Relocation: Minimizing Resident Displacement July 31, 2013

Agenda Overview and Timeline General Information Notice at Time of Application to TDHCA Two Types of Relocation Assistance Household Assessments Initiation of Negotiations Date Notice to Move Relocation Requirements and Enforcement 2

Relocation Overview and Timeline

The Main Point 4

Why Provide Relocation Assistance? Required for all federally-assisted projects with tenants displaced due to renovation or demolition Protects residents from unreasonable or forced displacement Recognizes the financial burden and discomfort associated with tenant temporary or permanent displacement 5

Benefits to Developer for Compliance Proper planning and implementation of relocation minimizes developer worries and tenant discomfort Facilitates tenant move and rehabilitation of units Helps keep project construction on-time and on-budget 6

Consequences for Non-Compliance 7

What Kind of Notices are Required? 8

Relocation Timeline 9 Notice to Tenants GIN Applica- tion and Award House- hold Assess- ments Written Agreement with TDHCA = ION NND/ NOE 90-Day or 30-Day Notice Relocation Begins

Guidance and Instructions 49 CFR part 24 Uniform Relocation Assistance and Real Property Acquisition –Final Rule Section 104(d) of Housing and Community Development Act Regulations (24 CFR Part 42) Displacement, Relocation Assistance, and Real Property Acquisition for HUD-assisted programs HUD Handbook 1378 Tenant Assistance, Relocation and Real Property Acquisition TDHCA Relocation Handbook 10

General Information Notice (GIN) at Time of Application to TDHCA

Relocation Timeline 12 Notice to Tenants GIN Applica- tion and Award House- hold Assess- ments Written Agreement with TDHCA = ION NND/ NOE 90-Day or 30-Day Notice Relocation Begins Notice to Tenants

Notice Distribution: Existing Tenants GIN informs tenant of: Federal funds requested, potential displacement, conditions of Relocation Eligibility, and asks tenant NOT to move Use TDHCA GIN as a guide (Handbook, Appendix 3) 13

Notice Distribution: Existing Tenants Send GIN to ALL tenants listed on Rent Roll submitted with TDHCA application Confirm receipt of GIN by each tenant Signed by tenant, or Certified Mail receipt 14

Notice Distribution: New Tenants Move-In Notice Informs new tenant they may be displaced and ineligible for relocation assistance Distribute after GIN ONLY IF Developer owns the property Not required if tenants will/must receive relocation assistance (i.e., PHA, Voucher, HAP or Supportive Housing) Use TDHCA sample – Appendix 5 15

Two Types of Relocation Assistance: URA and Section 104(d)

GIN Applica- tion and Award House- hold Assess- ments Written Agreement with TDHCA = ION NND/ NOE 90-Day or 30-Day Notice Relocation Begins Relocation Timeline 17 Notice to Tenants Demolition?

Two Types of Relocation Assistance 18

Concerning Illegal Aliens URA prohibits providing relocation assistance to illegal aliens but still obligates Developer to send required Notices & provide pro rata RA to lawful household members States Public Law , illegal aliens are not eligible for relocation assistance under the Uniform Relocation Act Section 104(d) is silent concerning the provision of relocation assistance to illegal aliens; therefore, they are not excluded from RA if low-income and displaced 19

Differences between URA and 104(d) 20 URA104(d) No Income CapMust be Low Income (LI) Applies to Acquisition, Rehab, & Demo Applies to Demo or Conversion RA multiplied by 42 months OR down payment RA multiplied by 60 months OR down payment for co-op or mutual housing If tenant is in Assisted Housing, same must be provided, if available May offer Housing Choice Voucher instead of cash Cash in three paymentsLI tenant choice to select URA in lieu of 104(d) Pay Security Deposit, if non- refundable only Pay Security Deposit, refundable or NOT

Household Assessments

GIN Applica- tion and Award House- hold Assess- ments Written Agreement with TDHCA = ION NND/ NOE 90-Day or 30-Day Notice Relocation Begins Relocation Timeline 22 Notice to Tenants Non-Displaced or Permanently Displaced?

23 Non-DisplacedDisplaced Eligible to return after rehab or reconstruction Ineligible to return after rehab or reconstruction Evicted for cause or lease violation (support docs required) Evicted intentionally to expedite sale or avoid RA payments Received Move-in Notice (cannot be PHA, HAP or Voucher tenant) Tenant moves without receipt of required URA/104(d) Notices Temporary unit – up to 12 months ONLY Temporary housing exceeds 12-months

Household Assessments Relocation Assistance (RA) assessment: complete for each household to determine: Eligibility to return Tenant status – Displaced or non-displaced RA finalized (moving costs and rental assistance). Use: TDHCA Household Relocation Budget Assistance Calculator (Appendix 6) or HUD Claim Form (1378 – Appendix 14) 24

Initiation of Negotiations (ION) – Critical Milestone

GIN Applica- tion and Award House- hold Assess- ments Written Agreement with TDHCA = ION NND/ NOE 90-Day or 30-Day Notice Relocation Begins Relocation Timeline 26 Notice to Tenants Written Agreement?

