Chapter 8 Uniform Relocation Assistance and Real Property Acquisition, Section 104(d), and Lead-Based Paint

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1 Chapter 8 Uniform Relocation Assistance and Real Property Acquisition, Section 104(d), and Lead-Based Paint Recipient Checklist NOTE: The recipient cannot enter into any legal binding commitment on a particular site before the environmental review is complete. Refer to Chapter 3 for more information on the Environmental Review Process. However, an option agreement on a particular proposed site or property is allowable prior to completion of the environmental review IF the option agreement is subject to a determination by the recipient of the desirability of the property for the project as a result of the completion of the environmental review and the cost of the option is a nominal portion of the purchase price. Refer to Chapter 3 for more details. 1. Project involves the acquisition or donation of real property, permanent and temporary construction easements, and leases in excess of 50 years? If yes, the acquisition checklist, Exhibit 8A, was followed. 2. Project involves conversion of occupied and/or vacant occupiable low/moderate income dwelling units? If yes, the 104(d) checklist starting on page 8-11 was followed. 3. The project involves tenant displacement and relocation. Current tenants are the primary concern with URA, but its possible that the previous owner could have evicted a tenant or failed to renew a lease in order to sell the property as vacant for the project. Since such tenants are also entitled to relocation benefits, the circumstances surrounding any move from the property during a 12-month period prior to sale must be considered. a. General Information Notice (GIN) provided to tenant b. Notice of Eligibility provided to tenant c. 30 day Notice provided to tenant d. 90 day Notice provided to tenant e. DSS comparable unit was found f. Tenant was reimbursed for moving expenses, totaling $ g. Replacement Housing Payment was provided: Yes No, amount of payment $ h. Relocation Assistance Payments (rental assistance) was made to the tenant in the amount of $, in payments (must be more than one). 4. Tenants of purchasers of pre-1978 housing received notice about lead based paint hazards. Delivery of this notice, if applicable, is contained in the project file.

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3 Chapter 8 Uniform Relocation Assistance and Real Property Acquisition, Section 104(d), and Lead-Based Paint NOTE: Uniform Relocation Assistance and Real Property Acquisition, Section 104(d), and Lead-Based Paint Several federal laws apply to projects assisted in whole or in part with Community Development Block Grant funds that include any of the following activities: Acquisition of real property; Acquisition of permanent and temporary construction easements; Displacement of businesses, nonprofit organizations and persons residing in the project area; Demolition or conversion of occupied and/or vacant occupiable low/moderate income dwelling units; or Rental housing rehabilitation (Applicable to renter rehabilitation only). If your project has any of these activities, call your Oregon Business Development Department Regional Coordinator. This Grant Management Handbook gives an overview of the different guidelines, but does not include exhaustive information on these subjects. The Coordinator will provide technical assistance to help your jurisdiction comply with the regulations and will supply you with supplementary information as necessary for your situation. UNIFORM RELOCATION ASSISTANCE AND REAL PROPERTY ACQUISITION (URA) Basic Federal Requirement All real property, permanent easements, temporary construction easements, long term leases of 50 years or more, relocation of businesses and nonprofit organizations or persons are to be acquired and conducted in accordance with the Uniform Relocation Assistance and Real Property Acquisition Policies Act of 1970, as amended January 4, 2005 (Uniform Act or URA), which covers all HUD assisted program/projects as required by 49 CFR Part 24 and 24 CFR Part 570. The complete text can be found online at HUD Handbook 1378, Tenant Assistance, Relocation and Real Property Acquisition, change 8, issued March 16, 2007 and Part V of the Department of Transportation regulation located at 49 CFR Part 24 updated January 4, 2005 provides the information necessary to addresses any type of acquisition and contains detailed guidance on the URA requirements. Before proceeding with any acquisition, the recipient may request a copy of the Handbook and updated regulation from OBDD or download a copy from Since the handbook is in a continual state of being updated, it is recommended that the grant recipient obtain the most current version located on the HUD web site. The state can also provide information booklets, sample notices and other materials to assist recipients. Grant Management Handbook (2013) 8-1

4 Chapter 8 Uniform Relocation Assistance and Real Property Acquisition, Section 104(d, and Lead-Based Paint When do the URA requirements begin? In accordance with 49 CFR 24.2(a)(22) URA requirements apply to any project where federal financial assistance is received or anticipated in any phase. The CDBG application procedure contained in the current Method of Distribution require the submission of a Project Notification and Intake (PNIF) form, and is considered a pre-application screening tool, to determine project eligibility under the program and constitutes evidence that the applicant intends to seek federal financial assistance. The state generally defines intent to use CDBG funds as the date the department receives a Project Notification and Intake Form (PNIF). The PNIF does not need to be processed or approved by OBDD, only received. The PNIF does not have to identify the project proponent s desire to use CDBG funds for the project it need only describe the project itself. Intent to use CDBG funds could also be triggered by OBDD s receipt of the Off-Site Infrastructure for Affordable Housing Request for Pre-Screening. From this point forward all the federal and state CDBG program requirements apply to the project. In accordance with HUD Handbook 1378, Chapter 1-4-I-2, please note that the following will also trigger the URA requirements and need for GIN notices. In these instances the URA requirements apply whether or not the department has received a Project Notification and Intake Form: Conducting a first public hearing identifying that it is the applicant s intent to use CDBG funds; or Issuance of any other form of public notice (press release, newsletter, public notices or advertisements) that identifies intent to use CDBG funds for the proposed project; or Any action at public City Council meetings, County Commission meetings or other public meetings regarding the potential use of CDBG funds for a project; or Initiation of an income survey to determine if the project will meet the area wide low and moderate income benefit requirements; or Any other event or event documentation that can be considered convincing rebutted evidence documenting intent to use CDBG funds for the project. What if a project proponent already started a project? The acquisition activities of non-profit organizations are subject to the Uniform Act requirements, is such activities are for a Federal or federally assisted program or project. If the non-profit is going to complete the project without CDBG assistance they can proceed, however, if the non-profit is not going to be able to complete the project without CDBG assistance, the grant recipient needs to ensure the acquisition activities of the non-profit are completed in conformance with the URA requirements. 8-2 (2013) Community Development Block Grant

5 Chapter 8 Uniform Relocation Assistance and Real Property Acquisition, Section 104(d), and Lead-Based Paint Definitions Easement Permanent easement or temporary construction easement. Income Income is defined as total gross income for a 12 month period from all sources (earned and unearned) including but not limited to: wages and salaries; child support; alimony; unemployment benefits; workers compensation; social security; net income from businesses; and, welfare payments. Income does not include: income received/earned by dependent children and full time students under 18 years of age; food stamps and WIC. Subject To (involuntary) Acquisitions of real property, permanent easements, temporary construction easements, life estates and leases of 50 years or more are subject to subpart B of the URA requirements. Used to be known as involuntary acquisitions. Not Subject To (voluntary) Acquisitions of real property, permanent easements, temporary construction easements, and leases of 50 years or more, not subject to the requirements of subpart B of the URA requirements. Used to be known as voluntary acquisitions. Any not subject to acquisition that is not handled properly, such as improper notices mailed etc. will no longer be considered not subject to and must be considered a subject to acquisition needing to follow all requirements of subpart B of URA. Market Value The terms Market Value and Fair Market Value are synonymous. Mobile Home Includes manufactured homes and recreational vehicles used as residences. Mobile homes are now considered the same as stick built homes. Property Acquisition/ Permanent Easement/ Temporary Construction Easement All Sources of Funds are Covered URA requirements apply to the acquisition of real property, permanent easements, temporary construction easements and long-term leases of 50 years or more for Community Development Block Grant assisted projects. The purpose is to ensure the fair, equitable and consistent treatment of owners of real property to be acquired for federally assisted projects. Recipients should familiarize themselves with all applicable regulations and work with their OBDD Regional Coordinator to ensure that all requirements are met. If Community Development Block Grant assistance is used for any part of the project, the Uniform Act must be followed, even if local or other non-community Development Block Grant funds are used to pay the acquisition costs. Grant Management Handbook (2013) 8-3

6 Chapter 8 Uniform Relocation Assistance and Real Property Acquisition, Section 104(d, and Lead-Based Paint Types of Acquisition URA applies to: acquisition of fee simple title; acquisition of fee title that is subject to retention of a life estate or a life use; acquisition by leasing where the lease term, including option(s) for extension, is 50 years or more; and to the acquisition of permanent easements and temporary construction easements. Exhibit 8A contains an Acquisition Checklist and flow chart for grant recipients to use in adhering to these complicated requirements. Prior to the commencement of each acquisition (notices mailed to property owners), considered by the recipient to be not subject to the recipient must receive concurrence from OBDD that the acquisition is not subject to the requirements of Subpart B of the Uniform Act. Exhibit 8B contains the required form to use for this concurrence from the state. Appraisal Requirements In most cases, URA will require the recipient to obtain an independent appraisal of the property, permanent easement or temporary construction easement prior to negotiating a sale with the property owner. Independent appraisals are necessary as documentation that acquisition costs are reasonable and necessary per federal regulations. An exception to this requirement may be allowed for small, uncomplicated acquisitions with low fair market values of $10,000 or less. When an appraisal is not required for not subject to transactions the recipient must have on file evidence of how the fair market value of the property was determined by a qualified person knowledgeable in land/property valuation. When an appraisal is waived by a property owner for subject to transactions the recipient must have on file a waiver valuation. Refer to HUD Handbook 1378 for waiver valuation requirements. All appraisals must meet the minimum appraisal requirements of the Uniform Act. Note that URA requires an appraisal to be current; this means no more than one year (12 months) old at the time the offer of just compensation is made. Exhibit 8C contains a Guide for Preparing An Appraisal Scope of Work that can be used in meeting these requirements. Exhibit 8D contains a draft Agreement for Appraisal Services that can be used as a guide for entering into agreements with companies providing appraisal services. Exhibit 8E contains a Certificate of Appraiser that can be used for subject to acquisitions or other acquisitions where an appraisal is obtained. Subject to transaction property owners, where the value of the land is estimated at $10,000 or more have the right to accompany the appraiser when the appraisal is conducted on their property. Exhibit 8F contains an example invitation to the property owner to accompany the appraiser. Once the appraisal has been completed, a review of the appraisal is necessary to assure that it meets applicable appraisal requirements. The review appraiser needs 8-4 (2013) Community Development Block Grant

