HomeMy Public PortalAbout06 June 25, 2007 Property80808
RIVERSIDE COUNTY TRANSPORTATION COMMISSION
PROPERTY COMMITTEE
MEETING AGENDA
TIME: 12:30 p.m.
DATE: Monday, June 25,,2007
LOCATION: CONFERENCE ROOM A
County of Riverside Administrative Center
Riverside County Transportation Commission
4080 Lemon Street, Third Floor, Riverside, 92501
*** COMMITTEE MEMBERS ***
Barbara Hanna / Brenda Salas, City of Banning
Robin Lowe / Marc Searl, City of Hemet
Bob Magee / Robert L. Schiffner, City of Lake Elsinore
Rick Gibbs / Kelly Bennett, City of Murrieta
Gordon Moller / Alan Seman, City of Rancho Mirage
Steve Adams / Dom Betro, City of Riverside
John F. Tavaglione, County of Riverside
Roy Wilson, County of Riverside
Marion Ashley, County of Riverside
Comments are welcomed by the Committee. if you wish to provide comments to the Committee, please
complete and submit a Speaker Card to the Clerk of the Board.
11.36.09
RIVERSIDE COUNTY TRANSPORTATION COMMISSION
PROPERTY COMMITTEE
(COMMISSIONERS STEVE ADAMS, MARION ASHLEY, RICK GIBBS, BARBARA HANNA,
ROBIN LOWE, BOB MAGEE, GORDON MOLLER, JOHN TAVAGLIONE, ROY WILSON)
12:30 P.M.
Monday, June 25, 2007
CONFERENCE ROOM A
Riverside County Transportation Commission
4080 Lemon Street, 3rd Floor, Riverside, 92501
AGENDA
1. CALL TO ORDER
2. PUBLIC COMMENTS
3. ADDITIONS/REVISIONS - (The Committee may add an item to the
Agenda after making a finding that there is a need to take immediate
action on the item and that the item came to the attention of the
Committee subsequent to the posting of the agenda. An action adding
an item to the agenda requires 2/3 vote of the Committee. If there are
less than 2/3 of the Committee members present, adding an item to the
agenda requires a unanimous vote. Added items will be placed for
discussion at the end of the agenda.)
4. APPROVAL OF MINUTES - NOVEMBER 27, 2006 AND MAY 27, 2007
Riverside County Transportation Commission
Property Committee Agenda
June 25, 2007
5. RIGHT-OF-WAY POLICIES AND PROCEDURES MANUAL
Overview
This item is for the Committee to:
Pagel
1) Adopt the Right -of -Way Policies and Procedures manual as a new
set of policy guidelines for the acquisition and sale of right-of-way,
appraisal of real property, relocation of displaced individuals and
businesses, and management of Commission owned real property;
2) Recommend that the Commission authorize the Property
Committee to approve subsequent changes to the right-of-way
policies and procedures manual; and
3) Forward to the Commission for final action.
6. CLOSED SESSION
A. CONFERENCE WITH REAL PROPERTY NEGOTIATOR
Pursuant to Government Code Section 54956.8
Negotiating Parties: RCTC — Executive Director or Designee
Property Owners — Liston Brick Company of
Corona
Property Description: APN 279-230-003
Negotiating Parties: Seller: RCTC — Executive Director or Designee
Buyer: BRE Properties, Inc.
Property Description: APN 138-030-009, 138-030-024, 138-030-025,
138-030-026
7. ADJOURNMENT
The next Property Committee meeting is scheduled to be held on
12:30 p.m., Monday, August 27, 2007, at. Board Room, County of
Riverside Administrative Center, 4080 Lemon Street, First Floor,
Riverside.
AGENDA ITEM 4
MINUTES
RIVERSIDE COUNTY TRANSPORTA TION COMMISSION
PROPERTY COMMITTEE
November 27, 2006
Minutes
1. CALL TO ORDER
Chair Marion Ashley called the meeting to order at 1232 p.m., on Monday,
November 27, 2006, at the Riverside County Transportation Commission's
Office, 4080 Lemon Street, Third Floor, Riverside, California 92501
Commissioners Present •Commissioners Absent
Marion Ashley
Robin Lowe
Bob Magee
Roy Wilson
John Tavaglione
2. PUBLIC COMMENTS
There were no requests to speak from the :public.
3. ADDITIONS/REVISIONS•
There were no additions or revisions to the agenda:.
4. CLOSED SESSION
Conference with Real Property Negotiator Pursuant to Section 54956.8
Negotiating Parties: RCTC - Executive Director or Designee
Property Owners - See. List of Property Owners
Item
APN
Owner
1
247-150-008
247-150-009
247-150-011
Desai Family Limited Partnership and
Rajendra/Anand Desai
2
342-240-013
342-240-014
342-240-015
Arlene D. Griffith et. al.
There were no announcements from Closed Session items.
RCTC Property Committee Minutes
November 27, 2006
Page 2
ADJOURNMENT
There being no other items to be considered, the . Property Committee
meeting adjourned; at 1:04 a.m.
Respectfully submitted,
)1.)"^"-q-&—
Jennifer Harmon
Clerk of the Board
RIVERS/DE COUNTY TRANSPORTATION COMMISSION
PROPERTY COMMITTEE
"COMMITTEE OF THE WHOLE"
(Due to lack ,of a quorum, the Commissioners present operated as a "Committee of the Whole''.)
May 24, 2007
Minutes
1. CALL TO .ORDER
Second Vice Chair Bob Magee called the meeting of . the, Property
"Committee of the Whole" to order at 1:10 p.m., on Thursday, May 24,
2007, . at the Riverside County Transportation Commission's Office,
4080 Lemon Street, -Third Floor, Riverside, California 92501 and
Riverside County 4' District Office, 73-710 .Fred Waring Drive, Suite 222,
Palm :Desert, California, 92260.
Commissioners Present
Bob Magee
Roy Wilson*
*via teleconference
2. PUBLIC COMMENTS
There were no requests to speak from the public.
3. ADDITIONS/REVISIONS
There were no additions or revisions to the agenda.
4. APPROVAL OF MINUTES — NOVEMBER 27, 2006
Approval of the :minutes was deferred until the next meeting when there is a
quorum present.
Commissioners Absent
Marion Ashley
Robin Lowe
John Tavaglione
RCTC Property Committee Minutes
May 24, 2007
Page 2
AWARD AN EXCLUSIVE ' NEGOTIATING AGREEMENT FOR JOINT
DEVELOPMENT AT THE RIVERSIDE -DOWNTOWN METROLINK'STATION TO .
.THE ALAN MRUVKA. COMPANY DBA BLUE SQUARE - DEVELOPMENT
GROUP
Stephanie'Wiggins, Regional Program Director, provided background
information on the Commission's joint development efforts .and presented the
recornmendation for joint development at the Riverside -Downtown Metrolink
station.
M/S/C (R. Wilson/Magee) to recommend to the Commission
1) Award Exclusive Negotiating Agreement (ENA)
No. 07=67-154-00 for Joint Development at the Riverside-
Downtown Metrolink Station to The Alan_ Mruvka Company dba
Blue Square Development Group and:.
2) Authorize the Chair, pursuant' to: legal counsel ::review,
execute the agreement on behalf of ,the Commission.
APPROVE A MEMORANDUM OF UNDERSTANDING WITH METROPOLITAN
WATER DISTRICT FOR THE CONSTRUCTION OF THE PERRIS VALLEY
PIPELINE AND THE PROVISION OF A SUBSTITUTE EASEMENT
Min Saysay, Right -of -Way Manager, provided an overview of
memorandum of understanding with Metropolitan Water District..:
MIS/C (R. Wilson/Magee) to recommend to the Commission o:.
1) Approve Memorandum. of Understanding (MOU)`:
No. 07-33-155-00 with Metropolitan Water District for the
construction of the Perris Valley Pipeline in the San Jacinto
Branch Line Rail Right -of -Way and for Provision of a Substitute
Easement; and
2) Authorize the Chair, pursuant to legal counsel _(Adorno Yoss,
Alvarado, & Smith) review, to execute the MOU on behalf ; of
the Commission.
. CLOS'ED. SESSION
Due to a lack of quorum, the Closed Session items :wi'II be takendirectly to
the Commission for final action.
RCTC Property Committee Minutes
May 24, 2007
Page 3
8. ADJOURNMENT
There being no other items to be considered, the Property Committee
meeting adjourned at 1:22 p.m.
Respectfully submitted,
)1)"1")-49-4L \-\ctA)m()r----
Jennifer Harmon
Clerk of the Board
AGENDA ITEM 5
RIVERSIDE COUNTY TRANSPORTATION COMM/SS/ON
DATE:
June 25, 2007
TO:
Property Committee
FROM:
Min Sa.ysay, Right of Way Manager
THROUGH:
Cathy Bechtel, Project Development Director
SUBJECT:
Right -of -Way Policies and 'Procedures. Manual
STAFF RECOMMENDATION:
This item is for the Committee to
1) Adopt the Right -of -Way Policies and Procedures manual as a new set
of policy guidelines for the acquisition and sale of right-of-way,
appraisal of real property, relocation of displaced individuals and
businesses, and management of Commission owned real property;
2) Recommend that the Commission authorize the Property Committee to
approve subsequent changes to the right-of-way policies and
procedures manual; and
Forward to the Commission for finalaction.
BACKGROUND INFORMATION:
The Commission, has been reviewing and updating several of the key internal
policies and procedures by which it operates. Some of the processes identified for
review were the right-of-way policies and , procedures. The previous right-of-way
policies and procedures were abbreviated and not comprehensive enough for the
Commission's expanding role in project ,delivery.
It is anticipated that the Commission will start delivery . of the Perris 'Valley Line
(PVL) project in the coming FY 2007/08. Since the right-of-way acquisition is
critical in the delivery of transit projects, the Federal Transit Administration (FTA)
requires that the agency responsible for the delivery of a transit project, such as
the PVL, adopt a set of policies and procedures for a right-of-way acquisition.
The Federal Highway Administration (FHWA) likewise requires that agencies who
will engage in right-of-way acquisition adopt a set of policies and procedures that
comply with federal and state;:regulations. It should be noted, however, that when
the Commission acquires right-of-way for highway projects that will be
incorporated in the state highway system, the Ca!trans right-of-way manual has to
be followed as well.
Agenda Item 5
Staff. developed an updated Right -of -Way Policies: and Procedures Manual.
(ROW manual) that meets, the requirements of, and conforms .to federal statutes
and ° regulations: -(Uniform Relocation Assistance and Real Property Acquisition
Policies Act of 1970,,as amended, and implemented by,.,49 CFR Part 24), and state
statutes and regulations (California Government Code Section 7260-7277, '
as implemented by the California Relocation Assistance and Real Property
Acquisition Guidelines, Title 25 California Code of Regulations, Chapter 6;
Article 1, Section 6000et seq and the California Code of 'Civil Procedure Section
1230.010 — 1230.070). The ROW manual has : been reviewed by the
Commission's legal counsel, Best Best & Krieger.
ROWManual Highlights
The new ROW manual incorporates the essential elements needed to comply with
federal and state regulations. The 'ROW manual does the following:
•
Ensures that owners of real property to be acquired. for Commission projects
are treated .fairly and consistently, encourages and expedites ;acquisition :by
agreements with such owners, minimizes .litigation` and , promotes public
confidence in Commission land acquisition programs;
Ensures that persons and businesses displaced .as a direct result of
Commission pr'O`jects are ':treated fairly,: consistently, and equitably so that -
such persons will .not suffer disproportionate injuries as a result of projects
designed for the benefit of the public as a whole;.
Requires that. an appraisal, based on fair :market value, be prepared for all
properties. to be purchased ,or sold by the Commission, except in instances
allowed by ,federal : or state regulations. An example would '.be when the,
property ert to be sold contains. an area 'less than 5,000 square .feet; ,
p P Y
Ensures that the Commission receives the highest value for the sale :of
Commission owned properties while complying with state , and . federal
regulations governing disposal of agency owned properties;
Establishes thresholds for executive staff approval of administrative
settlements for purchase of ,right-of-way;
Creates an ::administrative Appeals Board that :is authorized to hear
complaints from displaced : individuals and businesses relating to staff .
determination of relocation benefits;
Outlines best ;practices in managing Commission owned properties;
Establishes guidelines for licensing and leasing Commission properties;
Complies with recently adopted state laws, such as SB 1210 and
Provides quick reference to Commission :staff and the public.
The new ROW manual provides the Commission- with a formal set of policies and
procedures that will assist in all aspects of right-of-way acquisition and property
management, and complies with federal and state regulations.
