RELOCATION 101 BASIC RELOCATION UNDER THE UNIFORM ACT PARTICIPANT S MANUAL
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1 RELOCATION 101 BASIC RELOCATION UNDER THE UNIFORM ACT PARTICIPANT S MANUAL
2 ODOT Relocation Basic Relocation Participant s Workbook 1
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4 ODOT Relocation Basic Relocation Participant s Workbook 3
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35 Module 1 Quiz 1. State the underlying theme of the Uniform Act by choosing the BEST statement below: a) People who have their property acquired as a result of a government project will be treated in a uniform, fair and consistent manner. b) People who are displaced as a result of any State or Federal project will be treated in a uniform, fair and consistent manner. c) People who have their property acquired or who are displaced as a result of a Federal or federally funded project will be treated in a uniform, fair and consistent manner. d) People who have their house acquired or who are displaced as a result of a funded project will be treated in a strict and uniform manner. 2. Differentiate among a law, a regulation and a procedure by matching the items in Column A with the items in Column B. Draw lines to connect the matching items. Column A Column B a. The law The State and local Agencies are responsible for preparing these. b. Federal Regulations It is the Uniform Act prepared by Congress c. Policy and Procedures FHWA, in its role as the Lead Agency, works with the other Federal Agencies to develop these. 3. To define an appraisal based on the Federal Regulations, complete the statement below that states some of the key elements of an appraisal. An appraisal is a written statement, independently and prepared by a qualified as of a specific. It states an opinion of defined value that adequately describes the property. The appraisal must be supported by presentation and analysis of relevant information. ODOT Relocation 101 Page 1 Quiz Module 1
36 4. State the purpose for an administrative settlement by choosing the most accurate statement below: An administrative settlement: a) Requires an owner s appraisal as justification. b) Permits settlement in excess of the approved just compensation. c) Must have an appraisal basis for settlement. d) Can only be used in trials. 5. Explain the roles of the appraiser, the review appraiser and the Agency by completing the explanation below: The appraiser estimates the fair market value of the property being acquired. The review appraiser then recommends the appraisal as the basis for establishing the amount of. An authorized employee of the Agency establishes the amount believed to be which cannot be than the approved appraisal. 6. The Uniform Act has been promulgated in CFR, Part. ODOT Relocation 101 Page 2 Quiz Module 1
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55 Module 2.1 Case Study The Relocation Plan Priority Ladder Project Information The subject project is an expansion of an existing east / west roadway by the State DOT in a developing community. The right-of-way acquisitions for this project include the following: Total take of a gas station Eight-Family apartment building Two single-family residences A single-family residence which includes a licensed auto body repair shop in a separate building Two businesses located at the intersection of the expanded roadway and cross street Right-of-way acquisition is scheduled to begin in six months, with a construction letting scheduled one year after r/w acquisition begins. The Agency has completed all interviews except for the business owner of a bar and package store. Your group has received twenty cards listing information that may be relevant to the development of the relocation plan for this project in one of the following categories: Residential interviews (Yellow) The Smith s have 6 children; all 8 family members currently live in a 3 bedroom home; they are owner-occupants; low-income and cannot afford higher real estate taxes. A disabled grandparent may require level entry at the replacement dwelling. 6 tenants occupy dwellings and receive government rental assistance. Elderly couple occupies a 5 bedroom, 50 year old house. Business interviews (Pink) Business disposes of hazardous materials as part of its operation. Language barrier exists with business owner who speaks little English. Auto body repair shop has two bays; one with a pit and one with a hydraulic lift the lift is personal property Bar and package store will be displaced.
