HomeMy WebLinkAboutAGENDA REPORT 1990 1219 CC REG ITEM 08IMOORPARK ITEM-80 To
PAUL W. LAWRASON JR. :RNIA /,P STEVEN KUENY
Mayor ng City Manager
BERNARDO M. PEREZ CHERYL J. KANE
/l 9
M � � � -- I ➢� } City Attorney
Mayor Pro Tern
SCOTT MONTGOMERY %Oh �L ° �( + PATRICK RICHARDS, A.LC.P.
Councilmember Director of
JOHN E. WOZNIAK Community Development
Councilmember �rE' JOHN F. KNIPE
LILLIAN KELLERMAN Lc, City Engineer
City Clerk JOHN V. GILLESPIE
Chief of Police
RICHARD T. HARE
City Treasurer
M E M 0 R A N D V M
TO: The Honorable City Council /
FROM: Donald P. Reynold!, Jr., Management Analyst r
DATE: December 13, 1990
SUBJECT: Consider Adoption of City Community Development
Block Grant Real Property Acquisition Policy
In the following report, staff w l recommend that the City adopt
a policy to be implemented who..n ,acquiring real property with
Community Development Block Grant. (CDBG) funds. The attached
proposed policy is based on information provided to the City from
a HUD procedural manual, and lusty be in place prior to the
initiation of CDBG acquisition pr_>cedur.es. Any variation from the
acquisition policy would equate t:c: a deviation from HUD policy,
which would deem such a procedur 'c bE inadequate for the use of
CDBG funds.
Background
The City has appropriated CDBG funds for affordable housing land
acquisition in its development o� CDBG programs since fiscal year
1988/89. Currently, there is $2' 6,790 available for this purpose,
although $100,000 of this amou,tt was earmarked for a housing
rehabilitation program. The :--eh,,b.i.-A tation program was presented
to HUD in a general statement as a possible project to be further
explored under the heading of ",:!'fordable housing." This approach
to the proposal allows the it:y additional flexibility in
determining the use of thes(! !.ands for any affordable housing
project, (without making !canal revisions to the past
appropriations). If the Councl :hooses, the $100,000 could be
easily added to the $136, 31ready earmarked for land
acquisition'. Prior to using tries, funds, the City must first adopt
a real property acquisition p ,, I ' { -or- the CDBG program.
On Tuesday, December 3, 199(, �t3ff -eceived the most current
regulations from HUD for land is ?u L: ;it. on, (Handbook Plumber 1378,
dated October 15, !990). Th, i )� T.c,se regulations apply to
799 Moorpark Avenue Moorpark ;ai ornia )3021
805) 529 -6864
CDBGACQ9
December 13, 1990
Page 2
the caring of displaced persons ox businesses as a result of
acquiring land with federal funds. The City will have to follow
the relocation requirements for CDBG (if or when they are
applicable) , but this aspect of the HUD regulations do not have to
be included in the City's general pol.i.c:-y at this time.
Discussion
Referring to the above mentioned HUD handbook, the chapter titled
"Real Property Acquisition," staff has developed an acquisition
policy for the City Council tc consider. As proposed, this
standard will apply to all related CDBG 'programs (and will also be
applicable to sub - agencies of the City, in the event that
acquisition is delegated to anotter organization).
Some examples of when the policy nay apply, or won't apply, can be
illustrated as follows:
If land is not proposed to be acquired with CDBG, then the
policy will not have to be implemented, (eg., infrastructure
improvements, where land is acquired with non -CDBG funds, but
the improvements are funded by CDBG).
The policy will apply if a :second parcel of land is acquired
in order to accommodate a project when CDBG is used to acquire
the first parcel of land, {eg., a parcel is purchased with
CDBG, and it is determined that additional land is needed for
public access to that p,ircel, then the second parcel
acquisition is considered to be CDBG project related and
subject to the policy, f -v(-- f 'mC —; is not used to purchase
the land).
The policy provides that the City will conduct an appraisal of the
land, and at least two appraisals are required for property of
"high" value. The completed. appraisa.s will be reviewed by an
impartial appraisal company, and then be used for negotiating the
cost of the land with the property owner(s). The procedures allow
for participation of the owner while conducting an appraisal, and
will also account for the value ,f any structures that might be on
the property. Staff has provided a summary of the procedures in a
flow chart labeled "Appendix 3'" -)f. thE:+ Attachment.
By approving a real property acquisition policy at this time, the
City will be in a position tc acquire land with CDBG funds in the
future. In the event that the HUD regulations change, staff will
return to Council and request t h. t the city's policy be modified to
reflect those changes.