Attachment: Right -of -Way Policies and Procedures Manual
Agenda Item 5
POLICIES and
PROCEDURES
TABLE OF CONTENTS
CHAPTER 1 GENERAL INFORMATION I-1
CHAPTER II RIGHT OF WAY,MANAGEMENT PLAN 11-1
CHAPTER III TITLE REPORT, ESCROW SERVICES III-1
and DEEDS
CHAPTER IV SURVEYS and LEGAL DESCRIPTION IV
CHAPTER V APPRAISALS
CHAPTER VI ACQUISITION, NEGOTIATION
and ;EMINENT DOMAIN
CHAPTER VII RELOCATION ASSISTANCE
V-1
VI-1
VII-1
CHAPTER VIII PROPERTY MANAGEMENT VIII-1
CHAPTER 'IX DEMOLITION, CLEARANCE and IX-1
CERTIFICATION
CHAPTER X ENVIRONMENTAL INSPECTION, X-1
REMEDIATION and MITIGATION
CHAPTER XI UTILITIES RELOCATION X1-1
CHAPTER 1
GENERAL INFORMATION
TABLE OF CONTENTS
Section 1-1
Introduction
1-1.1 Reason
1-1.2 Scope
1-1.3 Purpose
1-1.4 Federal Regulations
1-1.5 State Regulations
1-1.6 FHWA, FTA and State... RCTC Relationships.
1-1.7 Communications and Letter Writing
1-1.8 Public Relations
Section 1-2
Subdivision of Manual
1-2.1 Explanation .of Index
1-2.2 Form Numbering
1-2.3 Issue and Revision Dates
1-2.4 Retention of Revised Material
Section 1-3
Discriminatory Practices
1-3.1 General Policy Concerning Discrimination
1-3.2 Employment Practices
1-3.3 Contract Procedures
1-3.4 Right of Way Acquisition
1-3.5 Property Management
1-3.6 Relocation Assistance
1-3.7 Records and Reports
CHAPTER
GENERAL INFORMATION
Section 1-1
1-r1.1 Reason
Introduction
Right of Way acquisition, property management, and; property disposition are a
complex function. It is :therefore imperative that policies be writtenand
procedures established to enable each member of the Right of Way 'Department
to be completely informed and able to perform their duties in a skillful :manner.
Each right of way employee should perform his orher assigned duties in a
professional manner. .
1-1.2 Scope
This manual contains the regulations, requirements. and procedural directives
governing .the operations of the Right of Way Department. It will be . updated,;
amended and. revised as needed by the RCTC Property Comrnittee.
1-1.3 Purpose
This manual: is to be usedas the policy and procedures guide for Right of VVay
acquisition, property management, and property disposition for: (i) all projects
funded by the Federal. Transit Administration; (ii) state -funded projects, 'unless
the right of way will ,be incorporated into the State Highway system; and iii
. 9 Y p g Y Y (�
locally funded projects. It establishes a uniform method for completing each
phase of the right of way operation. Any deviation from the ,prescribed policy
needs written authority from the Executive Director or designee.,:,
1-1.4 Disclaimer
This manual is for internal guidance purposes. It is not intended .to and does not
create any additional rights, liabilities, defenses or causes of action not already
arising under existing law:
To the extent any provisions or procedures in this manual conflict with. applicable
State or Federal legal requirements, those State or Federal legal requirements
shall prevail. The RCTC Executive Director and legal counselshall have the
authority to make interpretations of the provisions ofthis manual ;and to
determine the applicability of its requirements to specific projects or .properties.
1-1.5 Initial Determination of''Funding Sources
The right of way acquisition and relocation requirements set forth' in this manual
are not intended for use in conjunction with projects funded , by the 'Federal
- 3 -
7
Highway Administration or for State -funded projects, if the right of way will be
incorporated into the State Highway system. In either of these cases, the
Caltrans Right of Way Manual and the Caltrans Local Assistance Procedures
Manual will ,govern right of way activities,except as to matters not addressed in
either of the foregoing manuals, in which case this .ROW Policies and Procedures
manual shall apply. An initial determination of funding sources should be made
prior to the commencement of right of way activities.
1-1.6 Federal Regulations
Federal regulations governing right of way acquisition are .found in 49 CFR Part
24. Compliance with these regulations is required if federal funds are to be used
in any part of a project. The policy and procedures outlined in the following
chapters of this manual are written to include Federal Transit Administration
requirements.
1-1.7 State Regulations
All laws, policies and regulations passed by the State of California governing
right of way acquisition shall be complied with, including but not limited to Title 25
California Code of Regulations section 6000.
1-1.8 FHWA, FTA and State - - RCTC Relationship
RCTC .right _of way personnel will work cooperatively with. the. Federal Highway
Administration, Federal Transit Administration' and- State of ` California
Transportation Department right of way, as applicable, to .assure that all federal
and state requirements for right of way acquisition are met. RCTC right of way
personnel will make right of way records available for inspection upon request by
FHWA, FTA and Caltrans. Any correspondence regarding right of way
acquisition .discrepancies or deficiencies from the, inspecting agency shouldbe:.
transmitted to the 'RCTC Executive Director. The Executive Director will examine
the contents of the written reports and determine those deficiencies or
discrepancies that are not in compliance with approved RCTC policies and will
notify the Right of Way Department of any adjustments in operating procedures
that need to be improved or changed.
1-1.9 Communications and Letter Writing
Good communication, whether inter -department correspondence or. outside
correspondence is essential. Copies of correspondence must be directed to all
interested parties and placed in pertinent. files. Instructions provided during
telephone conversations should be confirmed by letter or memorandum and
copies must be placed in pertinent files explaining actions taken in response to
telephone instructions.
1-1.10 Public Relations
Right of Way personnel are public relations agents of RCTC as they have direct
contact with the public. The appearance, attitude.,and reliability of the individual
right of way employee creates an image of the RCTC in the eyes of those with
whom they come in contact. Every effort must be made to reflect an image that
is a credit to each employee and to RCTC.
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9
CHAPTER
GENERAL INFORMATION
Section 1-2 Subdivision of Manual
1-2.1 Explanation of Index
This manual is divided into chapters as set out on the index. Each chapter is
indexed individually to allow additions, deletions and changes to be made without
affecting the continuity of the overall manual.
Chapters are divided into sections and numbered numerically. ;Each section is
divided into subjects, which are also numbered numerically.
1-2.2 Form Numbering -
The forms and exhibits pertaining to each section will follow immediately, after the
section and .will be numbered numerically. The form and exhibit number will
relate directly to the subject chapter and section numbers in which they are
discussed.
1-2.3 Issue and Revision Dates
Each page and form is dated -in the lower -right-hand corner and each revision
issued in the future will show the revised date:
1-2.4 Retention of Revised Material
_ When revised material is issued, the revisions should immediately be placed in
the manual. The Right of Way Department will keep a permanent record of all
revised sheets.
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10
CHAPTER 1
GENERAL INFORMATION
1-3.1 General Policy' Concerning Discrimination
Under ;no circumstances shall any form of discrimination be practiced: by, any
employee or any party under contract with the RCTC, or on the part:of any other
party ;carrying out any phase of the Commission's, right of ,way acquisition and
relocation program:
Supervisors and: all others responsible for carrying: out the right of way acquisition
and relocation program must be constantly aware of the necessity for identifying,
reporting, eliminating and/or correcting any discriminatory practice,' which ;may
occur. Ari'y clearly defined practice suspected of .being discrirninatory must .be
reported to the Executive Director, who will cause the discriminatory claim to be
investigated and, if sustained, see that appropriate corrective action.is taken.'
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CHAPTER II
ROW MANAGEMENT PLAN
TABLE OF CONTENTS
Section 2-1
Introduction
2-1.1 Purpose
2-1.2 Scope
Section 2-2
Right of Way Acquisition
2-2.1 Authority of RCTC to Acquire
2-2.2 State Laws
2-2.3 Federal Laws and Regulations
2-2.4 Overview
2-2.5 Interest to be Acquired
2-2.6 Title Insurance
2-2.7 Identification and Certification of 'Right of Way
2-2.8 Scheduling
Section 2-3
Appraisal
2-3.1 Purpose
2-3.2
Basic Appraisal Process
Section 2-4
Environmental Inspection
2-4.1 Purpose
2-4.2 Procedure
2-4.3 Documentation
Section .2-5
Negotiations
2-5.1 Acquiring Agents
2-5.2 Procedure
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Section 2-6
Relocation
Relocation Agents
Relocation Program
Appeal Process
Section 2-7
Right of Way management
2-7.1 Scope
2-7.2 Right of Way Inventory
2-7.3 . Aging and Receivables Report
Section2-8:
Utility Relocation
2=8.1 Identification
2-8.2 Critical Path
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CHAPTER II
ROW MANAGEMENT 'PLAN
Section 2-1 Introduction
2-1.1 Purpose
The Right of Way function encompasses several disciplines. The purpose of the
Right of Way Management Plan ("RMP") is to provide an overview of the
Commission's right of way activities. This RMP is presented in general terms
and will be amended or modified pursuant to the nature of the Project and
Funding Source requirements.
Detailed Right of Way, Policies and Procedures will be presented and discussed
in succeeding chapters.
2-1.2 Scope
Included in the Right of Way function are right of way acquisition, relocation of
displaced individuals and businesses, ROW engineering and surveying,
appraisal, property management, utilities relocation and environmental inspection
and remediation.
-1-
14
CHAPTER II
ROW MANAGEMENT PLAN
Section 2-2:
2-2.1 Authority of RCTC to Acquire
Public Utilities Code Section 130220 authorizes the Commission to make
contracts.... in connection with eminent domain proceedin
gs or otherwise...
2-2.2 State Laws
With respect to ';initiation of condemnation proceedings, the following California
Codes apply: -
Right of Way Acquisition
a. California Code of Civil Procedure Section 1230.010 .
b California Government Code Sections 7260-7277
2-2-3 Federal Laws and. Regulations
The following federal regulations and policies may apply to the Right of Way program ,on
-a case -by -case basis, as applicable:
a. Uniform Relocation Assistance and Real property Acquisition ;Policies Act, of
1970, as amended (42 U.S.C. 4601 et seq.) 49 CFR 'Part 24, as further
amended by the Surface _Transportation and Uniform Relocation Assistance
Act of 1987, Title IV of Pub. L. 100-17.
b. 23 CFR Parts 130,480,620,630,635,645,710,712 and 713 The Fede'ral
Highway Administration, .Right of Way Program Administration.
c. Federal Highway Administration, Office of Real :Estate, Project Development
Guide.
d. Federal Transit Administration Circular 5010.1 C dated September 7, 1995, as
:amended, titled Federal Transit Administration Grant Management
Guidelines.
2-2-4 Overview
The ROW acquisition :program is designed to ensure the timely availability of those
parcels necessary for construction and ensure the fair, uniform and equitable treatment
of those displaced from their homes and businesses as a result of an ;RCTC project.
The acquisition process is divided into the following categories: identification of right of
-2-
15
way requirements; appraisal of required interest, negotiation and .acquisition either
through settlement or condemnation; and finally, relocation. as required. .
These activities are scheduledby the ROW Program Manager against established
construction deadlines. A flowchart outlining the sequence of typical acquisitions and
relocation activities is provided in Attachments 1-1 and 1-2.
2-2.5 Interest to be Acquired
Long-term real estate interests typically .fall : under three :categories: , (1), a fee simple
estate; (2) a leasehold estate having .a term of twenty or more years; and (3)
easements. Accordingly, the RCTC must have direct and sustaining control and
unrestricted use of the properties in accordance with the terms and conditions of the
project.
Temporary construction .easements, temporary use permits, licenses and right of entry
agreements are examples of temporary property :rights generally obtained. to perform
various types of work incidental to construction. The type of work to be performed
determines which type of agreement is to be used. Temporary construction easements
are acquired for such things as access during construction, establishment of detour
roads, construction staging and storage areas where the specified use is essential to
completion of construction. The acquisition of temporary use permits and right of entry
agreements are typically used when obtaining permission to complete soil borings,
archeological testing, hazardous materials testing, sloping of lawns, or reconstruction of
driveways,. where a_nominal- amount .of money is involved and the effect of termination
would not jeopardize completion of the project.
2-2-6 Title Insurance
In case of temporary property -rights, preliminary ownership information is obtained.
Title Insurance is secured for the long-term property interests, insuring -:title effectively
free and clear of any liens and encumbrances other than current year's taxes and
assessments and easements, covenants and restrictions, which do not materially or
adversely affect the use of the property for the project.
Title Insurance is always accompanied by a thorough title examination, which seeks to
discover if any defects exist. The Title Insurance Policies are issued shortly after
closing (the date the .RCTC takes ownership of the property, e.g., the date when the
deed to the Commission is recorded). Under the Policy, the Title Company agrees to
defend the title of the ROTC, as the insured.
2-2.7 Identification and Certification of Right of Way
Identification of the parcels required for the project begins in Preliminary Engineering
andis concluded by the Project Management Consultant (PMC) during final design.
This includes not only the 'long term property rights required to accommodate the project
alignment, stations, station entrances and permanent parking facilities, but also the
temporary property rights required for: construction access and storage yards.
-3_
16
Detailed ROW requirements are identified and recommended by the PMC. To support_
a recommendation, the :PMC is required to prepare an acquisition package to .include a
ROVV plat showing ;the location, size and shape of the parcel to be . acquired; a legal
description of the area to be acquired; as well as the name(s) of property owners; .and
computations of the ,areas to be acquired.
Scheduling
The : PMC.: develops the .`priorities, by project segment, for ROW acquisition activities.
However, the ROW Program Manager identifies within each project segment; the
priorities for ROW acquisition by parcel in order to meet the construction schedule. The
schedule identifies. projected dates for the various' stages of the ROW: acquisition
process and is updated regularly.
The RCTC evaluates the ROW acquisition date to ensure 'there are no conflicts' and
ensure integration of information into the Master Project Schedule.
