specified for comparable replacement dwellings which equal or exceed those of the neighborhood from which persons are to be displaced. b. [~ 506] Gross Number of Comparable Replacement Dwellings (1) [~.507] Standard Generally Only dwelling units which satisfy the standards of comparable replacement dwellings, including the locational criteria, shall be counted as a relocation resource. (2) [~508] Uncompleted New Construction or Rehabilitation Uncompleted new construction o'r rehabilitation shall only be counted toward the gross number of comparable replacement dwellings if there is a substantial likelihood that the dwelling units will be available when needed and at housing prices or rental costs within the financial means of the prospective occupants. (3) [~ 509] Publicly Subsidized Housing Publicly subsidized housing, as defined pursuant to Article XXXIV of the California Constitution and Sections 37000 through 37002 of the California Health and Safety Code, shall only be counted toward the gross number of comparable replacement dwellings if it reasonably can be established that: (a) The dwelling units will be available when needed; (b) The governmental body providing the subsidy has made, in writing, a reasonably binding commitment of assistance; ( c) The dwelling units have been inspected and determined to be decent, safe and sanitary and the income ceilings, rent ranges and age restrictions, if any, have been considered; (d) The number of dwelling units available in the City exceeds the number of households in need of the dwelling units, provided however, that this requirement may be waived if: - 25- ~ .r---\ ~-) ~-~ (i) the City or another public entity undertakes to provide such publicly subsidized housing specifically as a relocation resource; or (ii) the City establishes that such publicly subsidized housing will be replaced by last resort housing within two (2) years. To establish that last resort housing will be developed as required the City must have site control with permissive zoning, preliminary plans and conditional commitments for subsidy and financing, or the equivalent, and must identify ownership; (e) With respect to uncompleted new co.nstruction or rehabilitation, such publicly subsidized dwelling units are being subsidized to provide relocation resources~ c. [~ 510] Adjustment for Concurrent Displacement The gross numberof comparable replacement dwellings in the survey area shall be discounted to reflect concurrent displacement by the federal government and its agencies, including federally assisted projects, as well as displacement by other public entities within the survey area. 3. [~ 511] Review of Survey Results . When more than fifteen (15) households will be displaced, results of the survey of comparable replacement dwellings shall be submitted for review to local housing, development and planning agencies and shall be compared to other existing information on housing. Notwithstanding the results of the survey of comparable replacement dwellings, if the demand for housing is such that there are no vacancies other than those permitted by turnover, the City may proceed to displace residents from dwellings, but only to the extent that the City obtains referrals of comparable replacement dwellings for such residents in accordance with the provisions of Section 511. c. [~ 512] Referrals of Replacement Dwellings The City shall obtain at least three referrals of comparable replacement dwellings for each displaced resident, provided that where the City determines that, due to special circumstances, three is not a reasonable number, fewer than three referrals may be deemed sufficient to satisfy the requirements ofthis Section. Such referrals shall be in writing, in a language understood by the displaced resident. The City's obligation to obtain a comparable replacement dwelling for any displaced resident shall be deemed to be satisfied if such resident is offered and refuses, without - 26 - e e justification, the number of specifically identified comparable replacement dwellings provided for in this Section. D. [~ 513] Temporary Move 1. [~ 514] Use of Temporary Replacement Housing The City may relocate displaced residents to temporary replacement housing under the conditions provided in Section 516. Such housing shall meet the standards of an adequate replacement dwelling. The City shall minimize, to the greatest extent feasible, the use of temporary replacement housing. Temporary replacement housing may be used, arnong other appropriate times, when a project plan anticipates moving individuals back into completed project accommodations. 2. [~ 515] Relocation Assistance and Payments The City shall provide displaced residents who move to temporary replacement housing with relocation assistance, services and benefits designed to achieve permanent relocation of such residents into comparable replacement dwellings. 3. [~516] Assurances Prior to Temporary Move Prior to any temporary move, the City shall determine and provide written assurance to each displaced resident that: a. Comparable replacement dwellings will be made available at the earliest possible time, and in any event within twelve (12) months from the date of the move to the temporary replacement housing; b. Comparable replacement dwellings will be made available, on a priority basis, to the individual or family who has been temporarily rehoused; c. The move to temporary replacement housing will not affect a ,claimant's eligibility for a replacement housing payment nor deprive him of the same choice of replacement dwelling units that would have been made available had the temporary move not been made and the costs of a temporary move will not be considered as all or a part of relocation payments to which a displaced resident is entitled; d. If a project plan anticipates moves back into housing accommodations in the project area, the resident who has been temporarily displaced will be given priority opportunity to obtain such housing accommodations; e. The City will pay all costs in connection with the move to temporary replacement housing, including increased housing costs. - 27- f''. "- j ,~, ',,-- /' \. 'E. [~ 517] Provision of Last Resort Housing 1. [~ 518] Authorization; Methods Whenever comparable replacement dwellings are not available, or are not available within the limits of Sections 605 and 615 as appropriate, the City shall provide additional or alternative assistance under the provisions ofthis Section. The methods of providing replacement housing of last resort include, but are not limited to: a. A replacement housing payment calculated in accordance with the provisions of Section 600 as appropriate, even if the calculation is in excess of the monetary limits of Sections 605 and 615. A rental assistance payment under this part shall be paid to the displaced person in a lump sum, or at the discretion of the City. $5,250 shall be paid to the displaced person in a lump sum upon displacement and the remainder of the payments shall be paid to the displaced in periodic payments over a period not to exceed 42 months unless otherwise specified by statute. b. Major rehabilitation of and/or additions to an existing replacement dwelling in a sum equal to or greater than the payment to which the displaced person is entitled under Section 518(a). c. The construction of a new replacement dwelling in a sum equal to or greater than the payment to which the displaced person is entitled under Section 518( a). d. The relocation and, if necessary, rehabilitation of a dwelling. e. The purchase ofland and/or a replacement dwelling by the City and subsequent sale or lease to, or exchange with a displaced person. f. For purposes of accommodating the needs of handicapped persons, the removal of barriers to the handicapped. Only at the discretion of the City are post-acquisition tenants entitled to last resort housing payments. 2. [~ 519] Nondiscrimination All contracts and subcontracts for the construction, rehabilitation or management of last resort housing shall be let without discrimination as to race, color, religion, ancestry, national origin, sex, marital status other arbitrary circumstance. The City shall encourage participation by minority persons in all levels of construction, rehabilitation, planning, financing and management oflast resort housing. When the housing will be located in an area of minority concentration, the City shall seek to secure significant participation of minorities in these activities. The City shall require - 28- e e that, to the greatest extent feasible, opportunities for training and employment arising in connection with the planning, construction, rehabilitation and operation of last resort housing be given to persons oflow income residing in the area of such housing and shall deteJmine and implement means to secure the participation of small businesses in the performance of contracts for such work. 3. [~ 520] Conformity with Statutes and Regulations The provision oflast resort housing by the City shall be in accord with the provisions of all applicable federal and state non-discrimination laws_and regulatJions issued pursuant thereto. 4. [~521] Monitoring Housing Production The City shall monitor the production of the last resort housing to ensure that it is in accordance with the plan for last resort housing approved by the City. 5. [~ 522] Retention of Benefits Upon Move to Last Resort Housing The City shall not require a displaced resident to accept last resort housing in lieu of the displaced resident's acquisition payment, if any, for the real property from which _ _he is displaced or the relocation payments for which.he may be eligible. F. [~ 523] Move to Substandard Dwelling Unit The City shall inspect each replacement dwelling prior to the time a displac(:d resident occupies it. The City shall not induce or encourage a displaced resident to acquire a dwelling which does not satisfy the standards of a comparable replacement dwelling. If a displaced resident occupies a dwelling unit to which he is referred by the City and the dwelling unit does not satisfy the standard of a comparable replacement dwelling, the City shall offer to locate such a dwelling for the displaced resident and to pay again all moving and related expenses. If a displaced resident chooses not to move from a substandard dwelling unit he has occupied, the displaced resident shall nevertheless be eligible to. receive relocation assistance and payments if one of the following conditions is met: 1. Ifhe occupied the substandard dwelling unit following referral by the City; or 2. If the rental or purchase of the substandard dwelling unit is the result of the City's failure to identify a reasonable number of comparable replacement dwellings; or 3. If the purchase of the substandard dwelling unit is not the result ofthe City's referral or failure to refer, when the substandard dwelling unit is brought into compliance with the decent, safe and sanitary standard. - 29- (\ I~. , , "-'- ./ In the event the condition met is paragraph 3, any replacement housing payment shall be limited to the amount that would be provided in connection with the purchase of a similar, comparable replacement dwelling, or the sum of the actual costs of acquisition (including incidental expenses) and rehabilitation, whichever is less. G. [~ 524] Waiver of Requirement for Replacement Dwelling Prior to Displacement When immediate possession of the real property is of crucial importance and one of the following circumstances exists, the City may require an eligible displaced resident to move from his dwelling before a comparable replacement dwelling or temporary adequate replacement dwelling is available: 1. When displacement is necessitated by a major disaster as defined in Section 102(2) of the Hazard Mitigation and Relocation Assistance Act of 1993 (42 V.S.C. 5121) and/or the California Natural Disaster Assistance Act; 2. During periods of declared national or state emergency; 3. When such other extraordinary or emergency situations occur where immediate possession of real property is of crucial importance. Any waiver of the requirement for replacement dwellings prior to displacement shall be supported by appropriate findings and a determination of the necessity for the waiver. VI. [~600] RELOCATION PAYMENTS TO DISPLACED RESIDENTS A. [~601] Payments Required The City shall compensate a displaced resident for the expenses described in Section 602 or 603 and in Section 604 or 614. A displaced resident who lawfully resides on his business property may be eligible for both the payments described in this Section 600 and the payments to a displaced business provided