URA FACT SHEET DISPLACEMENT/ BUSINESS RELOCATION
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1 URA FACT SHEET DISPLACEMENT/ BUSINESS RELOCATION Purpose: The Uniform Relocation Assistance and Real Property Act of 1970 (URA) will ensure that persons displaced as a direct result of federally-assisted projects are treated fairly, consistently, and equitably so that such persons will not suffer as a result of projects designed for the benefit of the public as a whole [49 CFR 24.1(b)]. Definition: Any tenant (residential or business) who moves involuntarily as a direct result of a federally-assisted project involving acquisition, rehabilitation and/or demolition/conversion is considered displaced. All affected tenants are entitled to relocation benefits, i.e., timely notices, advisory assistance, replacement housing (if business is a mix-use structure), assistance and moving expenses. A displaced business is eligible for relocation assistance without regard to the length of time it occupied the property prior to initiation of negotiations. Required Notices 1. General Information Notice (GIN) a. The GIN is the initial notice provided to a displaced business. It provides an explanation that a project has been proposed and cautions the business not to move until they receive a Notice of Eligibility for Relocation Assistance. Otherwise, their eligibility for relocation assistance and payments may be jeopardized. b. The GIN provides a general description of relocation assistance and payments they could receive, and the associated eligibility requirements and procedures involved, plus information on the relocation advisory services available to them, including locating a replacement site, and assistance with other needs, including help to complete claim forms. c. The GIN is provided to each displaced business as soon as feasible after the submission of the application. It must be sent by certified mail, return receipt requested or hand delivered. The GIN must be signed and dated by each affected tenant. d. Requires at least 90 days advance written notice of the date the tenant will be required to move. 2. The HUD information Booklet, Relocation Assistance to Displaced Businesses, Nonprofit Organizations, and Farms (HUD 1043-CPD) includes this general information required and should be given to the business at the time of the GIN. 3. Notice of Eligibility (NOE) a. The NOE is the second notice that is provided to each tenant to be displaced. b. Informs the business of the effective date of their eligibility. 1 of 3 Rev. 16 December 2010
2 c. Describes the assistance available and procedures. d. It must be sent by certified mail, return receipt requested or hand delivered. The NOE must be signed and dated by each affected business. e. If necessary, a 90-day Notice to Vacate may be issued at this time. Required Services and Documentation 4. Initial Relocation Survey: Identify major problems: Plan to perform survey with appraisal (if possible). Gather basic information on each business: Name of owner(s)? Who has the right to negotiate? How many employees? Are there any special needs? Determine relocation needs (check with owner(s) about, for example, zoning, docks, parking and transportation). Establish a good rapport, and determine lead-time. 5. Personal Property Identification: Obtain a property analysis from the appraisal or prepare one if needed. A property analysis is for both acquisition and relocation functions. If prepared correctly and timely, it assures that the developer s offer for the real property is inclusive of all real estate and exclusive of movable fixtures and equipment. a. Basic Real Estate b. Immovable Fixtures, Trade Fixtures (real or personal), Improvements Pertaining to the Realty: AUDITORS APPRAISER VALUE LESS RECONNECTION = AMT YOU PAY c. Movable Fixtures Any displaced business is eligible for reimbursement of reasonable, necessary actual moving expenses. There are no caps on moving expenses, but the reimbursement may be limited to the amount required to accomplish the objective of the payment by the least costly method that does not cause undue hardship to the displaced business: 6. Searching for Replacement Sites a. Inventory and Moving Specifications b. Preparing the inventory of Movable Personal Property c. May Write Move Specifications for Bidders d. Obtain Move Bids 7. Payments Related to Personal Property not Moved a. Abandoned Personal Property Computing Payments for Loss of Tangible Personal Property b. Direct Loss of Tangible Personal Property (a portion of the move can be computed using the DLTPP method) c. Computing Payments for Substitute Equipment d. Personal Property that Becomes Obsolete upon Relocation 2 of 3 Rev. 16 December 2010