CDBGACQ9
December 13, 1990
Page 3
Recommendation:
That the City Council adopt the .ttached policy for the purpose of
acquiring real property with CDBG funds.
Attachment: Proposed CDBG Re�il Property Acquisition Policy
CITY 01 MOORPARK
CDBG REAL PROPERTY
ACQUISI` -''ION POLICY
TABLE OT CONTENTS
APPENDIX
A -1 Definitions .............. ..... .....................1/
A -2 Property Analysis........ ..... ... ..................19
A -3 Flow Chart ............... ..........................21
3
A.
Introduction .............. ...........................
1.
Applicability of Acquisition
Requirements .............
4
2.
Basic Acquisition Policies ......
.............••.....
6
3.
Criteria for Appraisals... ......
....................
10
4.
Review of Appraisals...,.. ...
... ....................13
5.
Acquisition of Tenant - Owned
Improvements ..............14
6.
Expenses Incidental to Transfer
of Title ..............15
7.
Certain Litigation Expense .
....... ..................15
8.
Donations...... ............ .
..,.....................
16
APPENDIX
A -1 Definitions .............. ..... .....................1/
A -2 Property Analysis........ ..... ... ..................19
A -3 Flow Chart ............... ..........................21
INTRODUCTION
The following text describes the basic procedures which will
be implemented by City staff, when the Council determines that the
Community Development Block Grant (CDBG) program will be used to
purchase land, and after a specific piece of property has been
identified as the Council's choice to meet the proposed CDBG
objective. Land can be purchased with CDBG for a variety of
purposes, (public facilities,, parks and affordable housing), and
each decision to use federal funds should be first evaluated in
terms of its eligibility, pursi -ant to the most current Code of
Federal Regulations.
The purpose of adopting thi! procedure is to establish a basic
outline for staff, and does not address all of the related
regulations applicable to CDBG. In addition to standard
eligibility requirements, each type of proposed CDBG project is
subject to specific rules and regulations for that project.
Environmental standards and the FJniform Relocation Act are just two
additional federal regulations3 that may apply to any land
acquisition endeavor. This policy is an excerpt from the Uniform
Relocation Act, (URA) , as presented to the City in November, 1990.
In the event that the proposed parcel to be purchased entails the
displacement of a person or business,, t:'han the remainder of the URA
will be applicable.
Related regulations may be found in the Department of
Administrative Services. For additional information regarding the
URA, please refer to HUD Handbook 1378, published October 15, 1990.
To address environmental concerns relative to CDBG, please refer to
the "Environmental Guide for 'ommun.i.ty Development Block Grant
Programs ", published in 1985.
If the Uniform Relocation Act is modified by Congress, those
modifications will be reflected in this policy. Each time a
revision is implemented, the staff person implementing these
revisions will record the date of the change as provided below.
This reference will inform each user of the policy as to whether or
not the policy is current, and `herefore valid. Before using this
policy, always check with th(, Department of Housing and Urban
Development in order to be surc- th,3t. t `iis policy reflects the most
current HUD policies.
Revisions
Name __ Sec_t:.ion_Number _ Date
M
I.
CITY OF MOORPARK
CDBD PROPERTY ACQUISITION POLICY
APPLICABILITY OF ACOUISITL,ON REQUIREMENTS
a. General - The requirements of this chapter apply to any
acquisition of real property for a project, to be
funded in part or in whole by the Community Development
Block Grant "rogram.
(2)
(1) An acquisition by the City that is clearly a
voluntary, arm's length transaction. Such
transactions mist meet each of the following
conditions:
(a) The City determines and informs the owner in
writing that it will not use its power of
eminent domain to acquire the property if
negotiations fail to result in an amicable
agreement anI
(b) No specific site or property is designated
for acquisition, although the City may limit
its search for alternative sites to a
general geographic area. Where the City
wishes to purchase more than one site within
a geographic area on this basis, all owners
are to be treated similarly. The property
to be acquired shall not be part of an
intended, planned, or designated project
area whert., all or substantially all of the
property �,,,ithin the area is to be acquired
within spf c:if is time limits; and
(c) The City _Lnforms. the owner of its estimate
of the fair market value of the property.
The notice must be in writing and provided
before the seller enters into the contract
for sale en which the purchase is based. An
appraisal s, not required; however, the
estimate must h:)e prepared by a person
familiar with real estate values and the
City's fi es must include an explanation of
the basis f�::x- tro�? estimate.
An acquisition by a City contractor that does not have
authority to acquit e the I:)roperty b y eminent domain,
I f , before the sel l contract
e r enters into the of sale,
the City informs
(a) That it does not. have the power of eminent domain
and, therefore, will not acquire the property if
negotiations f:il to result in an amicable
agreement; and
(b) of its estimate of the fair market value of the
property. An appraisal is not required; however,
the City's filt2s must include an explanation,
with reasonablE• evidence, of the basis for the
estimate.