56 Availability of replacement sites (Blue) Housing Authority says they have no units available for displaced persons receiving government assistance. There are adequate rental replacement dwellings on the south end of town, which is generally considered less desirable than subject area. Housing market appears tight especially for 3 and 4 bedroom rentals. You need to estimate the value of each owner-occupied dwelling to determine if housing of last resort will be needed Concurrent displacements (Salmon) Proposed second phase of the subject project, possibly two years from now, will displace a large number of tenants Local airport authority considering runway expansion may affect residential neighborhood area City has project displacing 20 residences / 3 businesses beginning in 6 months State is implementing a first-time home buyer program Schedule (Green) Business with 6 employees will need to build a replacement facility Phase I environmental studies show that 3 properties need Phase II environmental assessments Property management section asks for a list of all property owner names and addresses to prepare for demolition Consultant engineering firm informs DOT they are behind schedule in completing design plans Prioritize the information listed on each card in relation to the relocation plan so that the one your group thinks is the most important to consider when developing a relocation plan for this project will receive a 1 and the least important will receive a 4. Appoint a spokesperson for the group to explain your group s reasoning. We will then discuss your reasoning and logic used in prioritizing the items for your relocation plan. Note: Assume the NEPA process is complete.
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64 Module 2 Quiz 1. State the ideal time to conduct relocation planning by choosing the BEST statement below: a. During the early stages of project development b. When you have all of the data and information you need to write your relocation plan c. When the Agency receives the go-ahead to finalize the relocation plan d. During the final environmental report stage 2. True or False: Pre-Acq Surveys include personal interviews with displacees 3. True or False: Conceptual Reports include more detail than Pre-Acq s 4. True or False: RE-95 s and personal property inventories are completed during the Conceptual Study 5. What is the purpose of the RE-95? a. It provides an inventory of the personal property to be moved b. It delineates between what is real and personal property c. It shows what is owned by the fee owner and tenant d. Answers b and c are correct e. Answers a, b and c are all correct 6. Match the four relocation notices with their respective purposes by drawing lines to connect the items in Column (A) and Column (B) Column (A) Column (B) A. General Information Notice 1. Establishes eligibility for relocation assistance prior to the initiation of negotiations B. Notice of Relocation Eligibility 2. Notification to the displaced person that he or she may be displaced by the project C. Ninety-Day Notice 3. Informs displaced person that he or she will be displaced by the project D. Relocation Notice of Intent to Acquire 4. Notifies the displaced persons that they have a maximum of 90 days to move 5. Assures displaced persons they will have a minimum of 90 days to move ODOT Relocation 101 Page 1 Quiz Module 2
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71 Case Study 3.1 Replacement Housing Payment Eligibility For the following situations, list the replacement housing payments for which the displaced persons may be eligible. 1. The Maynard sisters inherited their dwelling and moved in two years ago. A state and federally funded highway project requires the acquisition of their home. 2. Doug and Baia Maitland purchased their home and moved in five years ago. The City, via an ODOT programmed LPA project, is rerouting the highway in their neighborhood and must acquire the Maitland s home. 3. ODOT is acquiring Jake Gilmore s house for a highway widening project. Jake purchased the home 10 years ago and moved in two months ago when his tenant moved out.
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74 Case Study 3.2 Rent Supplemental Payment Eligibility For the following situations, list the replacement housing payments for which the displaced persons may be eligible. 1. Stephanie Castner and her roommate rent a large house. They have been in occupancy for two years and each pays one-half of the rent. ODOT will purchase the building. 2. Raymond Lorello and his family have rented a three-bedroom duplex since June 1 st. The City of Steubenville is acquiring the duplex as part of a federally funded light rail facility and makes an offer to acquire the property from the owner/landlord on October 1 st. 3. In January, Apartment 222 was vacant. Negotiations for the property acquisition began with the owner of the apartment building on February 12th and the owner informs ODOT that the Sheets family moved in on February 1 st.
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77 Case Study 3.3 Relocation Housing Assistance Eligibility For the following situations, list the replacement housing payments for which the displaced persons may be eligible. 1. Dina Eaton moved into the dwelling one week after the initiation of negotiations. She was desperate for a place to live and the landlord told her that she would not be able to stay long term since the landlord intended to sign shortly with ODOT. 2. Wayne Pace, a long term owner-occupant, is negotiating with the City of Gahanna which needs to acquire his home as part of a roadway relocation project. The home is occupied by Wayne and his son, Jared. A week before closing, Wayne suddenly dies and Jared inherits the home. The will is probated in one week and Jared is now the sole owner of the property. He closes with the City one week later on the same terms and conditions his father previously accepted. 3. Kevin O Grady is a Canadian citizen who resides in the United States for employment reasons. He readily acknowledges that he is not legally present in the United States and is not legally employed here in the US. His dwelling is being acquired for a federally funded project. Kevin occupied his dwelling four months prior to the initiation of negotiations.
