1. Relocation Assistance for HUD Funded Projects
W. Jay Smith
U.S. Department of Housing & Urban Development Relocation Specialist for Region IX
Michele Folk , SR/WA, R/W-RAC, R/W-URAC, R/W-NAC
Overland, Pacific & Cutler, Inc.
Managing Director, Public Agencies & Housing

3. HUD Resources www.HUD.gov/Relocation Laws & Regulations
Policy & Guidance
Training
Publications
Forms
Contacts
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5. Applicable Statutes & Rules
URA - Uniform Relocation Assistance and Real Property Acquisition Policies Act of 1970, as amended
49 CFR Part 24
Applicable to most HUD Programs
NOT: FHA Mortgage Insurance Programs
NOT: Public Housing Demo/Dispo
HUD Handbook 1378

6. Applicable Statutes & Rules
Most, but not all, HUD-funded projects follow the standard process and program requirements under the URA
Same relocation planning, advisory services and relocation benefits payments required
There are a few differences

7. Applicable Statutes & Rules
Initiation of Negotiations:
CDBG: Execution of the grant or loan
HOME: Execution of the agreement
CofC (Continuum of Care): Execution of agreement between HUD and recipient
PIH (Public and Indian Housing): Varies, but generally execution of the agreement

8. Applicable Statutes & Rules
Noticing requirements:
General Information Notice
Notice of Non-Displacement
Notice of Eligibility
90-Day Vacate Notice
30-Day Vacate Notice
All with proof of service

9. Applicable Statutes & Rules
Voluntary versus Involuntary Acquisition:
Willing seller and willing buyer
Voluntary acquisition offer letter – states no threat of eminent domain
Offer amount is Fair Market Value and offer states the basis of the value
Owner-occupants ineligible for relocation assistance

10. Applicable Statutes & Rules
Other HUD relocation program requirements may ALSO apply or apply INSTEAD: Like….

11. Applicable Statutes & Rules
Specific Program Regs:
CDBG (i) Hearth PIH
HOME (f) MFH

12. Applicable Statutes & Rules
Section 18 – Housing Act of 1937, as amended
24 CFR 970
Limited relocation assistance – moving and advisory assistance only; tenant may apply for Section 8 assistance
Applicable to Public Housing Demolition/Disposition Program

13. Applicable Statutes & Rules
Rental Assistance Demonstration (RAD)
Notice H PIH
Allows public housing agencies and owners of other HUD-assisted properties to convert units from their original sources of HUD financing to project-based Section 8 contracts
No involuntary permanent displacements

14. Applicable Statutes & Rules
Section 104(d) – Housing and Community Development Act of 1974, as amended
24 CFR 42
Applicable to:
CDBG (Community Development Block Grant)
HOME (Home Investment Partnership Program)
UDAG (Urban Development Action Grant)
Section 108 Loan Guarantee Program

15. Section 104(d) Two key components:
Requires one-for-one replacement of demolished or converted lower-income housing
AND
Relocation assistance to permanently displaced lower-income tenants (≤ 80% of median income)

16. Section 104(d) One-for-One Replacement
Units demolished, or
Lower-income housing “converted” to:
 Non-housing (community center, hotel) OR
Housing that rents above HUD Fair Market Rent (FMR)

17. Section 104(d) One-for-One Replacement
A like-sized affordable unit must be added to the community inventory of lower-income housing
Can be private construction/rehab, government assisted, or other
Must rent at, or below, HUD-Fair Market Rent

18. Section 104(d) Planning
Residential Antidisplacement and Relocation Assistance Plan required of grantees as part of their consolidated plan
- Efforts to minimize displacements
- Relocation assistance to displacees
- One-for-one replacement of lower- income dwelling units
Relocation Plan still required per project

22. Section 104(d) Eligibility
Specific HUD program funding involved
Loss or conversion of low/mod income dwelling unit anywhere on the project site
Low-income tenant permanently displaced
(Important! Review definitions of “project” and “displaced person” in the HUD guidelines for your funding)

23. Section 104(d) Relocation Benefits
Calculation for RAP/DAP under 104(d):
Comparable rent + utilities
– Total Tenant Payment
= Monthly Need
x 60 months
RAP/DAP calculation under 104(d) does not consider displacement rent + utilities

24. Section 104(d) Income Calculation
Total Tenant Payment (TTP)
The greater of:
30% of the gross monthly adjusted income;
10% of monthly gross income; or
The designated allowance for rent/utility costs, if receiving welfare assistance

26. Section 104(d) Income Calculation
Uses the HUD definition of income at 24 CFR 5, with additional deductions and exemptions:
$480 per dependent (under 18, full-time student, etc.)
$400 per elderly family
Reasonable child-care expenses
Handicapped assistance expenses

27. Section 104(d) Relocation Benefits
Security deposits + credit check fees are eligible payments
Downpayment assistance is limited to purchase of cooperative or mutual housing
If conventional replacement housing is purchased, tenant is held to downpayment amount under the URA calculation
Downpayment assistance amount under 104(d) = RAP capitalized and discounted at the rate of interest paid on passbook savings accounts in the area

28. Section 104(d) Relocation Benefits
Lower-income tenants can choose relocation total assistance under either URA or Section 104(d);
Notice of Eligibility will contain description and amount of benefits under URA and under 104(d);
When Section 8 vouchers and Section 8 housing are available, benefits are limited to those under the URA, if Section 8 assistance is refused by the tenant.