Whenever feasible, this information shall be provided
before making the purchase offer. In those cases where
there is an existing option or contract, the seller
must be provided the opportunity to withdraw from the
agreement after this information is provided.
(3) An acquisition of real property from a Federal agency,
State, or State agency, if the City does not have
authority to acquire the property through condemnation.
(b) Less - Than- Full-:Fee Interest in Real Property. In
addition to acquisitions of fee simple title, the
provisions of this chapter apply to: the
acquisition o: fee title that is subject to
retention of a iif( estate or a life use;
acquisition b; leasing where the lease term,
including option(s) for extension, is 50 years or
more; and the Ocquis:it.ion of permanent easements.
(the provisions of this policy do not apply to
the acquisiti..c, of a temporary easement.)
(c) Applicability of Paragraphs 2 through 5. the
provisions of )aragraphs 3, 4, and 5 apply to the
greatest eater~ practicable under this policy.
(d) Person Acting_ as Agent of the City. In some
cases, the City determines that a property must
be acquired f)r a project, but allows a person
that does not have the power of eminent domain
(e.g., privatc developer) to attempt to acquire
the property irectly. If the person fails, the
City undertakes the purchase. In such cases, the
person is E,er *orminq as the agent of the City and
the acquisit or; mu,;t be treated as a City
acquisitions t',at is subject to the requirements
of Paragraj :rs 3 t.hr.c icjh 8 of this policy.
(e) Flow Chart of _City_Fcquisition Process. A flow
cl.art outl ini,.q the "ity' acquisition process is
included a_� I -perk 1.
II. BASIC ACQUISITION POLICIES
a. Expeditious Acquisition. The City shall make every
reasonable effort to acquire the real property
expeditiously by negc,iation.
b. Notice to Owner. As soon as feasible, the owner shall
be notified of the City's interest in acquiring the
real property and the basic protection applicable,
including the City's obligation to secure an appraisal.
If the City does not wish to trigger eligibility for
relocation assistance at the time of this notice, it
should ensure that this notice is not a "notice of
intent to acquire" Appendix 1, (3.A).
C. Appraisal and Invitation, to_ Owner.
(1) Before the initiation of negotiations the real
property to be acquired shall be appraised, and
the owner, or the owner's designated
representative, shall be given an opportunity to
accompany the appraiser during the appraiser's
inspection of Vie property, unless:
(a) The property is acquired pursuant to the
donation provision in Paragraph 8 and the
owner, after being informed in writing of
his or her right to receive just
compensation based on an appraisal, releases
the City f °om the obligation to appraise the
property, 7r
(b) The City determines, after reviewing
available data, that the valuation problem
is uncomplicated and that the fair market
value of the property does not exceed $2,500.
The determination shall be based on review by
a person iho is familiar with real estate
values ano the basis for the determination
shall be (l:)cumented. (If the owner requests
an appraisal, `he City shall obtain an
appraisal
(2) The City will )btain at least two appraisals of
high value properties and properties requiring a
complicated va uatior process.
t;
(3) When acquiring commercial property and /or
property with tenant -owned improvements, the City
should provide the appraiser with appropriate
legal guidance with respect to the classification
as to ownership and type of property, of all
buildings, str.zctures, fixtures and other
improvements. Instructions for preparing a
property analysis are provided in Appendix 3.
Such classification is essential to determining
just compensation, complying with Paragraph
2e(3), and carrying out the relocation process.
(4) The tenant - owner of a real property improvements
should be invited to accompany the appraiser on
his /her inspect.on of the improvement.
d. Establishment and Offer of Just Compensation. Before
the initiation of negotiations, the City shall
establish an amount: which it believes is just
compensation for the real property. The amount shall
not be less than thE:: approved appraisal of the fair
market value of the property (or the review appraiser's
recommended fair market value) , taking into account the
value of allowable damages or benefits to any remaining
property. (See iIsO Paragraph 4.) Promptly
thereafter, the City shall make a written offer to the
owner (including tenant- owners) to acquire the property
for the full amount :)etieved to be just compensation.
e. Summary Statement.
Along with the initial written
purchase offer, the
owner shall be given a written
statement of the
basis for the offer of just
compensation, which
;hal.' include:
(1) A statement cf
the amount offered as just
compensation.
In the case of a partial
acquisition, the
compensation for the real
property to be
acquired and the compensation for
damages, if an
, #.o the remaining real property
shall be separ
tely stated.
(2) A description
rid location identification of the
real property
ani the interest in the real
property to be
; Ccl: i r( "J .