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80 Case Study 3.4 Relocation Housing Payment Eligibility For the following situations, list the replacement housing payments for which the displaced persons may be eligible. 1. The Nussbaums have moved a modular home to a lakefront lot in the Apple Valley development, and they occupy it on the weekends. The lakefront lot will be acquired for a federally funded project. 2. The City of Fremont needs to acquire Harvey Norton s house for a highway improvement project. After acquisition, Harvey leases the house back from the City for six months at a fair market rent of $900/month, which is higher than the mortgage payment he was making on the house for the past 20 years. Harvey was the original owner-occupant and then became a hold-over tenant. 3. The Donleys move from rental property two weeks ahead of ODOT s offer to purchase to the fee owner. They contact ODOT and inquire about their relocation assistance payments.
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99 Case Study 3.5 Comparable Concepts in Replacement Housing We will be watching a video that describes different concepts concerning comparable replacement housing. The video has two stops which ask questions. At each stop we will take a few minutes to answer the question, and then we will discuss the answer as a group. Which replacement dwelling is functionally equivalent to the displacement dwelling?
100 Which house would you choose as the comparable replacement dwelling? Subject Dwelling 10 Rooms, 5 Bedrooms, 3.5 baths, 3,800 square feet, side yard with a pond Comparable No. 1 Same age as subject Smaller less living area Same neighborhood Comparable No. 2 Modern Replica Smaller less living area Nearby neighborhood Comparable No. 3 Same age, but much more expensive Constructed of better materials Similarly sized Nearby neighborhood, considered better location
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103 Quiz Module 3 1. Group four classes of displaced persons with their respective replacement housing payments by placing the letters a, b, c, and d, in the blank space after each group of payments. In one case, you will use more than one letter. a. The 90 day owner-occupant. b. The 90 day tenant-occupant. c. Less than 90 day occupant (payment would be made via Last Resort Housing). d. Persons ineligible for replacement housing payments. 1) No payments. 2) Rental assistance or down payment assistance. 3) Price differential, mortgage interest differential, incidental expenses, rental assistance. 2. Circle four decent safe and sanitary standards. There are a total of eight correct ones in the list, and there are four that are incorrect. (All of your four must be correct for you to get credit for this question.) 1. Structurally sound 2. Must have a ramp at one of the points of ingress/egress 3. Safe wiring system 4. Adequate heating system 5. Adequate cooling system ODOT Relocation 101 Page 1 Quiz Module 3
104 6. Adequate in size with respect to number of rooms and area of living space needed to accommodate the displaced person 7. Separate bathroom 8. The bathroom must have a tub and a shower 9. Living room area 10. Kitchen area must have a sink, stove hook-up and refrigerator hook-up 11. Safe, unobstructed egress 12. Barrier-free for persons with disabilities ODOT Relocation 101 Page 2 Quiz Module 3
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124 Case Study 4.1 Replacement Housing Payments Your Owner-Occupant Displacee, Montgomery Dagley, lives alone at 4251 Colerain Avenue, Cincinnati, OH, He moved in on June 12, The neighborhood used to be full of families with children, now there are many empty homes and it is not what it used to be. The house is a single family, two-story brick home with 1,156 Sq. Ft. of living space, featuring four rooms total, two bedrooms, a living room, kitchen/dining room and one full bath. There is a full basement and it is unfinished. The lot is narrow and is 0.70/acres. There is no garage or off street parking, and the house was built in The home has city sewer & water. The home has been appraised and its FMVE is set at $78, Based on the information you gathered, and your work locating comparable properties, you found the following three comparables: Comp 1: 4267 Virginia Avenue, Cincinnati, OH, (0.4 miles from the subject), Offered for $93,500 The house is a single family, two-story brick home with 1,100 Sq. Ft. of living space, featuring four rooms total, two bedrooms, a living room, kitchen/dining room and one full bath. There is a partial basement and it is finished. The lot is wide and is 1.25/acres. There is no garage or off street parking, and the house was built in The home has city sewer & water. Comp 2: 4234 Kirby Avenue, Cincinnati, OH, (0.3 miles from the subject), Offered for $87,250 The house is a single family, one-story stucco home with 