OHIO DEPARTMENT OF TRANSPORTATION OFFICE OF REAL ESTATE. Changes and Updates to the Real Estate Manual

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1 OHIO DEPARTMENT OF TRANSPORTATION OFFICE OF REAL ESTATE DATE: March 10, 2017 TO: FROM: RE: Users of the Real Estate Manual James J. Viau, Manager, Relocation Section Changes and Updates to the Real Estate Manual The only current and accurate source of ODOT s Real Estate Manual is on the Office of Real Estate s website. This site is located at: Desired information can be accessed by scrolling down the left hand column and selecting Manuals. Specific information can be selected by clicking on the desired manual Section. The Real Estate Manual is ever evolving, as procedures are subject to revision and change. Individuals or firms providing relocation services on federal or state funded projects must perform these services in compliance with the most current policies and procedures. Individuals utilizing a hard copy version of the manual, without accessing the website for updates, risk providing non-compliant services to our Displacees. Therefore, all users must only use those manual Sections contained on our website. ODOT will provide notice of manual changes on the Design Reference Resource Center (DRRC) web page. Users of the manual can access this page and subscribe to be made aware of manual changes via notification. Then, when changes to the manual occur, ODOT will provide direct notice to the subscriber. This page can be accessed at Scroll down to Real Estate Policies and Procedures Manual and select the desired Section for updates, or enter your address to subscribe for changes. It is the user s responsibility to maintain their most current address on the DRRC notification system. The DRRC web site is updated four times annually. The Office of Real Estate may also provide additional guidance to its procedures by Inter-Office Communications (IOC s). These communications will be made a part of the Real Estate Manual and will be found in the Addenda of each Section of the manual.

2 Table of Contents 6100 GENERAL RELOCATION REQUIREMENTS Purpose of the Program Authority General Provisions Type of Interest Acquired Losses Due to Negligence Refusal of Assistance Property not incorporated into the project No Duplication of payments Prevention of Fraud, Waste, and Mismanagement Who must follow ODOT's Policy and Procedures Relocation Process Laws Acronyms Parcel Numbers Waivers of Relocation Assistance Benefits Joint Residential and Business Use Aliens Not Lawfully Present In The United States Documentation Relocation Review RE-611; Relocation Comparables & Price Differential Certification RE-111-2; Computation of Incidental Expenses Increased Interest Estimate and Payment RE-117; Residential Claim Form Move Authorization Letters - Residential REV-MAR i

3 Move Specifications Non Residential Move Bids Non Residential Move Cost Findings Move Authorization Letters Non-Residential Eligibility and Amount of a Non-Residential Fixed Payment RE-117-1; Non-Residential Claim Form Who can perform the Relocation review function? Appeal Procedure Time limit for initiating appeal How does a Displaced Person file an appeal? What is the procedure for investigating and reviewing an appeal? Definitions Acquisition Price Agency Alien Not Lawfully Present in the United States Alignment Business Comparable Replacement Dwelling Contributes Materially Decent, Safe and Sanitary (DS&S) Displaced Person Displacing Agency Displacement Dwelling Dwelling Site Economic Rent ii REV-MAR 17

4 Fair Market Value Estimate (FMVE) Farm Federal Agency Financial Means Functionally Equivalent Household Incidental Expenses Increased Interest Reimbursement Initiation of Negotiations Market Rent Mortgage Non-Profit Organization (NPO) Occupies Owner Partial Take Pay Room Person Persons not Displaced Pre-Acquisition Survey Project Residue Red Book Reputable Mover Small Business State State Agency Tenant Total Take REV-MAR iii

5 Typical Home Site Calculation (THSC) Uneconomic Remnant Uniform Act Unlawful Occupancy iv REV-MAR 17

6 6100 GENERAL RELOCATION REQUIREMENTS 6101 Purpose of the Program The purpose of the Relocation Assistance Program is to ensure the fair, consistent and equitable treatment of persons displaced as the result of State and/or Federal Aid projects or programs, so that such persons shall not suffer disproportionate hardship as a result of projects designed for the benefit of the public as a whole. Relocation is the process of assisting persons and businesses that are displaced by highway projects and ensuring that all replacement housing, moving and other benefits are offered in compliance with established law, policy and procedures. Relocation Assistance is provided to minimize hardships to persons adjusting to relocation by providing counseling, information as to other sources of assistance that may be available, and such other help as may be appropriate Authority The Authority for the relocation program is derived from: A. Chapter 163 of the Ohio Revised Code B. The Surface Transportation and Uniform Relocation Assistance Act of 1987 (aka The Uniform Act), Public Law C. The Ohio Administrative Code Sections 5501: through 5502: D. Section 49 part 24 of the Code of Federal Regulations 6103 General Provisions Type of Interest Acquired The type of property right acquired does not affect eligibility for payment of relocation costs; instead, it is when the right of way interest acquired is enough to cause displacement that creates a relocation parcel. Similarly, terms under which a tenant lawfully occupies property do not affect the tenant s eligibility for payment of relocation costs, if the tenant is displaced by a project. Rev-MAR