(3) An identification of the buildings, structures,
and other improvements (including building
equipment and trade fixtures) which are
considered to be part of the real property for
which the offer of just compensation is made.
Where appropriate, the statement shall identify
any separately !geld ownership interest in the
property, (e.g., a tenant -owned improvement) , and
indicate that su,:h interest is not covered by the
offer.
f. Basic Negotiation Procedures. The City shall make
reasonable efforts to contact the owner or the owner's
representative and discuss its offer to purchase the
property, including the basis for the offer of just
compensation. The City shall explain the basic
acquisition policies and procedures that apply,
including its payment of incidental expenses in
accordance with Paragraph 6. Whenever feasible,
personal face -to -face contact and discussion shall take
place. The owner shall be given reasonable opportunity
to consider the offer and present material which the
owner believes is relevant to determining the value of
the property and to suggest. modifications in the
proposed terms and conditions of the purchase. The
City shall consider °.he owner's presentation.
g. Updating Offer of... Just Compensation. If the
information presented by the owner, or a material
change in the character or condition of the property,
indicates the need for new appraisal information, or if
a significant delay has occurred since the time of the
appraisal(s) of the property and it is possible that a
material increase in the value of the property has
occurred, the City shale have the appraisal(s) updated
or obtain a new appraisal(s). If the latest appraisal
information indicates that a change in the purchase
offer is warranted, the Cite shall promptly reestablish
just compensation an I offer that amount to the owner in
writing..
h. Coercive Action. Tl,e City shall not advance the time
of condemnation, or 3efer negotiations or condemnation
or the deposit of funds with the court, or take any
other coercive action an order to induce an agreement
on the price to be pa i.c f c ,_ the property.
3
i. Administrative Settlement. The purchase price for the
property may exceed the amount offered as just
compensation when reasonable efforts to negotiate an
agreement at that amount have failed and an authorized
City official approves such administrative settlement
as being reasonable„ prudent, and in the public
interest. A written justification explaining the basis
for the settlement (e.g., recent court awards exceeding
an City's testimony as to value, estimated trial costs,
or valuation problems) shall be included in the City's
files. Appraisers, including review appraisers, must
not be pressured to adjust their estimate of value for
the purpose of justifying a settlement. Such action
would invalidate the appraisal process.
j. Payment Before Taking Possession. Before acquiring the
owner to surrender possession of the real property, the
City shall pay the agreed purchase price to the owner,
or in case of a condemnation, deposit with the court,
for the benefit of the owner,, an amount not less than
the City's approved appraisal of the fair market value
of such property, or the court award of compensation in
the condemnation proceeding for the property. In
exceptional circumstances, with the prior approval of
the owner, the City may obtain a right -of -entry for
construction purposes 'before making payment available
to an owner.
k. Uneconomic Remnant. If the acquisition of only a
portion of a property would leave the owner with an
uneconomic remnant, *'.he City shall offer to acquire the
uneconomic remnant along with the portion of the
property needed for the project. For purposes of this
requirement, the term "uneconomic remnant" means a
parcel of real prope.z t"i in which the owner is left with
an interest after the partial acquisition of the
owner's property, which has little or no value or
utility to the owner, as determined by the City.
1. Inverse Condemnation_ If the City intends to acquire
any interest in real property by exercise of the power
of eminent domain, it shall institute formal
condemnation proceedings and not intentionally make it
necessary for t:,e owner to institute legal proceedings
ty.
to prove the fact c *1e t,ik. ing of the real proper
M. Fair Rental. If the City permits a former owner or
tenant to occupy the real property after acquisition
for a short term or a period subject to termination by
the City on short notice, the rent shall not exceed the
fair market rent for such occupancy. (NOTE: Generally,
the City's right tc terminate occupancy on short
notice, whether or not the renter also has that right,
supports the establishment. of a lower rent than that
for a longer, fixed term.)
III CRITERIA FOR APPRAISALS
a. Definition of Appraisal. The term "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.
b. Standards of Appraisal. The format and level of
documentation for an appraisal depend on the complexity
of the appraisal problem. The City shall develop
minimum standards For appraisals consistent with
established and commonly accepted appraisal practice
for those acquisitions which, by virtue of their low
value or simplic:it�', do not require the in -depth
analysis and presentation necessary in a detailed
appraisal. A detailed appraisal shall be prepared for
all other acquisitions. A detailed appraisal shall
reflect nationally recognized appraisal standards,
including, to the extent appropriate, the Uniform
Appraisal Standards for Federal Land Acquisition. An
appraisal must contain sufficient documentation,
including valuation data and the appraiser's analysis
of that data, to support his or her opinion of value.