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CHAPTER II
ROW MANAGEMENT PLAN
Section 2-3 Appraisal
2-3.1 Purpose
Appraisals are used to establish a basis for determining just compensation. An
appraisal .will be required in . all cases, unless otherwise approved by the RCTC legal
counsel.
The 'Uniform Act, as well as FTA policy and procedures, requires that one appraisal and
a reviewer's analysis be obtained on all parcels proposed for acquisition, except when
the estimated fair market value is $10,000 or less. to such case, a reviewer's analysis
may not be required.
2-3.2 Basic Appraisal Process
The selection of independent fee appraisers is based on qualifications and experience
for the property being appraised in accordance with criteria for appraisals' contained in
49 CFR Part 24. Appraisers must be qualified to give expert testimony in support of
their value estimates in the event of condemnation proceedings.
The property owner is notified in writing of the RCTC's interest in acquiring property
rights and basic protections provided to the owner by law. The owner or the owner's
designated representative is given an opportunity to accompany the appraiser during
the appraiser's inspection of the property.
The amount is approved by the review appraiser, and the Executive Director or
designee has final approval of offers of just compensation.
When the RCTC project is 'FTA funded, FTA prior concurrence is required when the
reviewer's recommended offer of just compensation exceeds $250,000 and when an
administrative settlement exceeds $50,000 of the offer of just compensation. FTA may
consider higher thresholds.
FTA, FHWA and Ca!trans (depending on the funding source) concurrence thresholds,
appraisal and settlement guidelines should ,be strictly adhered to.
When there is a contamination .factor or hazardous substances/wastes affecting the
property, the estimated cost to remediate the contaminated property needs to be
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forwarded to the ROTC appraisers for consideration and possible inclusion in
establishing fair market value.
_g_
19
CHAPTER II
ROW MANAGEMENT PLAN
Section 2-4 Environmental Inspection
2-4.1 Purpose
ROW acquisition for projects carries with it certain responsibilities to the community.
This policy addresses environmental concerns involving residential, commercial and
industrial properties, which may .be wholly owned by the Commission or jointly held with
other owners.
2-4.2 Procedure
The procedure requires. the RCTC to hire a consultant to perform remediation of
hazardous wastes and asbestos abatement. The Commission directs the investigation,
identification, control and disposal of hazardous wastes, contaminated soil or other
materials in accordance with the Environmental Protection Agency and other applicable
governmental regulations.
Depending upon the nature of the hazardous material (usually waste products), its
origin and the intensity of the product generation, decisions as to the extent of hazard
protection are made on a case -by -case basis. For example:
a. Residences are usually not major generator, but are examined for:
Cement asbestos wall shingles
Certain pipe (steam) or boiler wrappings
Lead paint and other conditions.
b. Commercial properties may generate hazardous materials due to:
Waste products used to cover or treat road or parking lot surfaces
Abandoned transformers containing PCB type immersion fluids
Asbestos and other: products
c. ' Industrial properties may generate hazardous materials such as:
By-products and other not useful products
Buried waste
Insulation products (asbestos)
PCB products or similar materials
Underground Storage Tanks and other wastes
d. Vacant land and ROW properties accumulate as a result of.
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Spills
Indiscriminate storage and/or dumping
Irresponsible management of hazardous materials
Accidents
e: Each type of property is handled in the following manner:
Identification of hazardous waste materials as officially (Federally) defined
Examination of potentially hazardous site to determine the `risk of hazard,
if any by:, a field examination by RCTC representatives, -preparation of a .
list of areas and the :degree of concern; andpreparation of a schedule :to
address the issue
Evaluation of the hazard, to determine responsibility for cleanup:
Existing:Owner and prior owner(s) and their use of .the property
Legal opinion where appropriate
Identificationof(funding source) authority to utilize ° grant. funds
:the .ROW cleanup
2-4.3 Docurnentation
The following steps may be utilized to prepare the documentation for 'identification of :.
potential_ hazards and their ultimate disposal and mitigation: -
a. perform an environmental analysis, utilizing appropriate
procedures;
b. perform
hazard;
surveillance to insure a satisfactory identification of: the potential
c. prepare a RFP to obtain proposals for hazardous materials removal; .
d. review proposals received for removal
e. participate in contracting for hazardous materials removal;
review :work schedule to conform to survey need;
provide adequate surveillance to ensure hazardous :materials ;are thoroughly
9. p q 9 y.
and properlyremoved;
h. ensure .,all governmental (Federal & State) approvals and clearances are
secured; and
. provide approval of contractor and consultant applications for payment.
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CHAPTER II
ROW MANAGEMENT, PLAN
Section 2-5 Negotiations
2-5.1 Acquisition Agents
ROW consulting firms are often retained to assist .negotiations for land acquisitions. It
has been clearly shown that such procedure is in the public interest because (1) the
RCTC staff is not large enough to adequately acquire the required ROW; (2) the amount
of the fee is not determined on a percentage basis; and (3) the fee is just and
reasonable for the work to be performed.
2-5.2 Procedure
Every reasonable effort is made to acquire all interests in real property by voluntary
conveyance through negotiations. The general procedures utilized during the
negotiation process are as follows:
a. The . ROW Program Manager or a ROW Consultant contacts each property
owner to deliver a written offer of the approved amount of just compensation
and to discuss the RCTC's acquisition :policies and procedures. Whenever
practical, negotiations are conducted by direct, personal contact with the
.property owner or his/her_ representative...
b. The written offer is accompanied by a summary indicating the basis for the
amount established as just compensation. The statement identifies any
improvements considered to be part of the real property for which the offer of
just compensation is made.
c. The property owner is notified in writing by the ROW Program Manager (or
designee) of their eligibility for applicable relocation assistance and provided
a written description of the Commission's relocation program and their rights
under the Uniform Relocation Act.
d. A reasonable amountof time, normally thirty days, is given Ito the owner to
consider the offer and to :present information, which may not have been
considered during appraisal. If requested by the owner, a summary of the
appraisal may be provided. The Commission will consider the owner's
presentation. Once agreement is reached and the proper forms executed,
the transfer of ownership is completed.
e. In cases where the owner rejects the original offer and it is feasible to
increase the offer rather than file for condemnation, an administrative
settlement may be negotiated. Decisions on administrative settlerrients are
coordinated by the ROW Program Manager and based on items, such as, the
appraiser's opinion of value, recent court awards for similar types of property,
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the opinion of Legal Counsel and the economic risks involved in the
condemnation process.
If In the opinion .of the ROW Program Manager, the possibility of, reaching
agreement by negotiation has been exhausted, a writtenrequest to proceed
with condemnation: is directed to Legal Counsel. Condemnation is the feast
desirable acquisition method and is only used when all, other' methods have
failed.
Negotiations may continue between the RCTC legal counsel arid the owner's
.attorney during any conderrmnation action in an effort to reach settlement
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CHAPTER II
ROW MANAGEMENT PLAN
Section 2-6 Relocation
2-6.1 Relocation Agents
Relocation consultants are generally retained to develop .a relocation plan, administer
relocation assistance and benefits as required, pursuant to the Uniform Relocation Act.
It has been clearly shown that such a procedure is in the best interest of the public,
similar to retaining negotiation consultants.
2-6.2 Relocation Program
The Uniform Relocation Act provides for certain relocation advisory services and
payments in addition to the amount a person .receives as just compensation for
property. The RCTC relocation program is designed to conform to the requirernents of
the Uniform Act and to provide the maximum assistance possible to the relocated
owners and tenants.
A relocation advisory: program is established to provide the maximum assistance
possible to all persons required to relocate. The relocation consultant implements the
program under the supervision . of : the ROW Program 'Manager (or designee).
Relocation brochures are available to .describe the relocation • benefits available to
residential and commercial displacements.
2-6.3 Appeal Process
Any person aggrieved .or otherwise dissatisfied by a._ determination regarding their
eligibility for a relocation payment or by the amount of any such payment may file an
appeal requesting review of their case by the RCTC Appeals Board within 60 days after
receipt of RCTC's determination of the person's claims:
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CHAPTER 11
ROW MANAGEMENT PLAN
Section 2-7
2-7.1 Scope
Right of Way: 'Management involves :the control and management of land and
p
improvements from p the time title is vested with the ROTCuntil the property is used for
the purpose it was acquired It is the function concerned with the interim management
of all newly acquired ROW and any improvements thereon, includingdemolition and
disposition of excess 'ROW remnants or property rights: In cases where there are
existing contracts, such as leases ` or licenses, involved in the ROW acquired, it will
encompass management of those contracts.
Right of Way 'Management
2_-7.2 Right of Way Inventory
An important property management tool is the ROW Inventory. A computerized
indexing system for all Commission 'ROW is developed by the ROW Program Manager,
with ;the assistance of the Information Systems Department. Individual property sheets
include information such as type and description of asset, title policy and parcel ID
nurnbers, legaldescription, type .of interest, term and rental, instrument of conveyance -
and :effectivee date; liens and encumbrances, appraisal value, °acquisition cost and
(federal or State) shareof acquisition cost expressed in dollars and dollars per square
foot.
The data in this system is cross-referenced to survey, ROW and other pertinent design
drawings 'prepared for the-project,using computer aided drafting devices. Also, Within
this system.; the forecast .and actual dates for milestones in the property transfer
process are maintained. A reportshowing this -information is updated and is issued to
Federal' and State agencies, the PMC and others as necessary. The system will
likewise satisfy FTA quarterly reporting and audit requirements.
2-7.3 Aging and Receivables Report
In cases where there are existing contracts involved in : the ROW acquired, an
Aging/ .Receivables Report will be developed. This Report will include the name of the
tenant/licensee, location of the: subject property, monthly/annual rent, date rent is due,
terms renewal options; date rent will be increased and the basis for rent increase,.
payment status. All future leases, licenses and right of entry agreements` should include
"boiler plate" provisions . such as. (a) RCTC's right to terminate by providing 30 days
written notice to the lessee; (b): RCTC's right to enter and inspect the property at any
time; (c) indemnification and hold 'harmless .clauses; and (d) insurance provisions to
protectthe RCTC against liability. The Report should be, generated on a quarterly.
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basis. The ROW Section will coordinate accurate and timely reporting with the
Accounting Department.
CHAPTER II
PROJECT MANAGEMENT PLAN
Section 2-8 Utility Relocation
2-8.1 Identification
During the design and engineering process, utilities affected by the proposed
construction will be identified. Typically, the affected utilities may need to be relocated,
protected in place or possibly abandoned. Early identification of affected utilities and
early coordination with the affected utility company is highly recommended as timely
design and completion of all utility adjustments affect the RCTUs ability to commence
construction. The PMC staff will identify all necessary utility relocation sites, in
consultation with RCTC engineering staff.
2-8.2 Critical Path
In preparing the Right of Way Acquisition Schedule, the Right of Way Section will 'give
priority to acquiring properties or property interests necessary for utility relocation.
Right of Way staff will be responsible for the negotiation, preparation and execution o
utility relocation agreements. It will monitor 'utility relocation costs and expenses.
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C�
n
N
CHAPTER III
TITLE REPORT, ESCROW SERVICES and DEEDS
TABLE OF CONTENTS
Section :3-1
Title Report
3-1.1 Purpose
3-1.2 RCTC Policy
3-1.3 Title Information
3-1.4 Title Insurance
3-1.5 Title Companies
Section 3-2
Escrow Services
3-2.1 Purpose
3-2.2 RCTC Policy
3-2.3 Escrow Instructions
3-2.4.. Payment and Closing Procedure
3-2.5 Escrow Companies_
Section 3-3
Deed
3-3.1 Fee Simple Title
3-3.2 Conveyances _ -
3-3.3 Forms
CHAPTER III
TITLE REPORT; .ESCROW SERVIC:ES? and DEEDS`
Section 3-1
3-1.1 Purpose
Title Reports, are needed for the purpose of establishing ownership, property
dines and transferring clear title to the property or property rights being acquired.
by ROTC.
Title Reports are used .in the preparation of surveys, legal descriptions, Right of
WayContracts and utility relocation plans.
3-1.2 RCTC Policy
It is the policy of ROTC to obtain a title report on all feesimpleand less than fee
simple, property rights acquisitions.
Uponcompletion of the final design of the. Project, the Project Management
Consultant or RCTC Right of Way staff may order the Title Report from an
approved Title Company by providing individual Property Tax I.D. Numbers,
property address or Assessor's Map.
1.3 Title °Information:
The following title information are usually included in a Title Report:
a Owner(s)' name(s) and total area of contiguous ,land comprising the
ownership
b. Special: assessments
c. Trust deeds and mortgages
d. Liens and encumbrances, such as, taxes, easements and judgments
e: Covenants and restrictions
An updated Title Report should be ordered prior toclosing escrow on : the
purchase of properties and property interests - or ;prior .to filing a Condemnation
Petition.
3-1:4 Title Insurance
An Owner's Policy of Title Insurance is secured for the long :term property
interests, insuring title effectively free and clear of any liens and ;encumbrances
other than current year's taxes and assessments and easements, ,covenants and
restrictions, which do not materially or adversely affect the use of the property for
the project.
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3-1.5 Title Companies
An approved list of "On Call" Title Companies will be established through the
RCTC Procurement Process.