7 Losses Due to Negligence Losses due to negligence are not eligible for reimbursement if such loss is the responsibility of the Displaced Person, their agent, or employees Refusal of Assistance A Displaced Person can refuse relocation services and shall remain eligible for payments. However, the Displaced Person must meet payment requirements and submit a claim within prescribed time limits to qualify for relocation benefits. Should payments be refused, the file should be so documented and remain open until the end of the claiming period Property not incorporated into the project When the right of way interest acquired causes displacement, even though the property may not be included in the final project or right of way, relocation payments shall be made to the Displaced Person providing that all other eligibility requirements are fulfilled. An example of this would be if a person was displaced from a residence and they owned personal property in a garage which was located outside the take area. Since the acquisition caused displacement, and it is reasonable that the contents of the garage are related to the residence, the Displaced Person should be reimbursed for moving the contents of the garage No Duplication of payments No person shall receive any payment under the relocation program if that person receives a payment under Federal, State or local law which has the same purpose and effect as such payment Prevention of Fraud, Waste, and Mismanagement The Agency shall take all appropriate measures to carry out the relocation regulations in a manner that minimizes fraud, waste, and mismanagement Who must follow ODOT's Policy and Procedures ODOT's Relocation policy and procedures must be followed by: A. Personnel of the Ohio Department of Transportation and fee consultants hired by the Department who acquire rights of way needed for the development and/or rehabilitation of the State's highways. Any fee consultant utilized by ODOT must be pre-approved and be on the Department's list of pre-approved consultants Rev-MAR 17

8 B. Any local political subdivision (LPA) must comply with ODOT s Policy and Procedures on all right of way acquisition activities, including the relocation process, when the highway project has any Federal or State funding in any phase of project costs, including design, R/W and/or construction. 1. LPA staff must be pre-approved by ODOT prior to performing any relocation or relocation review functions when the project has any Federal or State participation in any phase of project costs. 2. The LPA may only utilize consultants who are pre-approved by ODOT to perform any part of the relocation or relocation review functions when the project has any Federal or State participation in the project Relocation Process Laws ODOT's policy and procedures for the relocation process have integrated Federal and State laws into its procedural processes to comply with all requirements so that persons displaced may be treated fairly and consistently, to encourage and expedite the acquisition process and to implement these policies and procedures in a cost effective manner. The processes for relocation include: 1. A Displaced Person shall be furnished with a general written description of the displacing Agency s relocation program. ODOT fulfills this requirement by presenting the Displaced Person with a Relocation brochure. There are separate brochures for residential parcels and non-residential parcels. a. 49 CFR (a) b. Ohio Administrative Code, Section 5501: (C)(1) 2. The Agency shall promptly notify all occupants in writing of their eligibility for applicable relocation assistance. Eligibility for relocation assistance typically begins at the initiation of negotiations (this is usually the acquisition offer), or within seven days thereafter. a. 49 CFR (b) b. Ohio Administrative Code, Section 5501: (C)(2) 3. No lawful occupant shall be required to move or be required to move personal property unless he or she has received at least 90 days advance written notice of the earliest date by which he or she may be required to move. Our 90-day notice is incorporated into each relocation assistance offer letter. a. 49 CFR (c) b. Ohio Administrative Code, Section 5501: (C)(3)(a) Rev-MAR

9 4. A person displaced from a dwelling cannot be required to move until 90 days after being provided with a comparable replacement dwelling. a. 49 CFR (a)(3) b. Ohio Administrative Code, Section 5501:2-5-02(C)(3)(c) 5. During the early stages of development, projects shall be planned in such a manner that any challenges associated with the displacement of individuals, families, businesses, farms and non-profit organizations are recognized and solutions are developed to minimize the hardships of displacement. This process results in the Relocation Conceptual Study. a. Uniform Act, Title II, Section 4625(a) b. 49 CFR (a) c. Ohio revised Code Section (A)(1) d. Ohio Administrative Code, Section 5501: (E)(1) 6. In addition to payments for relocation and moving, the displacing Agency must provide Advisory Services to Displaced Persons, families, and businesses. a. Uniform Act, Title II, Section 4625(b) b. 49 CFR (c) c. Ohio Revised Code Section (B) d. Ohio Administrative Code, Section 5501: (E)(3) 7. Payments received under the Relocation Assistance Program are not considered as income for the purpose of the Internal Revenue Code. a. Uniform Act, Title II, Section 4636 b. 49 CFR c. Ohio Administrative Code, Section 5501:2-5-02(I) 8. The Agency must review all claims in an expeditious manner and payments shall be made as soon as feasible following receipt of sufficient documentation to support the claim. a. 49 CFR (b) b. Ohio Administrative Code, Section 5501:2-5-02(G)(2) 61-4 Rev-MAR 17