Notice Distribution: Initiation of Negotiations (ION) 27

Notice of Non-Displacement (NND) Distribute at ION Return tenant-signed copy to TDHCA with written agreement Confirm non-displacement status and eligibility to return to project States temporary relocation move-out instructions, timeframe and return estimate Specifies temporary eligible moving expenses and replacement housing costs (Not to exceed 12 months) 28

Notice of Non-Displacement (NND) Tenants right to appeal, details given Permissible to combine NND with GIN ONLY if : Applicant owns property Tenant eligibility is confirmed Notice contains NND required language Use TDHCA NND (Appendix 7) as a guide 29

Eligible Relocation Costs for Non-Displaced Temporary Displacement (NND) Moving costs (actual or owner paid) Rental assistance and eligible Security Deposit Storage Utility connection fees Cable, telephone, and internet connections TDHCA Per diem meal allowance (hotel stay) – listed in Relocation Handbook RA in leased unit for a period NOT to exceed 12 months or becomes permanently displaced 30

NOE for Displaced Tenants Distribute Notice of Eligibility at ION Return tenant-signed copy to TDHCA with written agreement Confirms displaced status, specifies eligible moving expenses and replacement housing costs (URA 42 months or 104(d) 60 months) OR eligible down payment assistance Lists at least three comparable units 31

Definition of Comparable Unit Must meet Decent, Safe and Sanitary (DSS) inspection standards Use TDHCA DSS form (Appendix 11) Must accommodate household size needs Must be located in Project service area Must use local equivalent rents Must not use HUD Fair Market Rent (FMR) cap unless required by Program (i.e. PHA or Voucher) 32

NOE for Displaced Tenants Notice of Eligibility Provides move-out instructions Explains tenants right to appeal Use TDHCA NOE as a guide (Appendix 8 in the Handbook) 33

Eligible Relocation Costs for Displaced Permanent Displacement (NOE) Moving costs (actual or HUD Fixed sch96.htm) sch96.htm) Rental assistance (cash or Voucher) Security Deposit (URA or 104(d)) Utility connection fees Cable, telephone, and internet Down payment assistance 34

Other Actions: At ION Implementation of Relocation Plan Identify Relocation Coordinator Tenant-level impacts and dates -- specify ID comparable temporary and permanent units Estimate all relocation costs – update total relocation budget Comply with URA or 104(d) Rental Assistance payment and down payment assistance Move-In Notice: Issue to any tenants moving in after ION date 35

Notice to Move

GIN Applica- tion and Award House- hold Assess- ments Written Agreement with TDHCA = ION NND/ NOE 90-Day or 30-Day Notice Relocation Begins Relocation Timeline 37 Notice to Tenants Tenant status confirmed?

Relocation: 90-Day Notice Distribute after tenants non-displaced or displaced status is confirmed Stipulates move deadline date States Public Law , illegal aliens are not eligible for relocation assistance under the Uniform Relocation Act Remember: URA still obligates Developer to send required Notices & provide pro rata RA to lawful household members 38

Relocation: 90-Day Notice Permissible to combine NOE and 90-Day notice if construction schedule requires Permissible to send NND a 30-Day notice for temporary moves if in- house or less than 6 months 39

Relocation Requirements and Enforcement

TDHCA Requirements and Penalties Developer may be required to pay or escrow an amount equal to maximum entitlement RA amount up to 18 months, if tenants are not properly classified or notified Disbursements require relocation compliance TDHCA monitors relocation and enforces compliance One-to-one replacement is required for Projects that demolish units TDHCA enforces tenants rights to appeal 41

Follow timelines Ensure tenants receive required Notices Account for ALL tenants listed on Rent Roll at GIN and ION to avoid need to find missed tenants and pay RA benefits out-of-pocket Include all eligible RA costs in Relocation Budget for ALL tenants on Rent Roll to avoid out-of-pocket costs 42

Updated HOME Final Rule and URA and Section 104(d)

URA Clarifications and Changes ION date change Existing agreements (loan commitments) will not change ION will possibly occur at Loan Closing hereafter 24 CFR §5.628 replaces 24 CFR §5.613 Enforces Total Tenant Payment (TTP) calculation at 30% of monthly adjusted income and determines Welfare TTP if standard monthly pay is ratably affected (proportioned based on income or appraised assets) 44

URA Clarifications and Changes Permits HOME Tenant-Based Rental Assistance as option Tenants who receive TBRA as RA option must not be required to participate in self-sufficiency program as condition of relocation assistance Encourages use of acquisition down payment assistant for relocation 45

Minimizing Resident Displacement Carmen A. Roldan Relocation Specialist 46