1,253 Sq. Ft. of living space, featuring four rooms total, two bedrooms, a living room, kitchen/dining room and one & half baths. The home was built on a slab. The lot is narrow and is 0.45/acres. There is a one car garage, and the house was built in The home has city sewer & water. Comp 3: 1762 Hanfield Street, Cincinnati, OH, (0.2 miles from the subject), Offered for $89,000 The house is a single family, two-story brick home with 1,178 Sq. Ft. of living space, featuring four rooms total, two bedrooms, a living room, kitchen/dining room and one full bath. There is a full basement and it is finished. The lot is rectangular and is 0.85/acres. There is no garage or off street parking, and the house was built in The home has city sewer & water.
125 Relocation 101 Case Study 4.1 RHP s Question 1 Working in your groups, review the comparables vs. the displacement site and decide which comparable should be used as your Prime Comp. Please be prepared to discuss why you made your decision on the Prime Comp. Based on your selection, what is Mr. Dagley s RHP Offer? Based on your response to Question 1, determine the replacement housing price differential payments in the following situations: Question 2 Mr. Dagley purchases a DS&S replacement dwelling for $100,000.
126 Relocation 101 Case Study 4.1 RHP s Question 3 Mr. Dagley purchases a DS&S replacement dwelling for $85,750. Question 4 In order to avoid an appropriation, ODOT agreed to an administrative settlement for $92,500. Six months later Mr. Dagley purchases a replacement dwelling for $96,000. Mr. Dagley then calls you to claim the price differential and other replacement housing payments. How would you respond to the request?
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135 Case Study 4.2 Incidental Expenses Your Displacee, Alana Donley, was offered $79,000 for her acquisition site, and your Prime Comp was valued at $95,000, resulting in an RHP offer of $16,000. She has provided you with the following information from her Closing Disclosure Statement (see below). Please review the closing costs and determine what she would be reimbursed as eligible Incidental Expenses. Additional information you will need to know: Through an Administrative Settlement, Ms. Donley was paid $85,000 for her home Her remaining principal balance on the acquired dwelling is $50,000 She is purchasing her replacement dwelling for $100,000 Owner s title insurance coverage is $1.00 per $1,000 of the purchase price Lender s title insurance coverage is $100 flat fee for a simultaneous issue Line No. Expense Item Amount Charged Amount Reimbursed Comments 803 Appraisal Fee Credit Report Document preparation 810 Amortization 5.00 schedule 811 Application Fee Interest from /16 to 1/1 903 Hazard insurance premium 1001 Hazard insurance months 1004 County property taxes 1005 Annual assessments 1103 Title examination Notary fee Attorney Fee Title insurance Lender s Coverage 1110 Title insurance Owner s Coverage 1201 Recording fees Total $2,234
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140 Module 4 Quiz 1. A comparable replacement dwelling will be considered to have been made available to the Displacee if: a. The Person is of its, and b. The Person has to or enter into a or of the property, and c. The Person is ensured of receiving the and in sufficient time to complete the or of the property. 2. List the four defining factors of a reasonable search: a. b. c. d. 3. All comparable searches must be: a. Fast, Short and Documented b. Efficient, Exhaustive and Well Documented c. Timed, Efficient and Documented d. Well Documented, Limited and Clean 4. List at least three good sources for Relocation Comps: a. b. c. d. e. 5. True or False: An Owner-Occupant s Residential Replacement Housing Entitlement (Relocation Offer) is based on the difference between your Prime Comp s asking price and the actual price paid for the Displacee s replacement dwelling. ODOT Relocation 101 Page 1 Module 4 Quiz
141 6. The ODOT form used to calculate the RHP determination and final payment is the: a. RE-601-O b. RE c. RE-611-O d. RE-617-O 7. The RHP Differential Payment is computed by using the (1) the asking price of the, or (2) the cost of the actual purchased by the, minus the final of the. 8. If your displacement site contains a major exterior attribute that is not typical for the residential market you must first carve out the value of the attribute to calculate your before computing your RHP offer: a. Normal Home Cost b. Local Value Point c. Typical Residential Value d. Typical Home Site Computation 9. The goal of the Buy-Down Process is the following: It reduces the amount of the mortgage so the new and payments remain the same for the same length (term) of the loan, even though the new is higher. 10. Incidental Closing Expenses Provide at least two examples for each category below: a. Fully Reimbursable: i. ii. b. Partially Reimbursable: i. ii. c. Not Reimbursable: i. ii. ODOT Relocation 101 Page 2 Module 4 Quiz