At a minimum, a detatiled appraisal shalL contain the
following items:
(1) The purpose and /or the function of the appraisal,
a definition of the estate being appraised, and a
statement of the issumptions and limiting
conditions of f6 ct::inq t he appraisal.
10
�j
(2) An adequate description of the physical
characteristics of the property being appraised
(and, in the case of a partial acquisition, an
adequate description of the remaining property),
a statement of the known and observed
encumbrances, if any, title information,
location, zoning, present use, an analysis of
highest and best- use, and at least a 5 -year sales
history of the oropert, :r.
(3) All relevant and reliable approaches to value
consistent with commonly accepted professional
appraisal practices. When sufficient market
sales data are available to reliably support the
fair market value for the specific appraisal
problem encountered, the City may require only
the market approach. If more than one approach
is utilized, t. here shall be an analysis and
reconciliation of approaches to value that are
sufficient to upport the appraiser's opinion of
value.
(4) A description -)f comparable sales, including a
description of a17.. relevant physical, legal and
economic f act, )rs such as parties to the
transaction, s(,urce and method of financing, and
verification )y a party involved in the
transaction.
(5) A statement of the value of the real property to
be acquired ard, for a partial acquisition, a
statement of the value of the damages and
benefits, if ar y, to the remaining real property,
where appropri.te.
(6) The effectiv(. ., date of valuation, date of
appraisal, sic ~nature, and certification of the
appraiser.
C. Influence of the Pr�»ect on Just Compensation.
(1) To the extent permitted by applicable law, the
appraiser shoII disregard any decrease or
increase ii -. t, °,e fair market value of the real
property caused by the project for which the
property is tc; be acquired, or by the likelihood
that the property would be acquired for the
project, c)th( r than, that uue to pnysical
deterioration within the reasonable control of
-- t.r._: owner. r ot. Syr w -,r's, a property owner
should not c,c ena ! , �d because of a decrease in
value caused by the project, or reap a windfall
at public expense because the announcement of a
project caused ern increase in value.)
(2) If permitted by State law, the value for a
partial taking is the amount by which the fair
market value of the entire property, disregarding
the increase or decrease in value caused by the
project, exceeds the fair market value of the
remainder, taking into account the increase or
decrease caused by the project.
d. Owner Retention of Improvements. If the owner of a
real property improvement is permitted to retain it for
removal from the project site, the amount to be offered
for the interest in the real property to be acquired
shall be the difference between the amount determined
to be just compensation for the owner's entire interest
in the real property and the "salvage value" (see
Appendix 1, 7) of the retained improvement.
Example: If a residential property is valued at
$20,000 and the salvage value of the house to be
retained and relocated by the owner is $1,000, the
owner will net $19,0()o at the closing. (Paragraph 3 -3d
(5) provides guidance on computing a replacement
housing payment for ar owner- occupant that retains,
relocates and reocct_ pies a dwelling.)
e. Qualifications of-Appraisers.
(1) The City shall astabl i sh criteria for determining
the minimum qualifications of appraisers.
Appraiser qual fic:ations shall be consistent with
the level 01 difficulty of the appraisal
assignment. The City shall review the
experience, education, training, and other
qualifications; of appraisers, including review
appraisers, ari i °:i1 ze only those determined to
be qualified..
(2) To help identify the best qualified appraisers
for particular- assignments, the City should make
appropriate inquiries to users of appraisal
services, particularly other public agencies and
condemnation !rial attorneys for the City and
other public agencies. Appraisals, including
review appraisals, may be performed by fee
appraisers or st a f f' = ,ppraisers .
f. Conflict of Interest. No appraiser or review appraiser-
shall have any interest, direct or indirect, in the
real property being appraised for the City that would
in any way conflict with the preparation or review of
the appraisal. Compensation for making an appraisal
shall not be based on the amount of the valuation. No
appraiser shall act a. -; a negotiator for real property
which that person has appraised, except that the City
may permit the same person to both appraise and
negotiate an acquisition where the value of the
interest acquired is $2,500, or less.
g. Appraisal Contract. The City's Standard Professional
Services Agreement sh311 be the contract document used
for this purpose.
IV REVIEW OF APPRAISALS. The City shall have an appraisal
review process and, at a minimum;.
a. A qualified reviewing appraiser shall examine all
appraisals to assure that they meet applicable
appraisal requirements and shall, prior to acceptance,
seek necessary corrections or revisions. Before
acceptance of an appraisal, the review appraiser must
determine that the appraiser's documentation, including
valuation data and the analyses of that data,
demonstrates the soundness �f the appraiser's opinion
of value.
b. If the reviewing appraiser is unable to approve or
recommend approval of an appraisal as an adequate basis
for the establishment of the offer of just
compensation, and it _..s determined that it is not
practical to obtai!r an additional appraisal, the
reviewing appraiser may develop appraisal documentation
in accordance with Paragraph 3 and determine or
recommend fair mark( t. va:luc .