7 Chapter 8 Uniform Relocation Assistance and Real Property Acquisition, Section 104(d), and Lead-Based Paint to determine that the appraiser s documentation, including valuation data and the analyses of that data, demonstrates the soundness of the appraiser s opinion of value. Donations Purchase Options, Sales Agreements and Other Agreements The Uniform Act applies to donations. Recipients must not accept or negotiate donations of real property or easements unless the specific provisions of URA are followed. Donated property does not have to be appraised if the requirements of URA are met. Federal acquisition rules must be followed prior to negotiating permanent easements, purchase options, sales agreements or donation agreements. In cases where there is an existing, true, option to purchase property for a project, all disclosures must be made to the property owner prior to exercising the option. When an option is exercised, a contract of sale is entered. An earnest money agreement is not an option to purchase. Detailed federal acquisition requirements are at To assist recipients in complying with tenant access notification requirements, use of tenant access clauses in purchase options is recommended. Such a clause requires the property owner to allow tenant access for purpose of obtaining information and issuing notices. The recipient cannot enter into any legal binding commitment to a particular site before the environmental review is complete. Refer to Chapter 3 for more information on the Environmental Review Process. However, an option agreement on a particular proposed site or property is allowable prior to completion of the environmental review IF the option agreement is subject to a determination by the recipient of the desirability of the property for the project as a result of the completion of the environmental review, issuance of the ROF by the state and the cost of the option is a nominal portion of the purchase price. Refer to Chapter 3 for more details. Initiation of Negotiations To assist recipients in complying with URA requirements, some sample initial notices and agreements with property owners regarding proposed acquisition are attached. These include: Exhibit 8G - Notice for Acquisition of a Permanent Easement or Real Property - Initial Notice to subject to Exhibit 8H - Subject to Donation Agreement Exhibit 8I - Letter for Acquisition of a Permanent Easement or Real Property - Initial Notice to not subject to Exhibit 8J - Not subject to Donation Agreement Grant Management Handbook (2013) 8-5

8 Chapter 8 Uniform Relocation Assistance and Real Property Acquisition, Section 104(d, and Lead-Based Paint Exhibit 8K - U.S. Housing and Urban Development Brochure When a Public Agency Acquires Your Property HUD has published this brochure designed to answer property owners questions when dealing with a public agency. This publication must be given to all property owners and can be found electronically at Exhibit 8L-- Notice of Just Compensation. Recipient s file must indicate the manner in which this notice was delivered (e.g., personally served or certified mail return receipt requested) and the date of delivery. If the letter was personally served obtain a written receipt of delivery from the property owner at the time of delivery. Fair Market Value The fair market value for properties subject to the requirements cannot be exceeded, unless there is clear evidence the acquisition will: Go to eminent domain proceedings; and The additional cost above fair market value plus the cost of completing eminent domain proceedings is more than the negotiated price. This MUST be clearly documented and should be a rarity. Contact the department s Regional Coordinator for your area for advice. Eminent Domain The US, Department of Housing and Urban Development s has a statutory prohibition on the use of HUD Fiscal Year (FY) 2006 and 2008 funds for eminent domain related activities. This prohibition clarifies the statutory prohibition against using HUD programs to support eminent domain for non-public purposes. If eminent domain will be a part of any CDBG project assisted in whole or in part with FY 2006 of 2008 CDBG funds for non-public purposes the project will no longer be eligible for assistance from the CDBG program and all expended grant funds must be repaid to the State. Please contact the department s Regional Coordinator for assistance in determining if your project has been allocated FY 2006 or FY 2008 funds. Note: If an agency does not have the authority to acquire property from the federal government through condemnation the acquisition will meet the requirements of 49 CFR Part (b)(3). In accordance with this regulation, if the agency desiring to acquire the property from the Federal Agency does not have authority to acquire through condemnation, such acquisition is not subject to URA basic acquisition policies. Unlike voluntary acquisitions from a private party under (b)(2), there are also no seller notification requirements. Uniform Act Reference Document HUD Handbook 1378, Tenant Assistance, Relocation and Real Property Acquisition, change 8, issued March 16, 2007 and Part V of the Department of Transportation regulation located at 49 CFR Part 24 updated January 4, 2005 provides the information necessary to addresses any type of acquisition and 8-6 (2013) Community Development Block Grant

9 DISPLACEMENT AND RELOCATION Chapter 8 Uniform Relocation Assistance and Real Property Acquisition, Section 104(d), and Lead-Based Paint contains detailed guidance on the URA requirements. Before proceeding with any acquisition, the recipient may request a copy of the Handbook and updated regulation from OBDD or download a copy from The state can also provide information booklets, sample notices and other materials to assist recipients. URA covers displacement and relocation. A displaced person under URA is an individual, family, partnership, association, corporation, non-profit or organization, which moves from their home, business, or farm, or moves their personal property, as a direct result of acquisition, demolition or rehabilitation for a Community Development Block Grant project. Displaced persons are eligible for relocation assistance under the URA. Section 104(d) of the Housing and Community Development Act also governs the replacement of housing and relocation of individuals due to Community Development Block Grant-funded activities. Section 104(d) may be found at fm The Act is implemented by regulations at 24 CFR Part 42 ( Regulations for relocation benefits are in 24 CFR Part HUD has developed several brochures for persons in need of relocation assistance. All are available from a regional coordinator or online at the Housing and Urban Development website. They are: Relocation Assistance to Persons Displaced From Their Homes (Section 104(d)) Relocation Assistance to Tenants Displaced From Their Homes Relocation Assistance to Displaced Businesses, Nonprofit Organizations and Farms Relocation Assistance to Displaced Homeowner Occupants Basic Project Development Concepts When developing your project, here are some basic concepts to keep in mind: 1) Buy vacant for CDBG funded projects because relocation requirements are complicated and expensive. 2) If there is going to be a relocation during the project, the grant recipient is required to have a relocation plan in place. 3) If the property has been vacant for 3 years, 1:1 replacement will not be required. URA Triggers NOT SUBJECT TO (Voluntary) Causing Displacement Owner occupied URA Triggered NO Tenant occupied URA Triggered YES Grant Management Handbook (2013) 8-7

10 Chapter 8 Uniform Relocation Assistance and Real Property Acquisition, Section 104(d, and Lead-Based Paint Business/other occupied URA Triggered YES SUBJECT TO (Involuntary) Causing Displacement Owner occupied URA Triggered YES Tenant occupied URA Triggered YES Business/other occupied URA Triggered - YES Unfound Displaced Tenants If the tenants who were issued a GIN vacated before the initiation of negotiations (i.e. the date the CDBG grant agreement is fully executed between the recipient and the State) they do not qualify as displaced. GIN s should be issued as soon as feasible after the department receives a Project Intake Form, as the intake constitutes intent to use federal funds. Anyone who vacates a property after the Intake is submitted to the department but before receiving a GIN could claim to have been displaced by the project. If there are unfound displaced tenants, that qualify for benefits under URA there are two potential paths: 1) Grant recipient properly provided the GIN, that advised the tenant not to move, and used all reasonable procedures to locate said tenant(s), the regulations allow the tenant(s) 18 months to file a claim for URA benefits, when there are no extenuating circumstances. 2) Grant recipient did not properly provide GIN, the tenant(s) now have extenuating circumstances and they can file a claim to extend the 18 month window to file a claim for URA benefits, indefinitely. If the tenant(s) are found or file a claim for benefits they must be paid. The exact URA benefit amount cannot be determined until you know where they are residing, to calculate the replacement housing payment. Tenant Notices All occupants of buildings that will be acquired, rehabilitated or converted to another use as a result of a Community Development Block Grant project must receive timely notices about their rights under federal law. The notices include: General Information Notices (GIN) Informs the occupant(s) of a possible project and includes the appropriate HUD booklet, in this case it would be HUD booklet 1042-CPD Relocation Assistance to Tenants Displaced from their Homes. This notice must be issued as soon as possible after it has been determined that HUD CDBG funds are intended to be used for the project (i.e. Department s receipt of a Project Intake Form.) Notice of Eligibility Informs occupants that will be displaced of their rights and levels of assistance under URA. 8-8 (2013) Community Development Block Grant

11 Chapter 8 Uniform Relocation Assistance and Real Property Acquisition, Section 104(d), and Lead-Based Paint 30 and 90 day Notices Informs occupants of the day by which they must vacate the property. Displaced persons may not formally be given LESS than 90 days to vacate their residence. The recipient must have documentation that the notices were received by the tenant when the grant application is submitted to the state, by means of certified mail return receipt or the tenant signed for the notice. Tenants who did not receive their notices at the project application stage may be entitled to relocation benefits under federal law. There are many notices, depending upon the details of the situation, rather than include all types of notification in this Grant Management Handbook, the recipient is encouraged to use the numerous examples of notices ( guide form notices ) in HUD Handbook These may be accessed for download at 78.cfm. A wide range of samples for different situations are found in the appendices. Examples of the three most commonly used notices are contained in the Exhibits: Exhibit 8M-- Sample Notice to Tenants Exhibit 8N-- GIN Non-Displaced Residential Tenant Exhibit 8O-- GIN Displaced Residential Tenant Current tenants are the primary concern with URA, but it s possible that the previous owner could have evicted a tenant or failed to renew a lease in order to sell the property as vacant for the project. Since such tenants are also entitled to relocation benefits, the circumstances surrounding any move from the property during a 12-month period prior to sale must be considered. Replacement Housing Assistance Displaced Persons Comparable Unit Assistance can be provided as rental assistance or down payment assistance. Rental assistance can be replacement-housing payment (RHP). The amount of RHP varies depending upon whether the family is a lower income or non-lower income family, using HUD s family size and income limits. URA establishes a $5,250 cap on payments. This cap can be exceeded on last resort housing situations, where the $5,250 is not sufficient to relocate the household. Cash rental assistance must be provided in payments, unless it is to be used to purchase a home. Displaced persons must rent or purchase decent safe and sanitary (DSS) units within one year after being displaced in order to qualify for a replacement housing payment. The displaced person must file the claim forms within 18 months after being displaced. If the displaced person selects a unit that fails inspections for codes and standards and necessary corrections cannot be made, RHP cannot be made. But the displaced person can get moving expenses. Each recipient must offer one or more units to the displaced person, in which the size and function, contain the same principle features and location (reasonable access to person s employment, schools, medical facilities etc. general Grant Management Handbook (2013) 8-9

12 Chapter 8 Uniform Relocation Assistance and Real Property Acquisition, Section 104(d, and Lead-Based Paint neighborhood characteristics, proper environmental conditions) are as similar as possible to the unit the person is leaving and is DSS. The comparable unit must also be available for use/occupancy. Public housing is a comparable unit for displaced public housing tenants, but NOT for other tenants. Replacement Unit Moving Expenses The replacement unit is the unit the person actually moves into. Moving expenses must be reasonable and necessary. The displaced person may choose to receive payment for moving expenses by commercial mover; reimbursement of actual expenses incurred by the displaced person; FHWA fixed payment; or any combination of the aforementioned. The residential moving cost schedule, effective August 22, 2008 can be found at Relocation Assistance and Payments The URA provides for relocation assistance and payments to eligible persons displaced from their homes, businesses and farms as a direct result of a federally funded program or project. Residential tenants and owner-occupants of 90 days or more that are displaced from their dwellings may be eligible for a replacement housing payment, for rental assistance, or down payment assistance. Information regarding eligibility for this assistance is available at Consult your Regional Coordinator for details of this program. Cash rental assistance payments must be made in at least two installments. The first installment must be at the beginning of the move and the second and final installment must be after the relocation is completed. Factors for calculating Assistance The income of the displaced person is not a factor in determining basic eligibility, but for lower-income residential tenants it is a factor in calculating the amount of assistance they will receive. There is no income cut-off for eligibility for relocation assistance. Anyone who is displaced may be entitled to URA assistance. Residential Antidisplacement and Relocation Assistance Plan All recipients are required to follow the State of Oregon Antidisplacement and Relocation Assistance Plan (Exhibit 2A) (2013) Community Development Block Grant