10 9. In order to receive a Replacement Housing Payment, a person must own and occupy a decent, safe and sanitary replacement dwelling within one year after the later of, the date the displaced person receives final payment for the displacement dwelling or, in the case of condemnation, the date the full amount of the estimate of just compensation is deposited in the court; or the date the comparable has been made available. a. 49 CFR (a)(2) b. Ohio Administrative Code, Section 5501:2-5-04(A)(1)(b) 10. Amount of Replacement Housing Payment defined Acronyms a. 49CFR (b) b. Ohio Administrative Code, Section 5501:2-5-04(A)(2) The following are acronyms and their definitions commonly used in the relocation process. AAG = Assistant Attorney General CFR = Code of Federal Regulations DREA = District Real Estate Administrator DS&S = Decent Safe and Sanitary EIS = Environmental Impact Statement FHWA = Federal Highway Administration FMVE = Fair Market Value Estimate LPA = Local Public Agency OAC = Ohio Administrative Code ORC = Ohio Revised Code PID = Project Identification Number RAP = Relocation Assistance Program RHP = Replacement Housing Payment RSM = Realty Specialist Manager RSP = Rent Supplemental Payment THSC = Typical Home Site Calculation Rev-MAR

11 6107 Parcel Numbers Unit Parcel Numbers shall be assigned to each Relocation parcel. The prefix for each parcel number shall coincide with the parcel number assigned to the acquisition function exclusive of the property right to be acquired. The suffix will designate the type of the Relocation parcel and differentiate the parcel from other parcels which may exist on the same acquisition parcel. Below is an example of parcel numbers which would be used with acquisition parcel number 30: Residential Owner 30-O Residential Tenants 30-1, 30-2, 30-3, etc Business Owner 30-OB Business Tenants 30-1B, 30-2B, 30-3B, etc Personal property only, Owner 30-OP Personal property only, Tenants 30-1P, 30-2P, 30-3P etc Waivers of Relocation Assistance Benefits The Ohio Department of Transportation, or an LPA managing a project with Federal or State participation, shall not request a Displaced Person to waive relocation assistance benefits under the Uniform Act, nor shall it make a waiver from the Displaced Person a condition of an administrative or legal settlement Joint Residential and Business Use If a displaced individual or family occupies living quarters on the same premises as a business, farm, or non-profit organization, those individuals and families are considered separate relocation parcels. Non-residential and residential parcels have separate eligibility and benefits which must be administered based on the parcel designation. Care must be taken to avoid duplication of payments on joint-use parcels. (See Section 6605; Carve Outs) Aliens Not Lawfully Present In The United States Pursuant to 49 CFR , any person, head of household for a family, or owner of a business, seeking relocation payments or relocation advisory services must certify that they are either a citizen or national of the United States, or an alien who is lawfully present in the United States. This certification occurs when they sign the receipt for the relocation brochure and again when they sign the Relocation Claim form (RE-117 or RE-117-1). A. The Relocation Agent is required to explain the certification process to the Displaced Person, and in the absence of documentation or substantial evidence to the contrary, it will be assumed that the certification is valid. At all times, care shall be taken to collect and review certifications in a nondiscriminatory manner Rev-MAR 17

12 B. No relocation payments or relocation advisory assistance shall be provided to a person who has not provided the certification described in this Section or who has been determined to be not lawfully present in the United States, unless such person can demonstrate to the displacing Agency's satisfaction that the denial of relocation benefits will result in an exceptional and extremely unusual hardship to such person s spouse, parent, or child who is a citizen of the United States, or is an alien lawfully admitted for permanent residence in the United States Documentation The Relocation Agent shall document that all Relocation activities were carried out in compliance with law, regulations and policy and procedures. Relocation parcels are often unique and situations arise which can only be solved by using creative solutions. All solutions must conform to regulations and law. A. All correspondence with the Displaced Person shall be documented in the parcel file. This includes: All notices (with signed receipt upon delivery, when applicable), all letters, s and other correspondence exchanged with the Displaced Person. The date of all correspondence must be reported in the Agent s notes. B. All meetings and phone calls shall be documented in the Agent s notes. The notes shall list everyone present at meetings or on conference calls. The Displaced Person s response, concerns, issues and viewpoint should also be recorded in the notes. References to applicable correspondence should be clearly reflected in the notes. C. Any unusual or creative developments on a parcel shall be documented with a Memo to File. Memos to File should completely explain all of the facts involved in a situation and any related determinations or decisions Relocation Review Relocation review is the process of reviewing claims, forms, calculations, specifications and all other documentation on a relocation parcel. The review is to ensure that all relocation assistance activity is performed in compliance with 49 CFR Part 24, the Ohio Revised Code, the Ohio Administrative Code and ODOT Policies and Procedures. A person cannot review their own work and a consultant cannot review the work of a person employed by the same firm. It is the responsibility of the Relocation Agent to provide all relevant supporting documentation, as further described in this manual, to the Relocation Reviewer, and the Reviewer must review all of the documentation prior to approving any determinations or claims. The following forms and documents must be approved by the Reviewer prior to any determination of benefits or claims being presented to the Displaced Person: Rev-MAR