under Section 700. A person who moves from his dwelling or who moves his personal property therefrom because he is displaced by the City from other real property on which he conducts a business shall be eligible only for payments provided for under Section 602 or 603. B. [~ 602] Actual Reasonable Moving Expenses A displaced resident shall be compensated for the actual reasonable expenses incurred in moving himself and his family, including moving personal property. In all cases the amount of a payment shall not exceed the reasonable cost of accomplishing the activity in connection with which a claim has been filed. The moving and related expenses for which claims may be filed shall include: - 30- , e e 1. Transportation of persons and property not to exceed a distance of fifty (50) miles from the site from which the resident was displaced, except where the City determines that relocation beyond such distance of fifty (50) miles is justified; 2. Packing, crating, unpacking and uncrating personal property; 3. Such storage of personal property, for a period generally not to exceed ltwelve (12) months, as determined by the City to be necessary in connection with re:location; 4. Insurance of personal property while in storage or transit; 5. The reasonable replacement value of property lost, stolen, or damaged (not through the fault of the displaced resident, his agent or employee) in the process of moving, where insurance covering such loss, theft or damage is not reasonably available; 6. Cost of disconnecting, disassembling, dismantling, removing, reassembling, reconnecting and reinstalling machinery, equipment or other personal property not acquired by the City, including connection charges imposed by public utilities for starting utility service. c. [~ 603] Alternate Payments A displaced resident who is eligible for a payment for actual reasonable moving expenses may elect to receive, and shall be paid, in lieu of such payment, a moving expense and dislocation allowance which shall be determined according to a schedule established by the City. The schedule shall be consistent with the residential moving expense and dislocation allowance payment schedule established by Part 24 of Title 49 of The Code of Federal Regulations. D. [~ 604] Replacement Housing Payments for Displaced Homeowners 1. [~ 605] Amount of Payment The City shall make to a displaced resident who meets the eligibility requirements of Section 606 a payment not to exceed a combined total of $22,500. for: a. The amount, if any, which when added to the acquisition cost of the dwelling acquired for the project equals the reasonable cost of a comparable replacement dwelling. This amount shall not exceed the difference between the acquisition price ofthe acquired dwelling and the actual purchase price ofthe replacement dwelling; b. The amount, if any, to compensate the displaced resident for any increased interest cost he is required to pay for financing the acquisition of a replacement dwelling. The payment shall not be made unless the dwelling acquired by the City was encumbered by a bona fide mortgage which was a valid lien on the dwelling for not less than 180 days prior to the initiation of negotiations for - 31 - (\ ,~ \., ,/1 .. " ' - / acquisition of such dwelling. (This time requirement may be modified in accordance with the provisions of Section 606a); c. Reasonable expenses incurred by the displaced resident incident to the purchase of the replacement dwelling, but not including prepaid expenses; d. The cost of rehabilitating a dwelling which does not satisfy the decent, safe and sanitary standard. 2. [~ 606] Eligibility A displaced resident is eligible for a replacement housing payment if such person satisfies the following conditions: a. Is displaced from a dwelling that is acquired. b. Has actually owned and occupied the dwelling from which he is displaced as a permanent or customary and usual place of abode for not less than 180 days prior to the initiation of negotiations for acquisition of such dwelling. If an owner satisfies all but the 180 day requirement and can establish to the satisfaction ofthe City that he bought the dwelling with the intention of making it his place of residence, that the move was not motivated by a desire to receive relocation assistance and benefits, and that he neither knew nor should have known that public acquisition was intended, the City may reduce the requirement as necessary. c. Purchases and occupies a replacement dwelling within one year subsequent to the date on which he received final payment from the City for all costs of the acquired dwelling or the date on which he moves from the acquired dwelling, whichever is later. Where for reasons beyond the control of the displaced resident completion of construction, rehabilitation, or relocation of a replacement dwelling is delayed beyond the date by which occupancy is required, the City shall determine the date of occupancy to be the date the displaced resident enters into a contract for such construction, rehabilitation, or relocation or for the purchase, upon completion, of a dwelling to be constructed .or rehabilitated, if, in fact the displaced resident occupies the replacement dwelling when the construction or rehabilitation is completed. Where for reasons of hardship or circumstances beyond the control of the displaced resident, such person is unable to occupy the replacement dwelling by the required date, the City may extend the deadline as necessary. Ifby the deadline the displaced person has contracted to purchase a replacement dwelling, the City will extend the deadline to the extent reasonable. No person otherwise eligible for payment, shall be denied such eligibility as a result of being unable, because of a major state or national disaster, to meet the occupancy requirements contained herein. - 32 - e tit 3. [~ 607] Computation of Replacement Housing Payment a. [~ 608] Reasonable Cost of Comparable Replacement Dwelling: In determining the reasonable cost of a comparable replacement dwelling, the City shall use one of the following methods: (1) Comparative Method. On a case by case basis by determining the listing price of dwellings which have been selected by the City and which are most representative of the acquired dwelling unit and meet the definition of a comparable replacement dwelling. Whenever possible the listing price of at least three dwellings shall be considered; or (2) Schedule Method. Where the City determines the comparative method is not feasible, it may establish a schedule of reasonable acquisition costs for the various types of comparable replacement dwellings. The City shall cooperate with other entities causing displacement in the area to establish a uniform schedule. The schedule shall be based on a current analysis of the market to determine a reasonable cost for each type of dwelling to be purchased. In large urban areas, the analysis may be confilned to the sub-area from which persons are displaced or may cover several different sub- areas; if they satisfy or exceed the criteria for a comparable replacement dwelling. To assure the greatest comparability of dwellings in any analysis, the analysis shall be divided into classifications of the type of construction, number of bedrooms, and price ranges; or (3) Alternative Method. Where the City determines that neither thle schedule, nor comparative method is feasible in a given situation, by the use of another reasonable method selected by the City. Whichever method is selected the cost shall be updated to within three months of the date of purchase of the replacement dwelling. b. [~ 609] Increased Interest Cost Increased interest cost shall be equal to the discounted present value of the difference between the aggregate interest applicable to the amount of the principal ofthe mortgage on the acquired dwelling over its remaining term at the time of acquisition, and other debt service costs, and the aggregate interest paid on the mortgage on the replacement dwelling, and other debt service costs. The term and amount of the mortgage on the replacement dwelling for the purposes of this Section shall be the lesser of the remaining term and amount of the mortgage on the acquired dwelling, or the actual term and amount of the mortgage on the replacement dwelling. The amount of the debt s(~rvice cost with respect to the replacement dwelling shall be the lesser of the debt service cost based on the cost required for a comparable replacement dwelling, or the debt service cost based on the actual cost of the replacement dwelling. - 33 - o , / (~\ ~, Prepaid interest or "points" shall be considered in the determination of the aggregate interest. In calculating the amount of compensation, increased interest cost shall be reduced to discounted present value using the prevailing interest rate paid on savings deposits by commercial banks in the general area in which the replacement dwelling is located. c. [~ 610] Expense Incidental to the Purchase of the Replacement Dwelling The replacement housing payment shall include the amount necessary to reimburse the displaced resident for actual costs incurred by him incident to the purchase ofthe replacement dwelling, including but not limited to the following: (1) Legal, closing, and related costs including title search, preparing conveyance contracts, notary fees, surveys, preparing drawings or plans, and charges paid incident to recordation; (2) Lender, FHA, VA or similar appraisal costs; (3) FHA, VA, or similar application fee; (4) Cost for certification of structural soundness; (5) Credit report charges; (6) Charge for owner's and mortgagee's evidence or assurance of title; (7) Escrow agent's fee; (8) Sales and transfer taxes. Payment for any such expenses shall not exceed the amount attributable to the purchase of a replacement dwelling. Such expenses shall be reasonable and legally required or customary in the City of Redding. Reimbursement shall not be made under the provisions of this Section for any fee, cost, charge, or expense which is determined to be a part ofthe debt service or finance charge under Title I of the Truth in Lending Act and Regulation Z issued pursuant thereto by the Board of Governors of the Federal Reserve System. Any such sum should be considered in the determination of increased interest cost. 4. [~ 611] Multi-Family Dwelling In the case of a displaced homeowner who is required to move from a one- family unit of a multi-family building which he owns, the replacement housing payment shall be - 34- tit e based on the cost of a comparable one-family unit in a multi-family building of approximately the same density or ifthat is not available in a building of the next less density, or, if a. comparable one-family unit in such a multi-family building is not available, the cost of any otherwise comparable single-family structure. 5. [~ 612] Homeowner Retention of Dwelling If a displaced homeowner elects to retain, move, and occupy his dwelling, the amount payable as the replacement housing paYment is the difference between the acquisition price of the acquired property and the sum of the moving and restoration expenses, the cost of correcting decent, safe, and sanitary deficiencies, if any, and the actual purchase price of a comparable relocation site. The paYment shall not exceed the amount of the replacement housing paYment to which the homeowner would otherwise be entitled. 6. [~ 613] Lease of COllldominium For the purpose of this Section 604, the leasing of a condominium for a 99-year period, or for a term which exceeds the life expectancy of the displaced resident as determined by the most recent life tables in Vital Statistics of the United States, as published by the Public Health Service of the Department of Health, Education and Welfare or suecessor acceptable index, shall be deemed a purchase of the condominium. E. [~ 614] Replacement Housing Payments for Tenants and Certain Others 1. [~ 615] Amount of Payment The City shall make to a displaced resident who meets the eligibility requirements of Section 616, a paYment not to exceed $5,250.00 for either: a. An amount necessary to enable such person to lease or rent a comparable replacement dwelling for a period not to exceed 42 months; or b. An amount necessary to enable such person to make a downpaYment on the purchase of a decent, safe and sanitary replacement dwelling (including incidental expenses described in Section 610). 