13 Chapter 8 Uniform Relocation Assistance and Real Property Acquisition, Section 104(d), and Lead-Based Paint URA Reference Document Relocation Benefits for Aliens Specific instructions for meeting the federal relocation requirements are beyond the scope of this Grant Management Handbook. Recipients with projects that may result in any person or business moving, temporarily or permanently, must use HUD Handbook 1378, Tenant Assistance, Relocation and Real Property Acquisition, change 5, issued January 12, 2006 and Part V of the Department of Transportation regulation located at 49 CFR Part 24 updated January 4, 2005 ( 78.cfm) and discuss the requirements with the regional coordinator for their project at the beginning of the project. Many of the U.S. Department of Housing and Urban Development brochures for displaced homeowners, businesses, tenants, and persons are available upon request from OBDD or at Aliens not lawfully present in the United States are not eligible for URA relocation assistance, unless such ineligibility would result in exceptional hardship to a qualifying spouse, parent or child. A person seeking URA relocation assistance must certify that the person is a United States citizen or national, or an alien lawfully present in the United States. SECTION 104(D) OF THE HOUSING AND COMMUNITY DEVELOPMENT ACT Basic Federal Requirement Section 104(d) of the Housing and Community Development Act requires replacement of low and moderate-income housing units that are demolished or converted to another use in connection with a CDBG assisted activity. Low and moderate income dwelling unit means a dwelling unit or home with a market rent (including utility costs) that does not exceed the applicable fair market rent (FMR) for Section 108 housing program. The unit can be occupied or vacant. The term does not include a unit that is owned and occupied by the same person(s) before and after the rehabilitation. The overview is found at fm Example This rule applies to units being demolished or converted from permanent housing to temporary housing or another use. One example of a project that can trigger the one-for-one replacement rules is the rehabilitation of a single-family home for use as a homeless shelter. Note: A millionaire could own and live in a low and moderate-income dwelling unit or vice versa a low-income household could live in a mansion. Section 104(d) vs. The Uniform Act (URA) The relocation assistance and payments for eligible persons under Section 104(d) are similar to those required for the URA, but there are a number of differences. One significant difference is the period of time used to calculate a rental assistance payment; Section 104(d) factors in 60 months vs. 42 months for the URA. Displaced persons eligible for assistance from both Section 104(d) and URA must Grant Management Handbook (2013) 8-11

14 Chapter 8 Uniform Relocation Assistance and Real Property Acquisition, Section 104(d, and Lead-Based Paint choose to receive relocation assistance from only one program. Section 104(d) Requirements Section 104(d) Resources 104(d) Checklist Section 104(d) requirements include: One for One replacement of all occupied and vacant occupiable low- or moderate-income dwelling units that are demolished or converted to a use other than low- or moderate-income permanent housing in connection with an activity assisted under the Housing and Community Development Act (HCDA), and Provision of certain relocation assistance to any lower income person displaced as a direct result of the demolition of any dwelling unit or conversion of a low- or moderate-income dwelling unit to a use other than a low- or moderate-income permanent residence. Contact an Oregon Business Development (OBDD) regional coordinator for the applicable federal regulations and assistance if your project involves demolition or conversion of housing units. There have been many recent changes in definitions of different types of dwellings and eligibility requirements. More information is found in HUD Handbook 1378, Tenant Assistance, Relocation and Real Property Acquisition, change 5, issued January 12, 2006 and Part V of the Department of Transportation regulation located at 49 CFR Part 24 updated January 4, 2005 that may be found online at Relocation Assistance: Section 104(d) Tenant Assistance applies to owners and renters. To determine if the household is subject to 104(d) tenant relocation assistance use the following checklist. 1) Are CDBG funds used in the project? 2) Is the household low income? Low Income Household (not family) means Households whose income is below 80% of median. (Low and moderate income for the CDBG program.) 3) Will the unit be demolished or converted to another use? 4) Provide 104(d) tenant assistance if the answers to all of 1-3 above are yes. Notes: Residents that are not considered to be low income are still protected by URA and must be evaluated for relocation benefits under URA. Residents eligible to receive 104(d) tenant assistance are still protected by URA and must also be evaluated for relocation benefits under URA. If both URA and 104(d) applies tenant/resident must get both sets of notices required by each regulation. Persons eligible for relocation benefits from both URA and 104(d) 8-12 (2013) Community Development Block Grant

15 LEAD-BASED PAINT Basic Federal Requirement Chapter 8 Uniform Relocation Assistance and Real Property Acquisition, Section 104(d), and Lead-Based Paint must choose one program to receive benefits from. They cannot receive benefits from both programs. One for One Replacement: To determine if the unit is subject to one for one replacement use the following checklist: 1) Are CDBG funds in the project? 2) Is the unit low income? Low/Moderate Income dwelling unit means The rent and utilities is below the affordable rent for FMR (Fair Market Rents) applies to rental and owner occupied units. For owner occupied units it would be the rent the unit would command if it were made available on the rental market. 3) Will the unit be demolished or converted to another use? 4) Is the unit occupied or vacant-occupiable? Vacant Occupiable - The unit is standard, vacant and suitable for rehab, or dilapidated but has been occupied within the last three months. 5) If the answers to 1-4 above were all yes than the unit needs to be replaced. 24 CFR (b)(2) requires 1:1 replacement. Meaning a duplex containing 2-1 bedroom, 1 bathroom units cannot be replaced by a single family dwelling containing 3 bedrooms and 2 bathrooms. The duplex must be replaced by a like duplex of 2 units containing 1 bedroom, 1 bathroom each. The Lead-Based Paint Poisoning Prevention Act and HUD implementing regulations at 24 CFR (c) (found online at affect recipients using Community Development Block Grant funds to rehabilitate residential housing. Effective September 15, 2000 revisions to the Lead-Based Paint (LBP) Regulations 24 CFR Part 35 were implemented. These may be viewed at Lead Safe Housing Rule HUD has implemented regulations to protect young children from lead-based paint hazards in housing that is financially assisted by the federal government or being sold by the government. The "Lead Safe Housing Rule that contains requirements for notification, evaluation and reduction of lead-based paint hazards in federally owned residential property and housing receiving federal assistance, was published in the Federal Register on September 15, The requirements apply to housing Grant Management Handbook (2013) 8-13

16 Chapter 8 Uniform Relocation Assistance and Real Property Acquisition, Section 104(d, and Lead-Based Paint built before 1978; the year lead-based paint was banned nationwide for consumer use. It is found at A technical amendment to this regulation was published in the Federal Register on June 21, The new regulation puts all of the department's lead-based paint regulations in one part of the Code of Federal Regulations, making it much easier to find HUD policy on the subject. Requirements The regulation sets hazard reduction requirements that give much greater emphasis than previous regulations to reducing lead in house dust. It requires dust testing after paint is disturbed to make sure the home is lead-safe. Specific requirements depend on the type and amount of financial assistance, the age of the structure, and whether the dwelling is rental or owner-occupied. These regulations affect all Community Development Block Grant awards made by the state for housing rehabilitation after September 15, Certification Lead-Based Paint Notice The grant award contract includes a certification that no lead-based paint will be used in residential units. All purchasers and tenants of Community Development Block Grant assisted housing constructed prior to 1978 must receive a notice about the hazards of lead-based paint. Applicants for housing rehabilitation loans or grants also should receive notification. The notification form to be used is the current Environmental Protection Agency (EPA) pamphlet, Protect Your Family from Lead in Your Home. A copy is included as Exhibit 8P. Grant recipients must keep documentation of the notifications in their local project file. This can be done by using the evidence of notification form at and attached as Exhibit 8Q. An alternative way to document the notice to buyers and tenants is by obtaining a copy of the signed disclosure statement that all sellers and landlords are now required to retain by federal law (unrelated to the Community Development Block Grant program). In addition to the disclosure requirements, housing rehabilitation with federal assistance must meet the requirements of lead-based pain poison prevention in the regulations at 24 CFR 35 Subpart J, Rehabilitation. Subpart J includes different and accumulatively more stringent requirements as the per unit federal assistance or rehabilitation funding increases. The requirements are: All rehabilitation: Paint testing of surfaces to be disturbed or presume that painted surfaces are lead-based paint, notice to occupants of the evaluation of paint testing or presumption of lead-based paint, lead safe work practices during rehabilitation and lead hazard reduction, and ongoing lead-based paint maintenance in projects. $5,000 or less per unit: Repair of disturbed paint and clearance of work site. Over $5,000 to $25,000 per unit: Risk assessment, interim controls, and notice to 8-14 (2013) Community Development Block Grant

17 Chapter 8 Uniform Relocation Assistance and Real Property Acquisition, Section 104(d), and Lead-Based Paint occupants of lead hazard reduction. Over $25,000 per unit: Risk assessment, abatement of lead-based paint hazards, and notice to occupants of lead hazard reduction. State Regulations Lead-Based Paint References All state Community Development Block Grant programs are required to develop procedures to eliminate the hazards of lead poisoning due to the presence of lead-based paint in housing assisted with Community Development Block Grant funds. In addition, the Lead-Based Paint Hazard Reduction Act of 1992 (Title X) requires states to establish certification programs for inspectors and contractors and accrediting programs for trainers. HUD s Office of Healthy Homes and Lead Hazard Control's Community Information and Outreach website has a wide assortment of materials, from lead information brochures to large, full-color posters, including those printed in several languages at Another source of information is the National Lead Information Center accessed at or by calling (800) 424-LEAD. The State of Oregon s Lead-Based Paint Program has a toll-free LeadLine at (800) Its website is at Grant Management Handbook (2013) 8-15