3-
30
Section 3;-2 .
CHAPTER III
TITLE REPORT, ESCROW SERVICES and DEED,
Escrow Services
To ensure that the title and ownership of properties and .property interests
acquired by RCTC. are free and clear of liens and encumbrances .that will
adversely affect the use of the property for the Project:
RCTC General Practice
It is the general practice of RCTC to secure the services of an Escrow Company
in all of its transactions involving the acquisition of ,properties'. and property
interests.
3-2.3 Escrow Instructions
A pro=forma document titled "Escrow Instructions" will be prepared through
FTC's Legal_ Counsel. Instructions to escrow: companies: should be simple,
clear andshould include the following:
Proper identification of the property or property interests :being acquired
List of enclosures,, such as, grant deed, quitclaim deed, lease
Instructions, toescrow agent to utilize the documents when :ready .to close
escrow :and issue a Policy of Title Insurance in the amount specified, in
the escrow instruction, vesting title to ROTC; free and
:clear of
encumbrances, except those otherwise stated
A 'statement indicating which of the title ;;exceptions, Listed inthe title
report, will be taken "subject to" by RCTC and should on the Title Policy
An instruction as to disposition of taxes
An authorization to pay the properdemands from lien holders, in:
accordance :with the Real Estate Sale Contract and pay the balance to
RCTC's,,grantor(s)
3-2.4 Payment .and Closing Procedure
The 'Escrow Companyshall; prior to payment and escrow closing, obtain from
;- P Y
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3 1
the grantor(s) their Tax identification Number or Social Security Number or
Federal Employer Identification Number.
A procedure for delivery of RCTC payment for the acquisition of the property
and escrow fees will be established by Right of Way staff with RCTC
Accounting Department.
It will be the responsibility of Right of Way Staff or the Acquisition Consultant
that all documents and payment required for escrow closing be delivered as
scheduled. The closing instructions will be reviewed to determine whether all
necessary instruments to clear title in the manner required by the 'Real Estate
Sale Contract have been executed and recorded. Taxes shall be pro -rated or in
cases of partial acquisitions, properly segregated upon recordation of the deed
conveying the property. to ROTC.
3-2.5 Escrow Companies
An approved list of "On Callas Title Companies will be established through the
RCTC Procurement Process.
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CHAPTER III
TITLE REPORT, ESCROW SERVICES and DEEDS
Section 3:-3
3-3.1 - Fee Simple Title.
An. unencumbered fee simple title to real property gives its owner the' right to
use and enjoy the property in any manner, provided its uses are, in compliance
with prevailing laws and ordinances. Fee simple title represents the whole
bundle of rights over real property from which many pieces or segments maybe
conveyed or leased.
3-3.2 Conveyances
a: Grant Deed — The transfer of all rights and control over real; property_' It ;is
used to .acquire fee simple title to real property.
Easement Deed — The transfer of less than fee simple 'title to; real
property. .Easement -Deeds may be Permanent or Temporary dependO
on Project requirements. It also includes Aerial, Easements.
c Quitclaim Deed.- The transfer of any right over real property. This, is the
least desirable means of acquiring property rights.
Forms
All forms, of legal instruments used to acquire property and property rights, on
behalf of RCTC shall be "approved as to form" by RCTC's Legal Counsel.
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34
CHAPTER 1V
SURVEYS and LEGAL DESCRIPTION
TABLE OF CONTENTS
Section; 4-1
Surveys
4-1.1 ;Purpose -
4-1.2 RCTC Policy
4-1.3 Survey Companies
Section 4-2
Legal Description
4=-2.1 Purpose
4-2.2 Methods of Legally 'Describing the Fee or Portion Thereof
4-2.3 Description Writers
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CHAPTER IV
SURVEYS and LEGAL DESCRIPTION
Section 4-1 Surveys
4-1.1 Purpose
To establish and calculate property ownership boundaries, right of way
requirements, excess land and remainders. It is used as a basis for all right of
way acquisitions and legal descriptions.
4-1.2 RCTC Policy
It is RCTC's policy to establish property boundaries for:
a. Total acquisition parcels
b. Partial acquisition parcels
c. Acquisition of Easement rights
Surveys shall be signed and sealed by a licensed surveyor or engineer.
4-1.3 Survey and Right of Way EngineeringCompanies
An approved list of "on call" Survey Companies will be established through
RCTC's Procurement Process-.
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36
CHAPTER IV
SURVEYS and LEGAL DESCRIPTION
Section 4-2
4-2.1. Purpose
The purpose of .a legal description is to accurately define,' from' legally
established monuments and survey data, land areas or rights to be conveyed.
4-2.2 Methods of Legally Describing the Fee or Portion Thereof
-Metes and Bounds. ' This method definesthe perimeter of the area by
directions and/or bearings and distances. This type of description, must
commence at a known established monument, such as section corner, . %
section corner or "tied" to a subdivision or portion thereof that has been
previously filed at a Recorder's office.
Legal Description
Centerline or Baseline Description. In most: instances, legal descriptions
for highway usesare centerline or baseline descriptions. ' The baseline
method is employed in the same manner as the centerline'' except right of
way is -dimensioned from the baseline rather than centerline., When the
baseline°;is used it,should be, whenever possible, referenced to: thecenter
of the median of the highway.
Thecenterline or baseline for right of way descriptions must be "tied".to
section corners, or % section corner or center of section or lot corners of
properly filed subdivisions.
% % calls with section, township and range,,
The method of legally describing the properties or property, interests to be .
acquired by RCTC will depend on Funding Source requirements.
4-2.3. Description Writers
It is preferred that Legal Descriptions be written' by the same! company that
prepared the survey for the property or property, ;interest being acquired. If
easement rights are involved, RCTC Legal Counsel must re arethe descri+ tion
9 9 P P P �; .
of the ;particular easement rights to be acquired.
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37
CHAPTER V
APPRAISALS
TABLE OF CONTENTS
Section 5-1
Basic Operating Policies
5-1.1 Policy
5-1.2 Necessity for Appraisal
5-1.3 Appraisal Not Required
5-1.4 Review Appraisal
5-1.5 Notice to Property Owner of Decision to Appraise
5-1.6 Record Keeping
5.-1-.7.. Fee Appraisers and Review Appraisers
Section 5-2
Appraisal Reports
5-2.1
5-2.2
5-2.3
Non -Complex Valuations
Appraisal Formats
Approaches to Value'
Section 5-3
Uniform Regulations
5-3.1 The Uniform Act
5-3.2 Purpose
5-3.3 General Criteria for Appraisals .
5-3.4 Appraisal Requirements of the Uniform Act
Section 5-4
Instructions to Appraisers
5-4.1 Contents
5-4.2 Special Appraisal Considerations
Section 5-5
Contract Appraisers
5-5.1 Approved Contract Appraisers
5-5.2 Selection of Contract Appraisers
5=5.3 Non -Competitive Proposals for Contract Appraisers
5-5.4 Review Appraisers
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CHAPTER V
APPRAISALS
Section '5-1.
5-1.1 Policy
It -shall be the policy of RCTC to secure at least one appraisal of each fee simple
acquisition or from which: certain realty rights will be acquired. An appraisal will
be required in all cases, unless otherwise approved by the RCTC Legal Counsel.
Appraisals will be prepared . prior to initiation of negotiations ' on approved
appraisal format and comply with the provisions of Federal and State Uniform
Relocation Assistance :and Real Property Acquisition Policies Act, the Uniform
Appraisal Standards of Professional Appraisal Practice (USPAP) and the. Uniform
Appraisal Standards for Federal Land Acquisitions, and reviewed by a qualified
review appraiser, as required.
Basic Operating Policies
5-1.2 Necessity for Appraisal
An Appraisal is necessary to ensure compliance with . the.. Constitutional
requirement to pay "Just compensation" when private property is acquired or
damaged for public.: use. The measure of "just . compensation" ..is "fair market
value" which is contained in an Appraisal Report.
An Appraisal is generally . required for acquisition, property management,
relocation 'assistance and record keeping purposes, The Report 'shall contain a
summary of basic information and conclusions together with pertinent supporting
data.
5-1.3 Appraisal Not Required; Waiver of Appraisal 'Requirement by Legal, Counsel
An appraisal is not required if the owner is donating the property and. releases
RCTC from this obligation, in writing (after being 'informed in writing of RCTC's.
policy with regard to appraisal and their right to receive just compensation' and
the donation was initiated, by the owner).;
In certain 'cases, wherethe fair market value of ;the property to be acquired is
estimated at $10,000 or 'less, and it appears that the parcel valuation is ; non
complex, Legal Counsel ;may be contacted in order to determine if an appraisal
may be waived: if Legal Counsel agrees that an appraisal is not required a
waiver valuation prepared by RCTC and the "Determination of Just
Compensation" will still be necessary. A waiver valuation is not an appraisal and
is used merely for documentation. The, "Determination of Just.. Compensation"
may be documented with a diary entry, stating the basis of the value conclusion,
i.e., land value (with .calculations), improvement value and severance/cost to cure
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39
damages. In addition, a photograph(s) of the property must be included. For
FHWA projects, the form required is either the Memorandurn Appraisal format or
a Simple Narrative appraisal.
5-1.4 Review Appraisal
All appraisals, whether ;prepared by RCTC staff or by an independent fee
appraiser., must be reviewed by an independentreview appraiser.
Before an appraisal is sent to a review appraiser, `'RCTC staff shall internally
review the appraisal to ensure that it accurately states the following:
a. Property address
b. Property Owner(s) name
c. Property Tax 1. D. Number
d. Purpose of the appraisal
e. Propertyinterest to be acquired
f. Legal Description of the property
The ° review appraiser .
-must= review the =appraisal(s) for- compliance ;,with the
appraisal contract, State Law and Federal Law requirements.
The review appraiser may:
1. Recommend the valuation of an appraisal as just compensation; or
2. Determine that the appraisal accepted meets all requirements but is not
selected as recommended or approved, or is not accepted;
3. May develop and report an amount believed to be just compensation.
When the review appraiser finds the report lacking in content, support, reasoning,
or conclusion, the review appraiser may elect to supplement the areas
considered lacking, -including modifying the appraised value. A written report
clearly delineating the areas in question and full support and documentation for
the reviewer's conclusions must be provided.
5-1.5 Notice to Property Owner of Decision to Appraise
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40
When RCTC decides to appraise a property for acquisition, the appraiser must
give written notice to the property owner. The written ;.notice shall include the
following:
A specific area is being considered for a particular public use;
the project.
The owner's property is located within the area.
All or a portion of the owner's property (which should be generally ,
described) may be acquired for public use
An offer for the owner or owner's representative
appraiser on an inspection of the property.
The appraiser will give reasonable notice of the date and
the inspection.
Enclosed with the written notice will be the following:
A written explanation of RCTC's real property acquisition.
procedures; and
Title VI Brochure.
5-1.6 Record Keeping
The original appraisal shall be kept in each particular parcel file and a .copy kept
in a separate folder arranged in numerical order (according to parcel number)
5-1.7 Fee Appraisers and Review Appraisers
An approved list of qualified "on call" fee appraisers and review: appraisers will be
established in accordance with RCTC's Procurement Policies and Procedures.:
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41
CHAPTER V
APPRAISALS
Section 5-2 Appraisal Reports
5-2.1 Non -Complex Valuations
a. Appraisals of non-complex valuations of $25,000 or less must include at
least the following:
1. Parcel Summary Page
2. Senior Field 'Review Certificate
3. Certificate of Appraiser
4. Photograph(s) of the property
5 Index Map
Appraisal map
Comparable Data Pages with photographs.
8. Comparable Data map
9. An identification of significant personal property
Waiver Valuations with.a determination of Just Compensation .less than
$25,000 must include the following:
1. Determination of Just compensation Title Page
2. Parcel Summary. Page
3. Senior Review Certificate
4. Determination of Just compensation
5 Certificate of Determination of Just Compensation
6. Photograph(s) of property
7. Index Map
8. Appraisal Map
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42
9. An identification of `significant personal property
Waiver valuations may be prepared by knowledgeableRCTC staff and do
not have to be completed by an appraiser.
5-22 -Appraisal Formats
a:. Standard Appraisal Format or Detailed Appraisal, This format is
required,when:
There is a substantial acquisitionand the appraisal problemis
judged, to be complex. The complexity might be due to the
nature or value of the acquisition# of .land, improvements,
property rights, and/or consequential damages resulting from
the acquisition.
The highest and best use of a property is different from
existing use.
There is a change in highest and best use .after acquisition,
except when the remainder is an uneconomic' remnant.
Damages, other than cost to cure, are more than nominal:
Decreases or increases in market value due to the proposed
improvements are involved.
Market data for a sales comparison approach is inadequate'
and consideration must be given to the cost and/or income:
approach.. -
Value Finding appraisal or Short Form Appraisal forrnats are
unsuitable for any reason.
The possibility of adversary Eminent Dornainproceedings is
high.. -
"Complex Specialty" report is needed, Specialty Reports
are used to assist the principal appraiser in estimating ,.
contributory value of specialty,items, such as machinery
and equipment, fixtures, timber, contractor and builder
estimate.
Short Form Appraisal Forrnat (also known as, Simple,
Abbreviated). Use this format when:
The appraisal problem is uncomplicated.
