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HomeMy WebLinkAboutAGENDA REPORT 1991 0522 CC ADJ ITEM 11H� 1 � ',OORPARK, CALIFORNIA City Coundl WV % �sy /(Q) ITEM � MOORPARK Moorpark Avenue Moorpark, California 93021 M E M O R A N D U M (805) 529-6864 JRPARK, CALIF0:�N!:= City Cou N Meeting of 199I ACTION: " t%" -/, s�z i'/ TO: The Honorable City Council gB FROM: Donald P. Reynolds, Jr., Management Analyst DATE: May 9, 1991 SUBJECT: Consider Amending the City Community Development Block Grant (CDBG) Real Property Acquisition Policy On December 19, 1990, the City Council adopted the City's CDBG Real Property Acquisition policy. Staff developed this policy from the Department of Housing and Urban Development's (HUD) Handbook Number 1378, dated October 15, 1990. The purpose of adopting this policy is to enable the City to have a course of action to follow which is consistent with HUD policy, in the event that CDBG funds are used for real property acquisition. In creating the document, "Chapter 5" of the above mentioned handbook was intended to be copied for the City's use. Definitions and flow charts were copied from other parts of the Handbook. Please refer to Attachment "A" for copies of the original pages. Not all of this Chapter or all of the pertinent definitions appear in the final version adopted by the Council. Staff proposes to make the policy consistent with the handbook by amending page 4 of the policy to include the phrase "except:" at the end of the sentence described below, to read as follows: 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 Program, except: Furthermore, staff would like to add to page 18 of Appendix A-1, "Definitions", the definition from the Handbook entitled "State Agency." The text for this definition is as follows: STATE AGENCY. The term "State agency" means any department, agency or instrumentality of a State or of a political subdivision of a State, any department, agency or instrumentality of two or more political subdivisions of a State or States, and any person that has authority to acquire property by eminent domain under State law. PAUL W LAWRASON JP BERNARDO M. PEREZ SCOTT MONTGOMERY ROY E. TALLEY JR. JOHN E. WOZNIAK Mayor Mayor Pro Tern Councilmember Councilmember Councilmember Inserting these two changes to the existing policy, helps to clarify the intent of staff by making this policy more consistent with the HUD handbook, (please refer to Attachment "B"). Recommendation That the City Council adopt the attached policy, (as revised), for the purpose of acquiring real property with CDBG funds. Attachment: A) Original Pages from Policy Proposed to be Revised B) Proposed Revisions to Pages of the CDBG Real Property Acquisition Policy ATTACHMENT A Original Draft of Policy CITY OF MOORPARK CDBD PROPERTY ACQUISITION POLICY I. APPLICABILITY OF ACQUISITION REQUIREMENTS a. General - The requirements of this chapter apply to any acquisition of roperty for a project, to be funded in part r in wh e by the Community Development Block Grant P ogram. (1) An acqu tion by the City that is clearly a voluntar gth transaction. Such transact io 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; and (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 where all or substantially all of the property within the area is to be acquired within specific time limits; and (c) The City informs 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 on which the purchase is based. An appraisal is not required; however, the estimate must be prepared by a person familiar with real estate values and the City's files must include an explanation of the basis for the estimate. (2) An acquisition by a City contractor that does not have authority to acquire the property by eminent domain, if, before the seller enters into the contract of sale, the City informs the seller: 4 4. 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 smaller or larger families. 5. 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." 6. PROJECT. The term "project" means any activity or series of activities undertaken with CDBG received or anticipated in any phase. 7. 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 occupancy of real property owned by another. I. ATTACHMENT B Proposed Amendments CITY OF MOORPARK CDBD PROPERTY ACQUISITION POLICY APPLICABILITY OF ACQUISITION 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 Program, except; (2) (1) An acquisition by the City that is clearly a voluntary, arm's length transaction. Such transactions must 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; and (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 where all or substantially all of the property within the area is to be acquired within specific time limits; and (c) The City informs 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 on which the purchase is based. An appraisal is not required; however, the estimate must be prepared by a person familiar with real estate values and the City's files must include an explanation of the basis for the estimate. An acquisition by a City contractor that does not have authority to acquire the property by eminent domain, if, before the seller enters into the of sale, the City informs the seller: 4 contract 4. 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 smaller or larger families. 5. 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." 6. PROJECT. The term "project" means any activity or series of activities undertaken with CDBG received or anticipated in any phase. 7. 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. STATE AGENCY The term "State agency" means any department, agency or instrumentality of a State or of a political subdivision of a State, any department, agency, or instrumentality of two or more political subdivisions of a State or States, and any person that has the authority to acquire property by eminent domain under State law. 9. TENANT. The term "tenant" means a person who has the temporary use and occupancy of real property owned by another. RM