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19 ACQUISITION CHECKLIST City/County: Grant #: RE: Owner(s): Address: Tenants: Address: Not Subject To Acquisitions (No Displacement): 1. State concurrence of Request for Acquisition Exemption (Exhibit 8B). 2. Identify all potential easements/land that need(s) to be acquired. 3. Prepare legal descriptions for each acquisition. 4. Obtain the services (in accordance with the requirements found in Chapter 5) of someone knowledgeable in local Fair Market Values (FMV) (i.e. real estate broker). Document the persons experience and knowledge for the files, and obtain FMV estimates for each acquisition. 5. Prepare initial not subject to letter Exhibit 8I. Attach Exhibit 8J sample not subject to donation agreement. Send letters certified mail, return receipt, or hand deliver the letters and have the owner sign a statement of receipt, which is placed in the project file. 6. Fully informed owner signs donation agreement (Exhibits 8J). Skip to item 12 below. 7. Recipient establishes purchase offer amount. (Offer must be no less than the FMV determined by the person knowledgeable in FMV s.). 8. Owner provided just compensation and purchase offer letter (Exhibit 8L). 9. Purchase option/option agreement conditioned upon completion of the environmental review, receipt of CDBG funds, and meeting the requirements of 58.22(d) is entered into. Refer to Chapter s 3 and 8. If Release of Funds (ROF) has already been issued by state, skip to item 10 below. 10. Once the ROF has been issued by the state, the option agreement/purchase option can be exercised, and a contract of sale entered into. 11. Payment made to owner. 12. Settlement costs (closing costs) paid by grant recipient. 13. Title recorded and paid for by the grant recipient. Subject To Procedures - valued less than $10,000 (No Displacement): 1. Identify all potential easements/land that need(s) to be acquired. 2. Prepare legal descriptions for each acquisition. 3. Obtain the services (in accordance with the requirements of Chapter 5) of someone knowledgeable in local Fair Market Values (FMV) (i.e. real estate broker). Document the persons experience and knowledge for the files, and obtain FMV estimates for each acquisition. 4. Prepare initial subject to letter Exhibit 8G and insert paragraph 2. Attach Exhibit 8K When a Public Agency Acquires Your Property and Exhibit 8H sample subject to donation agreement. Send letters certified mail, return receipt, or hand deliver the letters and have the owner sign a statement of receipt, which is placed in the project file. 5. Fully informed owner signs donation agreement (Exhibits 8H). Skip to item 6(f) or 7(k) below. 6. If the owner does not request an appraisal. a) Recipient establishes purchase offer amount (Offer must equal the FMV determined by the person knowledgeable in local FMV) b) Using Exhibit 8L - Owner is provided just compensation and purchase offer letter. Grant Management Handbook (2013) Exhibit 8A

20 Exhibit 8A (2013) Acquisition Checklist c) Purchase Option/Option Agreement conditioned upon completion of the environmental review, receipt of CDBG funds, and meeting the requirements of 58.22(d) is entered into. Refer to Chapter 3 and 8. If Release of Funds (ROF) has already been issued by state, skip to item 6(d) below. d) Once the ROF has been issued by the state, the option agreement can be exercised, and a contract of sale entered into. e) Payment to owner is made. f) Settlement costs (closing costs) paid by grant recipient. g) Title recorded and paid for by the grant recipient. 7. If the owner requests an appraisal. a) The grant recipient is required to retain the services of a professional appraiser. b) Recipient must procure for an appraiser in accordance with procurement requirements in Chapter 5 and ensuring the federal clauses are included in the agreement. I. Using Exhibit 8C Guide for preparing an Appraisal Scope of Work. II. Using Exhibit 8D Agreement for Appraisal Services. III. Using Exhibit 8E Certificate of Appraiser. c) Property owner must be invited to accompany appraiser on-site during the appraisal, using Exhibit 8F Invitation to Accompany Appraiser. d) Grant recipient receives original appraisal. e) Grant recipient obtains 2 nd appraisal review of the original appraisal report, which the second appraiser s services must be procured for properly in accordance with Chapter 5. f) Recipient establishes purchase offer amount (Offer must equal the appraised FMV). g) Using Exhibit 8L - Owner is provided just compensation and Purchase Offer letter. h) Purchase Option/Option Agreement conditioned upon completion of the environmental review, receipt of CDBG funds, and meeting the requirements of 58.22(d) is entered into. Refer to Chapter 3 and 8. If Release of Funds (ROF) has already been issued by state, skip to item 7(i) below. i) Once the ROF has been issued by the state, the option agreement can be exercised, and a contract of sale can be entered into. j) Payment to owner is made. k) Settlement costs (closing costs) paid by grant recipient. l) Title recorded and paid for by the grant recipient. Easements valued at $10,000 or more (No Displacement): 1. Identify all potential easements/land that needs to be acquired. 2. Prepare legal descriptions for each acquisition. 3. Prepare initial subject to letter Exhibit 8G and insert paragraph 1. Attach Exhibit 8K When a Public Agency Acquires Your Property and Exhibit 8H sample agreement for subject to donation agreement. Send letters certified mail, return receipt, or hand deliver the letters and have the owner sign a statement of receipt, which is placed in the project file. 4. Fully informed owner signs donation agreement (Exhibits 8H). Skip to item 14 below. 5. Procuring for an appraiser in accordance with procurement requirements in Chapter 5, and ensuring the federal clauses are included in the agreement. I. Using Exhibit 8C Guide for preparing an Appraisal Scope of Work. II. Using Exhibit 8D Agreement for Appraisal Services. III. Using Exhibit 8E Certificate of Appraiser. 6. Property owner must be invited to accompany appraiser on-site during the appraisal, using Exhibit 8F Invitation to Accompany Appraiser. 7. Grant recipient receives original appraisal. 8. Grant recipient obtains 2 nd appraisal review of the original appraisal report, which the second appraiser s services must be procured for properly in accordance with Chapter 5. Exhibit 8A (2013) Community Development Block Grant

21 9. Recipient establishes purchase offer amount (Offer must equal the appraised FMV). 10. Using Exhibit 8L - Owner is provided just compensation and purchase offer letter. 11. Purchase Option/Option Agreement conditioned upon completion of the environmental review, receipt of CDBG funds, and meeting the requirements of 58.22(d) is entered into. Refer to Chapter 3 and 8. If Release of Funds (ROF) has already been issued by state, skip to item 12 below. 12. Once the ROF has been issued by the state, the option agreement can be exercised, and a contract of sale entered into. 13. Payment to owner is made. 14. Settlement costs (closing costs) paid by grant recipient. 15. Title recorded and paid for by the grant recipient. SIGNIFICANT DOLLAR AMOUNTS Appraisals: First Appraisal: $ Review Appraisal: $ FMV determined by person knowledgeable in property values: $ Just Compensation Offered: $ Final Acquisition Price: $ Settlement Costs paid by recipient: $ Grant Management Handbook (2013) Exhibit 8A

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23 Exhibit 8B (2013) Request for Acquisition Exemption REQUEST FOR ACQUISITION EXEMPTION To: Oregon Business Development Department 775 Summer Street NE Suite 200 Salem, Oregon FROM: Grant #: (City/County) RE: (Description of Property) Please provide concurrence that the above property is exempt from the requirements of the Uniform Relocation Assistance and Real Property Acquisition Policies Act of 1970, as amended. This acquisition of real property is exempt as defined in 49 CFR, Part (Check only one): Not Subject To transaction. All procurement requirements specified in OMB 102 will be met and this transaction meets the requirements of ALL THREE of the following conditions: Not acquired under the threat of eminent domain. Owners will be provided written notice to this effect. A specified site is not necessary. There are other sites that will work, should negotiations fail on this property. The owner will be informed of the estimated fair market value of the property. Property to be acquired is in government ownership and cannot be taken by eminent domain. Property owner is: FOR ECONOMIC DEVELOPMENT REVOLVING LOAN FUND PROJECTS - ONLY Property to be acquired by private sector and before the seller enters into contract of sale, the buyer will inform the seller: That is does not have the power of eminent domain and should negotiations fail to result in an amicable agreement, the property will be acquired. The owner will be informed of the estimated fair market value of the property. Supporting data attached: Signature: Date: (Chief Elected Official) OBDD Use Only: Concurrence Signed: Noncurrence Title: Date: Grant Management Handbook (2013) Exhibit 8B

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43 Exhibit 8E (2013) Certificate of Appraiser CERTIFICATE OF APPRAISER I HEREBY CERTIFY: That on date(s), I personally made a field inspection of the property herein appraised and have afforded the owner or a designated representative the opportunity to accompany me on this inspection. I have also personally made a field inspection of the comparable sales relied upon in making said appraisal. The property being appraised and the comparable sales relied upon in making this appraisal were as represented in the appraisal. That to the best of my knowledge and belief the statements contained in the appraisal herein set forth are true, and the information upon which the opinions expressed therein are based is correct; subject to the limiting conditions therein set forth. That I understand that such appraisal may be used in connection with the acquisition of property for a project utilizing U.S. Department of Housing and Urban Development funds. That such appraisal has been made in conformity with appropriate laws, regulations and policies and procedures applicable to appraisal of the property for such purposes; and that to the best of my knowledge no portion of the value assigned to such property consists of items which are non compensable under established law of said State. That any decrease or increase in the fair market value of real property 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 of the owner, was disregarded in determining the compensation for the property. That neither my employment nor my compensation for making this appraisal and report are in any way contingent upon the values reported herein. That I have no direct or indirect present or contemplated future personal interests in such property or in any benefit from the acquisition of such property appraised. That I have not revealed the findings and results of such appraisal to anyone other than the proper officials of the acquiring agency or officials of the U.S. Department of Housing and Urban Development and I will not do so until so authorized by said officials, or until I am required to do so by due process of law, or until I am released from this obligation by having publicly testified as to such findings. That I have not given consideration to, or included in my appraisal any allowance for relocation assistance benefits. Grant Management Handbook (2013) Exhibit 8E

44 Exhibit 8E (2013) Certificate of Appraiser That my opinion of the fair market value of the property to be acquired as of the day of 20 is $ based upon my independent appraisal and the exercise of my professional judgment. Name Signature License # Date (NOTE: Other statements, required by the regulations of an appraisal organization of which the appraiser is a member or by circumstances connected with the appraisal assignment or the preparation of the appraisal, may be inserted where appropriate.) Exhibit 8E (2013) Community Development Block Grant

45 Exhibit 8F (2013) Invitation to Accompany Appraiser (Date) Name Address Address Dear : I have been requested by the (City/County) to prepare and appraisal of your property located at:. I will visit the property on:, 201_. If you wish to accompany me, please telephone me at, to arrange a mutually convenient time. Sincerely, Name Appraiser Grant Management Handbook (2013) Exhibit 8F