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152 Module Case Study 5.1 Rental Supplemental Payments Mr. and Mrs. Hillman, along with their son and daughter rent and occupy a single family dwelling containing 1,900 square feet that is being acquired for the LUC highway project. The dwelling has 3 bedrooms, a kitchen, living room and two bathrooms. The Hillman family has rented the property for three years. The current rent is $1,100 per month and total utilities average $150/month. Total monthly gross household income for the Hillmans is $4,100. You as the Relocation Agent have located three good comparable rentals and selected your Prime Comp which is currently available for $1,375 per month, including all utilities. The Hillman s live in Toledo, Ohio and you have found the following income criteria from HUD s website: Question 1: Compute the Hillman s Rental Assistance Entitlement. 1
153 Question 2: How does the gross household income affect the computation? Question 3: Assume the Hillmans average monthly gross household is $3,500. What effect does this have on the rental assistance maximum payment? Question 4: Using the figures you computed at Question 3 above, the Hillmans have found a suitable replacement dwelling that is being offered for rent at $1,200. The replacement rental s utilities total $150/month. Calculate the Hillman s final Rent Supplemental Payment. 2
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163 Module 5 Quiz 1. State the purpose of a rental assistance payment by choosing the most accurate statement below: a. It ensures a comparable rental dwelling is made available to only shortterm owner-occupants b. It ensures a comparable rental dwelling is made available to displaced tenants and businesses c. It ensures the agency will make available a comparable rental dwelling to a displaced tenant d. It ensures the Agency will guarantee a rental dwelling to all aliens whether legal or illegal 2. True or False: Market or Economic Rent is the probable rent the property would normally command in the local rental market. 3. True or False: Your Displacee pays their landlord $100/month for the right to live in a very nice apartment and they perform landscaping services without pay to supplement the cash payment of rent. In this instance you would first have to establish their Market Rent before calculating their RSP Offer. 4. Explain Down Payment Assistance eligibility with regard to the calculations the Agency would perform by filling in the missing information: The Agency must first compute a to establish the maximum amount of Down Payment Assistance. However, if the amount is less than, in Ohio, we have adopted a uniform practice of offering each displaced person a of for Down Payment Assistance. ODOT Relocation 101 Page 1 Quiz Module 5
164 5. A Rental Assistance Entitlement (your Tenant Relocation Offer) is computed by subtracting the Base Rent of the Displacement Site from the Base Rent of the Prime Comparable and multiplying it by. 6. The Base Rent of the Displacement Site is one of three things. Circle the correct responses below: a. The contract or market rent plus applicable utilities b. Forty-two months of rent supplemental income c. The total of all housing assistance subsidies received d. Thirty percent of the displacee s gross household income e. Thirty percent of the displacee s net household income 7. True or False: The Displacee s final RSP Payment is the greater of: Their RSP Offer amount, or the difference between their Base Rent at the displacement site and their Base Rent at their replacement site, multiplied by 42 months 8. At ODOT we use the following form for all RSP computations: a. RE-600-T b. RE-611-O c. RE-611-T d. RE-613 e. RE-617-T ODOT Relocation 101 Page 2 Quiz Module 5
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174 Case Study 6.1 Challenging Relocations You have been handed all of the difficult relocations on the Cleveland Innerbelt project. Using the provisions of Last Resort Housing and good business practices, determine one or two likely scenarios to resolve each of these situations. 1. Bad Credit: The Seasly family is a long-term owner-occupant, but the family has had some difficult times. A year ago, Mr. Seasly lost his job and the family credit is in bad shape. They cannot qualify for a conventional mortgage but will require a mortgage to purchase housing. 2. Poor References: The Philabaum family has been in a dispute with their landlord for the last several months. The landlord has stated that if it were not for the proposed project, he would have evicted them. He refuses to provide them a reference, and that has led to the denial of their rental application from other landlords. You have not found a landlord that will rent to the family.