2. [~ 616] Eligibility A displaced resi.dent is eligible for a replacement housing paYment if such person satisfied the following conditions: a. Has actually and lawfully occupied the dwelling from which he is displaced for a period of not less than 90 days prior to the initiation of negoti.ations for acquisition of such dwelling. If a resident satisfies all but the 90-day requirement and can establish to the satisfaction ofthe City that he occupied the - 35 - (' ,~ '" /1 dwelling with the intention of making it his place of residence, that the move was not motivated by a desire to receive relocation assistance and benefits, and that he neither knew nor should have known that public acquisition was intended, the City may reduce the requirements as necessary. b. Is not eligible to receive a replacement housing paYment for homeowners or elects not to receive such paYment. Where the displaced resident is the owner-occupant of the dwelling for at least 90 days but not more than 180 days immediately prior to the initiation of negotiations for the acquisition of the dwelling, the paYment made under Section 615b shall not exceed the amount of paYment to which the resident would he entitled under Section 605. c. The displaced resident shall within one year from the date of displacement rent or purchase (as the case may be) and occupy a replacement dwelling. Where for reasons beyond the control ofthe displaced resident completion of construction, rehabilitation, or relocation of a replacement dwelling is delayed beyond the date by which occupancy is required, the City shall determine the date of occupancy to be the date the displaced resident enters into a contract for such construction, rehabilitation, or relocation or for rental or purchase, upon completion, of a dwelling to be constructed or rehabilitated, if, in fact, the displaced person occupies the replacement dwelling when the construction or rehabilitation is completed. Where for reasons of hardship or circumstances beyond the control of the displaced resident, such person is unable to occupy the replacement dwelling by the required date, the City may extend the deadline as necessary. If by the deadline the displaced person has contracted to rent or purchase a replacement dwelling, the City will extend the deadline. No person otherwise eligible for paYment, shall be denied such eligibility as a result of his being unable, because of a major state or national disaster, to meet the occupancy requirements contained herein. In implementing the relocation assistance law, it is the intent that special consideration shall be given to assisting any displaced resident 62 years of age or older to locate or lease or rent a comparable replacement dwelling. 3. [~ 617] Computation of Replacement Housing Payment a. [~ 618] Rent Differential Payment The amount of paYment necessary for a displaced resident to lease or rent a comparable replacement dwelling shall be computed by subtracting forty-two (42) times the base monthly rental of the displaced resident, from forty-two (42) times the monthly rental for a comparable replacement dwelling; provided, that in no case may such amount exceed the difference between forty-two (42) times the base monthly rental and forty-two (42) times the monthly rental actually required for the replacement dwelling occupied by the displaced resident. - 36- e e (1) Base Monthlv Rental. The base monthly rental shall be the lesser of: ( a) the average monthly rental paid by displaced resident for the 3 -month period prior to initiation of negotiations; and (b) thirty percent (30%) of the displaced resident's average monthly gross income, unless the displaced person meets one or more of the following conditions; in which case, the payment of the monthly rental cost of the comparable replacement dwelling, including estimated average monthly utility costs, minus any replacement housing payment available to the person shall not exceed twenty-five percent (25%) ofthe person's average monthly income: (1') Prior to January 1, 1998, the displaced person received a notice to vacate from the City or from a person having an agreement with the: City. (2) The displaced person resides on property that was acquired by the City or by ~ person having an agreement with the;: City prior to January 1, 1998. (3) Prior to January 1, 1998, the City or a person having an agreement with the City, initiated negotiations to acquire the property on which the displaced person resides. (4) Prior to January 1, 1998, the City, or a person having an agreement with the City, entered into an agreement to acquire the property on which the displaced person ,resides. (5) Prior to January 1, 1998, the City, or a person having an agreement with the City, gave written notice of intent to acquire the property on which the displaced person resides. (6) The displaced person is covered by, or resides in an area or project covered by, a final relocation plan that was adopted by the legislative body prior to January 1, 1998. (7) . The displaced person is covered by, or resides in ,an area or project covered by, a proposed relocation plan that was required to have been submitted prior to January 1, 1998, to the Department of Housing and Community Developm,;;mt or to a local relocation committee, or for which notice was required to have been provided to occupants of the property prior to January 1, 1998. (8) The displaced person is covered by, or resides in an area or project covered by, a proposed relocation plan that was - 37- ;--, ;--', \,... /' ''--- / submitted prior to January 1, 1998, to the Department of Housing and Community Development or to a local relocation committee, or for which notice was provided to the public or to occupants of the property prior to January 1, 1998, and the person is eventually displaced by the project covered in the proposed relocation plan. (9) The displaced person resides on property for which a contract for acquisition, rehabilitation, demolition, construction, or other displacing activity was entered into by the City, or by a person having an agreement with the City, prior to January 1998. (10) The displaced person resides on property where an owner participation agreement, or other agreement between the City and a private party that will result in the acquisition, rehabilitation, demolition, or development of the property or other displacement, was entered into prior to January 1, 1998, and the displaced person resides in the property at the time of the agreement, provides:information to the City, or person having an agreement with the City showing that he or she did reside in the property at the time of the agreement and is eventually displaced by the project covered in the agreement. Where the displaced resident was the owner of the dwelling from which he was displaced or was not required to pay rent for that dwelling, or where the rental is unrealistically low, the economic rent shall be used in lieu of the average monthly rental to calculate base monthly rental. (2) Rental for Comparable Replacement Dwelling. The monthly rental for a comparable replacement dwelling shall be determined by the City using one of the following methods: (a) Comparative Method. On a case by case basis by determining the listing rental of dwellings which are most representative of the acquired dwelling and meet the definition of a comparable replacement dwelling. Whenever possible the listing rental of at least three dwellings shall be considered; or (b) Schedule Method. Where the City determines the comparative method is not feasible, it may establish a schedule of reasonable rental charges for the various types of comparable replacement dwellings. The City shall cooperate with other entities causing displacement in the area to establish a uniform schedule. The schedule shall be based on a current analysis of the market to determine a reasonable rental charge for each type of dwelling to be rented. The analysis may be confined to other sub-area from which the persons are displaced or may cover several different sub-areas, if they satisfy or exceed the - 38 - e e criteria for a comparable replacement dwelling. To assure the greatest comparability of dwellings in any analysis, the analysis shall be divided into classifications of the type of construction, number of bedrooms, and range of rental charges; or (c) Alternative Method. Where the City determines that neither the schedule, nor comparable method is feasible in a given situation, by the use of another reasonable method selected by the City. Whichever method is selected the cost shall be updated to within three (3) months of the date of rental of the replacement dwelling. In calculating the base monthly rental and the rental for a c:omparable replacement dwelling the City will include as a component of rent the cost or estimated cost of utilities, but not including telephone service. (d) Last Resort Housing. Payments will be made to eligible displaced residential occupants in accordance with Section 7264.5 of the California Government code, Chapter 16, in accordance with procedures developed by the City. b. [~619] Downpayment The downpayment for which a payment specified in Section 615b may be made, shall not exceed the amount of a reasonable downpayment for the purchase of a comparable replacement dwelling where such purchase is financed, plus expenses incident to the purchase of a replacement dwelling computed in accordance: with Section 610. The full amount of a downpayment shall be applied to the purchase of the replacement dwelling and shall be shown on the closing statement or other document acceptable to the City. 4. [~ 620] Rental Payments for Displaced Homeowners and Dependent:~ a. [~ 621] Homeowners A displaced homeowner who elects to rent rather than purchase a replacement dwelling and who meets the eligibility requirements of Section 616 is eligible for the rent differential payment specified in Section 618. b. [~622] Dependents A dependent who is residing separate and apart from the person or family providing support, whether such separate residencl'? is permanent or temporary, shall be entitled to payment under Section 614, but such payment shall be limited to the period during which the' displaced dependent resides in the replacement dwelling. For the purposes of this Section "dependent" shall be a person who derives fifty-one percent (51 %) or more of his income in the form - 39- i' /"'\ " _/ , ' ~. / of gifts, from any private person or any academic scholarship or stipend. Full time students shall be presumed to be dependents but may rebut this presumption by demonstrating that fifty percent (50%) or more of their income is derived from sources other than gifts from another private person or academic scholarship or stipends. Dependents residing with the family of which they are a part shall not be entitled to any payment except as a part of the family. F. [~623] Payments to Residents Displaced from Manufactured Homes and Mobilehomes 1. [~ 624] Payments Required The eligibility requirements and payment provisions of Sections 600 through 613 are applicable to displaced residents who are owners or tenants of manufactured homes or mobilehomes. 2. [~625] Moving Expenses: Retention and Move of Manufactured Home or Mobilehome If a manufactured home or mobilehome is moved to another site and the displaced resident elects to be compensated for actual reasonable moving expenses (and not an alternate payment pursuant to Section 603), then the displaced resident shall be paid an amount for moving expenses determined in accordance with the applicable provisions of Section 703, Actual Reasonable Moving Expenses for a displaced business. 