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47 SAMPLE LETTER Subject To Exhibit 8G (2013) Sample Subject To Letter Acquisition of a Permanent Easement, Temporary Construction Easement or Real Property with no Relocation Initial Notice to Owner Dear : Name of city or county is participating in a water / wastewater improvement project using federal funds from the Oregon Community Development Block Grant program. The (name of city or county) needs to acquire the following (easement / real property) from you for the project. (Insert a description or reference an attachment that describes of the specific easement or real property to be acquired. A legal description should be used, if one is available.) (Insert reason why the permanent easement or real property is needed for the project and how it will be used.) The name of city or county is required to inform you of your rights under federal law. You are entitled to just compensation for the permanent easement or real property the city needs. The definition of just compensation and a description of your other rights are contained in the enclosed brochure When a Public Agency Acquires Your Property. Please read it carefully. The name of city or county may exercise its right of eminent domain to acquire the easement or property if negotiations should fail. Insert the appropriate paragraph from the following two selections: 1. For easements or real property valued at more than $10,000: The name of city or county will send you a separate offer of just compensation after it has obtained an independent appraisal of the fair market value. You have the right to accompany the appraiser when he or she conducts the appraisal of your property. Please let us know within days or not later than insert deadline if you desire to accompany the appraiser. 2. For easements or real property valued at $10,000 or less: We believe the value of the easement or real property the city needs from you does not exceed $10,000. Our determination is based on (insert description of the process used that meets the requirements in paragraph 5-2.c.(1)(b) on page 5-3 of Handbook 1378). Federal law does not require an independent appraisal for easements or real property valued at less than $10,000 unless the owner requests an appraisal. You have the right to donate the easement or real property. To donate, you must sign a written statement that says you have been informed of your rights under federal law. It is very important to understand that the city/county cannot offer you any special benefits in connection with a donation. If you want to donate the easement or real property, please let us know within days or no later than insert deadline. The city/county will include the donation language in an acquisition document specific for your property. This notice is to inform you that, if assistance is provided and the easement/property is acquired you will not be displaced. Therefore we urge you not to move anywhere at this time. If you elect to move for reasons of your choice, you will not be provided with relocation assistance. We will very much appreciate your cooperation in this matter because the project will benefit all residents of the community. These steps are essential for the city or county to receive the federal grant funds necessary to complete the project. Please feel free to call insert name at insert telephone number if you have any questions or specific requests to make regarding the appraisal or a donation of your property. Sincerely, Enc: Subject To Donation When a Public Agency Acquires Your Property Brochure Grant Management Handbook (2013) Exhibit 8G

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49 Exhibit 8H (2013) Subject To Donation SAMPLE AGREEMENT A Donation Under Basic Acquisition Where Eminent Domain May Be Used Subject To Transactions (To be used and included with the permanent easement /property acquisition document recorded with the county) I choose to donate the easement/property described in this document to the City/County of for no consideration. I have been fully informed of my rights under the federal Uniform Relocation and Real Property Acquisition Policies Act of 1970, as amended. I understand that I cannot be required to convey the easement /property to the City/County of for less than its appraised fair market value. (Insert the following statements if they are applicable) I release the City/County of from making an offer of just compensation for my property. I have waived my rights to an independent appraisal of the fair market value of my property, which is estimated to exceed $10,000. I did not ask for an independent appraisal of my property after it was determined to have a value of $10,000 or less by the City/County. Signature of Property Owner Date Notary Date Grant Management Handbook (2013) Exhibit 8H

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51 SAMPLE LETTER Not Subject To Exhibit 8I (2013) Sample Not Subject To Letter Acquisition of a Permanent Easement, Temporary Construction Easement or Real Property with no Relocation Initial Notice to Owner Dear : The name of city or county is participating in a water / wastewater improvement project using federal funds from the Oregon Community Development Block Grant program. The name of city or county needs to acquire the following easement / real property from you for the project. (Insert a description or reference an attachment that describes of the specific easement or real property to be acquired. A legal description should be used, if one is available.) (Insert reason why the easement or real property is needed for the project and how it will be used.) We believe the value of the easement/property needed from you is. Our determination is based upon (Insert description of the process used that meets the requirements in paragraph 5-1.a.(1)(c) on page 5-2 of the Handbook 1378.) Federal law does not require an independent appraisal of your property/permanent easement since we will not use the right of eminent domain to acquire your property if negotiations should fail. You have the right to donate the easement or real property. To donate, you must sign a written statement that says you have been informed of your rights under federal law. It is very important to understand that the city cannot offer you any special benefits in connection with a donation. If you want to donate the easement or real property, please let us know within days or no later than insert deadline. The city/county will include the donation language in an acquisition document specific for your property. This notice is to inform you that, if assistance is provided and the easement/property is acquired you will not be displaced. Therefore we urge you not to move anywhere at this time. If you elect to move for reasons of your choice, you will not be provided with relocation assistance. We will very much appreciate your cooperation in this matter because the project will benefit all residents of the community. These steps are essential for the city or county to receive the federal grant funds necessary to complete the project. Please feel free to call insert name at insert telephone number if you have any questions or specific requests to make regarding the appraisal or a donation of your property Sincerely, Enc: Not Subject To Donation Grant Management Handbook (2013) Exhibit 8I

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53 Exhibit 8J (2013) Not Subject To Donation SAMPLE AGREEMENT Not Subject To Donation Language (To be used and included with the easement/property acquisition document recorded with the county) I choose to donate the easement/property described in this document to the City/County of for no consideration. I have been fully informed of my rights under the federal Uniform Relocation and Real Property Acquisition Policies Act of 1970, as amended. I understand that I cannot be required to convey the easement/property to the City/County of for less than its appraised fair market value. Signature of Property Owner Date Notary Date Grant Management Handbook (2013) Exhibit 8J

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55 Exhibit 8K (2013) When a Public Agency Acquires Your Property Introduction This booklet describes important features of the Uniform Relocation Assistance and Real Property Acquisition Policies Act of 1970, as amended (URA) and provides general information about public acquisition of real property (real estate) that should be useful to you. Most acquisitions of real property by a public agency for a Federal project or a project in which Federal funds are used are covered by the URA. If you are notified that your property will be acquired for such a project, it is important that you learn your rights under this important law. This booklet may not answer all of your questions. If you have more questions about the acquisition of your property, contact the Agency responsible for the project. (Check the back of this booklet for the name of the person to contact at the Agency.) Ask your questions before you sell your property. Afterwards, it may be too late. General Questions What Right Has Any Public Agency To Acquire My Property? The Federal Government and every State government have certain powers, which are necessary for them to operate effectively. For example, they have the power to levy taxes and the power to maintain order. Another government power is the power to acquire private property for public purposes. This is known as the power of eminent domain. The rights of each of us are protected, however, by the Fifth and Fourteenth Amendments of the U.S. Constitution and by State constitutions and eminent domain laws which guarantee that if a public agency takes private property it must pay "just compensation" to the owner. The URA provides additional protections, as explained in this booklet. Who Made The Decision To Buy My Property? The decision to acquire a property for a public project usually involves many persons and many determinations. The final determination to proceed with the project is made, only after a thorough review, which may include public hearings to obtain the views of interested citizens. If you have any questions about the project or the selection of your property for acquisition, you should ask a representative of the Agency which is responsible for the project. How Will The Agency Determine How Much To Offer Me For My Property? Before making you an offer, the Agency will obtain at least one appraisal of your property by a competent real property appraiser who is familiar with local property values. The appraiser will inspect your property and prepare a report that includes his or her professional opinion of its current fair market value. After the appraiser has completed his work, a review appraiser will examine the appraisal report to assure that the estimate is fair and the work conforms to professional appraisal standards. Previous Edition Obsolete 1 HUD-1041-CPD (3/2005) Grant Management Handbook (2013) Exhibit 8K

56 Exhibit 8K (2013) When a Public Agency Acquires Your Property The Agency must offer you "just compensation" for your property. This amount cannot be less than the appraised fair market value of the property. "Just compensation" for your property does not take into account your relocation needs. If you are eligible for relocation assistance, it will be additional. What Is Fair Market Value? Fair market value is sometimes defined as that amount of money, which would probably be paid for a property in a sale between a willing seller, who does not have to sell, and a willing buyer, who does not have to buy. In some areas a different term or definition may be used. The fair market value of a property is generally considered to be "just compensation." Fair market value does not take into account intangible elements such as sentimental value, good will, business profits, or any special value that your property may have for you or for the Agency. How Does An Appraiser Determine The Fair Market Value Of My Property? Each parcel of real property is different and therefore no single formula can be devised to appraise all properties. Among the factors an appraiser typically considers in estimating the value of real property are: How it compares with similar properties in the area that have been sold recently. How much rental income it could produce. How much it would cost to reproduce the buildings and other structures, less any depreciation. Will I Have A Chance To Talk To The Appraiser? Yes. You will be contacted and given the opportunity to accompany the appraiser on his or her inspection of your property. You may then inform the appraiser of any special features, which you believe, may add to the value of your property. It is in your best interest to provide the appraiser with all the useful information you can in order to insure that nothing of allowable value will be overlooked. If you are unable to meet with the appraiser, you may wish to have a person who is familiar with your property represent you. How Soon Will I Receive A Written Purchase Offer? Generally, this will depend on the amount of work required to appraise your property. In the case of a typical single-family house, it is usually possible to make a written purchase offer within 45 to 60 days of the date an appraiser is selected to appraise the property. Promptly after the appraisal has been reviewed (and any necessary corrections obtained), the Agency will determine just compensation and give you a written purchase offer in that amount along with a "summary statement," explaining the basis for the offer. No negotiations are to take place before you receive the written purchase offer and summary statement. What Is In The Summary Statement Of The Basis For The Offer Of Just Compensation? The summary statement of the basis for the offer of just compensation will include: Exhibit 8K (2013) Community Development Block Grant

57 Exhibit 8K (2013) When a Public Agency Acquires Your Property An accurate description of the property and the interest in the property to be acquired. A statement of the amount offered as just compensation. (If only part of the property is to be acquired, the compensation for the part to be acquired and the compensation for damages, if any, to the remaining part will be separately stated.) A list of the buildings and other improvements covered by the offer. (If there is a separately held interest in the property not owned by you and not covered by the offer (e.g., a tenant-owned improvement), it will be so identified.) Must I Accept The Agency's Offer? No. You are entitled to present your evidence as to the amount you believe is the fair market value of your property and to make suggestions for changing the terms and conditions of the offer. The Agency will consider your evidence and suggestions. When fully justified by the available evidence of value, the offer price will be increased. May Someone Represent Me During Negotiations? Yes. If you would like an attorney or anyone else to represent you during negotiations, please inform the Agency. However, the URA does not require the Agency to pay the costs of such representation. If I Reach Agreement With The Agency, How Soon Will I Be Paid? If you reach a satisfactory agreement to sell your property and your ownership (title to the property) is clear, payment will be made at a mutually acceptable time. Generally, this should be possible within 30 to 60 days after you sign a purchase contract. If the title evidence obtained by the Agency indicates that further action is necessary to show that your ownership is clear, you may be able to hasten the payment by helping the Agency obtain the necessary proof. (Title evidence is basically a legal record of the ownership of the property. It identifies the owners of record and lists the restrictive deed covenants and recorded mortgages, liens, and other instruments affecting your ownership of the property.) What Happens If I Don't Agree To The Agency's Purchase Offer? If you are unable to reach an agreement through negotiations, the Agency may file a suit in court to acquire your property through an eminent domain proceeding. Eminent domain proceedings are often called condemnations. If your property is to be acquired by condemnation, the Agency will file the condemnation suit without unreasonable delay. An Agency may also decide not to buy your property, if it cannot reach agreement on a price, and find another property to buy instead. What Happens After The Agency Condemns My Property? You will be notified of the action. Condemnation procedures vary, and the Agency will explain the procedures which apply in your case. Previous Edition Obsolete 3 HUD-1041-CPD (3/2005) Grant Management Handbook (2013) Exhibit 8K