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43
Complex Specialty appraisals are not required.
Highest and best use is the present use, and for partial
acquisition, the highest and best .use of the remaining
property is the same before and after the acquisition.
Comparable sales are readily available` and only the sales
comparison approach is used.
5. Damages are considered to be nominal and can either be
measured by the cost -to -cure method or by reasoning
which fully explains such damages.
Value Finding Format (also known as Narrative, Memorandum)
Use this format when:
1. The appraisal will be low but requires an appraisal.
The appraisal involves only vacant land or land with minor
improvements.
Before and after valuations are not required.
d.. Uniform Residential Appraisal Report (URAR). Use this format
when:
1. Acquiring single family residentially improved properties,
which are "total takes", or the remainder is an uneconomic
remnant and the residential improvements clearly represent .
highest and best use.
5-2.3 USPAP
Under any and all circumstances, if there is any conflict between the
requirements of the Uniform Act, or any other applicable law regarding the
preparation of appraisals, and the Uniform Standards for Professional Appraisal
Practice (USPAP), the USPAP shall prevail.
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44
CHAPTER V
APPRAISALS
Section 5-3
5-3.1 The Uniform Act
Regulations implementing appraisal standards of the 'Uniform Act are found in 49 .
CFR Part ,24. The Uniform :Act applies to any Federal or federally -assisted
program or project if Federal funding is to be used 'in any phase of the prograrr
or project.. Federal funding for the right of way acquisition is not the key in
determining whether or not Federal requirements apply to appraisals. If Federal
Funds =are going to be used in any part of the project, but not in acquiring right of
way, the Uniform Act still applies to the appraisals and acquisitions..
5-3.2 Purpose
Uniform Regulations
The purpose of the Uniform Act is to ensure that all property owners are treated
:fairly and uniformly when it is necessary for their property . be acquired for any
Federal'or federally -assisted program or project.
5-3.3 General Criteria for All Appraisals
Appraisals may not include any payment of relocation assistance benefits
or consider that such relocation payments will be made.
Appraisals must be independently prepared and each appraisal must be
signed by the individual(s) making the appraisal and include .appropriate
certification prior to submittal for review.
Documentation by reference is acceptable when the referencedmaterial is
in RCTC's files.'
Qualifications of all appraisers and .all technicians. who contribute to the
report must be in RCTC's files or in the. report. Fee appraisers must be
State Licensed:
Appraisals must be consistent with the Uniform Standards for Professional
Appraisal' Practice (USPAP), and in some cases, the Uniform Appraisal
Standards for Federal land Acquisitions.
Appraisals must comply with State approved requirements.
5-3.4 Appraisal Requirernents of the Uniform Act
-8-
45
a. The amount determined to be just compensation must be established by
RCTC before the initiation of negotiations (the first time a formal written
offer is presented to the owner).
b. Any decrease or increase in the market value of the property,: which is
caused by the public improvement or its likelihood prior to the date of
valuation, must be disregarded by the appraiser, except physical
deterioration within the reasonable control of the owner.
When property values go up or down because of the proposed public
improvement, .the appraiser must disregard such changed value when
estimating the before value but not in estimating the after value as
permitted by State Law.
The appraiser should consider the possibility of uneconomic remnants and
the RCTC must offer to buy any remainder that is of little or no value or
utility to its owner.
c. The appraiser must separately state damages to the property remaining
and value of the property taken:
d. All buildings, structures and improvements, including those owned by
tenants, as part of the real property if they will be requiredto be removed
or will be adversely .affected must be valued by the appraiser.
9.
_ _
Tenant -owned buildings, structures and improvements must'be appraised
as part of the real property based on their contributory value as if they
could remain in . place, or their value for . removal (salvage value),
whichever is greater. Lease terms requiring tenants to remove building,
structures or improvements must be disregarded and appraise as if they
could_ stay through. their. -usual life as extended by normal rnaintenance.
If RCTC acquires any interest in real property, it must acquire equal
interest in any buildings, structures and improvements 'located upon the
real property, which RCTC will require to be moved or will adversely
affect.
This also applies to tenant owned buildings, structures and improvements
located on the real property, even if the tenant is required by lease to
remove them at the end of the lease. Such 'buildings, structures and
improvements will be valued at contributory value as part of real property
or value for removal (salvage value), whichever is greater.
An adequate description ;of the items identified as personal property.
h. When there is agreement as to ownership between fee owner and tenant,
RCTC must make a separate offer to tenant for tenant owned buildings,
structures and improvements, thus, there must be a separate appraisal.
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CHAPTER V
APPRAISALS
Section 5-4
5-4.1 Contents
When the RCTC staff orders an appraisal, clear and specific written instructions
in the form of ascope of work will be provided which will include . the following
information:
a. Address of the Property to be appraised.
b. Tax I.D. number
c. Owner of the Property, mailing address and phone number (if available)
d. -Name of Tenant (if any), mailing address and phone number (if available)
Purpose of the Appraisal (estimate just compensation; disposal/sale' of
excess; etc.)
Interest to be Appraised (total/partial acquisition; easement; aerial rights;
rental estimate; access :rights; loss of business goodwill; outdoor signs),
Legal description of Property (in cases of partial acquisition, provide legal
description of remainder)
Survey/plat-maps
fee to be paid to appraiser (if more than one (1) appraisal is involved, .
itemize fees)
'Specific date when appraisal(s) is due -to' bee Completed
Contact person at the RCTC
5-4.2 Special Appraisal Considerations
The following are special considerations in reviewing appraisals (internally)
American with Disabilities Act of 1990 ("ADA" )
The' ADA applies to any public accommodation, commercial facility or
private entity that offers examinations or courses related .to applications,
licensing,, certification or credentialing for secondary or post -secondary
education, professional or trade purposes. It requires that ,all new
improvements after January 26, 1993 must be designed and ` constructed -
to be readily accessible and usable by individuals with disabilities.
Property to be appraised shall be inspected on 'the date of valuation for its
complianceor non-compliance with ADA :regulations: All comparable
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sales should be analyzed as to their compliance or non-compliance to
ADA regulations.
Outdoor Advertising Signs
Outdoor advertising signs will be valued as improvements unless they are
owned by outdoor advertising companies. If relocation of such signs is
feasible, that fact may be shown for informationpurposes only.
c. Mobile Homes
As a general rule, mobile homes are considered realty if installed on the
owner's land. They are considered personalty if tenant -owned or they do
not meet "decent, safe and sanitary standards; no adequate number of
suitable replacements sites: are available; or,they are not roadworthy and
thus incapable of being moved.
Mobiles Homes that are considered personalty should not be valued.
They will be covered under Relocation.
d. Hazardous Waste .or Materials
e.
Properties that involve hazardous. waste or materials (as defined by State
'.and Federal Laws)will be appraised -recognizing thre effects of 'hazardous
waste or materials. The appraiser must consider the, estimated cost of
cleanup requirements; market data of properties with comparable cleanup
problems; and marketability of parcels with known hazardous waste
problems.
Access Rights
The value of access rights is measured by the loss of value of the
remaining property; before and after the restriction.
Agricultural Improvements
Agricultural buildings, farm residences and specialized fences will be
valued as .improvements at depreciated value in place.
Severance Damages
Severance damage is the loss in value of remaining . property after
acquisition and construction. Severance damages are valued by appraisal
of the remainder as a portion of the total property in the before condition
and as a remainder in the after condition (disregarding the benefits of the
construction project).
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h. Cost to Cure .
n.
Some severance damages may be mitigated or entirely eliminated by
estimating the cost to cure the damage.
Benefits
Benefits are valued by appraising the remainder 'before and `after`; the
taking and construction of the project. Benefits are to be offset against
any severance damages.
Public: Utility :Parcels
Property ,owned in fee by public utilities (including governmental utility
agencies). utility agencies, irrigation districts and flood control districts may.
be subject to special treatment, including the purchase of replacement
land for exchange.
Excess Land Appraisal
Excess Land will be valued using a Market Value Appraisal or Market
Value Determination ($10,000 or less) and Excess Land with a highest
and best use as plottage (joinder or assemblage) to an adjoining property
will, be appraised :at_ the amount it adds .:to the value 'of -the adjoining
property.The before and after valuation method will be. used.
Airspace Valuations
Methods is appraising' airspace leases will :be the same as those applied
'any._ rl right 'of way acquisition arcel, except that consideration
in appraising.. 9 Y q p p
should be given to all of the factors that may, limit or enhance its utility
because of the existence of the project improvement located on . or ,near
the parcel. Full consideration will be givento any enhancement of real
estate values in the area because of the location of the . project
improvement.
Rent Determination
A fair market rent determination is an estimate of the amount of rent,
which a parcel would command in the open market, if offered under the
terms and conditions 'typical of the market for similar properties.
Compensation for Loss of Goodwill
Code of Civil Procedure, Title 7, eminent Domain Law, Chapter` 9, Article
6, Sections 1263 510, 520 and 530 providelhe :basis for compensating the
owner of a business for the loss of goodwill:
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The business owner shall be compensated for the loss- of goodwill if the
owner proves that the loss is caused by the RCTC's taking of the property
and that the loss cannot reasonably be prevented by a relocation of the
business or by taking steps and adopting measures that a reasonably
prudent person would take and adopt to preserve .the goodwill: The
business owner has the burden of proof for loss of goodwill.
The business owner must be notified, in writing, of the owner's right to
claim a loss of business goodwill. The notice must include a questionnaire
asking for information about the business. A reasonable time for the
owner to respond must be set forth in the letter.
If a. Goodwill valuation is prepared it shall be prepared under the direction
of the Commission's Legal Counsel Reports will be submitted to the
Commission's Legal Counsel..
CHAPTER V
APPRAISALS
5-5.1 Approved 'Contract Appraisers
5.5-2
Contract, Appraisers
RCTC shall establish a. current Roster of Approved Contract Appraisers through
the RCTC `Procurement Process. This Roster will: be updated and revised .on a
regular ,basis depending on RCTC work requirements. Appraisals shall be
subject to review by RCTC Legal Counsel for legal sufficiency. Appraisers may
be required to report directly to Legal Counsel. Appraisal reports ,and . ancillary
consultant reports shall be deemed prepared under the direction of: :Legal
Counsel and shall be subject to the privileges of confidentiality:
Selection of Contract Appraisers
very effort shall be made to Select the most qualified appraisers .available=
RCTG: Appraisers will be classified into:
General, Fee Appraisers. Appraisers qualified to perform all types of
appraisals will be ,included in this classification, such as residential,
commercial, industrial and agricultural property appraisers..
Specialty Appraisers. Appraisers who are well qualified (based _ on.
education, training and experience) to evaluate machinery, equipment,
airspace leases, hazardous waste or other specialty items will be included
in this classification. Specialists performingservices of this :nature may be
members' of appraisal :or engineering firms whose principal, occupationis
the appraisal of specialty items, contractors who are engaged. in the
-installation of such iterns, or equipment, or .suppliers or dealers of such
specialty 'items who are fully qualified to offer an opinion of value. They.
must be capable of submitting written :information, which :' is :essential; to
explain, substantiate and thereby: document their opinion ! in accordance'
with accepted appraisal principles and techniques. Specialty Appraisers
must be :qualified to provide expert testimony in Eminer4 Domain. and
-other real estate related court proceedings..
Goodwill Appraisers
Furniture, Fixtures and Equipment Appraisers
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5-5.3 Non -Competitive Proposals for Contract Appraisers
In instances when Specialty Items will be appraised, the ROW Department may
select the most qualified appraiser(s) available for the particular assignment.
Consideration should be given to anticipated appraisal problems, talents, skills
and special qualifications of the individual appraiser. The ROW Program
Manager shall exert best efforts in negotiating the lowest cost possible for the
appraisal assignment.
5-5.4 Review Appraisers
RCTC will establish a Roster of Approved Review Appraisers through the RCTC
Procurement Process. Review Appraisal Contracts will be awarded in the same
manner as Contract Appraisers.
5-5.5 Appraisers for Litigation' Purposes
Selection of and award of contracts to appraisers for litigation purposes shall be
handled through RCTC Legal Counsel.
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CHAPTER VI
ACQUISITION, NEGOTIATION and EMINENT DOMAIN
TABLE OF CONTENTS
Section 6-1
General :Provisions..:
6-1.1 Authority
6-1.2 Federal Code Requirement
6-1.3 Terminology
6-1.4 Acquisition tof Real Property interest
6-1.5 : Occupancy of {Right of Way
6-1.6 ; PublicMeetings
6-1.7 Project Field _Inspection
6-1.8 Pre -Negotiation Public Relations Contacts
6-19 Initiation of Negotiations
6-1.10 Who Conducts negotiations
6-1.1`1 - Relocation Assistance Information
6-1.12 - Pre -'Negotiation Preparation
6 1 13 ,Delivery -of Payments
6 1 14 Recording of Documents
Section 6-2
Acquisition 'Policies
-
6=2.1 Purpose
6-2.2 General Policy
6-2.3 Prior Notice. to 'Move
6-2.4 Continuation of Possession on Rental Basis.