3. [~ 626] Replacement Housing Payments The City shall make a replacement housing payment to a displaced resident who is displaced from his manufactured home or mobilehome in the following situations: a. A resident who owns a manufactured home or mobilehome and site and as a replacement purchases both a dwelling and site shall be provided a payment in accordance with Section 604. A resident who owns a manufactured home or mobilehome and site, and as a replacement rents both a dwelling and site, shall be provided a payment in accordance with Section 614. b. A resident who rents a manufactured home or mobilehome and site and as a replacement rents or purchases a dwelling and site, shall be provided a payment in accordance with Section 614. c. A resident who owns a manufactured home or mobilehome and site, and as a replacement purchases a dwelling and rents a site, shall be provided a payment in accordance with Section 604 and 614. The payment shall be limited to the lesser of: - 40- e e (1) The amount necessary to purchase a conventional eomparable replacement dwelling; and (2) The amount necessary to purchase a replacement manufactur,ed home or mobilehome (in accordance with Section 604) plus the amount necessary to rent a replacement site (in accordance with Section 614). In calculating this amount, the economic rent for the site shall be used in lieu of average monthly rental to determine base monthly rent. d. A resident who owns a site from which he moves a manufactured home or mobilehome shall be provided a payment under Section 604 ifhe purchases a replacement site and under Section 614 ifhe rents a replacement site. e. A resident who owns a manufactured home or mobilehome which ilS acquired and rents the site shall be provided payment as follows: (1) If a manufactured home or mobilehome, if appropriate, is not available the amount required to purchase a conventional replacement dwelling (in accordance with Section 604); (2) The mnount necessary to purchase a replacement manufactured home or mobilehome (in accordance with Section 604) plus the amount: necessary to lease, rent or make a down payment on a replacement site (in accordance with Section 614); or (3) Ifhe elects to rent a replacement manufactured home or mobilehome and site, the amount required to do so in accordance with Section 614. In calculating this payment, the average monthly rental shall equal the economic rent for the manufactured home or mobilehome plus the actual rent for the site. f. Similar principles shall be applied to other possible combinations of ownership and tenancy upon which a claim for payment might be based. G. [~627] Proration of Payments For the purpose of calculating an alternate payment under Section 603, or a replacement housing payment under Section 604 or 614, two or more individuals (wheth<;:r they are members of one family or not) living together in, and displaced from, a singl(~ dwelling shall be regarded as one displaced resident. If two or more such individuals submit more than one claim, an eligible claimant for a payment may be paid only his reasonable pro rata share (as determined by the City) of the total payment applicable to a single displaced resident. The total ofthe payments made to all such claimants moving from the dwelling unit shall not exceed the total payment allowed to be made to a single displaced resident. Where a tenant is sharing a single-family dwelling with an owner-occupant, the tenant shall not be entitled to more than one-half ofthe replacement housing payment otherwise - 41 - /"'. ~ '. / ',,- / payable. The owner-occupant shall not be required to share the payment to which he is entitled or to accept a prorated amount. VII. [~ 700] RELOCATION PAYMENTS TO DISPLACED BUSINESSES A. [~701] Payments Required The City shall compensate the owner of a displaced business for the expenses described in Section 702 and 703 or 706 and 708 and in Section 713. Whenever the acquisition of real property used for a business causes the business to move from other real property upon which the same business is conducted, or to move its personal property therefrom, such business shall receive payments for moving and related expenses under Section 702 and 703 in connection with its move from such other real property. B. [~ 702] Moving Expenses 1. [~ 703] Actual Reasonable Moving Expenses A displaced business shall be compensated for the actual reasonable expenses incurred for moving the business 'including moving personal property. In all cases the amount of payment shall not exceed the reasonable cost of accomplishing the activity in connection with which a claim has been filed. The moving and related expenses for which claims may be filed shall include: a. Transportation of persons and property not to exceed a distance of fifty (50) miles from the site from which the business was displaced, except where the City determines that relocation beyond such distance of fifty (50) miles is justified; b. Packing, crating, unpacking, and uncrating personal property; c. Such storage of personal property for a period generally not to exceed twelve (12) months, as determined by the City to be necessary in connection with relocation; d. Insurance of personal property while in storage or transit; e. The reasonable replacement value of property lost, stolen, or damaged (not through the fault or negligence ofthe displaced business, its agents or employee) in the process of moving, where insurance covering such loss, theft, or damage is not reasonably available; f. The cost of disconnecting, dismantling, removing, reassembling, reconnecting and reinstalling machinery, equipment, or other personal property (including goods and inventory kept for sale) not acquired by the City, including connection charges imposed by public utilities for starting utility service; - 42- e It g. The cost directly related to displacement modifying the machinery, equipment, or other personal property to adapt it to the replacementlocation or to utilities available at the replacement location or the cost of modifying the power supply. h. Claims for reimbursement of all such costs shall be subject to the following limitations: (1) Reimbursable costs shall be reasonable in amount; (2) The cost could not be avoided or substantially reduced at am alternate available and suitable site to which the business was referred.; 1. The cost of any license, permit, or certification required by a displacc::d business concern to the extent such cost is necessary to the reestablishment of its operation at a new location; J. The Reasonable Cost of Consultants including: architects, engineers, or others providing general or specialized services pecessary for (i) planning the move of the personal property, or (ii) moving the personal property, or (iii) installing the relocated personal property at the replacement location. For purposes of this paragraph, and in order to avoid duplication of payment, all such selvices shall not be deemed "necessary" when the services have been or will be provided by the City or consultants retained by the City. The necessity of other services not provided by the City shall be determined by the City. Payment for all of the above necessary services must be approved in writing by the City prior to their use. Inforrnation on the area of expertise and the qualifications of such persons must be provided for review and a reasonable hourly rate or fee must be approved by the City before any costs are incurred otherwise such services are not reimbursable. An itemized statement of all services shall be provided to the City stating the dates of such services; the location where services were provided; the name, address and telephone of person or firm providing services. k. Where an item of personal property which is used in connection with any business is not moved but is replaced with a comparable item, reimbursement in an amount not to exceed the lesser of: (1) The reasonable replacement cost of the personal property, minus net proceeds (if any) realized from the sale of all or part of the property, (2) The estimated reasonable cost of moving the personal property, as determined by the City. In order to obtain a payment under this paragraph, the displaced business shall make a bona fide effort to sell the personal property for which the payment is claimed at the highest price offered afterreasonable efforts have been made over a reasonable period of time to interest prospective purchasers. The displaced - 43 - f'- " 1\. \, / business shall be reimbursed for the reasonable costs of such effort to sell the tangible personal property. 1. Where, in the judgment of the City, the cost of moving any item of personal property of low value and high bulk which is used in connection with any business would be disproportionate in relation to its value, the allowable reimbursement for the expense of moving such property shall not exceed the difference between the cost of replacing the same with a comparable item available on the market and the amount which would have been received for such property on liquidation. This provision may in appropriate situations be applied to claims involving the moving of junk yards, stockpiles, sand, gravel, minerals, metals, and similar property. m. A displaced business which conducts a lawful activity primarily for assisting in the purchase, sale, resale, manufacture, processing, or marketing of products, commodities, personal property, or services by the erection and maintenance of outdoor advertising displays is entitled to payment for the reasonable cost of moving such displays or their in-place value, whichever is lesser. 2. [~ 704] Actual Direct Loss of Tangible Personal Property A displaced business shall be compensated for the actual direct loss of tangible personal property of the displaced business or farm operation attributable to moving or discontinuing such business. The total amount ofthe payment by the City for such loss shall not exceed an amount equal to the estimated reasonable cost of moving the personal property, as determined by the City. Subject to such limitation, the actual direct loss of personal property for which claims may be filed shall be determined by appraising either: a. The in-use value (fair market value of the personal property for continued use at its location prior to displacement) minus net proceeds realized from the sale of all or part of the property; or b. The in-use value of personal property, in the event the property cannot be sold and is abandoned. The actual direct loss of personal property shall be computed and based on an appraisal obtained by either the City or the displaced business, and approved by the other. In order to obtain a payment for the actual direct loss of personal property, the displaced business shall make a bona fide effort to sell the personal property for which the loss is claimed at the highest price offered after reasonable efforts have been made over a reasonable period oftime to interested prospective purchasers. The reasonable cost of an effort to sell the personal property shall be added to the determination of loss under this Section. - 44- e e In the event personal property which is sold or abandoned is promptly replaced with a comparable item, no payment for the actual direct loss of such personal property shall be made to the displaced business by the City; instead, the displacc;:d business shall be paid the amount specified in Section 703j. 3. [~ 705] Actual Reasonable Expenses in Searching for a Replacement Business Actual Reasonable Expenses incurred in searching for a replacement business site which may include: transportation within a radius of fifty (50) miles from the boundaries of the City of Redding, meals and lodging if necessary, an amount to cover time spent during normal working hours (based on an actual confinned hourly wage rate not to exceed Ten and No/IOO Dollars ($10.00 per hour) and proven reasonable fees paid to a real estate broker or agent to locate to a new site. The maximum total amount of reimbursement for searching expenses for a m::w location is One Thousand and No/l 00 ($1,000.00) Receipted invoices, bills, receipts, and a completed City Searching Cost Form must be certified and submitted for all expenses claimed. Costs incurred in inspecting sites beyond a fifty (50) mile radius are not eligible. In exceptional cases, and with prior written approval of the City Director, an amount over the $1,000.00 may be authorized when circumstances warrant. c. [~ 706] Actual Reasonable Expenses To Reestablish A Small Business or Nonprofit Organization 1. A farm, small business or nonprofit organization shall be compensated in an amount not to exceed $10,000.00, for actual reasonable expenses necessary to reestablish the farm, small business or nonprofit organization at its new site. Reestablishment expenses shall be only those expenses that are reasonable and necessary and include, but are not limited to: (a) Repairs or improvements to the replacement property as required by Federal, State, or local law, code, or ordinance. (b) Modifications to the replacement property to accommodate the business operation or make replacement structures suitable for conducting the business. (c) Construction and installation costs for exterior signing to advertise the business. (d) Provision of utilities from right-of-way to improvements on the replacement site. ( e) Redecoration or replacement of soiled or worn surfaces at the replacement site, such as paint, paneling, or carpeting. (f) Licenses, fees, and permits when not paid as part of moving expens1es. (g) Feasibility surveys, soil testing, and marketing studies. - 45 - ~ \ (\. .,,- / (h) Advertisement of replacement location. (i) Professional services in connection with the purchase or lease of a replacement site. (j) Estimated increased costs of operation during the first two (2) years at the replacement site for such items as: (1) Lease or rental charges; (2) Personal or real property taxes; (3) Insurance premiums, and (4) Utility charges, excluding impact fees. (k) Impact fees or one time assessments for anticipated heavy usage. (1) Other items essential to the reestablishment of the business. (m) For purposes of this section, the term "small business" shall mean a business having not more than 500 employees working at the site being acquired or displaced by a program or project, which site is the location of economic activity. Sites occupied solely by outdoor advertising signs, displays, or devices do not qualify as a small business for purposes of this section. 