13 RE-611; Relocation Comparables & Price Differential Certification The Reviewer must approve the Maximum Price Differential before the offer is presented to the Displaced Person. By their approval, the Reviewer is stating that they concur with the following: the selected comparables, application of any carve-out, application of the 30% of income rule vs. site gross rent, application of any economic rent for the displacement site, and all computations. When applicable, the Reviewer must also approve the use of less than three comparables and the use of last resort housing. The Reviewer must also approve the final Replacement Housing Payment. The final Replacement Housing Payment includes the Price Differential Payment, reimbursement for incidental expenses and payment for increased interest, where applicable RE-111-2; Computation of Incidental Expenses The Reviewer must sign the RE approving the computation of Incidental Expenses Increased Interest Estimate and Payment A. The Reviewer must approve the increased interest estimate prior to this amount being presented to the Displaced Person. B. The Reviewer must approve the calculation of the increased interest payment prior to the amount being presented to the Displaced Person RE-117; Residential Claim Form The Reviewer must approve the claim form and all supporting documentation before the claim is presented to the Displaced Person Move Authorization Letters - Residential The Reviewer must approve the amount of move reimbursement before a move authorization letter is presented to the Displaced Person Move Specifications Non Residential The Reviewer must approve the final move specifications. This includes the inventory Move Bids Non Residential The Reviewer must approve the maximum reimbursable amount based on the moving bids. The Reviewer must also approve the request to use a single bid on low cost or uncomplicated moves Rev-MAR 17

14 Move Cost Findings Prior to a Relocation Agent using a Move Cost Finding, the Reviewer must approve that the finding is an acceptable method to use in determining a maximum move reimbursement on the parcel. The Reviewer must also approve the amount and the content of the Move Cost Finding after it has been prepared by the Relocation Agent and prior to it being presented to the Displaced Person Move Authorization Letters Non-Residential The Reviewer must approve the amount of move reimbursement before a move authorization letter is presented to the Displaced Person Eligibility and Amount of a Non-Residential Fixed Payment The Reviewer must approve the eligibility for a fixed payment in lieu of actual moving and related expenses prior to the option being offered to the Displaced Person. The Reviewer also must approve the final amount of the fixed payment RE-117-1; Non-Residential Claim Form The Reviewer must approve the claim form and all supporting documentation before the claim is presented to the Displaced Person. This would also include any reimbursement for search expenses, reestablishment expenses, and other related moving expenses Who can perform the Relocation Review function? A. Within ODOT, the review function may be performed by qualified: Central Office relocation staff and District Real Estate staff who have been authorized by Central Office. Central Office shall maintain a list of pre-approved staff Relocation Reviewers. B. The review function can also be performed by consultants and employees of Local Public Agencies who have been pre-approved by ODOT to perform the Relocation Review function. Central Office shall maintain a list of pre-approved LPA Relocation Reviewers and consultant Relocation Reviewers Appeal Procedure A Relocation Assistance appeal is an administrative procedure to review all actions that have been taken on a specific parcel to ensure that those actions conform to all prescribed laws, regulations, and policies & procedures. The appeal procedure ensures fair and equitable treatment and establishes that actual, reasonable and necessary costs are offered and reimbursed. Rev-MAR

15 All Displaced Persons shall be informed of their right to appeal any decision of the displacing Agency. All ODOT appeal procedures are in compliance with 49 CFR and OAC 5501: (J) A. Who can file an appeal and what items may be appealed? Any aggrieved person may file a written appeal with the Agency in any case in which the person believes that the Agency has failed to properly consider the person s application for assistance under this rule. Such assistance may include, but is not limited to, the person s eligibility for, or the amount of a relocation payment required under rules 5501: to 5501: of the Ohio Administrative Code Time limit for initiating appeal. The time period for filing an appeal shall be 120 days from the date the Displaced Person is presented with a denied claim form (RE-117 or RE-117-1). Where no claim is appropriate (generally a denial of eligibility), the 120 days would begin on the date the Displaced Person is notified, in writing, of their ineligibility for any payment How does a Displaced Person file an appeal? The Agency shall consider a written appeal regardless of form. A letter which outlines the specific reasons for an appeal should be sent to the Director of Transportation, Attention: Administrator of the Office of Real Estate, ODOT Central Office. When a Displaced Person expresses dissatisfaction, the Relocation Agent shall fully inform the Displaced Person of the appeal process. If necessary, the Agent shall assist the Displaced Person in drafting the appeal letter What is the procedure for investigating and reviewing an appeal? A. When an appeal letter is received in Central Office by the Administrator of the Office of Real Estate, it is forwarded to the Manager of the Relocation Section. B. The Displaced Person is notified in writing by ODOT Central Office that the appeal has been received, and that the matter is being investigated. C. A copy of the complete file is requested from the District Real Estate Administrator. 1. On ODOT acquired projects, a copy of the appeal letter is sent to the District Real Estate Administrator with a request for a copy of the file and the DREA s written report regarding the validity of the appeal Rev-MAR 17