58 Exhibit 8K (2013) When a Public Agency Acquires Your Property Generally, when an Agency files a condemnation suit, it must deposit with the court (or in an escrow account) an amount not less than its appraisal of the fair market value of the property. You should be able to withdraw this amount, less any amounts necessary to pay off any mortgage or other liens on the property and to resolve any special ownership problems. Withdrawal of your share of the money will not affect your right to seek additional compensation for your property. During the condemnation proceeding, you will be provided an opportunity to introduce your evidence as to the value of your property. Of course, the Agency will have the same right. After hearing the evidence of all parties, the court will determine the amount of just compensation. If that amount exceeds the amount deposited by the Agency, you will be paid the difference, plus any interest that may be provided by law. To help you in presenting your case in a condemnation proceeding, you may wish to employ an attorney and an appraiser. However, in most cases the costs of these professional services and other costs which an owner incurs in presenting his or her case to the court must be paid by the owner. What Can I Do If I Am Not Satisfied With The Court's Determination? If you are not satisfied with the court judgment, you may file an appeal with the appropriate appellate court for the area in which your property is located. If you are considering an appeal, you should check on the applicable time limit for filing the appeal and consult with your attorney on whether you have a basis for the appeal. The Agency may also file an appeal if it believes the amount of the judgment is too high. Will I Have To Pay Any Closing Costs? You will be responsible for the payment of the balance on any mortgage and other liens on your property. Also, if your ownership is not clear, you may have to pay the cost of clearing it. But the Agency is responsible for all reasonable and necessary costs for: Typical legal and other services required to complete the sale, recording fees, revenue stamps, transfer taxes and any similar expenses which are incidental to transferring ownership to the Agency. Penalty costs and other charges related to prepayment of any recorded mortgage on the property that was entered into in good faith. Real property taxes covering the period beginning on the date the Agency acquires your property. Whenever possible, the Agency will make arrangements to pay these costs directly. If you must incur any of these expenses yourself, you will be repaid--usually at the time of closing. If you later discover other costs for which you should be repaid, you should request repayment from the Agency immediately. The Agency will assist you in filing a claim. Finally, if you believe that you were not properly repaid, you may appeal the decision to the Agency. May I Keep Any Of The Buildings Or Other Improvements On My Property? Very often, many or all of the improvements on the property are not required by the Agency. Exhibit 8K (2013) Community Development Block Grant

59 Exhibit 8K (2013) When a Public Agency Acquires Your Property This might include such items as a fireplace mantel, your favorite shrubbery, or even an entire house. If you wish to keep any improvements, please let the Agency know as soon as possible. If you do arrange to keep any improvement, the Agency will deduct only its salvage value from the purchase price you would otherwise receive. (The salvage value of an item is its probable selling price if offered for sale on the condition that the buyer will remove it at his or her own expense.) Of course, if you arrange to keep any real property improvement, you will not be eligible to receive a relocation payment for the cost of moving it to a new location. Can The Agency Take Only A Part Of My Property? Yes. But if the purchase of only a part of your property reduces the value of the remaining part(s), you will be paid for the loss in value. Also, if any remaining part would have little or no utility or value to you, the Agency will offer to buy that remaining part from you. Occasionally, a public project will increase the value of the part which is not acquired by the Agency. Under some eminent domain laws, the amount of such increase in value is deducted from the purchase payment the owner would otherwise receive. Will I Have To Pay Rent To The Agency After My Property Is Acquired? If you remain on the property after the acquisition, you may be required to pay a fair rent to the Agency. Such rent will not exceed that charged for the use of comparable properties in the area. How Soon Must I Move? If possible, a mutually agreeable date for the move will be worked out. Unless there is an urgent need for your property (e.g., your occupancy would present a health or safety emergency), you will not be required to move without at least 90 days advance written notice. If you reach a voluntary agreement to sell your property, you will not be required to move before you receive the agreed purchase price. If the property is acquired by condemnation, you cannot be required to move before the estimated fair market value of the property has been deposited with the court so that you can withdraw your share. If you are being displaced from your home, you will not be required to move before a comparable replacement home is available to you. Will I Receive Relocation Assistance? Title II of the URA requires that certain relocation payments and other assistance must be provided to families, individuals, businesses, farms, and nonprofit organizations when they are displaced or their personal property must be moved as a result of a project that is covered by the URA. The Agency will furnish you a full explanation of any relocation assistance to which you may be entitled. If you have any questions about such assistance, please contact the Agency. In order for the Agency to fulfill its relocation obligations to you, you must keep the Agency Previous Edition Obsolete 5 HUD-1041-CPD (3/2005) Grant Management Handbook (2013) Exhibit 8K

60 Exhibit 8K (2013) When a Public Agency Acquires Your Property informed of your plans. My Property Is Worth More Now. Must I Pay Capital Gains Tax On The Increase? Internal Revenue Service (IRS) Publication 544 explains how the Federal income tax would apply to a gain or loss resulting from the sale or condemnation of real property, or its sale under the threat of condemnation, for public purposes. If you have any questions about the IRS rules, you should discuss your particular circumstances with your personal tax advisor or your local IRS office. I'm A Veteran. How About My VA Loan? After your VA home mortgage loan has been repaid, you will be permitted to obtain another VA loan to purchase another property. Check on such arrangements with your nearest Veterans Administration Office. Is It Possible To Donate Property? Yes. You may donate your property or sell it to the Agency for less than its fair market value. The Agency must obtain an appraisal of the property and offer just compensation for it, unless you release the Agency from these obligations. Additional Information If you have any questions after reading this booklet, contact the Agency and discuss your concerns with the Agency representative. Agency: Address: Office Hours: Telephone Number: Person to Contact: Exhibit 8K (2013) Community Development Block Grant

61 Exhibit 8L (2013) Just Compensation Letter JUST COMPENSATION WRITTEN OFFER TO PURCHASE Date Name Address Address RE: JUST COMPENSATION WRITTEN OFFER TO PURCHASE Property Located at: Community Development Block Grant, Project No: Dear : The (City/County) has approved the completion of, (describe project). To accomplish this project, it will be necessary to acquire your property located at (provide address or other legal description). As you were informed at an earlier date, the property was appraised on (provide date). The appraisers report has been analyzed and reviewed by a second appraiser. Based upon the appraisal and review appraisal, the (City/County) makes you a firm offer of $ for the purchase of the above referenced property. We feel the above offer is equitable and we will be contacting you regarding your consideration of this offer. *[This amount is compensation for your property and DOES NOT INCLUDE moving and relocation benefits. Therefore, a representative of the (City/County) will be contacting (you/tenant) shortly to determine eligibility and inform (you/them) of possible moving and relocation entitlements.] Thank you for your consideration and cooperation in this matter and we hope you will respond favorably to our Fair Market Value offer. If you have any question, please feel free to call. Sincerely, Name (Mayor/County Commissioner) *[] Omit if property unoccupied by tenant or owner and no displacement will occur. Grant Management Handbook (2013) Exhibit 8L

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63 Exhibit 8M (2013) Sample Notice to Tenants SAMPLE NOTICE TO TENANTS This is an example notice that must be provided to all residential tenants of rehabilitated buildings as part of a CDBG project. The notice must be delivered to the tenants as soon as feasible after the date the city/county applies for CDBG funds to rehabilitate the building. If the recipient does not provide this notice, and other required notices described in HUD Handbook 1378, as amended, tenants will be considered displaced under federal rules and may be entitled to relocation benefits. This notice is only for residential tenants who will not have to move permanently as a result of the project. Other types of tenants require a different letter. Use Handbook 1378 and the department s Regional Coordinator to assist you in selecting the proper notices in these situations. Date Name Address Address Dear : On (date) the (city/county) submitted an application on behalf of the (name building owner) for financial assistance to (acquire/rehabilitate/convert) the building which you occupy at (address). This notice is to inform you that, if the assistance is provided and the building is (acquired/rehabilitated/converted) you will not be displaced. Therefore, we urge you not to move anywhere at this time. If you do elect to move for reasons of your choice, you will not be provided with relocation assistance. If the application is approved, the (city/county) will provide federal funds for the project from the Community Development Block Grant program. You will be able to (lease/rent) your present unit (or another suitable, decent, safe and sanitary unit in the same building) upon completion of the project. Of course, you must comply with the standard terms and conditions of the lease or rental agreement. After the project is completed, your initial rent, including the estimated monthly utility costs, will not exceed the greater of (a) your current rent/average utility costs, or (b) 30 percent of your average monthly gross household income. If you must move temporarily so that the rehabilitation can be completed, suitable housing will be made available to Grant Management Handbook (2013) Exhibit 8M

64 Exhibit 8M (2013) Sample Notice to Tenants you for the temporary period, and you will be reimbursed for all reasonable extra expenses, including all moving costs and increase in housing costs. Again, we urge you not to move. If the project is approved, you can be sure that the (City/County) will make every effort to accommodate your needs. Because federal assistance would be involved, you would be protected by the Uniform relocation Assistance and Real Property Acquisition Policies Act of 1970, as amended. Legislative changes prevent persons who are aliens not lawfully present in the United States from receiving relocation benefits, including temporary relocation benefits. Such aliens are not eligible for relocation advisory services and relocation payments, unless such ineligibility would result in exceptional hardship to a qualifying spouse, parent, or child. The exceptions are explained in the regulations. A copy is enclosed. All persons seeking relocation assistance must certify, as a condition of assistance, that they are all citizens or nationals of the United States, or an alien lawfully present in the country. For families the certification may be made by the head of the household for all family members. This letter is important and should be retained. You will be contacted soon. In the meantime, if you have any questions about our plans, please contact (name. title and phone number). Sincerely, Name (Mayor/County Commissioner) NOTE: The city/county grant recipient must maintain a file record showing the manner in which this notice was delivered, and the date of delivery. Exhibit 8M (2013) Community Development Block Grant