175 3. Government Assisted Housing: The Link family is receiving a housing choice voucher and will be displaced on the Innerbelt project. You have worked with the local public housing authority (PHA), but still cannot locate a comparable replacement dwelling that they can occupy using the housing choice voucher. You need to move this family in the next few months. 4. Non-DS&S: The Stewart family currently owns and resides in a three bedroom home; however, there are too many people for the size of the dwelling according to the local housing codes. The family consists of Mr. and Mrs. Stewart; the four children (two boys and two girls); and Mrs. Stewart s elderly aunt. You have located only three bedroom homes in the area, and the Stewarts need to stay in this area since they walk to work and school, and have no other transportation.
176 5. Disabled Modifications: You have computed a rental subsidy for Mark Manzo, and he has found a very nice apartment within those computed amounts. However, he reminds you that he still needs assist bars in the bathroom. The landlord has agreed to install these but he also wants to be paid for the installation and future removal of these items if Mr. Manzo should move from the dwelling. He is worried that the next tenant would consider the items a detriment to the property.
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180 Module 6 Quiz 1. Explain Last Resort Housing by choosing the most accurate explanation: a. Agencies only use Last Resort Housing when comparable replacement dwellings are not available within 60 days of the scheduled move date. b. Agencies use Last Resort Housing when comparable dwellings are not available within the monetary limits of the fixed payment. c. Agencies use Last Resort Housing when the rental amount of the replacement dwelling exceeds 30% of the displaced person s gross household income. d. Agencies use Last Resort Housing when comparable replacement dwellings are not available within the monetary limits for replacement housing payments. 2. State at least three methods of providing Last Resort Housing. a. b. c. d. e. f. g. 3. Under what provision of the regulations is an Agency authorized to provide replacement housing payments to displaced persons failing to meet length of occupancy requirements? a. There is no provision so the Agency must contact the Federal offices in Washington, DC to get special permission. b. The Agency will find the information under the provisions of Last Resort Housing. c. The Agency will find the information under the provisions for 180-day owner. d. The Agency will find the information under the provisions for planning and advisory services. 4. At ODOT the most common method of utilizing Last Resort Housing is: a. RHP s in excess of $31,000 and RSP s in excess of $7,200 b. RHP s in excess of $22,500 and RSP s in excess of $5,250 c. Removal of Barriers for Disabled Displacees d. Adding Rooms onto Replacement Dwellings e. Providing Prevailing Market Interest Loans ODOT Relocation 101 Page 1 Quiz Module 6
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190 Module 7.1 Case Study Residential Moves Using Ohio s moving schedule, determine the appropriate payment. 1. The Young s live in an apartment unit with 2 bedrooms, 1 bath, kitchen and living room. What is the schedule move amount? 2. The Barnes live in the same building as the Young s (above) and in a very similar unit. The Barnes also have a 5 X10 storage locker in the basement in which they store skis, fishing equipment, etc. What is the schedule move amount? 3. Mr. Dicke lives in a one-room efficiency apartment. He does not own the furnishings and has minimal personal property in the room. What is the schedule move? 4. Mr. and Mrs. Miller live in a small apartment unit. It is simply one large room, about 20 X 20. Functionally, the Millers use the area as a living room, bedroom, kitchen and dining area. Compute the schedule move amount. 1