C. The review appraiser s certification of the recommended
or approved value of the property shall be set forth in
a signed statement which identifies the appraisal
reports reviewed aid explains the basis for such
recommendation or approval. (The level of explanation
depends on the comlle),ity of the appraisal problem.
For a low value pr)pert.y requiring an uncomplicated
--
valuation process, he reviewer's approval, endorsing
the appraiser's repot., may satisfy the requirement for
the reviewer's s �_at( merit . ) Any damages or benefits to
any remaining prope, t;,, sh.1 1. also be identified In the
statement.
V ACQUISITION OF TENANT -OWNED IMPROVEMENTS
a. Acuisition of Improvements. When acquiring any
q
interest in real property, the City shall offer to
acquire at least an equal interest in all buildings,
structures, and other improvements located upon the
real property to be acquired, which it requires to be
removed or which it determines will be adversely
affected by the use to which such real property will be
put. This shall include any improvement of a tenant -
owner who has the right or obligation to remove the
improvement at the expiration of the lease term.
b. Improvements Considered to be Real Property. Any
building, structure, or other improvement, which would
be considered to be real property if owned by the owner
of the real property on which it is located, shall be
considered to be real property for purposes of this
Paragraph 5.
C. A raisal and Establishment of Just Compensation for
Tenant -Owned Improvements.
(1) Just compensation for a tenant -owned improvement
is the greater of.: the amount which the
improvement contributes to the fair market value
of the whole property, or its salvage value.
(The term ,salvage value" is defined in Appendix
1, 7) .
(2) If the Agency concludes that neither the
contributory (enhancement) value nor the salvage
value of the improvement provides fair and
equitable compensation, it may elect to
determine, and offer to the owner, the
depreciated value it place of the improvement
installed.
d. Special Conditions No payment shall be made to
tenant -owner for an,, real property improvement unless:
(1) The tenant- owner, in consideration for the
payment, assigns, transfers, and releases to the
City all of the tenant- owner's right, title, and
interest in t}-._ improvement; and
(2) The owner of the real property on which the
improvement i:= Located disclaims all interest in
the improveme•r and
L
(3) The payment does not result in the duplication of
any compensation otherwise authorized by law.
If the owner of the land and a tenant may institute
the ownership of an improvement, the court would then
a condemnation proceod.inq.. 11h e
resolve the issue.
e, Alternative Compensation.
Nothing within these
Procedures shall be construed to deprive
der the steoaicy
owner of any right to reject payment
and to obtain payment for such property interests in
accordance with othex applicable law.
VI EXPENSES INCIDENTAL TC_ TRANSFER 7F TITLE 'tv rnr, n�L•
a, The owner of the real property shall be reimbursed for
all reasonable expenses the. owner necessarily incurred
for:
(1) Recording fees, transfer taxes, documentary
stamps, evidence of title, boundary su t ey and
legal descriptLon of the real proper the real
similar expenses incidental to conveying City is not
property to the City. However, Y
required to pay costs solely required to perfect
the owner's t:itie to the real property;
(2) Penalty costs and ,Dther charges for prepayment of
any preexistinc:� recorded mortgage entered into land in
good faith enc,, tuber i nq the real property;
(3) The pro rata portion cif any prepaid real property
taxes which arf. . allocable to the period after the
City obtains t itle t) the property or effective
possession of t, wh.chever is earlier.
b. Whenever feasible, the ._City shall pay for the
incidental expenses directly so that the owner will not
have to pay such cots and then seek reimbursement f the
om
the City. To a ao:id dliplicate expenditures,
property owner s= a.i:.._ ire informed early in the
acquisition prc, :es� (A t17k= City's intent to make such
arrangements.
VII CERTAIN LITIGATION EXPENSES. The owner of tehie prsalip operty nciuding
si.all be reimbursed for r reasonable and engineering fees, which
reasonable attorney, api, 3isal
-the owner _-:�tually r'UT Eci 1)eca1Se of a condemnation
proceedinq, if:
a
ry
a. The final judgement o: the court is that the Cory
cannot acquire the real property by condemnation;
b. The condemnation proceeding is abandoned by the City
other than under an agreed upon settlement; or
C. The court having jurisdiction renders a judgement in
favor of the
the C t•, of f e -s anvsettlement condemnation
of such
proceeding
proceeding.