65 Dear : Exhibit 8N (2013) - GIN Non-Displaced Residential Tenant General Information Notice---Non-Displacement Residential Tenant LETTERHEAD (Date) On (date), (property owner) submitted an application to the (Grantee) for financial assistance to acquire /rehabilitate the building, which you occupy at (property address). This notice is to inform you that if the assistance is provided and the building is rehabilitated, you will not be displaced. Therefore, we urge you not to move anywhere at this time. (If you do elect to move for reasons of your choice, you will not be provided relocation assistance.) If the application is approved and Federal assistance is provided for the rehabilitation, you will be able to lease and occupy your present apartment (or another suitable, decent, safe and sanitary apartment in the same building) upon completion of the rehabilitation. Of course you must comply with standard lease terms and conditions. Again, we urge you not move. If the project is approved, you can be sure that we will make every effort to accommodate your needs. Because Federal assistance would be involved, you would be protected by the Uniform Relocation Assistance and Real Property Acquisition Policies Act of 1970, as amended, provided you are a citizen, a natural, or an alien lawfully in this county. Legislative changes prevent persons who are aliens not lawfully present in the United States from receiving relocation benefits, including temporary relocation benefits. Such aliens are not eligible for relocation advisory services and relocation payments, unless such ineligibility would result in exceptional hardship to a qualifying spouse, parent, or child. The exceptions are explained in the regulations. A copy is enclosed. All persons seeking relocation assistance must certify, as a condition of assistance, that they are all citizens or nationals of the United States, or an alien lawfully present in the country. For families the certification may be made by the head of the household for all family members. This letter is important and should be retained. You will be contacted soon. In the meantime, if you have any questions about our plans, please contact (name), (title) at (phone), (address). Sincerely, (Name and Title) Enclosures (If the relocation brochure is enclosed, and the regulations) Grant Management Handbook (2013) Exhibit 8N

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67 Dear : Exhibit 8O (2013) GIN Displaced Residential Tenant General Information Notice---Displacement Residential Tenant LETTERHEAD (Date) On (date), (property owner) submitted an application to the (Grantee) for financial assistance to acquire the building, which you occupy at (property address). This notice is to inform you of your rights under Federal law. If the (grantee) is funded and acquires the property and you are displaced for the project, you will be eligible for relocation assistance under the Uniform Relocation Assistance and Real Property Acquisition Policies Act of 1970, as amended. However, do not move now. This is not a notice to vacate the premises. You should continue to pay your monthly rent to your landlord, because a failure to pay rent and meet your other obligations as a tenant may be cause for eviction and loss of relocation assistance. You are urged not to move or sign any agreement to purchase or lease a new unit before receiving formal written notice of your eligibility for relocation assistance. If you move or are evicted before receiving such notice, you may not receive any assistance. Please contact us before you make any moving plans. If the (grantee) acquires the property and your are eligible for relocation assistance, you will be given advisory services, including referrals to replacement housing, and at least 90 days advance written notice of the date you will be required to move. You would also receive a payment for moving expenses and may be eligible for financial assistance to help you rent or buy a replacement house. This assistance is more fully explained in the enclosed brochure, Relocation Assistance to Tenants Displaced from Their Homes. Legislative changes prevent persons who are aliens not lawfully present in the United States from receiving relocation benefits. Such aliens are not eligible for relocation advisory services and relocation payments, unless such ineligibility would result in exceptional hardship to a qualifying spouse, parent, or child. The exceptions are explained in the regulations. A copy is enclosed. All persons seeking relocation assistance must certify, as a condition of assistance, that they are all citizens or nationals of the United States, or an alien lawfully present in the country. For families the certification may be made by the head of the household for all family members. The (grantee) is required to have an appeal process. You have the right to appeal the determination as to your eligibility for assistance, should the project proceed. You may contact the individual identified on the enclosed brochure for additional information. If for any reason any other persons move into this unit with you after this notice, your assistance may be reduced. If you have any questions, please contact (name), (title), at (phone), (address). Grant Management Handbook (2013) Exhibit 8O

68 Exhibit 8O (2013) GIN Displaced Residential Tenant Again, this is not a notice to vacate and does not establish eligibility for relocation payments or other relocation assistance. If the (grantee) decides not to purchase the property, you will be notified in writing. Enclosures Sincerely, (Name and Title) Exhibit 8O (2013) Community Development Block Grant

69 Exhibit 8O (2013) GIN Displaced Residential Tenant Certification of Eligibility for Relocation Payments and Services Certification of legal residency in the United States (Please read instructions below before completing section.) Instructions: To qualify for relocation advisory services or relocation payments authorized by the Uniform Relocation Assistance and Real Property Acquisition Policies Act, a displaced person must be a United States citizen or national, or an alien lawfully present in the United States. The certification below must be completed in order to receive any benefits. (This certification may not have any standing with regard to applicable State laws providing relocation benefits.) Your signature/signatures on this claim form constitutes/constitute certification. The individual(s) listed below occupy/occupies the dwelling at. I, as head of household, hereby certify that all individuals are either United States citizens or nationals, or are aliens lawfully present in the United States. For unrelated individuals, each individual by affixing their signature below certifies that they are either a United States citizen or national, or an alien lawfully in the United States. (Signature and Date) (Signature and Date) (Signature and Date) (Signature and Date) (Signature and Date) (Signature and Date) Grant Management Handbook (2013) Exhibit 8O

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71 IMPORTANT! Lead From Paint, Dust, and Soil in and Around Your Home Can Be Dangerous if Not Managed Properly Children under 6 years old are most at risk for lead poisoning in your home. Lead exposure can harm young children, babies, and fetuses even before they are born. Homes, schools, and child care facilities built before 1978 are likely to contain lead-based paint. Even children who seem healthy may have dangerous levels of lead in their bodies. Disturbing surfaces with lead-based paint or removing lead-based paint improperly can increase the danger to your family. People can get lead into their bodies by breathing or swallowing lead dust, or by eating soil or paint chips containing lead. People have many options for reducing lead hazards. Generally, lead-based paint that is in good condition is not a hazard (see page 10). December 2012 Protect Your Family From Lead in Your Home United States Environmental Protection Agency United States Consumer Product Safety Commission United States Department of Housing and Urban Development

72 Are You Planning to Buy or Rent a Home Built Before 1978? Did you know that many homes built before 1978 have lead-based paint? Lead from paint, chips, and dust can pose serious health hazards. Read this entire brochure to learn: How lead gets into the body About health effects of lead What you can do to protect your family Where to go for more information Before renting or buying a pre-1978 home or apartment, federal law requires: Sellers must disclose known information on lead-based paint or leadbased paint hazards before selling a house. Real estate sales contracts must include a specific warning statement about lead-based paint. Buyers have up to 10 days to check for lead. Landlords must disclose known information on lead-based paint and lead-based paint hazards before leases take effect. Leases must include a specific warning statement about lead-based paint. If undertaking renovations, repairs, or painting (RRP) projects in your pre-1978 home or apartment: Read EPA s pamphlet, The Lead-Safe Certified Guide to Renovate Right, to learn about the lead-safe work practices that contractors are required to follow when working in your home (see page 12).

73 16 Consumer Product Safety Commission (CPSC) The CPSC protects the public against unreasonable risk of injury from consumer products through education, safety standards activities, and enforcement. Contact CPSC for further information regarding consumer product safety and regulations. CPSC 4330 East West Highway Bethesda, MD cpsc.gov or saferproducts.gov U. S. Department of Housing and Urban Development (HUD) HUD s mission is to create strong, sustainable, inclusive communities and quality affordable homes for all. Contact HUD s Office of Healthy Homes and Lead Hazard Control for further information regarding the Lead Safe Housing Rule which protects families in pre-1978 assisted housing and the lead hazard control and research grant programs. HUD 451 Seventh Street, SW, Room 8236 Washington, DC (202) hud.gov/offices/lead/ This document is in the public domain. It may be produced by an individual or organization without permission. Information provided in this booklet is based upon current scientific and technical understanding of the issues presented and is reflective of the jurisdictional boundaries established by the statues governing the co-authoring agencies. Following the advice given will not necessarily provide complete protection in all situations or against all health hazards that can be caused by lead exposure. U. S. EPA Washington DC U. S. CPSC Bethesda MD U. S. HUD Washington DC EPA-747-K December 2012 Simple Steps to Protect Your Family from Lead Hazards If you think your home has lead-based paint: Don t try to remove lead-based paint yourself. Always keep painted surfaces in good condition to minimize deterioration. Get your home checked for lead hazards. Find a certified inspector or risk assessor at epa.gov/lead. Talk to your landlord about fixing surfaces with peeling or chipping paint. Regularly clean floors, window sills, and other surfaces. Take precautions to avoid exposure to lead dust when remodeling. When renovating, repairing, or painting, hire only EPA- or stateapproved Lead-Safe certified renovation firms. Before buying, renting, or renovating your home have it checked for lead-based paint. Consult your health care provider about testing your children for lead. Your pediatrician can check for lead with a simple blood test. Wash children s hands, bottles, pacifiers, and toys often. Make sure children eat healthy, low-fat foods high in iron, calcium, and vitamin C. Remove shoes or wipe soil off shoes before entering your house. 1

74 2 Lead Gets into the Body in Many Ways Adults and children can get lead into their bodies if they: Breathe in lead dust (especially during activities such as renovations, repairs, or painting that disturb painted surfaces). Swallow lead dust that has settled on food, food preparation surfaces, and other places. Eat paint chips or soil that contains lead. Lead is especially dangerous to children under the age of 6. At this age, children s brains and nervous systems are more sensitive to the damaging effects of lead. Children s growing bodies absorb more lead. Babies and young children often put their hands and other objects in their mouths. These objects can have lead dust on them. Women of childbearing age should know that lead is dangerous to a developing fetus. Women with a high lead level in their system before or during pregnancy risk exposing the fetus to lead through the placenta during fetal development. U. S. Environmental Protection Agency (EPA) Regional Offices The mission of EPA is to protect human health and the environment. Your Regional EPA Office can provide further information regarding regulations and lead protection programs. Region 1 (Connecticut, Massachusetts, Maine, New Hampshire, Rhode Island, Vermont) Regional Lead Contact U.S. EPA Region 1 Suite 1100 (CPT) One Congress Street Boston, MA (617) Region 2 (New Jersey, New York, Puerto Rico, Virgin Islands) Regional Lead Contact U.S. EPA Region Woodbridge Avenue Building 205, Mail Stop 225 Edison, NJ (732) Region 3 (Delaware, Maryland, Pennsylvania, Virginia, DC, West Virginia) Regional Lead Contact U.S. EPA Region Arch Street Philadelphia, PA (215) Region 4 (Alabama, Florida, Georgia, Kentucky, Mississippi, North Carolina, South Carolina, Tennessee) Regional Lead Contact U.S. EPA Region 4 AFC Tower, 12th Floor, Air, Pesticides & Toxics 61 Forsyth Street, SW Atlanta, GA (404) Region 5 (Illinois, Indiana, Michigan, Minnesota, Ohio, Wisconsin) Regional Lead Contact U.S. EPA Region 5 (DT-8J) 77 West Jackson Boulevard Chicago, IL (312) Region 6 (Arkansas, Louisiana, New Mexico, Oklahoma, Texas, and 66 Tribes) Regional Lead Contact 1445 Ross Avenue, 12th Floor Dallas, TX (214) Region 7 (Iowa, Kansas, Missouri, Nebraska) Regional Lead Contact U.S. EPA Region Renner Blvd. WWPD/TOPE Lenexa, KS (800) Region 8 (Colorado, Montana, North Dakota, South Dakota, Utah, Wyoming) Regional Lead Contact U.S. EPA Region Wynkoop St. Denver, CO (303) Region 9 (Arizona, California, Hawaii, Nevada) Regional Lead Contact U.S. EPA Region 9 (CMD-4-2) 75 Hawthorne Street San Francisco, CA (415) Region 10 (Alaska, Idaho, Oregon, Washington) Regional Lead Contact U.S. EPA Region 10 Solid Waste & Toxics Unit (WCM-128) 1200 Sixth Avenue, Suite 900 Seattle, WA (206)