6-2.5 Payment Prior to Possession
6-2.6 Coercion
6-2.7 Institution of Condemnation Proceedings
6-2.8 Uneconomic Remnant
6-2.9 Acquiring Property Owned by RCTC Employee or Member of the Board of
Commissioners
6-2.10 Functional Replacement
Section 6-3
Acquisition Acquisition Procedures
6-3.1 Information Letter
6-3.2 Prompt Offer of Just Compensation
6=3.3 Delivery of Offer Letter and Date of Initiation of Negotiation
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6-3.4 Supporting Documents
6-3.5 Negotiator's Report and Contact Log (Parcel Diary)
6-3.6 Advance Right of Way Acquisition, Hardship and Protective Buying
6-3.7 Donation and Dedication
6-3.8. Assessments
6-3.9 Property Owner's Right to Review Appraisal
6-3.10 Qualified Homeowner's Right to Review the Appraisal
6-3.11 Basis for Just Compensation
6-3.1.2 Negotiating with an Attorney or Designated Representative
6-3.13 Improvements Acquired or Damaged
6-3.14 Outdoor Advertising Structures
6-3.15 Reimbursement of Property Owner's Expenses
6-3.16 Uneconomic Remnants
6-3.17_ Extension of Possession and Fair Rental Value
6-3.18 Clearance of Unrecorded Interests
6-3.19 Indemnification Clause
6-3.20 Covenants, Conditions and Restrictions
-6-3.21 Easements - General
6-3.22 Gross or Appurtenant Easements
6-3.23 Blanket Easements
6-3.24 Obsolete Easements
6-3.25 Utility Easements
6-3.26 Court actions, Consent to Dismissal
6-3.27 Clearance of Lessee Interest
6-3.28,_Presumption :of Interest and Right to _Cancel
6-3.29 Leasehold Bonus Value
6-3.30 Condemnation Clause
6-3.31 Access Rights
6-3.32 Tax identification Numbers
6-3.33 Improvements in General
6-3.34_ Water;Wells . _ t
6-3.35 Construction Obligations
6-3.36 Exchanges and Abandonments
6-3.37 Loss of Business Goodwill
6-3.38 Hazardous Waste
6-3.39 Mobile Homes
6-3.40 Federal and State Lands
6-3.41 Mining Claims
6-3.42 Indian Lands
6-3.43 Railroads
Section 6-4
Administrative and Legal Settlements
6-4.1 Purpose.
6-4.2 Settlement Authority
6-4.3 Legal Settlements
6-4.4 Record Keeping
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Section 6-5
Eminent Domain
6-5.1General
6-5.2 Grantor's Request for Review Hearing
6-5.3 Notice of Intent to Adopt Resolution of Necessity
&5.4 Grantor's Request for Appearance
6-5.5 Record of .Condemnation Case Status
6-5.6 Condemnation Suit
Section 6-6
Reporting of: Acquisitions
6-6.1 Policy
6-6.2 .1099=S Reporting Procedure
6-6.3 Taxpayer Identification Numbers
6-6.4 Methods of Reporting to the IRS
Section 6-7
Filing of completed Transactions
6-7.1 Filing of Recorded Documents and Policy of Title Insurance
6-7.2 Certification of Completion of Acquisition
55
Section 6-1
CHAPTER VI
ACQUISITION, NEGOTIATION and EMINENT 'DOMAIN
General.' Provisions
6-1.1 Authority
RCTC is empowered by law. Public Utilities Code Section 130220 authorizes the
Commission to make contracts...... in connection with eminent domain
proceedings or otherwise for the full exercise of powers granted to the
Commission.
This power is exercised in accordance with Article I, Section 19 of the California
Constitution, which states:
"Sec. 19. Private Property may be taken ordamaged for public use only when
just compensation, ascertained by a jury unless waived, has first been paid to, or
into court for, the owner.. The Legislature may provide for possession by the
condemnor following commencement of eminent domain proceedings upon
deposit of money determined by the court to be the probable amount of just
compensation."°
6=1- ~.Federal Code -Requirement
In addition to the constitutional requirement, acquisition of private property for
public use is also to be in accordance with section United States Code entitled
"Uniform Relocation Assistance and Real Property Acquisition Policies Act of
1970, :as amended (42 U.S.C. 4601 _et. seq.) 49 CFR Part,.24, as further amended -
by the Surface Transportation and Uniform Relocation Assistance Act of 1987,
Title IV of Pub. L. 100-17.
6-1.3 Terminology
For purposes of this Right :of Way Manual, the following terms are synonymous:
"Acquisition" and "Negotiation"
"Negotiator", "Acquisition Consultant," "Acquisition Agent,". and Right of Way
Consultant, Right of Way Personnel and "Contract Negotiator"
"Offer" and "Offer of Just Compensation"
"Eminent Domain" and "Condemnation"
6-1.4 Acquisition of Real Property Interest
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All rights, title, interest of fee hold and subordinate interests in real property
within the .right of way and/or easement boundaries are to be acquired as
necessary for the property and economical constructions, operation, protection,
support, preservation and maintenance of the project. .
The RCTC Executive .Director or designee, with concurrence from the RCTC
Legal Counsel may approve exceptions to the acquisition of other property rights
on an individual case or project basis.
6-1.5 Occupancy: of Right of Way'
The area within right of way boundaries is devoted to public use.. Any
encroachments, ,use of -airspace, joint development or multiple use of right of way
and installation of public and private facilities must be in accordance with
established. regulations and policies governing such ''uses.
6-1.6 Public Meetings
If the. Executive 'Director, Project Delivery Director or ProjectManagementTeam
is scheduled to present information concerning RCTC's projects and programs at
a public meeting or hearing, a Right of Way Personnel will attend 'such meeting
or .hearing in order to answer questions concerning RCTC's right of way
acquisition process and to become familiar with possible problemslhatmay arise
during the:right of way, acquisition process.
6-1.7 Project Field Inspection
Right of Way Personnel are encouraged to join Project Field_ Inspections. If field
inspections reveal that revision in the design would contribute::�to the social,
economic or environmental -effects of a project, - the ROW Program Manager
should immediately advise the Project Manager.
6-1.8 Pre -Negotiation ' Public Relations Contacts
Acquisition Agents may be assigned, commensurate with a:nti'cipated: problems,
to make calls upon property owners and discuss right of way procedures and
provide general information concerning the proposed ROTC project. A right of
way personnel, who may be later involved with: the appraisal, acquisition, or
relocation for the project, may make such calls. Care: should always be taken to
avoid discussing assumptions, possible offers, possible damage, or value
conclusions. This initial call 'should be brief and is only intended to provide project
information and promote public relations.
6-1.9 Initiation of :Negotiations
The term "Initiation of Negotiations" relates to the 'date on which the RCTC
presents the owner of the property, or their designated representative, a written
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57
offer for purchase the property or rights to be acquired. When non-resident
owners are involved who cannot be contacted in person, initiation of negotiations
for the property shall be the date such owner or his designated representative
received the first communication by mail or telephone from the RCTC in which a
monetary offer to purchase is made.
6-1.10 Who Conducts Negotiations
a. RCTC Right of Way Staff
Negotiations for the acquisition of real property and/or property rights for
RCTC projects will be conducted by qualified RCTC Right of Way.
personnel. Such personnel must meet the minimum qualification for the,
position of ROW Program Manager. Other Right of Way personnel not
meeting these minimum qualification may perform negotiations under the
direct guidance of the ROW Program. Manager.
Acquisition Consultants
Negotiations may also be conducted by Acquisition Consultants under
written agreement with RCTC and under the direction of the ROW
Program Manager. Acquisition Consultants should report directly to 'Legal
Counsel, unless otherwise specified. The amount of the fee shall be
established on a parcel basis. Qualifications, requirements and
employment . of Acquisition Consultants . will. be. ;discussed , in-, succeeding
Sections. = = _
6-1.11 Relocation AssistanceInformation
Residential owner occupants being displaced are to be provided an explanation
of: the _selocation.benefits _ for -which they are eligible.Offers_ for right of way
acquisition are not to be made to displaced owner occupants until the owner can
be provided with the required relocation information.
6-1.12 Pre -Negotiation Preparation
;The accumulation of materials and information necessary to conduct and
,complete negotiations for the orderly and efficient acquisition property for the
proposed :project is the logical step in negotiation. At a minimum, the negotiator
should be supplied with the following:
-a. Title report of all recorded interests in the property
b. Survey/plats and legal description
c. Documents necessary to acquire all interests
d. Right of Way Plans
e. Appraisal Reports
f. Escrow Instructions.
g. Basis for JustCompensation
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h. Offer Letter
In order to make an informed explanation of the proposed acquisition to an
owner, the negotiator 'should make a comprehensive study of the plans, title
report, appraisal report and Basis for Just Compensation.
6-1:13 Delivery of Payments
Payments to Escrow Companies may be delivered by person or by certifiedimail
with "return receipt requested. Submission of payment to Escrow Companies
shall be accompanied by 'a letter, stating the Escrow Number, :Parcel, Number,
Name of Property Owner, Check Number and Amount of the. :check. Owners
are to be 'notified in writing of the date the payment' is delivered' to the Escrow
Company:
Delivery of payment for the acquisition of minor property rights, such as, right of
entry, permits and temporary licenses, may be delivered by a 'Right of ;Way
personnel,. The Right of Way personnel is to obtain the signature of the
recipient acknowledging receipt of the payment. Payments mailed to owners
shall be accompanied by a letter and sent by certified mail with; return receipt
requested.
6-1:14 'Recording of Documents
III documents conveyingland, -easements, realty Tights, trust deed, -;mortgage
releases and restrictive easements to the ROTC; regardless of consideration
recited therein, .:shall be recorded in the appropriate Recorder of Deeds office.
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Section 6-2
CHAPTER VI
ACQUISITION, NEGOTIATIONS and EMINENT DOMAIN
Acquisition Policies- .
6-2.1 Purpose
•
•
To establish RCTC policies and procedures related to .the acquisition function in
negotiations for land, property and rights needed for the proper and economical
construction and maintenance of RCTC project. The intent and .purpose of the
policies and procedures are to assure uniform acquisition practices, which will
provide consistent and equitable treatment of owners and tenants of read
property acquired by RCTC for public purpose.
6.2-2 General Policy
a.
It is the policy of RCTC that all negotiations should beexpeditious and
result in .the property yowner receiving
just compensation -.The settlement
Sho ld-`be °just and fair to `the owner and the public, and °every -courtesy,
consideration and patience should be extended to the property owner. It
is RCTC's goal to create and establish trust :in the RCTC, the mernbers of,
its Board of Commissioners and its employees.
All .offers shall .represent :the approved ;amount_ of Just :Compensation. as
determined through RCTC's valuation procedures. The Acquisition Agent
shall make a reasonable effort to demonstrate and promote confidence in
the Approved Just Compensation offer.
If the Acquisition Agent discovers facts, which were not recognized in the
Just Compensation offer, the information shall be made available to the
Right of Way Program Manager who will evaluate and give full
consideration to those items prior to continuation of negotiations.
Acquisition Agents must demonstrate that they represent the interest of
the property owner as well as those of the :public. Care should be
exercised at all times to protect the interests of owners who may be
unfamiliar or inexperienced in real estate transactions.
Acquisition Agents are required to maintain a written Record of
Negotiations, documenting that all elements of the transaction were given
_g_
60
adequate consideration and that there was a mutual understanding,
between the Acquisition Agent and the property owner.
RCTC shall make every reasonable effort to expeditiously acquire real
property by negotiation. Real property shall be appraised ;before initiation
of negotiations, and the owner, or his designated representative, shall be
given an opportunity to accompany the appraiser during the inspection of _
the property. It is the responsibility of the appraiser to invite theowner. to
accompany them on the inspection. They will attempt to ':contact the
owner by both phone and U. S. Mail. A copy of the letter of invitation will
'be sent to the, ROW Program Manager; in addition, the appraiser will
document this in the appraisal. They will state :that they invited; the
property owner to accompany them and 1)the date :they 'inspected the
;property with the owner, or 2) the circumstances why the property owner
did 'not accompany the appraiser on .the inspection:
Unless RCTC states in writing that the public use for which the property is
being acquired is scheduled to begin within two years of acquisition, it
must offer a one-year leaseback to any property that is either acquired
pursuant to eminent domain, acquired . following the adoption of ;' a'
resolution of necessity, or acquired before the adoption of a resolution of
necessity but after a written notice that the public ,entity .may take the
property by eminent domain. The terms of any such one-year leaseback.
agreement and the statutory notice requirements for .terminating: the •
:leaseback : -complyshall. :with the provisions of Code .;of Civil Procedure
sect
.- _ _...-:...
ion 1263.615.
Prior to the adoption by the RCTC Board of Commissioners of a
Resolution of Necessity (pursuant to Code of Civil Procedure, Section
1245.230), and initiating negotiations for the acquisition of ,real property,
the 'RCTC Executive Director or designee -shall establish an'amount which -
it believes to .be just compensation. A written offer will be made to the
- owner or; owners .of record to acquire the property for the full amount so
established, unless the owner cannot be located with. reasonable
diligence. The offer may be conditioned upon the RCTC's ratification of
.the : offer,: by execution of a contract of acquisition or adoption of.- a
Resolution of 'Necessity or both. In no event shah such amount be; less
than the RCTC's approved appraisal of the fair market: value of the .
property. Any decrease or increase in the fair market:. value : of real
property to be acquired prior to the date of valuation caused by the RCTC
project for which :the property is acquired or by .the likelihood that the
property 'would be acquired for such project,.. other than that . due to
physical deterioration within the reasonable control of the owner ,:or,
occupant; shall be disregarded in determiningthe compensation for the . .
property. RCTC shall provide the owner ()flea! .property to be acquired
witha written statement of, and summary 'of: the basis for; the arnount it
established as Just Compensation. `Where the property involved is owner -
occupied residential property and contains., no more .than four residential
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61
units, the homeowner shall, upon request, be allowed to review a copy of
the appraisal upon which the offer is based. Where appropriate, the just
compensation for the real property acquired and for damages .to remaining
real property shall be separately stated.