191 Residential Actual Cost Mr. and Mrs. Garret will be moving from their 7 room home as a result of the road widening project. You have worked with them to obtain two moving bids in the amounts of $4,700 and $5,150. The low bidder has completed the move, and you have received the following invoices from the Garrets from payment: Mover $4,700 Plumber-hook-up of ice maker and gas dryer 525 Cable TV/Internet Hook Up 225 Telephone reinstallation 125 Porch light installation 175 Total $5, How much can we reimburse the Garrets? 2
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201 Module 7.2 Case Study Booker Brothers Clothing Store The displacing Agency has received a packet of invoices from the recent move of the Booker Brothers Clothing Store. The move went well, but the owners expect the Agency to pay every single expense they incurred during the process and they have delivered a box full of receipts for review and approval. As you look through the box it is evident it is a jumbled mess. In order to assemble the receipts and make payments in the proper category, or deny payments, you need to code the receipts as Moving (M), Related Nonresidential Expense (RNR), Reestablishment (RE), or Ineligible (I) Low bid for moving services $37,500 Full replacement value insurance of everything $1,200 Self-move of light fixtures (retained real estate) $1,100 Business license $375 Searching for new location $3,300 Advertising new location $1,500 New wallpaper $1,400 Security System/Installed (New) $6,000 Damage to personal property $2,200 Handicapped access ramp at replacement location $3,500 Higher rental cost (2 years) $5,500 Professional move planning $5,800 Stationery replacement $850 Stephen Booker s stress medicine $175 Additional display cases at replacement location $4,400 Market study for replacement location $4,500 Interest on loan to cover down time $1,000 Reinstallation of display cases $2,750
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206 Module 7.3 Case Study Don s Hardware Store Don Pederson owns and operates a hardware store that is being acquired as part of a highway project. He owns one other hardware location, but has decided to go out of business at this location and wants to claim a fixed (in lieu of) payment. Tax returns have been submitted for the previous years and indicate net income as follows: 4 years prior to displacement $32,500 3 years prior to displacement $23,500 2 years prior to displacement $25,000 1 year prior to displacement $19, Is Mr. Pederson eligible to receive a fixed payment? Why? 2. If so, how much is he entitled to receive and how would you calculate the payment?
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216 Module 7 Quiz 1. Identify the move options for Residential displaced persons by choosing the most complete answer below: a) Commercial move; self-move using the fixed move costs schedule; self-move using the actual move cost; combination move b) Commercial move; self-move using the schedule move cost; self-move using the actual move cost c) Commercial move; self-move using the schedule move cost; combination move d) None of the above 2. Identify the move options for Non-Residential displaced persons by choosing the most complete answer below: a) Commercial move; negotiated self move; combination move; fixed payment b) Commercial move; negotiated self move; documented actual cost move; combination move c) Commercial move; self-move based on bids; documented actual cost move; combination move; fixed payment d) None of the above 3. State the criteria for reimbursing Non-Residential moving expenses by completing the statement below: The Agency must determine that the expenses are, and. 4. State the current maximum dollar amount for re-establishment expenses in Ohio: 5. True or False: To claim Economic Loss in Ohio the displaced business must have had a profit in the preceding year. 6. In Ohio, Loss of Goodwill is capped at 7. State the current maximum dollar amount for Economic Loss Claims in Ohio: ODOT Relocation 101 Page 1 Module 7 Quiz
217 8. The current payment range for a Non-Residential Fixed (In-Lieu-of) Payment is: a. $1,000 to $10,000 b. $1,000 to $20,000 c. $100 to $40,000 d. $1,000 to $40,000 ODOT Relocation 101 Page 2 Module 7 Quiz
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