16 2. If the project is outsourced, the DREA shall forward the request and a copy of the appeal letter to the outsource project manager. It is the outsource project manager s responsibility to copy the complete file and provide a written response to the appeal letter to the district. The DREA will then forward the file and the DREA s written report regarding the validity of the appeal to Central Office. 3. On LPA acquired projects, a copy of the appeal letter is sent to the District Real Estate Administrator, with a request for a copy of the file, and a written response to the appeal letter. It is the DREA s responsibility to obtain a copy of the file, and a response to the appeal letter from the LPA and/or LPA s consultant, and to forward the file and the DREA s written report regarding the validity of the appeal to Central Office. D. Upon Central Office receipt of the parcel file and the DREA s written report regarding the validity of the appeal, a review of all information will be made. If the items being appealed can be resolved at this step, the Displaced Person will be notified by certified mail, return receipt requested. Immediate action will then be taken to correct the appeal issues. The DREA will be notified of Central Office s findings and will be responsible to see that the district, LPA, or consultant staff is made aware of the findings and makes any necessary corrections. E. If the appeal cannot be resolved at this point, the Central Office Relocation Section will proceed with a more in depth investigation. This investigation will include a thorough desk review of the file and interviews with the Displaced Person and/or their legal representatives. F. During the meeting with the Displaced Person, the basis for the appeal will be discussed. Any factual information or material which the Displaced Person presents in support of the complaint shall be obtained and given full consideration in the final analysis of the appeal. G. Following the meeting with the Displaced Person, additional interviews may be conducted, as necessary, with the relocation agent, the project manager, moving companies, lending institutions, or any other person directly involved with the relocation parcel. H. Upon completion of Central Office s review, a written report will be made to the Administrator of the Office of Real Estate. The report will include discussion of the items being appealed, facts relevant to the case, a synopsis of the applicable laws or regulations, and a recommended solution to the appeal. I. Upon the Administrator's approval, the report and recommendation along with all relevant information will be forwarded to the Director of Transportation or their designee, who will make the final administrative decision regarding the case. J. Following the Director s decision, the Displaced Person will be notified of the results of the appeal. This notification will be sent by certified letter, return receipt requested. The DREA Rev-MAR

17 will be notified of Central Office s findings and will be responsible to see that the district, LPA, or consultant staff makes any applicable corrections Definitions For the purpose of this manual, the following terms are defined: Acquisition Price Acquisition price is the price paid by the acquiring Agency for the real property. Acquisition price is the sum of the fair market value or court award and any additional monies received through an administrative review or a revised fair market value Agency Agency means the State, the State Agency or a local political subdivision of the State (LPA), that acquires the real property or displaces a person Alien Not Lawfully Present in the United States The phrase "alien not lawfully present in the United States" means an alien who is not "lawfully present" in the United States as defined in 8 CFR and includes: A. An alien present in the United States who has not been admitted or paroled into the United States pursuant to the Immigration and Nationality Act and whose stay in the United States has not been authorized by the United States Attorney General; and, B. An alien who is present in the United States after the period of stay authorized by the United States Attorney General has expired or who otherwise violates the terms and conditions of admission, parole or authorization to stay in the United States Alignment Alignment means any one, several, or combination of proposed locations for a highway project Business Business means any lawful activity, except a farm (see Section ), that is conducted primarily for: The purchase, sale, lease and/or rental of personal and/or real property, and/or for the manufacture, processing, or marketing of commodities, and/or any other personal property; and/or the sale of services to the public; and/or non-profit activities by an organization which has established its non-profit status under applicable State laws Rev-MAR 17