VIII DONATIONS. An owner whose real property is to be acquired
may, after being fully informed by the City f the
nate right to
receive just compensation for such property,
property or any part thereof, any interest therein, or any
compensation paid therefor, to the City as
of the shall
determine. The City must )btain an app
property unless the owner, in wr' �.ting, releases the City
from such obligation, or, as provided in Paragraph 2c(1) (b) ,
the valuation problem is uncomplicated and the fair market
value does not exceed $2,51)0. Whenever the City acquires
real property under this donation provision, it must obtain
the written consent of the owner. Such consent must
indicate that the owner understands that under the Federal
Regulations he /she cannot, be required to sell the real
property to the City for le ;s t.hari i.ts appraised fair market
value.
16
APPEND X 1
DEFINI -IONS
1, CDBG - COMMUNITY DEVELOPMENT BLOCK GRANT - AcronymthorCthe
Community Development Block Grant, specifically,
program entitled "the Urban County /Entitlement CDBG." For
additional definitions, please refer to City manuals for
this program.
2, DWELLING - The term "dwelling" means the place of permanent
or customary and usual residence of a person, according to
local custom or law, including a single family house; a
single family unit in a two- family, multifamily, or multi-
purpose property; a unit c;f a condominium or cooperative
housing project; a non - housekeeping unit; a mobile home; or
any other residential un:dt. (NOTE: Occupants of an
emergency shelter or transitional housing are not considered
the resident of a dwell.inc: because the facility is not a
permanent residence.)
3. INITIATION OF NEGOTIATIONS
a. Basic Definition. Unless a different action is
specified in applicable program regulations, the term
"initiation of negotiations" means the following:
(1) Whenever the daispl.acement occurs as a direct
result of the acquisition of the real property by
the City, the '!initiation of negotiations" means
the delivery of_ *he initial written offer of lust
compensation by the City agency to the owner or
the owner's representative to purchase the real
property for the project. However, if the City
issues a notice of its intent to acquire the real
property and a person moves after that notice,
but before de ivery of the initial written
purchase offer, the "initiation of` negotiations"
means the ac.ti.;1 move of the person from the
property.
(2) Whenever the isplacement occurs as a direct
ehabilttation,
demolition or
result of
acquisitiocL of :he real (and there is no related
acquisition b� t.r e (:'ity) , the "initiation of
negotiations" leans the notice to the person
explaining thj3 h4? or she will be displaced, or,
if there is nc' such notica, tl.e actual move of
the person.
17
4.
5.
RE
7.
21
LOWER INCOME PERSON. The term "lower income person" or "low
and moderate - income" means a family or individual having an
income equal to or less than the Section 8 lower income
limit established by HUD. Generally, this means a family or
individual whose average monthly income does not exceed 80
percent of the median income for the area, as determined by
HUD, with adjustments for E•maller or larger families.
MORTGAGE. The term "mortgage" means such classes of liens
as are commonly given to secure advances on, or the unpaid
purchase price of, real property, under the laws of the
State in which the real property is located, together with
the credit instruments, if any, secured thereby. This
includes a land contract or "'contract for deed."
PROJECT. The term "project"' means any activity or series of
activities undertaken with CDRG received or anticipated in
any phase.
SALVAGE VALUE. The term "salvage value" means the probable
sale price of an item, if offered for sale on the condition
that it will be removed from the property at the buyer's
expense, allowing a reasonable period of time to find a
person buying with knowledge of the uses and purposes for
which it is adaptable and capable of being used, including
separate use of serviceable components and scrap when it
appears that will provide the highest value.
8. TENANT. The term "tenant" means a person who has the
temporary use and occupy ^ncy of real property owned by
another.
ON
APPENi IX 2
PROPERTY XNALYSIS
1, A property analysis if tale property is a commercial,
industrial, institutional, governmental, or farm property
that involves substantial quantities and kinds of fixtures
such as machinery and equipment. Any building, structure,
fixture, or other improvement, which would be real property
if owned by the owner of the land, shall be considered to be
real property (even if the improvement is the property of a
tenant who has the right to remove it or the obligationTto
remove it at the expiration of the lease term) .
property analysis must be ,approved by the city before the
appraisal is completed and as approved by the City, shall
be included as an exhibit in the Appraiser's report. The
property analysis shall IiSt, identify, and classify as to
ownership and type of improvement, all items of physical
property considered to be part p,)": the real property. The
property analysis shall alsCl identify tangible personal
property located on the premises to the extent reasonably
necessary to prevent mi:.understandings as to what is
regarded as being real t.)_ personal property. Buildings,
structures, fixtures, an(:i other improvements, including
their accessories and spare part[,, shall be identified and
classified as to ownersh i.l: an(] type of property as follows:
a. Ownership.
(1) Owner of the lard.