75 14 For More Information The National Lead Information Center Learn how to protect children from lead poisoning and get other information about lead hazards on the Web at epa.gov/lead and hud.gov/lead, or call LEAD (5323). EPA s Safe Drinking Water Hotline For information about lead in drinking water, call , or visit epa.gov/lead for information about lead in drinking water. Consumer Product Safety Commission (CPSC) Hotline For information on lead in toys and other consumer products, or to report an unsafe consumer product or a product-related injury, call , or visit CPSC s website at cpsc.gov or saferproducts.gov. State and Local Health and Environmental Agencies Some states, tribes, and cities have their own rules related to leadbased paint. Check with your local agency to see which laws apply to you. Most agencies can also provide information on finding a lead abatement firm in your area, and on possible sources of financial aid for reducing lead hazards. Receive up-to-date address and phone information for your state or local contacts on the Web at epa.gov/lead, or contact the National Lead Information Center at LEAD. Hearing- or speech-challenged individuals may access any of the phone numbers in this brochure through TTY by calling the tollfree Federal Relay Service at Health Effects of Lead Lead affects the body in many ways. It is important to know that even exposure to low levels of lead can severely harm children. In children, exposure to lead can cause: Nervous system and kidney damage Learning disabilities, attention deficit disorder, and decreased intelligence Speech, language, and behavior problems Poor muscle coordination Decreased muscle and bone growth Hearing damage While low-lead exposure is most common, exposure to high amounts of lead can have devastating effects on children, including seizures, unconsciousness, and, in some cases, death. Although children are especially susceptible to lead exposure, lead can be dangerous for adults, too. In adults, exposure to lead can cause: Harm to a developing fetus Increased chance of high blood pressure during pregnancy Fertility problems (in men and women) High blood pressure Digestive problems Nerve disorders Memory and concentration problems Muscle and joint pain 3

76 4 Check Your Family for Lead Get your children and home tested if you think your home has lead. Children s blood lead levels tend to increase rapidly from 6 to 12 months of age, and tend to peak at 18 to 24 months of age. Consult your doctor for advice on testing your children. A simple blood test can detect lead. Blood lead tests are usually recommended for: Children at ages 1 and 2 Children or other family members who have been exposed to high levels of lead Children who should be tested under your state or local health screening plan Your doctor can explain what the test results mean and if more testing will be needed. Other Sources of Lead While paint, dust, and soil are the most common sources of lead, other lead sources also exist: Drinking water. Your home might have plumbing with lead or lead solder. You cannot see, smell, or taste lead, and boiling your water will not get rid of lead. If you think your plumbing might contain lead: Use only cold water for drinking and cooking. Run water for 15 to 30 seconds before drinking it, especially if you have not used your water for a few hours. Call your local health department or water supplier to find out about testing your water, or visit epa.gov/lead for EPA s lead in drinking water information. Lead smelters or other industries that release lead into the air. Your job. If you work with lead, you could bring it home on your body or clothes. Shower and change clothes before coming home. Launder your work clothes separately from the rest of your family s clothes. Hobbies that use lead, such as making pottery or stained glass, or refinishing furniture. Call your local health department for information about hobbies that may use lead. Old toys and furniture may have been painted with lead-containing paint. Older toys and other children s products may have parts that contain lead. 4 Food and liquids cooked or stored in lead crystal or lead-glazed pottery or porcelain may contain lead. Folk remedies, such as greta and azarcon, used to treat an upset stomach. 4 In 1978, the federal government banned toys, other children s products, and furniture with lead-containing paint (16 CFR 1303). In 2008, the federal government banned lead in most children s products. The federal government currently bans lead in excess of 100 ppm by weight in most children s products (76 FR 44463). 13

77 12 Renovating, Remodeling, or Repairing (RRP) a Home with Lead-Based Paint If you hire a contractor to conduct renovation, repair, or painting (RRP) projects in your pre-1978 home or childcare facility (such as pre-school and kindergarten), your contractor must: Be a Lead-Safe Certified firm approved by EPA or an EPA-authorized state program Use qualified trained individuals (Lead-Safe Certified renovators) who follow specific lead-safe work practices to prevent lead contamination Provide a copy of EPA s lead hazard information document, The Lead-Safe Certified Guide to Renovate Right RRP contractors working in pre-1978 homes and childcare facilities must follow lead-safe work practices that: Contain the work area. The area must be contained so that dust and debris do not escape from the work area. Warning signs must be put up, and plastic or other impermeable material and tape must be used. Avoid renovation methods that generate large amounts of lead-contaminated dust. Some methods generate so much leadcontaminated dust that their use is prohibited. They are: Open-flame burning or torching Sanding, grinding, planing, needle gunning, or blasting with power tools and equipment not equipped with a shroud and HEPA vacuum attachment and Using a heat gun at temperatures greater than 1100 F Clean up thoroughly. The work area should be cleaned up daily. When all the work is done, the area must be cleaned up using special cleaning methods. Dispose of waste properly. Collect and seal waste in a heavy duty bag or sheeting. When transported, ensure that waste is contained to prevent release of dust and debris. To learn more about EPA s requirements for RRP projects visit epa.gov/getleadsafe, or read The Lead-Safe Certified Guide to Renovate Right. Where Lead-Based Paint Is Found In general, the older your home or childcare facility, the more likely it has lead-based paint. 1 Many homes, including private, federally assisted, federally owned housing, and childcare facilities built before 1978 have lead-based paint. In 1978, the federal government banned consumer uses of leadcontaining paint. 2 Learn how to determine if paint is lead-based paint on page 7. Lead can be found: In homes and childcare facilities in the city, country, or suburbs, In private and public single-family homes and apartments, On surfaces inside and outside of the house, and In soil around a home. (Soil can pick up lead from exterior paint or other sources, such as past use of leaded gas in cars.) Learn more about where lead is found at epa.gov/lead. 1 Lead-based paint is currently defined by the federal government as paint with lead levels greater than or equal to 1.0 milligram per square centimeter (mg/cm), or more than 0.5% by weight. 2 Lead-containing paint is currently defined by the federal government as lead in new dried paint in excess of 90 parts per million (ppm) by weight. 5

78 Identifying Lead-Based Paint and Lead-Based Paint Hazards Reducing Lead Hazards, continued Deteriorating lead-based paint (peeling, chipping, chalking, cracking, or damaged paint) is a hazard and needs immediate attention. Lead-based paint may also be a hazard when found on surfaces that children can chew or that get a lot of wear and tear, such as: On windows and window sills Doors and door frames Stairs, railings, banisters, and porches If your home has had lead abatement work done or if the housing is receiving federal assistance, once the work is completed, dust cleanup activities must be conducted until clearance testing indicates that lead dust levels are below the following levels: 40 micrograms per square foot (μg/ft 2 ) for floors, including carpeted floors 250 μg/ft 2 for interior windows sills 400 μg/ft 2 for window troughs Lead-based paint is usually not a hazard if it is in good condition and if it is not on an impact or friction surface like a window. Lead dust can form when lead-based paint is scraped, sanded, or heated. Lead dust also forms when painted surfaces containing lead bump or rub together. Lead paint chips and dust can get on surfaces and objects that people touch. Settled lead dust can reenter the air when the home is vacuumed or swept, or when people walk through it. EPA currently defines the following levels of lead in dust as hazardous: For help in locating certified lead abatement professionals in your area, call your state or local agency (see pages 14 and 15), or visit epa.gov/lead, or call LEAD. 40 micrograms per square foot (μg/ft 2 ) and higher for floors, including carpeted floors 250 μg/ft 2 and higher for interior window sills Lead in soil can be a hazard when children play in bare soil or when people bring soil into the house on their shoes. EPA currently defines the following levels of lead in soil as hazardous: 400 parts per million (ppm) and higher in play areas of bare soil 1,200 ppm (average) and higher in bare soil in the remainder of the yard Remember, lead from paint chips which you can see and lead dust which you may not be able to see both can be hazards. The only way to find out if paint, dust, or soil lead hazards exist is to test for them. The next page describes how to do this. 6 11

79 10 Reducing Lead Hazards Disturbing lead-based paint or removing lead improperly can increase the hazard to your family by spreading even more lead dust around the house. In addition to day-to-day cleaning and good nutrition, you can temporarily reduce lead-based paint hazards by taking actions, such as repairing damaged painted surfaces and planting grass to cover leadcontaminated soil. These actions are not permanent solutions and will need ongoing attention. You can minimize exposure to lead when renovating, repairing, or painting, by hiring an EPA- or statecertified renovator who is trained in the use of lead-safe work practices. If you are a do-it-yourselfer, learn how to use lead safe work practices in your home. To remove lead hazards permanently, you should hire a certified lead abatement contractor. Abatement (or permanent hazard elimination) methods include removing, sealing, or enclosing lead-based paint with special materials. Just painting over the hazard with regular paint is not permanent control. Always use a certified contractor who is trained to address lead hazards safely. Hire a Lead-Safe Certified firm (see page12) to perform renovation, repair, or painting (RRP) projects that disturb painted surfaces. To correct lead hazards permanently, hire a certified lead abatement professional. This will ensure your contractor knows how to work safely and has the proper equipment to clean up thoroughly. Certified contractors will employ qualified workers and follow strict safety rules as set by their state or by the federal government. Checking Your Home for Lead You can get your home tested for lead in several different ways: A lead-based paint inspection tells you if your home has leadbased paint and where it is located. It won t tell you whether your home currently has lead hazards. A trained and certified testing professional, called a lead-based paint inspector, will conduct a paint inspection using methods, such as: Portable x-ray fluorescence (XRF) machine Lab tests of paint samples A risk assessment tells you if your home currently has any lead hazards from lead in paint, dust, or soil. It also tells you what actions to take to address any hazards. A trained and certified testing professional, called a risk assessor, will: Sample paint that is deteriorated on doors, windows, floors, stairs, and walls Sample dust near painted surfaces and sampling bare soil in the yard Get lab tests of paint, dust, and soil samples A combination inspection and risk assessment tells you if your home has any lead-based paint and if your home has any lead hazards, and where both are located. Be sure to read the report provided to you after your inspection or risk assessment is completed, and ask questions about anything you do not understand. 7