At the time of delivery of the written offer of just compensation, the property
owner will be informed of their right to secure an appraisal, by a licensed
appraiser, and RCTC will reimburse the cost of such appraisal report up to the
$5,000. (AB 1210)
6-2.3 Prior Notice to Move
The construction or development of RCTC's projects shall be so scheduled that,
to the greatest extent practicable, no person lawfully occupying real property
shall be required to move from a dwelling, assuming replacement dwelling will
be available, or to move his business or farm operation, without at least ninety
(90) days written notice from the RCTC of the date by which such move is
required.
6-2.4 Continuation of Possession on Rental Basis
If the RCTC permits an owner or tenant to occupy their real property acquired
on a rental 'bases for a short term, or for a period subject to termination by the
RCTC on short notice, . the amount of rent required shall not exceed the fair
market rent of the property for short term occupancy.
6-2.5 Payment Prior to Possession
No owner will be required to surrender possession of real property acquired by
RCTC prior to payment of the agreed purchase price or payment, of the amount
determined by the Court to be,.the probable._ Just, Compensation, into the court
for property acquired through condemnation proceedings.
6-2.6 Coercion
In no event shall the RCTC either advance the time ofcondemnation, or defer
negotiations or condemnation and the deposit of funds in court for the use of the
owner, or take any other action coercive in nature, in order to compel an
agreement on the price to be paid for the property.
6-2.7 Institution of Condemnation Proceedings
1f any interest in real property is to be acquired by exercise of the power of
eminent domain, the RCTC shall institute formal condemnation proceedings.
RCTC shall not intentionally make it necessary for an owner to institute legal
proceedings. to prove the fact of the taking of his real property.
6-2.8 Uneconomic Remnant
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If the acquisition of only a portion of a property would leave the remaining
portion in such a shape or condition as to constitute an uneconomic remnant,
the RCTC shall offer to acquire the entire property if the owner: so desires.
6-2.9 Acquiring Property Owned by RCTC Employee or 'Member of the Board- of
Commissioners
When the property or property interest to be acquired by _RCTC is owned fully or
artiall or otherwise subject to an interest b an RCTC employee or a member
partially 1 Y-...
of the Board of commissioners, the ROW Department will consult Legal Counsel
to ensure that conflict of interest laws are not violated.
6-2.10 Functional Replacement of Real Property in Public Ownership,
When publicly -owned real °property, including land and/or facilities, is to be
acquired by RCTC, in lieu' of paying the fair market value of the real property,
RCTC may, with prior approval of FTA or FHWA, provide compensation by -
functional) replacing the publicly owned realpropertywith another facility which:
Y p 9 P Y Y ..
will provide equivalent utility. (See 23 CFR Part 710)
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Section 6-3
CHAPTER VI
ACQUISITION, NEGOTIATIONS and EMINENT DOMAIN
Acquisition Procedures
6-3.1 Information Letter
Priorto any discussion as to the terms of property acquisition and the
compensation to be paid, the property owner should be given full information, in
writing and signed by the ROW Program Manager, as to the following:
a. The role of RCTC and its acquisition functions.
b. The necessity for the proposed project.
c. That if the owner and/or tenant become displaced as a <result of the
acquisition, they may be eligible to :receive certain relocation benefits
pursuant to the Uniform Relocation Assistance and Real Property
Acquisition Policies of 1970 (as amended).
Enclose a Brochure that describes the RCTC's acquisition and relocation
e. Name of the Relocation Consultant, contact person and telephone
number.
6-3.2 Prompt Offer of Just Compensation
All offer of Just Cornpensation shall be promptly presented to property owners or
their designated representatives. The Right of Way Department should
determine the appropriate timing for delivery of offers within the scope of good
negotiating practices.
6-3.3 Delivery of Offer Letter and Date of Initiation of Negotiations
Offer letters must be hand delivered or sent by U.S. mail. When .an owner has
authorized or a designated representative and notified RCTC in writing, or there
is a court appointed representative, the Offer Letter need only be delivered to the
representative.
Delivery of the Offer Letter or the Date the Offer Letter was Mailed establishes
the Date of initiation of Negotiations. Should several individuals own fee interest
on the property, delivery of the Offer Letter to one of the owners is sufficient to
establish the Date of Initiation of Negotiations; however, all owners are to be
furnished all relevant offer items.
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Offer letter .are to be delivered to the fee owner .or a designated
representative.
Tenant Owners
When the owner of the land has not conveyed < or disclaimed, his interest in
' the tenant -owned irnprovements, .the offer .to : the tenant -owner will be
conditioned upon the tenant obtaining execution of the necessary
disclaimer release of structures or leasehold from the owner of the land.
;!Disclaimer by Owner in Tenant Owned Improvement
When a separate amount of Just Compensation is . approved `for an
improvement owned by a party other than the owner of the 'land, payment
for 'such improvements shall not be made unless the owner of the land
disclaims all interest in the tenant -improvement. The 'owner of the gland
may disclaim his interest in such improvement by executing a deed of
conveyance of right, title and interest or a disclaimer.
hen afdeed_ or a:,disclaimer is not executed by the owner of the land;,
offer of just compensation for the improvement and the disclaimer -will be
presented to the tenant -owner with the condition that the settlement will be
made provided that the tenant -owner, is successful in obtaining execution
of the necessary disclaimer.
ombned Fee -Owner -and Tenant -Owner -Offer Letter for Condemnation
Purposes
Immediately prior to condemnation proceedings for a parcel where tenant -
owned structures are involved, an offer letter will be presented to all fee
owners of record or their designated representative. The. offer will be the
total of the amount of just compensation for the fee and tenant owners;..
Revised Offers
'When the approved just compensation has been presented to the owner
and it is revised through the appraisal process; it is necessary :to provide
such owners; with an offer letter reflecting the revised amount of just
compensation and, the reason for the revision.
6-3.4 Supporting. Documents
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Upon initiation of negotiations for the acquisition of right of way from a property
owner, each owner or representative will be provided with the following:
a. Offer Letter
b. Basis for Just Compensation (Appraisal Summary)
c. Brochure explaining RCTC's Acquisition and Relocation Policies
d. Conveyance documents
e. Escrow Agreement
6-3.5 Negotiator's Report and Contact Log (Parcel Diary)
A Negotiator's Report and Contact Log shall be completed and signed by :the
negotiator upon termination or completion of negotiations for each parcel. A log
of all contact with the owner or representative shall be completed. The
information for each contact should include the date and place of each contact,
parties contacted, offers, counteroffers, issues . raised by the owner,'reasons
settlement could not be reached, and any other pertinent data.
When negotiations are ;.. unsuccessful, and the negotiator considers further
attempts to negotiate to be futile, recommendations for action should be
recorded.
6-3.6 Advance Right of Way Acquisition, Hardship and Protective Buying
23 CFR 710.503 provides- that in extraordinary; cases and emergency situations
an agency may °regUest i`and: the= Federal Highway- AdMini8tration' .(highway
projects) may approve federal participation in the acquisition of a particular parcel
or a limited number of parcels within the limits of a proposed highway corridor
prior to completion of processing of the final environmental statement or. adoption
of the appropriate documents (rail/transit projects fall under the Federal Transit
Administration)._ _r Proper- documentation shall be _submitted to: show. --that: the
acquisition is in the public interest and is necessary to:
a. alleviate particular hardship to a property owner, on his request, in
contrast to others because of inability to sell his property (Hardship
Acquisition), or -
b. prevent imminent development and increased costs of a parcel which
would tend to limit the choice of highway alternatives (Protective
Acquisition).
The requirements for advance acquisition criteria for hardship and protective
buying are set forth in 23 CFR 771.117 (d) (12):
Section 771.117 (d) (12) Categorical Exclusions. Acquisitions of land for
hardship or protective purposes; hardship and protective buying will be permitted
only for a particular parcel or limited number of parcels. These types of land
acquisition qualify for CE only where the acquisition will not Limit the evaluation of
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alternatives, including shifts in alignment for planned construction projects, which
may be required in the NE'PA process. No, project development on such land
may proceed until the NE'PA process has been completed. .
Hardship acquisition is early acquisition of property by the agency at the property
owner'srequest to alleviate particular hardship to the owner; in contrast to
others, because of an inability to sell his property. This is justified when the
property owner can document on the basis of health, safety or financial reasons
that remainingin the property poses an undue hardship compared to others.
Protective acquisition is done to prevent imminent . development of a parcel,
which .is needed for a proposed transportation corridor or site. Documentation
must clearly demonstrate, that development of the, land would preclude future
transportation use and thatsuch development is imminent. Advance acquisition
is not permitted for the sole purpose of reducing the cost of ;property for a
proposed project.
In practice, hardship and protective buying are approved only after the acquiring
agency has given official notice to the public'" that it has selected a particular
location for the;: project alignment, or a .public hearing has been 'held, or an
opportunity for such hearing has been afforded, except when "core parcels" are
to be acquired in advance of environmental clearance. Properties not considered
"core parcels" may be acquired in exceptional cases when:
property has been, offered by propertyowner for sale.
seek: federal -agency -concurrence
c. acquisition will not limit the evaluation of alternatives
d no project development on the property will proceed until the'NEPA/CEQA
process has-been completed.
A major consideration in making: a decision. on;Advance. Acquisition: is the effect
on federal; funding for the parcel and theproject as a whole. It :is important to
keep in mind that if federal regulations (40. C'FR part 24) are not followed in the
advance acquisition of a parcel, the FHWA or FTA, as the case rnay be, " may
deny federal "funding for the whole project; .or, ifit is: determined that the advance .
acquisition of a' parcel 'influenced the environmental assessment, of the project,
the cost to acquire the parcel may not become eligible for use as the credit
towards the agency's share of a federal --aid project. In the latter instance, the
project's application for environmental clearance under NEPA may also :be
denied:
RCTC may make a policy decision to proceed with an advanced acquisition that
does not fall within` the protective categories described above if such acquisition
is in the best interest of ROTC. In order to preserve the potential for federal and
state funding, applicable state and federal laws and regulations will be followed
to the extent feasible:
ROTC; Policy:
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a. Property is lawfully obtained
b. Property is not f(f). 4(f) properties are those publicly owned park,
recreation area, wildlife and waterfowl refuge or any significant historic site
(publicly or privately owned) unless there is no feasible and prudent
alternative to the use of land.
c. Property is acquired pursuant to the provisions of the Uniform Act.
d. Agency complied with the requirements of title VI of the Civil Rights Act of
1964.
e. Acquisition did not influence the environmental assessment for the project.
f. Property is incorporated into the project.
Relocation of single family residence or business may be allowed in advance of
environmental compliance as long as the future useof the site is conditionedon
CEQA compliance. NEPA compliance is discussed above. Caveat: relocation
cannot be done on a large scale basis prior to environmental compliance, each
relocation case has to be considered and analyzed to ensure compliance with
CEQA and NEPA.
6-3.7 . Donation and Dedication
a. Donation
Donation is the voluntary conveyance of property without compensation, for
the . improvement, of ..a public project. _ _ Donations must be voluntary .and
p P p. 1
;owners- must be ;advised of their benefits under- the State and . Federal
Uniform Act and of their right to compensation, relocation assistance
benefits and their right to receive an appraisal report of the market value of
their real property to be donated. The property owner should be advised of
RCTC's policy of accepting donations and the offer to donate should not in
any way_,result from an act of coercion. Donations may be made at any ._
during the development of a prospective project.
Every donation must have a detailed financial analysis of the actual and
potential costs to RCTC. Project Management Staff should be careful in
accepting Donation of a contaminated property -where the clean-up cost
exceeds the value of the property. Relocation benefits and loss of :business
Goodwill should likewise be considered.
In order for the RCTC to claim the value of the donated property as a credit
against its matching share of projects costs (Federal and State' assisted
projects), certain conditions must be met:
1. the value of the donated property must be determined through an
appraisal for the purposes of calculating a credit to RCTC's
matching funds of the project costs.
2. Environmental requirements must be met (NEPA process).
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3. Donors shall be advised that they may contract to reserve certain
airspace development rights and revenue sharing.
4. ; Environmental Assessment (Phase I and II) must be; conducted on
the property.
Any document executed to effect donation prior to approval of the;' environmental
clearance of the, project shall clearly state:
All alternatives to an alignment will be studied and considered.:
The acceptance of the donated property did not influence the: ;environmental
assessment of a..project including the decision about the need to: construct
the projector the: selection of a specific .location for the project.- In other
:words, RCTC must not be influenced by the donation of the property in its
decision on whichalternative to approve.