2. The following is a nonexclusive listing of reestablishment expenditures not considered to be reasonable, necessary, or otherwise eligible: (a) Purchase of capital assets, such as office furniture, filing cabinets, machinery, or trade fixtures. (b) Purchase of manufacturing materials, production supplies, product inventory, or other items used in the normal course of the business operation. ( c) Interior or exterior refurbishments at the replacement site which are for aesthetic purposes, except as provided in Section 706(b)(5). (d) Interest on money borrowed to make the move or purchase the replacement property. (e) Payment to a part-time business in the home which does not contribute materially to the household income. - 46- e e D. [~ 707] Alternate Payments . 1. [~708] Determination of Payments a. [~ 709] Amount of Payment A displaced business which moves or discontinues, and which meets the eligibility requirements of Section 710, may elect to receive and shall be paid, in lieu of the payments for which it is otherwise entitled under Sec:tion 702, a payment equal to the average annual net earnings of the business, except that such payment shall not be less than $1,000.00 or more than $20,000.00 Said dollar limitation shall apply to a single business regardless of whether it is carried on under one or more legal entities. b. [~710] Determination of Number of Businesses In determining whether one or more legal entities, all of which have been acquired, constitute a single business, the following factors among others, shall be considered: (1) The extent to which the same premises and equipment are shared; (2) The extent to which substantially identical or intimately interrelated business functions are pursued and business and financial affairs are commingled; (3) The extent to which such entities are held out to the public, and to those customarily dealing with such entities, as one business; (4) The extent to which the same person or closely related persons own, control, or manage the affairs of the entities. 2. [~ 711] Eligibility a. [~ 712] Business A displaced business is eligible for the payment provided for in Section 708 only if the City determines that: (1) The business is not operated soley for rental purposes and cannot be relocated without a substantial loss of its existing patronage, based on a consideration of all pertinent circumstances including such factors as the type of business conducted, the nature of the clientele, the relative importance to the displaced business of its present and proposed location, and the availability of a suitable relocation site; - 47- f'.. ~ ',- ~/ '-../ (2) The business is not part of a commercial enterprise having no more than three (3) other establishments which are not being acquired for a project and which is engaged in the same or similar business. Whenever the sole remaining facility of a business which has been displaced from its principal location: (aa) Has been in operation for less than two (2) years. (bb) Has had annual gross receipts ofless than $2,000 during the two (2) taxable years prior to the displacement of the major component of the business; or (cc) Has had average annual net earnings ofless than $1,000 during the two (2) taxable years prior to displacement of the major component of the business, the remaining facility will not be considered another "establishment" for purposes of this Section; and (3) The displaced business: (aa) Had average annual gross receipts of at least $5,000 during the two (2) taxable years prior to displacement; or (bb) The displaced business had average annual net earnings of at least $1,000 during the two (2) taxable years prior to displacement; or (cc) The displaced business contributed at least thirty-three and one- third percent (33 1/3%) of the total gross income of the owner(s) during each of the two (2) taxable years prior to displacement. (4) For purposes of this section, the term "average annual net earnings" means one-half of any net earnings of the business before federal and state income taxes during the two taxable years immediately preceding the taxable year in which the business moves from the real property being acquired. In any case the City determines that the two (2) year period prior to displacement is not representative ofthe average receipts, earnings, or income, it may make use of a more representative period. If a displaced business does not meet any of the above conditions, the City may nevertheless pay it the $1,000.00 minimum amount, provided that the City otherwise determines that such business is in fact a bona fide business. A person whose sole business at the displacement dwelling is the rental of the property to others shall not qualify for a payment. - 48- e e VIII. [~800] CITIZEN PARTICIPATION A. [~ 801] Requirement Generally All persons who will be displaced, neighborhood groups and any relocation committee shall be given an opportunity to participate in reviewing the relocation plan and monitoring the relocation assistance program. B. [~ 802] Relocation Committee When a substantial number of persons will be displaced from their dwellings, the City shall encourage the residents and community organizations in the displacement area to form a relocation committee. The committee shall include, when applicable, residential owner occupants, residential tenants, business people, and, members of existing organizations within the area. In lieu of initiating a new process of citizen participation, public entities which have conducted or are conducting a citizen participation process as part of an existing development program may substitute such process if it satisfied the requirements of this section, If a substantial number of persons will not be displaced from their dwellings, the City shall consult with and obtain the advise of residents and community organizations and make the relocation plan available to such persons and organizations prior to submitting it to the legislative body for approval. C. [~803] Minimum Requirements At a minimum the City shall guarantee the following: (1) Timely and full access to all documents relevant to the relocation program. The City may reasonably restrict access to material where its confidentiality is protected by law or its disclosure prohibited by law. The City shall insure that the information in documents, the provision of which would result in disclosure of the identity of eligible persons, is provided in a manner designed to avoid such disclosure. This obligation to avoid improper disclosure shall not effect the right of the person to which the information relates, or any other person authorized in writing by such person, to inspect such documents. (2) The provision oftechnical assistance necessary to interpret elements of the relocation plan and other pertinent materials. (3) The right to oral comments and objections, including the right to submit written' comments on the relocation plan and to have these comments attached to the plan when it is forwarded to the City Council (4) Prompt, written responses to any written objections or criticism. - 49- ~.. ./\ '-... j \, _./ IX. [~900] CLAIM AND PAYMENT PROCEDURES A. [~ 901] Filing of Claims All claims for relocation assistance and payments filed with the City shall be submitted within eighteen (18) months ofthe date on which the claimant receives final payment for the property or the date on which claimant moves, whichever is later. The City may extend this period upon a proper showing of good cause. B. [~ 902] Documentation in Support of Claim 1. [~ 903] Moving Expenses a. [~904] Commercial Moves . Except in the case of a displaced resident or displaced business electing to self move, a claim for payment of actual reasonable moving expenses shall be supported by a bill or other evidence of expenses incurred. Each claim in excess of $1,000 for the costs incurred by a displaced business in moving the business operation shall be supported by competitive bids in such number as are practical. If-the City determines that compliance with the bid requirement is impractical, or if estimates in an amount less than $1,000 are obtained, a claim maybe supported by estimates in lieu of bids. b. [~ 905] Self Moves Approval of a self-move shall be conditioned upon whether the displaced person has a permanent replacement site to move to. If so, the City may, at its sole discretion, approve a payment for moving expenses, in an amount not to exceed . the lowest acceptable bid or estimate obtained by the City. A self-move to storage may be approved by the City at the City's sole discretion. Reasonable advertising costs related to the move or the sale of personal property in lieu of moving the personal property are considered eligible. Usual advertising costs associated with operating the business are not eligible. c. [~ 906] Exemption from Public Utilities Commission Regulations Whenever the City must pay the actual cost of moving a displaced person, the costs of such move shall be exempt from regulation by the Public Utilities Commission. The City may solicit competitive bids from qualified bidders for performance ofthe work. Bids submitted in response to such solicitations shall be exempt from regulation by the Public Utilities Commission. - 50- e e 2. [~ 907] Loss of Property A claim by a displaced business for payment for the actual direct loss of tangible personal property pursuant to Section 704 shall be supported by written evidence of loss which may include appraisals, certified prices~ bills of sale, receipts, canceled checks, copies of advertisements, offers to sell, auction records, and other records appropriate to support the claim or the City may agree as to the value ofthe property left in place. 3. [~ 908] Proof of Earnings If a displaced business elects to receive an alternate payment pursuant to Section 706 of these Rules and Regulations, the business shall provide proof of its earnings to the City. Proof of earnings may be established by income tax returns, financial statements and accounting records or similar evidence acceptable to the City. c. [~ 909] Payment of Moving Expenses 1. [~910] Advance Payment An eligible displaced resident or displaced business may be paid for his cmticipated moving expenses in advance of the actual move. The City shall provide advance payment whenever later payment would result in financial hardship. Particular consideration shall be given to the financial limitations and difficulties experienced by low and moderate income residents and small business operations. 2. [~911] Direct Payment By prearrangement between the City, the displaced resident or displaced business, and the mover, evidenced in writing, the claimant or the mover may present an unpaid moving bill to the City, and the City may pay the mover directly. 3. [~912] Methods Not Exclusive The specific provisions of these Rules and Regulations are not intended to preclude the City's reliance upon other reasonable means of effecting a move, including contracting moves and arranging for assignment of moving expense payments by displaced persons. D. [~ 913] Payments for Replacement Dwellings 1. [~ 914] Payment for Purchase of Comparable Replacement Dwelling~ a. [~ 915] Disbursement When the City has determined the amount of the payment for purchase of a comparable replacement dwelling to which the displaced resident is entitled and - 51 - /~, ~ " / has verified that the displaced resident occupies a comparable replacement dwelling, payment shall be made to the displaced resident. b. [~ 916] Provisional Payment Pending Condemnation If the exact amount of a replacement housing payment cannot be determined because of a pending condemnation suit, the City may make a provisional replacement housing payment to the displaced homeowner equal to the difference between the City's maximum offer for the property and the reasonable cost of a comparable replacement dwelling, but only if the homeowner enters into an agreement that upon final adjudication of the condemnation suit the replacement housing payment will be recomputed on the basis of the acquisition price determined by the court. If the acquisition price as determined by the court is greater than the maximum offer upon which the provisional replacement housing payment i~ based, the difference shall be refunded by the homeowner to the City. If the acquisition price as determined by the court is less than the maximum offer upon which the provisional replacement housing payment is based, the difference shall be paid to the homeowner. c. [~ 917] Certificate of Eligibility Upon request by a displaced homeowner or tenant who has not yet purchased and occupied a comparable replacement dwelling, but who is otherwise eligible for a replacement housing payment, the City shall certify to any interested party, financial institution or lending City, that the displaced homeowner or tenant will be eligible for the payment of a specific sum if he purchases and occupies a dwelling within the time limits prescribed. 