18 Comparable Replacement Dwelling Comparable Replacement Dwelling is one that is: A. Decent, safe and sanitary, as defined in Section ; B. Functionally equivalent to the acquired dwelling, as defined in Section ; C. Adequate in size to accommodate the occupants with particular attention to the number of rooms and square footage. Only in unusual or special circumstances may a comparable replacement dwelling contain fewer rooms or less square footage than the displacement dwelling. For example, a smaller decent, safe, and sanitary replacement dwelling may be functionally equivalent to a larger but very run-down substandard displacement dwelling. D. Is in an area that is not subject to unreasonable adverse environmental conditions; generally not less desirable than the location of the acquired dwelling with respect to public utilities and commercial and public facilities; and reasonably accessible to the person's place of employment; E. On a site that is typical in size for residential development with normal site improvements, including customary landscaping. The site need not include special improvements such as a swimming pool, greenhouse or outbuildings; F. Fair and open housing, which is currently available to the Displaced Person; G. Within the financial means of the Displaced Person, A comparable replacement dwelling is considered to be within the financial means of a Displaced Person when: 1. For a home owner of 90 days or more, they would be able to purchase the prime comparable property without spending more per month on a mortgage payment than before acquisition, upon receiving the full replacement housing price differential offer, all eligible increased interest costs, and all eligible incidental costs, as further described in Section For a 90 day occupant who rents their replacement dwelling, they would be able to rent the prime comparable property upon receiving the full rental assistance price differential, and the person s monthly rent and estimated average monthly utility costs for the comparable would not exceed the person s gross monthly rent and utility amounts at the displacement dwelling, as further described in Section Rev-MAR

19 a. For a person who s lease of the displacement site was not considered an arms-length rental amount (not within a reasonable range of similar housing in the project area), the economic rent of that unit shall be used when computing costs, unless using an economic rent would result in a hardship because of the person s income or other circumstances. 3. For a Displaced Person who is not eligible to receive a Replacement Housing Payment because of the person s failure to meet length of occupancy requirements, comparable replacement rental housing is considered to be within the person s financial means if an Agency computes their rental assistance entitlement offer in conformance with Section (G)(2)&(2)(a) above. Rental assistance paid under this part will be paid under Last Resort Housing provisions Contributes Materially Contributes materially means that during the two taxable years prior to the taxable year in which displacement occurs, or during such other period as the Agency determines to be more equitable, a business or farm operation: A. Had average annual gross receipts of at least $5,000.00; or B. Had average annual net earnings of at least $1,000.00; or C. Contributed at least one third of the owner's or operator's average annual gross income from all sources. In any case, if the application of the above criteria creates an inequity or hardship, the Agency may approve use of other criteria as it deems appropriate Decent, Safe and Sanitary (DS&S) Decent, Safe and Sanitary (DS&S) means a dwelling which: A. Meets all applicable local housing and occupancy codes; or B. If any dwellings are not covered by local codes or such codes do not meet the minimum requirements set forth herein, then the following standards shall apply, unless waived by the Agencies funding the project; 1. Structurally sound, weather tight and in good repair; 2. Contains a safe electrical system adequate for lighting and other electrical devices; Rev-MAR 17

20 3. Contains a heating system capable of maintaining a temperature of approximately 70 degrees; 4. Has a continuing and adequate supply of suitable drinking water and is connected to an adequate sewage disposal system; 5. The selected comparable and replacement dwelling must be adequate in size to accommodate the number of family members occupying the dwelling; a. Children of the opposite sex under the age of ten (10) may occupy the same bedroom. b. One child under the age of two (2) may occupy the parent s bedroom. c. Except for the above situations and married couples or couples living together by mutual consent, persons of the opposite sex should not be required to occupy the same bedroom. 6. There shall be a separate lighted and ventilated bathroom that provides privacy for the user, that contains a sink, bathtub or shower stall, and a toilet, all in good working order, and properly connected to appropriate sources of water and to a sewage system; 7. Contains unobstructed egress to safe, open space at ground level. If the replacement dwelling unit is on the second floor or above, with access directly from or through a common corridor, such corridor must have at least two means of egress. 8. For a disabled Displaced Person, be free of any barriers which would prevent reasonable ingress, egress or use of the dwelling by such person. C. A determination by the Agency that a dwelling meets the standards for decent, safe and sanitary housing is made solely for the administrative purpose of determining the eligibility of Displaced Persons for payment under the Relocation Assistance Program and is not a representation for any other purpose. The Agency makes no representations regarding the structural integrity or soundness of the dwelling, and assumes no responsibility or liability for any problems that may arise with the property. Every home buyer can and should hire a professional home inspector as part of the replacement home purchase, and in most cases reasonable home inspection costs will be reimbursed as incidental expenses. See Section of this manual for more specific eligibility requirements related to incidental expenses. Rev-MAR

21 Displaced Person Displaced Person means any person who moves from the real property or moves their personal property from the real property: A. As a direct result of a written notice of intent to acquire, the initiation of negotiations for, or the acquisition of, such real property in whole or in part for a project. This includes a person who does not meet the length of occupancy requirements of Sections 6602 and 6603 of this manual. B. As a direct result of rehabilitation or demolition for a project; or C. As a direct result of a written notice of intent to acquire, or the acquisition, rehabilitation or demolition of, in whole or in part, other real property on which the person conducts a business or farm operation Displacing Agency Displacing Agency means any State Agency, Local Public Agency, or person carrying out a program or project with Federal financial assistance, or carrying out any State Transportation project, that causes a person to be displaced Displacement Displacement means the date of the move, or for large complex moves, the date the move commences Dwelling Dwelling means the primary place of permanent or customary and usual residence of a person according to local custom or law and includes a single family house, a single family unit in a two family building, multi-family building or multi-purpose property, a condominium or cooperative housekeeping unit, a mobile home or any other type of residential unit Dwelling Site The term dwelling site means a land area that is typical in size for similar dwellings located in the same neighborhood or geographic area Economic Rent Economic Rent is defined as monthly market rent (e.g., the rental rate the specific unit would bring if available for rent on the open market) Rev-MAR 17