(2 ) Each tenant in )ccupancy.
(3 ) Each non- occupa pit owner of any fixtures or other
1
improvements, �r personal property y
premises.
b. Type of Property.
(1) Building, structure, or fixed improvement.
(2) Building equiprent, removable.
(3) Fixtures, classified as to whether economically
removable for etus•e, zemovable for salvage only,
or irremovable
(4) Personal property, identified as to types and
approximate amounts, or otherwise, as needed to
_ pr :vent inder :t andi ncxs a, to the
classificatic:'r of } ' -tem.
c
If any building, structure, fixture or other improvement is not
to be acquired, will not be adver -aly affected by the City's
project, and will not be required by the City to be removed, such
as a pipeline in an easement not to be acquired, such improvement
shall be identified as excluded from the appraisal.
2C
r�
2.
PLA 4 PROJECT
ESTIMATE COSTS AND
STAFFING NEEDS.
HOLD - 'UBLIC
FAg1NGS.
DECIDE ON Pi, t N OF
ACTION.
WORK WITH
OWNER
Acquisition Process CDBG
PROJECT
JAPPROVED
ESTABLISH
ORGANIZATION AND
TRAIN STAFF.
ESTABLISH
MANAGEMENT
CONTROL SYSTEM
AND PROCEDURES
FOR COORDINATING
ACQUISITION AND
RELOCATION.
cSTABLISH
RECORDKEEPING
PROCEDURES
"iOVIDE WRITTEN
PURCHASE OFFER OF
.1UST COMPENSATION
TO OWNER.
(PARA. 2d)
PROVIDE SUMMARY
STATEMENT OF BASIS
FOR OFFER.
(PARA. 2e)
EXPLAIN ACQUISITION
PROCEDURES.
(PARA. 2f)
NEGOTIATE PRICE AND
OTHER T =RMS AND
CONDITIONS OF SALE.
(PARA. 21)
3.
INFORM OWNER
INDICATE INTEREST IN
ACQUIRING THE
PROPERTY.
INDICATE BASIC
PROTECTIONS UNDER
LAW AND GENERAL
ACQUISITION
PROCEDURES.
Para 2b
4.
BASIC
PREPARATION
OBTAIN PRELIMINARY
TITLE EVIDENCE.
OBTAIN BOUNDARY
SURVEY AND LEGAL
DESCRIPTION.
OBTAIN APPRAISAL(S),
INCLUDE PROPERTY
ANALYSIS, IF
APPROPRIATE.
(OWNER INVITED TO
ACCOMPANY
APPRAISER).
5.
DETERMINE
PURCHASE OFFER
REVIEWER EXAMINES
APPRAISAL(S), SEEKS
NECESSARY
CORRECTIONS AND
PREPARES
STATEMENT
EXPLAINING BASIS
FOR ACTION.
ESTABLISH JUST
COMPENSATION.
_l
m_= _
(- 1
9,
7A
8A
F0L I C)''.4 -P I
COMPLETE SETTLEMENT
CONCLUDE
•EXECUTE LEASE +
SUCCESSFUL
ENSURE OWNER PAY NET AMOUNT ANC
OBTAIN OWNER
COVERING PERIOC I
UNTIL RELOCATION IS
NEGOTIATIONS
EXECUTES DEED.
RECEIPT. (PARA @2j'
COMPLETED.
c
ENSURE PURCHASE
COMPLETE
SETTLEMENT COST RECORD DEED.
(PARA. 2m)
OBTAIN FINAL TITLE
AGREEMENT FULLY
DETAILS TERMS AND
STATEMENT
DETAILING PAYMENT
EVIDENCE (E.G- ,TITLE
INSURANCE
CONDITIONS
OF PURCHASE PRICE
.MAINTAIN RECORDS
AND INCIDENTAL
TO DEMONSTRATE
EXPENSES.
COMPLIANCE WITH
(PARA. 6)
LAW AND
REGULATIONS
�B.
EVALUATE PROGRAM,
CONCLUDE
UNSUCCESSFUL
BB
IMPROVE
PROCEDURES FOR
NEGOTIATIONS
COMPLETE CONDEMNATION
FUTURE -
SEND FINAL WRITTEN
COURT TRIAL AND RECORD COURT
v
OFFER.
CONDEMNATION SUIT
AWARD. ORDER.
D
-o z
m o
FILED; ESTIMATE OF
JUST COMPENSATION
PAY DEFICIENCY
JUDGMENT, IF ANY,
zm
o
DEPOSITED IN COURT.
AND INCIDENTAL
x T
(PARA. 21)
COSTS.
(PARA. 6)
7-
* UNIFORh1 RELOCA PION ACT RULES LFFECTIV
a