2. [~918] Rent Differential Payments When the City has determined the amount of the rent differential payment to which the displaced resident is entitled and has verified that the displaced resident occupies a comparable replacement dwelling, payment shall be made in a lump sum to the displaced resident. E. [~919] Assistance and Payments to Persons Moving without Notice If the City fails to inform any eligible displaced person of the relocation payments and assistance that may be made available by the City in a timely manner, the City shall make every reasonable effort to identify and locate such person who has moved. Eligible displaced persons who move without offers of assistance and benefits, after the City was required to offer assistance and benefits, shall be provided all such assistance and payments for which they otherwise qualify. When appropriate, the City shall also compensate such persons for additional costs incurred as a result of the City's failure to provide timely notice and offers of relocation assistance and benefits. - 52- e e F. [~ 920] Termination of Relocation Assistance The City's relocation obligations cease under the following circumstances: 1. A displaced resident moves to a comparable replacement dwelling and receives all assistance and payments to which he is entitled; 2. The displaced resident moves to substandard housing; refuses reasonable offers of additional assistance in moving to a decent, safe and sanitary replacement dwelling and receives all payments to which he is entitled; 3. All reasonable efforts to trace a person have failed; 4. The business concern or farm operation has received all assistance and payments to which it is entitled and has been successfully relocated or has ceased operations; 5. A person displaced from his dwelling, business or farm operation refuses reasonable offers of assistance, payments and comparable replacement dwellings. x. [~ 1000] GRIEVANCE PROCEDURES A. [~1001] Purpose The purpose of the Grievance Procedures is to attempt to resolve disputes between the claimant and the City at the lowest possible administrative level while affording the claimant an opportunity to have a full and fair review of his case. Therefore, all relevant evidence should be presented at the lowest level ofthese proceedings. In any case where such evidence could have been presented at a lower level and the claimant faile:d to do so, the Relocation Appeals Board may refer the matter back to the lower level for consideration and determination prior to their considering such evidence. B. [~ 1002] Right of Review Initial Determination: Any displaced person or business who is not satisfied with a determination as to eligibility, amount of payment, and failure by the City to provide comparable permanent or adequate temporary replacement housing or the City's property management practices, or not properly applying appropriate regulations, at his election, may have his claim reviewed and reconsidered in accordance with the following procedures. A claimant shall request the City's designated representative to provide him with a full written explanation of the determination and the basis therefore, which explanation shall be provided within three weeks from the date of receipt of the request. - 53 - ~ ~ '-~ / c. [~1003] Informal Oral Presentation Department Head Review: If the claimant feels that the written explanation is incorrect or inadequate, he may request an informal hearing with the Department Head. 1. To obtain an informal hearing before the Department Head, claimant must complete a relocation complaint form with the Department Head within (540) days from the date he moves from the acquired property or receives final compensation for displacement from the property, whichever is later. a. Within fifteen (15) days from the date of receipt of claimant's Relocation Complaint form for an informal hearing, he will be afforded an opportunity to make an oral presentation, or to request a written review by the Department Head ofthe relevant documents and written materials submitted by the claimant. b. The claimant may be represented by an attorney or other person of his choosing at the oral hearing (at the cost ofthe claimant). c. The Department Head shall prepare a summary of the matters discussed and determinations made during the informal hearing, or written review, and serve a copy thereof upon the claimant. d. The Department Head shall review and reconsider the initial determination of the claimant's case in light of: All material upon which the City based its original determination including all applicable rules and regulations; The reasons given by the claimant for requesting reVIew and reconsideration of his claim; Whatever additional written material has been submitted by the claimant; and Any further information which the Department Head may, in his discretion, obtain by request, investigation or research, to insure fair and full review of the claim. 2. The final determination on review by the Department Head shall include, but is not limited to: a. The Department Head's decision on reconsideration of the claim; b. The factual and legal basis upon which the decision is based, including any pertinent explanation or rationale; and - 54- e e c. A statement of claimant's right to seek within (45) days further review of his claim by the Relocation Appeals Board and an explanation of the steps the claimant must take to obtain this review. 3. The right to a formal hearing shall not be conditioned upon fIrst obtaining an informal hearing by the Department Head. D. [~1004] City Council Review If the claimant feels that the Department Head's determination following the informal oral hearing, or written review by the Department Head is incorrect or inadequate, he may request a formal hearing before the City Council. To obtain a formal hearing before the City Council the claimant must request in writing that the Department Head schedule such a hearing. Such request shall be made within (540) days from the date of the Department Head's determination following the informal hearing or the Department Head's written review. 1. Within fIfteen (15) days from the date of receipt of claimants written request, he will be notifIed of the formal hearing date. If the claimant requests additional time to prepare material for consideration and shows good cause therefore, the hearing date shall be continued to another date. 2. The City Council shall have the authority to revise the initial determination or the determination made at an informal hearing, subject to approval thereof by the City Manager or his/her designee. 3. The City Council shall, at the time it gives notice of the formal hearing date, notify the claimant that he has the right to be represented by an attorney or others at his own expense, to present his case by oral or documentary evidence; the right to submit oral or documentary evidence; the right to submit rebuttal evidence to conduct such cross examination as may be required for a full and true disclosure of facts; an.d the right to seekjudicial review once claimant has exhausted administrative appeal.. 4. The City Council shall review and reconsider the initial determination and/or the determination made at an informal hearing taking into consideration all material upon which the challenged determination was made, all applicable rules and regulations, the reasons given by the claimant for requesting review, any additional relevant evidence, oral or documentary, submitted by either the claimant or the City's representatives. No evidence may be relied upon by the City Council where the claimant has been improperly denied an opportunity to rebut evidence or cross-examine a witness. 5. The City Council shall make its determination within six weeks from the date on which the formal hearing is concluded or the date of receipt of the last material submitted, whichever is later. - 55 - r-'\ ~ , , ',. ~/ ,-- /' 6. The City Council's determination shall be made in writing and shall contain its decision, the factual and legal basis upon which the decision is made and a statement informing the claimant of his right to seek judicial review. 7. The claimant shall be promptly served with a copy of the City Council's determination. E. [~ 1005] Time Limits General: The Department Head may extend any of the time limits specified in this Article upon a showing of good cause. Any refusal to waive a time limit may be reviewed in accordance with the procedures set forth in subparagraph (5)a. above; provided, however, any request to review shall be made within ninety (90) days from the date of receipt by (claimant's) of written notice that the request to extend time has been denied. F. [~1006] Review of Files By Claimant The claimant may inspect all files and records bearing upon his claim or the prosecution of the claimant's grievance, except to the extent the confidentiality ofthe material sought or the disclosure thereof is protected or prohibited by law. G. [~ 1007] Effect of Determination Determinations made by the City shall be applicable to all eligible persons in similar situations regardless of whether any such eligible person seeks a review. All written determinations shall be filed in the records of the City and available for public inspection. H. [~1008] Right to Counsel Any claimant has the right to be represented by an attorney at his expense at any and all stages of the proceedings set forth in this Article. I. [~ 1009] Further Review If the City denies the eligibility of a claimant for a payment, or disapproves the full amount claimed, or refuses to consider the claim on its merits because of untimely filing, or any other ground, the City's notification to the claimant of its determination shall inform the claimant of its reasons therefore, and shall also inform the claimant of the applicable procedures for obtaining further review of this determination. These regulations prescribe the City of Redding procedures for granting administrative relief to any person aggrieved by a determination as to eligibility for a payment authorized by the Uniform Relocation Assistance and Real Property Acquisition Policies Act of 1970 and the State of California Government Code Section 7260, et. seq., with regard to the obligation of the City to refer such person to an adequate replacement dwelling or to any person aggrieved by a determination as to eligibility for a payment authorized by the above - 56- e e legislation to provide the opportunity for his application to be reviewed by the appropriate department responsible for administering such payments. J. [~ 1010] Severability Severability: If any provision of these rules and regulations or the application thereof to any person or circumstances is held invalid, such invalidity shall not affect other provisions or applications of this law which can be given effect without the invalid provision or application, and to this end the provisions of this law are severable. K. [~1011] Application of Rules & Regulations Application of Rules: These rules and regulations shall be applicable on or after their effective date of adoption of the City. L. [~1012] Amendments Amendments: The City reserves the right to amend these rules, regulations, procedures, and policies. M. [~1013] Joint Complainants Where more than one person is aggrieved by the failure of the City to refer them to comparable permanent or adequate temporary replacement housing the complainants may join in filing a single written request for review. A determination shall be made as herein provided for each of the complainants. N. [~1014] Judicial Review Nothing in this section shall in any way preclude or limit a claimant from seeking judicial review of a claim upon exhaustion of such administrative remedies as are available under this section. XI. [~1100] ACQUISITION PROCEDURES A. [~1101] Acquisition of Property by Negotiation 1. The City shall make every reasonable effort to acquire property by negotiation and to do so expeditiously. In order to do so the City shall, to the greatest extent practicable, be !,'llided in its property acquisition practices by the provisions of this Section 1100. Provided however, that the provisions of Sections 1102, 1103, 1106 and 1108 shall not apply to the acquisition of any easement, right-of-way, covenant, or non-possessor interest in real property to be acquired for the construction, reconstruction, alteration, enlargement, maintenance, renewal, repair, orreplacement of subsurface sewers, waterlines or appurtenances, drains, septic tanks, or storm water drains. - 57- ~ .