22 Fair Market Value Estimate (FMVE) FMVE is the Agency s valuation of the real estate to be acquired, including any necessary easements and/or damages to the residue. The valuation determines the amount of the acquisition offer made to the owners Farm Farm means any activity conducted solely or primarily for the production of one or more agricultural products or commodities, including timber, for sale or personal use, and customarily producing such products or commodities in sufficient quantity to be capable of contributing materially to the operator's support Federal Agency Federal Agency means any department, Agency or instrumentality in the Executive Branch of the government, a wholly owned government corporation, and the Federal Reserve Bank and branches thereof Financial Means A comparable replacement dwelling is considered to be within the financial means of a Displaced Person when: A. For a home owner of 90 days or more, they would be able to purchase the prime comparable property without spending more per month on a mortgage payment than before acquisition, upon receiving the full replacement housing price differential offer, all eligible increased interest costs, and all eligible incidental costs, as further described in Section B. For a displacee who decides to rent their replacement dwelling, they will receive their full rental assistance price differential, and the person s monthly rent and estimated average monthly utility costs for the comparable would not exceed the person s gross monthly rent and utility amounts at the displacement dwelling, as further described in Section a. For a person who s lease of the displacement site was not considered an arms-length rental amount (not within a reasonable range of similar housing in the project area), the economic rent of that unit shall be used when computing costs, unless using an economic rent would result in a hardship because of the person s income or other circumstances. C. For a Displaced Person who is not eligible to receive a Replacement Housing Payment because of the person s failure to meet length of occupancy requirements, comparable replacement rental housing is considered to be within the person s financial means if an Agency computes Rev-MAR

23 their rental assistance entitlement offer in conformance with Section (B)&(B)(a) above. Rental assistance paid under this part will be paid under Last Resort Housing provisions Functionally Equivalent Functionally Equivalent means that components of the comparable dwelling perform the same function and provide the same utility as that found in the displacement dwelling. While a comparable replacement dwelling need not possess every feature of the displacement dwelling, the principal features must be present. Generally, functional equivalency is an objective standard, reflecting the range of purposes for which the various physical features of a dwelling may be used. However, in determining whether a replacement dwelling is functionally equivalent to the displacement dwelling, the Agency may consider reasonable trade-offs for specific features when the replacement unit is equal to or better than the displacement dwelling. For example, if the displacement dwelling contains a pantry and a similar dwelling is not available, a replacement dwelling with ample kitchen cupboards may be acceptable. Insulated and heated space in a garage might prove an adequate substitute for basement workshop space. A dining area may substitute for a separate dining room. Under some circumstances, attic space could substitute for basement space for storage purposes, and vice versa Household A household is two or more individuals who are living together in a dwelling unit and who are: A. Related by blood or law and live together as a single household; or B. Not related but live together as a single household; or C. All other individuals who are considered part of the household unit Incidental Expenses Incidental Expenses are those reasonable costs actually incurred by the Displaced Person incident to the purchase of a replacement dwelling. Only those costs typically incurred by a buyer are reimbursable (see Section ) Increased Interest Reimbursement Increased Interest Reimbursement is the amount that will reduce the mortgage balance on a new mortgage to an amount that could be amortized with the same monthly payment for principal and interest and for the same remaining term as that for the mortgage(s) on the displacement dwelling. (See Section ) Rev-MAR 17

24 Initiation of Negotiations Initiation of Negotiations for the parcel is the date the acquisition agent presented the written offer to the owner for the purchase of the real property. In the event that a person moves after the Agency issues its notice of eligibility or letter of intent to acquire, but before the delivery of the initial written purchase offer, the initiation of negotiations means the date the person moves from the property Market Rent Market Rent is that rental rate that a property would bring if placed on the open real estate market. This term is synonymous with Economic Rent (see Section ) Mortgage A mortgage is a recorded lien against real property and is commonly given to secure the unpaid debt related to the purchase price of the property, according to applicable State law. A recorded land contract is to be considered a mortgage Non-Profit Organization (NPO) A Non-Profit Organization is an approved corporation, partnership, individual or other public or private entity, as defined under Section of the Ohio Revised Code and registered with the Office of the Secretary of State, that is exempt from paying Federal income taxes under Section 501 of the Internal Revenue Code (26 U.S.C. 501). Such organization must be engaged in a business, professional or institutional activity on a non-profit basis, necessitating fixtures, equipment, stock in trade or other tangible property for carrying out their business on the premises Occupies Occupies means that an owner or tenant is established in an acquired site or replacement dwelling as their permanent and legal place of residence. A person who is temporally not in physical occupancy due to health or other similar circumstances but who fully intends to return to the dwelling is considered to be an occupant Owner An owner is any person who holds any of the following interests in real property acquired for a project: A. Fee title, a life estate, a 99 year lease, or a lease including any options for extensions with at least 50 years to run from the date of acquisition; or Rev-MAR