29. Section 104(d) Relocation
Owner-occupants are not covered
(subject to URA)
Businesses are not covered
Undocumented aliens are not excluded

30. Possible differences between
Section 104(d) Notice of Eligibility Warning – these can be complicated!
Possible differences between
URA and 104(d) :
Number of bedrooms in the comp (legal status)
Income used in RAP/DAP calculation
Fixed moving payment (legal status)
Downpayment assistance amount

31. Section 104(d) Case Studies
Project: Demolition of a tri-plex for new construction of 42 affordable housing units
Funds: HOME and local tax set aside
Occupancy: Tenant-occupied; low income
Section 8 vouchers: None available
Construction: More than 1 year

32. Section 104(d) Case Studies
Is 104(d) triggered?

33. Section 104(d) Case Studies
Is 104(d) triggered?
Yes. At least one unit occupied by a Low Income tenant is being demolished, and HOME funds are part of the project’s funding.

34. Section 104(d) Case Study #1

35. Occupants: 2 adults, 4 children (husband, wife and 4 minor children)
Legally Present in the U.S.: 2 persons
Gross Household Annual Income = $48,000 (qualifies as Low Income)
Deductibles: None for medical or child care expenses; no one elderly or disabled

36. What is the Total Tenant Payment? Income $
Minus Dependants (4 x $480) $
Equals $
Divided by 12 months = $
x 30% = $ TTP
OR: 10% of gross monthly income
($_______/12 = $_____ x 10% = $______
Whichever is GREATER

37. OR: 10% of gross monthly income
What is the Total Tenant Payment?
Income $48,000
Dependants (4 x $480) $ 1,920
= $46,080
Divided by 12 months = $ 3,840
x 30% = $ 1,152 TTP
OR: 10% of gross monthly income
($48,000/12 = $4,000 x 10% = $400)
Whichever is GREATER

38. Q1. How many bedrooms should the comparable dwelling have?
Displacement Unit: 2BR apartment
Current Rent/Utilities: $1,100/mo.
Occupancy Standard: 2 + 0
Q1. How many bedrooms should the comparable dwelling have?

39. A1. TWO comparable units must be established -
1 Comp based on the URA (legal presence)
1 Comp based on the 104(d) (no legal presence requirement)
The tenants must be offered the choice of a URA or Section 104(d) payment

40. WHY?

41. Because…
Section 104(d): No legal presence requirement - 6 occupants require 3BR
URA: Legal presence requirement – 2 legal occupants under a occupancy standard only require a 1BR unit
Penalty – they don’t necessarily get what they had. (Possible hardship exemption)

42. Facts:
1BR Comp Rent + Utilities = $ 900/mo.
3BR Comp Rent + Utilities = $1,400/mo.
Current Rent + Utilities = $1,100/mo.
Gross Household Annual Income = $48,000 (qualifies as Low Income)
Q2. What is the maximum rental assistance payment under the URA for which the tenants are eligible?

43. A2. Computation under URA
Comp Rent/Utilities $
Minus the lesser of
Current Rent/Utilities $ or
30% of gross household monthly income $ =
Monthly need $
x 42 month =
$________RAP

44. A2. Computation under URA
Comp Rent/Utilities $ 900
Minus the lesser of
Current Rent/Utilities $1,100 or
30% of gross household monthly income $1,200 =
Monthly need $
The comp rent is less than the current rent or 30% of income, therefore there is no monthly need.
$0 RAP

45. Facts:
1BR Comp Rent /Utilities = $ 900/mo.
3BR Comp Rent /Utilities = $1,400/mo.
Current Rent /Utilities = $1,100/mo.
Gross Household Annual Income = $48,000 (qualifies as Low Income)
Q3. What is the maximum rental assistance payment under 104(d) for which the tenants are eligible?

46. A3. Computation under 104(d)
Comp Rent/Utilities $
Minus
Total Tenant Payment $ =
Monthly need $
x 60 months =
$_______ RAP
Plus what other costs?