~. \" " 2. The provisions of Sections 1102, 1103, 1106, 1108 and 1122 shall not apply when the City makes an offer to the owner or owners of record to acquire real property for less than an amount which it believes to be just compensation thereof if (a) the real property is offered for sale by the owner at a specified price less than the amount the City believes to be just compensation thereof, (b) the City offers a price which is equal the specified price for which the property is being offered by the landowner, and (c) no federal funds are involved in the acquisition, construction, or project development. 3. As used in subdivision 2., "offered for sale" means any of the following: a. Directly offered by the landowner to the City for a specified price in advance of negotiations . b. Offered for sale to the general public at an advertised or published, specified price set no more than six (6) months prior to and still available at the time the City initiates contact with the landowner regarding the City's possible acquisition of the property. B. [~ 1102] Appraisal of Property Before negotiations are initiated to acquire property, the City shall have the property appraised, giving the owner or his designated representative an opportunity, by reasonable advance written notice, to accompany the appraiser during the inspection ofthe property. If a property is offered for sale pursuant to Government Code S 7267.2 (b), or if property is acquired by donation to the City, an appraisal is not required. An appraisal is not required if the fair-market value ofthe property to be acquired is estimated at $10,000 or less based on a review of available data. c. [~1103] Notice of Decision to Appraise 1. [~ 1104] Contents of Notice The City shall provide the owner with written notice of its decision to appraise the real property as soon as possible after the decision to appraise has been reached. The notice shall state, as a minimum, that: a. A specific area is being considered for a particular public use; b. The owner's property is located within the area; c. The owner's property, which shall be generally described, may be acquired in connection with the public use; and d. A statement that the owner or his representative (designated in writing) shall be given the opportunity to accompany each appraiser during his inspection ofthe property. - 58 - e It 2. [~ 1105] Information Statement: Property Acquisition Procedures At the time the City notifies an owner of its decision to appraise real property it shall furnish the owner with a written explanation of its land acquisition procedures, describing in non-technical, understandable terms the City's acquisition procedures and the principal rights and options available to the owner. Such statement shall inform the owner of the property that if the City decides to acquire the subject property certain prescribed land acquisition procedures will be followed and the statement shall include the following explanations: a. A description ofthe basic objective of the City's land acquisition program; b. A statement that, if the acquisition of any part of the real property would leave the owner with an uneconomic remnant, the City will offer to acquire the uneconomic remnant, if the owner so desires; c. A statement that, if the owner of real property is also the owner of a business conducted on the real property to be acquired, or on the remainder, he has a possible right to compensation for loss of goodwill. The City shall include a copy of the pertinent provisions of the Eminent Domain Law (Code of Civil Procedure, Section 1263:510 et seq.); d. A statement that, if the owner is not satisfied with the City's offer of just compensation he will be given a reasonable opportunity to present relevant material, which the City will carefully consider, and that if a voluntary agreement cannot be reached the City, as soon as possible, will either hold a hearing in connection with the matter of a resolution of necessity or give a notice that it does not intend, at this time, to proceed with any acquisition ofthe property. e. A statement that, construction or development of a project shall be scheduled that, to the greatest extent practicable, no person lawfully occupying real property shall be required to move from a dwelling (assuming a comparable replacement dwelling will be available) or to move his business without at least 90 days written notice from the City of the date by which the move is required; f. Subsequent to acquisition or an Order of Prejudgment Possession, a statement that, if arrangements are made to rent the property to an owner or his tenant for a short term or for a period subject to termination by the City on short notice, the rental will not exceed the lesser of the fair rental value of the property to a short term occupier or the pro rata portion of the fair market value for a typical rental period. If the owner or tenant is an occupant of a dwelling, the rental for the dwelling shall be within his fmancial means. - 59 - f"""' '\ , , '- / \, ,./ D. [~1106] Establishment of Just Compensation 1. Before negotiations are initiated to acquire property, the City shall establish an amount it believes to be just compensation for the property, which amount shall, in no event, be less than the City's approved appraisal of the fair market value of the property. The determination of just compensation shall be based upon consideration of: a. The real property being acquired; and b. Where the real property acquired is part of a larger parcel, the injury or benefit, if any, to the remainder. Any decrease or increase in the fair market value of real property to be acquired prior to the date of valuation caused by the project for which such property is acquired, or by the likelihood that the property would be acquired for such project, other than that due to physical deterioration within the reasonable control ofthe owner or occupant, will be disregarded in determining the compensation for the property. E. [~1107] Uneconomic Remnant Whenever a part of a parcel of property is to be acquired by the City for a public use and the remainder, or a portion of the remainder, will be left in such size, shape or condition as to constitute an uneconomic remnant the City shall offer to acquire the remnant if the owner so desires. An uneconomic remnant is a parcel of real property in which the owner retains an interest after partial acquisition of this property and which has little or no utility or value to such owner. A person whose real property is being acquired, may, after the person has been fully informed of his or her right to receive just compensation for the property, donate the property, any part thereof, any interest therein, or any compensation paid therefor to a public entity determined by the person. F. [~ 1108] Initiation of Negotiations 1. [~ 1109] Written Offer The City shall make its first written offer to acquire the property as soon as practicable following service of the Notice of Decision to Appraise. Such offer shall be made as soon as possible after the amount of just compensation is established, and for the full amount so established. 2. [~ 1110] Statement ofthe Basis of Just Compensation At the time the City makes its offer to acquire the property it shall provide the owner with a written statement of the basis for determination of just compensation. The - 60- e e statement shall include detail sufficient to indicate clearly the basis for the offer, including;.but not limited to, all of the following: a. A general statement of the public use for which the property is to be acquired; b. A sufficiently detailed description ofthe location, and extent of, and interest in, the property to be taken; c. An inventory identifying the buildings, structures, fixtures, and other improvements; d. A recital of the amount ofthe offer and a statement that such amount: (1) Is the full amount believed by the City to be just compensation for the property taken; (2) Is not less than the approved appraisal of, the' fair market value of the property; .' . (3) Disregards any decrease or increase in the fair market value of the real prop~rty to be acquired prior to the date of valuation caused by the proj ect for which the propertyis.t() be acquired, or by the likelihood that the property would be acquired for such project, other than that due to physical deterioration within the reasonable control of the owner or occupant; (4) Does not reflect any consideration of or allowance for any relocation assistance and payments or other benefits which the owner is entitled to receive under an agreement with the City except for an amount to compensate the owner for that portion of loss of goodwill provided in accordance with section 6100 of the State guidelines; (5) Does not reflect any consideration of loss of goodwill for which the owner may claim payment under procedures set forth in the City's Relocation Rules and Regulations for implementation of the California Relocation Assistance Law and Property Acquisition Procedures. e. . Ifthe real property is a portion of a larger parcel, the statement shall include an apportionment of the total estimated just compensation for the partial acquisition between the value of the property being taken and the amount of damage, if any, to the remainder of the larger parcel from which such property is taken. f. If the owner of the real property to be acquired is also the owner of a business conducted upon the property or the remainder, the statement shall include an indication of the amount of compensation for loss of goodwill. - 61 - ~ ~ I ' ".. / g. Where appropriate, the just compensation for the real property acquired and for damages to remaining real property shall be separately stated and shall include the calculations and narrative explanation supporting the compensation, including any offsetting benefits. h. The date of valuation used. 1. The highest and best use of the property. J. The applicable zmiing. k. The statement shall also include identification of some of the sales, contracts to sell and purchase, and leases supporting the determination of value, including: the names and business or residence addresses, if known, of the parties to the transaction; the location of the property subject to the transaction; the date of the transaction; the price and other significant terms and circumstances of the transaction, ifknown. Where the property involved is owner occupied residential property and contains-no more than four residential units, the homeowner shall, upon request, be allowed to review a copy of the appraisal upon which the offer is based. The Agency may, but is not required to, satisfy the written statement, summary, and review requirements of this section by providing the owner a copy of the . appraisal on which the offer is based. G. [~1111] Loss of Goodwill Nothing in this Section 1100 shall be construed to deprive a tenant of the right to obtain payment for his property interest as otherwise provided by law. As soon as practicable after the initiation of negotiations the City shall provide written notification to the owner of a business conducted on the real property to be acquired or on the remainder, who is not also the owner ofthe real property, concerning his possible right to compensation for loss of goodwill. The City shall include a copy of the pertinent provisions of the Eminent Domain Law (Code of Civil Procedure, Section 1263.510) and these Rules & Regulations (Section 1112). H. [~1112]Compensation for Loss of Goodwill Notwithstanding any other provisions of Section 1100 to the contrary, the procedure for determining and offering compensation for loss of goodwill in connection with the City's acquisition of any property shall be governed by Sections 1113 through 1119. 