25 B. An interest in a cooperative housing project which includes the legal right to occupy a dwelling unit; or C. A contract to purchase any of the interests or estates noted in A or B above; or D. Any other interest, including a partial interest, which in the judgment of the Agency warrants consideration as ownership Partial Take Partial Take means that only a portion of a larger parcel is required and to be acquired for the project Pay Room A pay room is an area containing personal property, identified for purposes of payment under the residential fixed move cost schedule, and may include such rooms as a finished basement or attic. The addition of a pay room to cover the cost of moving personalty from outbuildings, storage rooms, workshops, etc., is permissible with sufficient justification and documentation Person Person means any individual, family, partnership, corporation or association Persons not Displaced Persons not displaced include those noted in the following non-exclusive listing: A. A person who moves before the initiation of negotiations unless the Agency determines that the person was displaced as a direct result of the program or project; or B. A person who enters into occupancy of the property after the date of its acquisition by the Agency for the project; or C. A person who has occupied the property solely for the purpose of obtaining assistance under the Uniform Act; or D. A person who is not required to relocate permanently as a direct result of the project. Such determination shall be made by the Agency in accordance with any guidelines established by the Federal Agency funding the project; or E. An owner occupant who voluntarily conveys his or her property. Voluntary transactions meet all of the following conditions: Rev-MAR 17

26 1. No specific site or property needs to be acquired, although the Agency may limit its search for alternative sites to a general geographic area. Where an Agency wishes to purchase more than one site within a geographic area on this basis, all owners are to be treated similarly, and: a. The property to be acquired is not part of a planned or designated project area where all or substantially all of the property within the area is to be acquired within a specific time limit; and, b. The Agency will not acquire the property in the event negotiations fail to result in an amicable agreement, and the owner is so informed in writing; and, c. The Agency will inform the owner of what it believes to be the fair market value of the property, unless the owner waives this right in the case of a donation. 2. Acquisitions for projects or programs undertaken by an Agency or person that received Federal financial assistance but who does not have authority to acquire property by eminent domain provided that such Agency or person shall: a. Prior to making an offer for the property, clearly advise the owner that it is unable to acquire the property in the event negotiations fail to result in an amicable agreement; and, b. Inform the owner of what it believes to be fair market value of the property, unless the owner waives this right in the case of a donation. However, the displacement of a tenant as a direct result of any acquisition, rehabilitation or demolition for a Federal or Federally assisted program or project will be considered a Displaced Person. F. A person whom the Agency determines is not displaced as a direct result of a partial acquisition; or G. A person who, after receiving a notice of relocation eligibility is notified in writing that he or she will not be displaced for a project. Such notice shall not be issued unless the person has not moved and the Agency agrees to reimburse the person for any expenses incurred to satisfy any binding contractual relocation obligations entered into after the effective date of their notice of relocation eligibility; or H. A person who retains the right of use and occupancy of the real property for life following its acquisition by the Agency; or Rev-MAR

27 I. A person who is determined to be in unlawful occupancy prior to the initiation of negotiations, or a person who has been evicted for cause under applicable law Pre-Acquisition Survey A Pre-Acquisition Survey is a relocation assistance survey during which specific information regarding the occupants of a structure to be acquired for the project is gathered through personal interviews with those occupants. In most every instance, the Site Occupancy Interview Form and the RE-95, Site Inventory Classification Form, are completed during the Pre-Acquisition Survey Project Project means any activity or series of activities undertaken with Federal financial assistance received or anticipated to be received, in any phase of an undertaking in accordance with the Federal funding Agency guidelines, or State Transportation projects Residue The residue is that portion of a property owner s land remaining after the Agency s acquisition for a project Red Book Red Book refers to material required by the Ohio Revised Code (163.06) when an appropriation case is filed with the court. The Red Book preserves evidence about the value and condition of structures to be acquired Reputable Mover A reputable mover is one regularly engaged in the movement of personal property and who is in compliance with all applicable licensing and industry regulations Small Business A small business means a business having 500 employees or less working at the site being acquired and that site is the location of economic activity State For the purposes of implementing these relocation policy and procedures, the term State means the State of Ohio and/or any of the political subdivisions of the State Rev-MAR 17