3 8. Other Moving and Related Expenses a. Licenses, Permits and Certifications b. Professional Services, i.e., movers c. Transportation, Storage, Insurance d. Other Reasonable and Necessary Expenses e. It is the choice of the business (not the developer) to choose to use the services of a professional mover or perform a self-move. 9. A business may be eligible to receive relocation assistance in the form of either a payment for Re-establishment Expenses or a Fixed (Alternative) Payment: a. Re-establishment Expenses payment: A business may choose to receive reimbursement for reasonable and necessary expenses actually incurred in relocating and reestablishing the business at a replacement site (no less than $1, not to exceed $10,000.00). Or, a business may choose to receive b. Fixed (Alternative) payment: A business may choose to receive a fixed payment (no less than $1, not to exceed $20,000.00) if the following conditions are met: 1. The business either discontinues operations or it relocates but is likely to incur a substantial loss of its existing patronage. 2. The business is not part of a commercial enterprise having more than three other entities, which are not being displaced. 3. The business operation at the displacement property is not solely for the rental of that real property to another business. Relocation regulations are complex and labor intensive and require a dedicated staff to comply in a timely and efficient manner with all applicable requirements. 3 of 3 Rev. 16 December 2010
4 URA FACT SHEET DISPLACEMENT / RELOCATION Purpose: The Uniform Relocation Assistance and Real Property Act of 1970 (URA) will ensure that persons displaced as a direct result of federally-assisted projects are treated fairly, consistently, and equitably so that such persons will not suffer as a result of projects designed for the benefit of the public as a whole [49 CFR 24.1(b)]. Definition: Any tenant (residential or business) who moves involuntarily as a direct result of a federally-assisted project involving acquisition, rehabilitation and/or demolition/conversion is considered displaced. All affected tenants are entitled to relocation benefits, i.e., timely notices, advisory assistance, replacement housing assistance and moving expenses. Required Notices 1. General Information Notice (GIN) a. The GIN is the initial notice provided to tenant(s) to be displaced. It informs each tenant of their eligibility for relocation assistance. The GIN cautions each tenant NOT TO MOVE prematurely. b. The GIN is provided to each tenant as soon as feasible after the submission of the application. It must be sent by certified mail, return receipt requested or hand delivered. The GIN must be signed and dated by each affected tenant. c. Requires at least 90 days advance written notice of the date the tenant will be required to move. 2. Notice of Eligibility (NOE) a. The NOE is the second notice that is provided to each tenant to be displaced. b. It identifies at least three (3) comparable replacement dwellings (residential tenants only). c. It establishes the maximum replacement housing payment the residential tenant is eligible to receive. d. It must be sent by certified mail, return receipt requested or hand delivered. The NOE must be signed and dated by each affected tenant. 3. Comparable Replacement Units (residential tenants only): Replacement units must reflect the needs (living space) and preferences (needed amenities such as close proximity to public transportation, one floor unit, etc.) of each affected tenant. The tenant also has the sole right of choice regarding the location of the replacement unit. All comparable units must be available for occupancy at the time the tenant receives the NOE and the unit must pass a Decent, Safe and Sanitary (DSS) inspection. 1 of 2 Rev. 16 Dec 2010
5 4. Replacement Housing Assistance: Provided in the form of either rental or purchase assistance. The tenant will select the type (rental/purchase) of financial Replacement Housing Assistance that will be received. The unit must pass a DSS inspection for the tenant to receive relocation assistance. 5. Moving and Related Expenses: All tenants are required to receive reimbursement for either actual moving expenses or a fixed moving allotment based on a schedule provided by the Department of Transportation (DOT). The tenant(s), not the developer, selects the type of moving payment. 6. Claim for Relocation and Moving Expenses a. Each displaced tenant has 18 months from the date they move to file a claim (for payment) for rental assistance and moving expenses. b. A claim form is required for each payment (Moving and Relocation). Required Services and Documentation 1. Advisory Services: Assistance to the residential and business tenant including an explanation of rights and assistance afforded by the URA, referrals to social services that may benefit the tenant, counseling and advice regarding rights under the Fair Housing Act. This service is ongoing through the completion of the project or displacement of the tenant. 