1. [~ 1113] Compensation Generally With respect to the owner of a business conducted on property acquired by the City, or on the remainder if such property is part of a larger parcel, the amount of just - 62- e It compensation to be paid by the City may include consideration of loss of goodwill, to the extent required by law and these Rules and Regulations. Within the meaning of this Section 1112, "goodwill" consists of the blenefits that accrue to a business as a result of its location, reputation for dependability, skill or quality, and any other circumstances resulting in probable retention of old or acquisition of new patronage. In order to be entitled to compensation on loss of goodwill such owner of a business shall first have proved all of the following: a. The loss is caused by the acquisition of the property or the injury to the remainder; b. The loss cannot reasonably be prevented by the relocation of the business or by taking steps and adopting procedures that a reasonably prudent person would take and adopt in preserving the goodwill; c. Compensation for the loss will not be included in payments under Section 700 of these Rules and Regulations; d. Compensation for the loss will not be duplicated in the compensation otherwise paid to the owner. 2. [~ 1114] Notice of Intent to Claim Loss of Goodwill Prior to a business completing its relocation from property acquired by the City, or prior to the date such business discontinues, the owner of such business may notify the City that it intends to provide satisfactory documentation of items a. through d. in Section 1113. 3. [~ 1115] Conference to Discuss Eligibility to Receive Compensation for Loss of Goodwill Upon receipt of the notice required by Section 1114, the. Department Head or designee shall confer with the claimant regarding the issues set forth in Section 1113. Based upon review and consideration of information presented at said conference, the Department Head will make a recommendation to the City Council as to whether or not a goodwill appraisal should be made. Ifthe City Council concurs in the recommendation to make a goodwill appraisal, then the City shall authorize an appraisal provided that it shall be for the purposes of negotiation and shall not be binding upon the City. In the event that the City does authorize an appraisal of goodwill, notice of this decision to appraise shall be given to the business owner/claimant. - 63 - ("'\ r\ " "- ' , / 4. [~ 1116] Business Records; Authorization to Negotiate If the determination to appraise loss of goodwill is made as provided in Section 1115 the owner ofthe business shall provide to the City such business records as the City may require, including, but not limited to federal and state income tax returns, financial statements and accounting records, for confidential use for the purpose of appraising the loss of goodwill of the business. 5. [~ 1117] Calculation of Net Amount of Just Compensation for Loss of Goodwill for Negotiation Purposes The City shall calculate the amount it believes to be the net amount of just compensation for loss of goodwill to which the business is entitled, considering: a. The amount the City believes for negotiating purposes to be the total amount of loss of goodwill of the business; and b. Any compensation for loss of goodwill the City determines is included in payments made or to be made under Section 700 of these Rules and Regulations. 6. [~ 1118] Notice to Owner; Written Offer As soon as possible after the net amount of just compensation (if any) for loss of goodwill has been calculated, the City shall make its written offer to the business owner/claimant to compensate the claimant in such amount. 7. [~ 1119] Eminent Domain Notwithstanding any other provision of Section 1112 to the contrary, in the event an eminent domain proceeding is brought by the City to acquire any property, the owner of any business thereon shall claim compensation for loss of goodwill in connection with such proceeding, and the failure to do so shall constitute a waiver of compensation for loss of goodwill. I. [~ 1120] Negotiations; Eminent Domain Prior to the commencement of an eminent domain proceeding to acquire real property: 1. The City shall make reasonable efforts to discuss with the owner its offer to purchase the owner's real property; 2. The owner shall be given reasonable opportunity to present material which he believes to be relevant as to the question of value and to suggest modification in the proposed terms and conditions of the purchase, and the City shall carefully consider the owner's presentation; - 64- e e 3. If the evidence presented by an owner or a material change in the character or condition of the property indicates the need for a new appraisal or if a significant delay has occurred since the determination of just compensation, the City shall have its appraisal updated; 4. If a modification in the City's determination of just compensation is warranted, an appropriate price adjustment shall be made and the new account determim:d to be just compensation shall be promptly offered in writing to the owner. In no event shall the City either advance the time of condemnation, or defer negotiations or condemnation and the deposit of funds in court for the use of the owner, or take any other action coercive or misleading in nature, in order to compel or induce an agreement on the price to be paid for the property. If the City holds the required hearing and adopts a resolution of necessity to acquire any interest in property, the City shall promptly institute formal condemnation proceedings. The City shall not intentionally make it necessary for an owner to institute legal p~oceedings to prove the fact of the taking of his property. J. [~ 1121] Notice of Decision Not to Acquire Whenever the City has forwarded a Notice of Intent to Displace, a Notice of Decision to Appraise, or has made a firm offer and subsequently the City decides not to acquire the property, the City shall serve a notice in writing on the owner, all persons occupying the property and all other persons potentially eligible for relocation payments and assistance. The notice shall state that the City has decided not to acquire the property. It shall be served not later than ten (10) days following the date of the City decision not to acquire. Upon receipt of such notice any person shall be deemed not to be a displaced person. K. [~1122] Incidental Expenses If the real property is acquired by purchase, the City shall reimburse the owner, for all reasonable expenses the owner necessarily incurred incidental to the conveyance of such property to the City. Among the expenses requiring payment are the following: 1. Recording fees, transfer taxes and similar expenses incidental to conveying the real property; 2. The pro rata portion of charges for public service, such as water, sewage,. and trash collection which are allocable to the period subsequent to the date of transfer of title to the City, or the effective date of possession of such property by the City, whichever is earlier. The City shall inform the owner that he may apply for a rebate ofthe pro rata portion of any real property taxes paid, which are allocable to the period subsequent to the date of transfer of the property to the City. - 65- 1\ 1\ '",- J "-. / L. [~ 1123J Purchase Price as Public Information The purchase price and other consideration paid by the City for real property is public info~ation and shall be made available upon request. M. [~1124J Service of Notice Service of all notices required by this Section 1100 shall be made either by first class mail or by personal service upon the person notified. XII. [~ 1200J PROPERTY MANAGEMENT PRACTICES A. [~1201J Short Term Rental If the City permits an owner or tenant to occupy the acquired real property on a rental basis for a short term or for a period subject to termination by the City on short notice, the . amount of rent required shall not exceed the lesser of the fair rental value to a short term occupier or a pro rata portion of the fair rental value for a typical rental period. If the owner or tenant is an occupant of a dwelling, the rental for the dwelling shall be within his financial means. B. [~ 1202J Notice to Vacate The construction or development of a project shall be so scheduled that no eligible person occupying real property shall be required to move from a dwelling, or to move his business, without at least ninety (90) days written notice from the City of the date by which such move is required. The City shall notify each individual tenant to be displaced as well as each owner-occupant. C. [~1203J Eviction Eviction is permissible only as a last resort. Relocation records must be documented to reflect the specific circumstances surrounding the eviction. Eviction may be undertaken for one or more of the following reasons: 1. Failure to pay rent, except in those cases where the failure to pay is the result of lessor's failure to keep the premises in habitable condition, is the result of harassment or retaliatory action or is the result of discontinuation or substantial interruption of servIces; 2. Remaining in possession after expiration or termination of the term; 3. Performance of a dangerous or illegal act on the property; 4. Material breach of the rental agreement and failure to correct such breach within thirty (30) days of notice; - 66- " e e 5. Maintenance of a nuisance and failure to abate within a reasonable time following notice; 6. Refusal to accept one of a reasonable number of offers of replacement dwellings; 7. The eviction is required by State or local law and cannot be prevented by reasonable efforts on the part of the City. 8. Failure to execute a rental agreement with the City provided the 90 day notice to vacate had been given, relocation information had been given at least 90 days prior to eviction, and referrals to comparable replacement housing have been given. D. [~1204] Status of Post-Acquisition Tenants 1. [~ 1205] Notice of Status The City shall inform prospective post-acquisition tenants, before they occupy the property, that the property has been acquired for a public use and will be available only in the interim between acquisition and development and that development for such use may result in termination of the tenancy sooner than would otherwise be expected. The City shall also inform prospective post-acquisition tenants regarding the projected date of displacement and, periodically, shall inform post-acquisition tenants of any changes in such date. 2. [~ 1206] Notice to Vacate A post-acquisition tenant who occupies acquired real property on a rental basis for a short term and who is informed that the property has been acquired for a public use shall be given any notices required by law. 3. [~ 1207] Eligibility for Relocation Assistance and Payments Post-acquisition tenants are not eligible for relocation assistance and pa~nnents if, . before occupying the property, they are informed by the City that the property has been acquired for a public use and will be available only in the interim between acquisition and development and that development for such use may result in termination of the tenancy sooner than would otherwise be expected. When so informed, post-acquisition tenants are not eligible even though they move as a result of a written order from the City to vacate the real property. Persons who become post-acquisition tenants after the effective date of these Rules and Regulations who are not so informed and who move as a result of a written order from the City to vacate are eligible for relocation assistance and payments, except where they are evicted in accordance with Section 1203 ofthe Rules and Regulations. - 67- ~ f\ ,~ " ,/ , '- ' 4. [~ 1208] Move from Permanent Housing Where the City, on property it owns, is making housing available on a permanent basis (i.e., not pending development), a post-acquisition tenant who moves as a result of a written order from the City to vacate is eligible for relocation assistance and payments if the order to vacate is related to a plan to demolish or rehabilitate such dwelling units. A post-acquisition tenant who is required to move as a result of the sale of such dwelling units to a private person for demolition or rehabilitation is eligible without need for a written order to vacate from the City. 5. [~ 1209] Service of Notice Service of all notices required by this Section 1200 shall be made either by certified mail, return receipt requested or by personal service upon the person to be notified. N:\PoliciesIRelotalionICITYPOLF adopted May 05.wpd - 68-