47. A3. Computation under 104(d) Comp Rent/Utilities $ 1,400 Minus
Total Tenant Payment $ 1,152 =
Monthly need $
x 60 months = $14,880
$14,880 RAP
Plus security deposit &
credit check fees

48. Moving Payment Room Count - Three rooms
FHWA Schedule for this State - $900
Q4.What is the Fixed Moving Payment for the household under URA guidelines?
Q5.What is the Fixed Moving Payment for the household under 104(d) guidelines?

49. A4. URA: $300
(Based on 2 of the 6 occupants being legal)
A5. 104(d): $900
(No legal presence requirement)

50. 104(d) Case Study #2

51. Occupants: 2 adults, 1 child (husband, wife and 1 minor child)
Legally Present in the U.S.: all
Gross Household Annual Income = $50,000 (qualifies as Low Income)
Deductibles: None for medical or child care expenses; no one elderly or disabled

52. What is the Total Tenant Payment? Income $
Minus Dependants (1 x $480) $
Equals $
Divided by 12 months = $
x 30% = $ TTP
OR: 10% of gross monthly income
($_______/12 = $_____ x 10% = $______
Whichever is GREATER

53. OR: 10% of gross monthly income
What is the Total Tenant Payment?
Income $50,000
Dependants (1 x $480) $
= $49,520
Divided by 12 months = $ 4,127
x 30% = $ 1,238 TTP
OR: 10% of gross monthly income
($50,000/12 = $4,167 x 10% = $417)
Whichever is GREATER

54. Q1. How many bedrooms should the comparable dwelling have?
Displacement Unit: 1BR apartment
Current Rent/Utilities: $800/mo.
Occupancy Standard: 2 + 0
Q1. How many bedrooms should the comparable dwelling have?

55. A1. All occupants are legally present.
There is overcrowding.
Occupancy and DS&S Standards require:
2BR Comp based on the URA
2BR Comp based on the 104(d)

56. Facts:
2BR Comp Rent + Utilities = $1,200/mo.
Current Rent + Utilities = $ 800/mo.
Gross Household Annual Income = $50,000 (qualifies as Low Income)
Q2. What is the maximum rental assistance payment under the URA for which the tenants are eligible?

57. A2. Computation under URA
Comp Rent/Utilities $
Minus the lesser of
Current Rent/Utilities $ or
30% of gross household monthly income $ =
Monthly need $
x 42 month =
$________RAP

58. A2. Computation under URA
Comp Rent/Utilities $1,200
Minus the lesser of
Current Rent/Utilities $ or
30% of gross household monthly income $ 1,249 =
Monthly need $ 400
x 42 month =
$16,800 RAP

59. Facts:
2BR Comp Rent /Utilities = $1,200/mo.
Current Rent /Utilities = $ 800/mo.
Gross Household Annual Income = $50,000 (qualifies as Low Income)
Q3. What is the maximum rental assistance payment under 104(d) for which the tenants are eligible?

60. A3. Computation under 104(d)
Comp Rent/Utilities $
Minus
Total Tenant Payment $ =
Monthly need $
x 60 months =
$_______ RAP
Plus what other costs?

61. A3. Computation under 104(d) Comp Rent/Utilities $1,200 Minus
Total Tenant Payment $ 1,238 =
Monthly need $
x 60 months =
$0 RAP
Plus security deposit &
credit check fees

62. Section 104(d) Clarity
The relocation agent must take special care to explain each of the two options for the tenants – may question differences
There are certain restrictions to remember:
Can only buy mutual or coop housing under 104(d)
If Section 8 is offered and refused, only payment under URA available

63. Common Monitoring Findings
Voluntary letter not issued or it is worded incorrectly; or value does not agree with appraisals/comps
Local codes not used for inspections
Notices not issued timely or worded correctly
Exceptions to illegal alien rule not documented

64. Common Monitoring Findings
5. Claims not documented adequately
Rent and utilities
Non-payment of benefits
Income (doesn’t add up or is not documented)
No explanation of special circumstances
6. Section 104(d) not paid

65. Preventative Measures
Develop Acquisition and Relocation Procedures
Keep resources up-to-date
HUD regulations and handbook
FHWA Q and A
Headquarters policy memos
Information bulletins
Use experienced consultants – bring on early
Review relocation process during all project stages

66. Work With Consultants Selection
Experience with URA, Section 104(d) and/or applicable HUD program
Experience with HUD
Attended HUD local office training
Bid is comprehensive, including time spent to adequately document files

67. Work With Consultants 2. Contract Stage
Make sure requirements are clear
Give them local acquisition and relocation policies and procedures
3. Implementation
Periodic check-in
4. Review Files for Monitoring

68. Questions ?

69. Contact Info
W. Jay Smith HUD Relocation Specialist for Region IX (213) Michele Folk, SR/WA, R/W-RAC, R/W-URAC, R/W-NAC Overland, Pacific & Cutler, Inc. Managing Director, Public Agencies & Housing (949)