2. Tenant Profile/Site Occupant Record: The profile will assist in determining appropriate advisory services, the tenant(s) needs/ preferences and to establish site occupant records of each household to be displaced. An initial interview is required with each tenant to facilitate their participation, as well as the completion of the Residential or Nonresidential Site Occupant Record (tenant profile). Relocation regulations are complex and labor intensive and require a dedicated staff to comply in a timely and efficient manner with all applicable requirements. 2 of 2 Rev. 16 Dec 2010
6 URA FACT SHEET TEMPORARY RELOCATION Purpose/ Definition: Any tenant (residential) residing in a structure where a project is being federally-assisted or funded is part of an involuntary action. Therefore all tenants involved must be informed and are eligible and entitled to relocation benefits under the Uniform Relocation Assistance and Real Property Act of 1970 (URA). When it becomes necessary or appropriate to temporarily relocate eligible affected (residential) tenant(s) for the project, all conditions of the temporary relocation must be reasonable, such as reimbursement for all reasonable out-of-pocket expenses incurred in connection with the temporary relocation, including the cost of moving to and from the temporarily occupied housing and any increase in monthly rent and utility costs at such housing. Factors that Trigger URA Relocation Requirements: A project that is federally-assisted at any phase of the project that may include acquisition, rehabilitation, demolition and conversion activities. The URA requires that tenant s (residential/ commercial) temporarily displaced for more than 1 year are eligible to be considered as a permanently displaced person. Required Documentation: 1. Advisory Services: All eligible affected tenants must receive reasonable advance written notices of the date and approximate duration of the temporary relocation; the address of a suitable, decent, safe, and sanitary dwelling to be made available for the temporary period; the terms and conditions under which the tenant may lease and occupy a suitable, decent, safe and sanitary dwelling in the building/ complex upon completion of the project. All conditions must be reasonable. 2. Tenant Profile: A pre and post tenant profile form must be performed and completed on each affected residential household temporary relocated for the project. The profile will assist in determining appropriate advisory services, the tenant(s) needs/ preferences and to establish site occupant records of each household to be temporarily relocated. If feasible, contact shall be face-to-face with each tenant to facilitate their participation, complete the tenant profile, provide and explain appropriate notices and URA temporary relocation procedures. 3. General Information Notice (GIN): (Non-displacement) a. The GIN is the initial notice provided to tenant(s) not to be displaced. It informs each tenant of their eligibility for relocation assistance. The GIN cautions each tenant NOT TO MOVE prematurely. 1 of 2 Compliance: Temporary Relocation 17 December 2010
7 b. The GIN is provided to each tenant at the time of application, either by certified mail, return receipt requested or personally served. The GIN must be signed and dated by each affected household. 4. Notice of Non-displacement (NOND) a. The NOND is the second notice that is provided to each tenant not to be displaced. It informs each tenant of the reasonable terms and conditions under which the person may lease and occupy the property upon completion of the project. b. The NOND is provided after the initiation of negotiations (the execution of the loan or grant agreement between the grantee and the agency/ person owning or controlling the property). c. The NOND is either personally served or sent by certified mail, return receipt requested or hand delivered. The NOND must be signed and dated by each affected household. WARNING HUD regulations require that any tenant (residential or commercial) temporarily relocated for a period exceeding one (1) year must be notified and offered Permanent Displacement assistance. These benefits would be in addition to any assistance already provided under Temporary Relocation. [See Fact Sheet-Displacement & Relocation and Fact Sheet-Business Relocation for additional information.] Relocation regulations are complex and labor intensive and require a dedicated staff to comply in a timely and efficient manner with all applicable requirements. 1 of 2 Compliance: Temporary Relocation 17 December 2010
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