Any property acquired by gift or donation for projects covered by the
Federal Highway Act, shall be re -vested in the Grantor or successors, if
such property is not needed for the alignment chosen after public
hearings, if required, and seven years after completion of the
environmental document.
Donations will not be accepted until a hazardous waste assessment has
een completed
RCTC may accept. a property owner's offer to donate or a portion thereof in
exchange for construction features or services rendered that will benefit the
property owner. However, for the purposes of crediting the value of the donation
to the::RCTC's share of project costs, such donation is limited to ;the fair market
value ,of the property -donated less the :value of :the construction features or
services received by :the -RCTC.
RCTC may accepta parcel of land that a developer of real estate has dedicated
or :proposes to dedicate for street purposes in developing a subdivision. Land
obtained in this,manner may be incorporated into :a Federally -assisted project
without jeopardizing participationin other project costs.
b. Dedication
Dedication is the setting aside of property for publicuse without compensation as
a condition prior to or :in exchange for any government or RCTC action that will
enhance the value 'of or development potential of property. The property owner
must initiate the request for dedication and, dedications can be accepted
throughout the project development process.
Prior to acceptance by the RCTC, the property to be dedicated shall be subject to
a hazardous waste assessment and a review of the ;condition of title.
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Dedication must be accepted by the RCTC . formally with an acceptance
document.
6-3.8 Assessments
CAVEAT — if assessments (general or special) or taxes will be levied by local
jurisdiction against properties adjacent to an RCTC . project because the
properties are the direct beneficiaries of the public improvement, this may be
viewed as coercive since the community in general usually benefits from the
project. Property owners adjacent to the project should not be asked to bear the
burden of the cost of a community improvement. Suggesting that if the property
• owner does not accept RCTC's fair market value offer, the property owner will be
assessed the property's pro-rata share of the project cost is illegal under Federal
law. The Uniform Act forbids an acquiring agency from taking' any, coercive
action in order to compel an owner to agree on a price for their property. This act
will also constitute a form of forced donation, which is coercive and thus
unacceptable.
6-3.9 Property Owner's Right to Written Statement and Summary
RCTC shall provide the owner of real property to be acquired with ;a written
statement of, and summary of the basis for, the amount it established as just
compensation.
The written statemenf and summary shall contain -detail -sufficient to indicate.
clearly the basis for the offer; including, but not limited to, all of the:: following
information:
a.
The date of valuation, highest and best use, and applicable zoning of
property.
The principal transactions, reproduction or replacement cost analysis, or
capitalization analysis, supporting the deterrnination of value.
c. Where appropriate, the just compensation for, the real property acquired
and for damages to remaining real property shall be separately stated and
shall include . the calculations and narrative explanation supporting the
compensation, :including any offsetting benefits.
6-3.1 0 Qualified Homeowner's Right to Review the Appraisal
The owner of an. owner --occupied residential property that contains no more than
four residential units ("qualified homeowner") shall, upon request, be provided a
copy of the appraisal -upon which the offer is based.
If the qualified: horneowner wants to review the appraisal, the following
conditions apply:
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a. The right to review is restricted to the approved appraisal and. any
revisions on which the initial or any subsequent offers are based. It does
not apply to independent or staff reports prepared: for use in
condemnation.
The right to review applies to those elements of the appraisal report
relevant to the determination of the value estirnate including .narrative.
material relating specifically to the subject property, comparable sales
data, appraisal and sales maps. Should the owner request that the copy
r be reviewed by an attorney or other representative; this request rnust be in
writing.
The :right to review -applies to any, type of . acquisition ' as long as the .
property :is an owner -occupied residential property containing four units or
;less: _
6-3.11 Basis for Just Compensation
The Basis for Just compensation explains how the estimate of 'Just
Compensation was determined and will be included with the initial offer letter
and with any revised offerletter to be given to property owners
6-3.12 Negotiating: with an Attorney or Designated Representative
Unless otherwise, authorized by the property owner.-, all ;acquisition Oisc,ussions
shall be with the owner: When an attorney has been retained by the ,property'
owner, acquisition discussions will generally be with the attorney, unless
otherwise authorized in writingby the attorney. in such cases, RCTC must
likewise be represented by its legal counsel during negotiations and meetings,
If the property`=owner=employs someone as his representative, the extent of the
authority of the representative should be in writing, signed by the owner.
6-3.13 Improvements Acquired or Damaged
a. Interest in Improvements Acquired
An equal interest shall be acquired in all buildings, structures or other
improvements determined to be a part of the real property when such
improvements are to be removed from the `land 'acquired for right ,of. way .
purposes.
b. Improvements Located Partially within the Right of Way
Improvements located partially within the right :of. way, which are designated for
removal as indicated by temporary easements, shall be totally removed, unless
the owner: retains the improvement and cuts it at the right of way line..
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The decision to allow an owner to retain and cut an improvement at the right of
way line must be made during negotiations. In making the decision, the owner
is to understand that the RCTC will have to re-evaluate its offer through the
appraisal process. If a revised offer is unacceptable to the owner, the original
offer and plan for total removal of the improvement will apply and if necessary
condemned as originally designed.
c. Fee Owned Improvements
Owners will be compensated for any loss in fair, market value of improvements
that are not required to be removed but are adversely affected as a result of the
acquisition, as determined by appraisal.
Tenant -Owned Improvements
1. Improvements Acquired or Damaged — Release of Structures and
Leasehold
Tenant who have the right or obligation to remove real estate
property improvements, which contribute to the real estate value,
as determined in the appraisal process, have a compensable
interest in those improvements. Compensation may include one of
the following: -
c.
_the :contributory fair, market value -.for the :improvement _being
acquired or the value for 'rerroval purposes: whichever _i
greater
damages the improvement suffers as a result of the
acquisition
the value of any leasehold interest
No Payment to Tenant Before Fee Interest acquired or Disclaimed
No payment shall be made to a tenant for an improvement unless
the land owner involved conveys or disclaims all interest in the
improvement
3.. Condemnation of Tenant -Owned Improvements
Tenant -Owners are afforded the same rights and protection as fee
owners. Should a tenant -owner reject the offer made for the
improvement, it will be necessary to condemn all interest in the
property including the fee ownership.
6-3.14 Outdoor Advertising Structures and On -Premise Advertising Signs
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a. Outdoor advertising structures are defined as all signs, billboards,
drawings or paintings .which advertise activities conducted elsewhere or
services 'and/or products provided other than at the subject property.
They, should not be confused with on=premise ° signs, which advertise
activities conducted on the premises or services and/or products provided
on the subject property.
Owners of outdoor advertising structures have the rightor obligation ;to
_remove such structures at the termination .of the lease or agreement.
Therefore:, suchstructures are generally acquired like other tenant -owned
improvements. All outdoor advertising structures shall be valued and
;acquired as real estate, and never considered as personal property to be
moved under theRelocation Assistance Program; and, if the agreement
`between the outdoor advertising company and the owner or lessee of the
real property :is valid and in effect, the owner of the structure shall ;be
entitled to compensation for loss of business goodwill.
Section 5403, Business and Professions Code and Section 721,: Streets`
and Highways Code, -regulate outdoor advertising structures on highway
right .of way. - Sections 5405, 5406 and 5408, : Business and Professions`
Code, regulate advertising structures adjacent to any. State highway,
included in the Interstate and Primary highway systems.
No. new structures shall be placed on .State-owned or RCTC owned
-properties whether properties are considered excess or 'being held for
:future use., -,Existing ,structures may- remain on' the _theory that the prope
does not, at present, constitute a portion of the right of way, but is being
held by RCTC or by the State for future use.
Rernoval or relocationof outdoor advertising company structures from
right' of way for Interstate or Primary highways to a location .outside the
area being acquired shalt conform to the requirements of the above Code
sections.
:Structures on William -son Act Agricultural Preserves
Land .placed in an agricultural preserve' contract under the Williamson, Act
(Government 'Code sections 51200=51295) is limited to .agricultural uses.
Other uses ;are prohibited by the terms . of the contract. If .the property
being acquired has an outdoor advertising structure located my the
acquisition area the'compensability status of the structure will havebeen
determined prior to the commencement of appraisal.
Acquiring .Interests of Outdoor Advertising Company
The outdoor advertising company must have a written or oral agreement .
with the owner: of lessee of the real property. The agreement .must be in
effect and authorize the structure to remain placed for a ,period. of time
beyond the date of acquisition. (The date of acquisition is considered to be.
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the earliest of the following dates: the effective date of a Right of Entry,
the day following the date of close of escrow for the underlying fee
interest, or the date of issuance of summons when RCTC acquires
property subsequent to the date the summons was issued).. A Quitclaim
Deed or Contract will be obtained from the company.
No written or oral commitments are to be made which makes structure
removal contingent upon project certification or construction dates. If the
structure is fully conforming to State and local law and would create no
problems if allowed toremain in place for a period of time, then the site for
the structure can ` be rented to the company without loss of its right of
compensation:
If the structure is not fully conforming and /or its removal is imminent, no
rental will be permitted and the contract should provide for immediate
removal of the structure.
The company may claim compensation on the basis of direct costs. They
will have to submit an itemized statement of such direct costs to RCTC.
The companybooks and records will have to be made available for
inspection or audit to justify these costs. Where historical direct costs are
not available from the company's records, the company may estimate the
amount of such direct costs, subject to verification by RCTC.
Where the structure is located on a total acquisition;; which is completely_._,
within =the right -of :way ''or where -the structure is located on that portion of a
total acquisition, which lies within the .right way, no relocation on the
remainder will be permitted.
On partial acquisitions, if the structure is relocated, the company shall be
entitled only to a relocation:,ailowance
d. Rate and Relocation Allowances
All rates and relocation allowances referred to in this sub -section .shall be
based on rate and allowances stated in the Appraisal Chapter of the
Caltrans Right of Way Manual.
e. Structure Rentals
All structure rentals shall be prorated as of the day following the date the
deed to RCTC is recorded or the day following the date the RCTC secures
legal possession, whichever occurs first. Fair rental rates will be charged
for all structures allowed to remain within the right of way. The
determination fair rental rate will be based on comparable rentals being
paid in the general vicinity.
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For structures located partially within the area being acquired and being
allowed to remain until notice to remove or relocate is given, the contract
shall provide for the appropriate pro -ration of rental payment by the
advertising company to both RCTC and grantor.
Acquisition of On -Premise Signs
In partial acquisitions, it is the policy of RCTC to treat all on -premise signs
including trademark and logo signs as !personal property under. the
Relocation Assistance Program. The exception would involvea situation.
in which there is insufficient land on which 'to relocate the sign. In these
circumstances, a sign will be valued and acquire as real estate.
Advertising Sign .Encroachments
Advertising -signs located: partially within the; right of way, which are
designated for removal, shall be totally removed, unless the owner retains
the improvement and modifies it to avoid the right of way line.
No on -premise signs (except enter and exit signs) or outdoor advertising
structure will be allowed to encroach on the right of way.
6-3.15 Reimbursement of Property Owner's Expenses
RCTC may reimburse property owners for expenses incurred in.
'development of a property, when development is interrupted by
acquisition, provided certain criteria are met and an audit of the validity of
'the claimed expenses supports such payment. Expenses incurred by the
property owner for the following' items are reimbursable by .RCTC
1.. change in development, architectural, structural and drainage plans
2. map checking fees
3. building permit fees
4. materials
5. survey fees
6. inspection fees
Reimbursement of Mortgage Prepayment Penalty
Owners will be reimbursed for actual penalty costs for prepayment of a
preexisting mortgage- entered into in ,good n faith and recorded prior to
initiation of negotiations.'
c. Pro -ration of Real Property Taxes
Real Property Taxes shall be pro -rated, as of the date of close of escrow.
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6-3.16 Uneconomic Remnants
a. Definition — "A parcel of real property in which the owner is left with an
interest after the partial acquisition of the owner's: property, and in which
the acquiring agency has determined has little or no value or utility to the
owner." (49 CFR 24.2.(w))
b. Offer to Purchase Uneconomic Remnants
An offer to purchase each uneconomic remnant shall be made to the
owner simultaneously with the offer of just compensation for the
acquisition of the right of way, if the value was established in the
appraisal. Situations revealed during negotiations or administrative
decision to consider all or part of remainders as uneconomic remnants,
may necessitate a revised offer reflecting the value of the uneconomic
remnant.
Multiple uneconomic remnants shall be individually identified and
individual values must be set out in the offer letter.
6-3.17 Extension of Possession and Fair Rental Value
In rare instances, where the Replacement Housing for a displacee (or new place
of business or a business. displacee) an owner or tenant may b'e. allowed an
extension _of possession based on a_..monthly .rental .rate._ An extension of _.
possession agreement- shall be developed by RCTC through its legar counsel.
The extension shall be for a period not to exceed one hundred eighty (180) days
following the close of escrow and may be terminated by RCTC at 30 days' written
notice, provided that the displace is provided with alternative housing:.
When an owner or tenant is _granted an extension of possession,, a monthly, rental
rate ,shall .be established and collected in advance for each monthly period of
extension.
6-3.18 Clearance of Unrecorded Interests
A preliminary title report shall be secured for all properties and property interests
to be acquired by .RCTC. The preliminary title report must be analyzed to
determine which exceptions will be cleared and which will remain and: title to be
taken subject to the encumbrance. This would include vesting information, Liens,
encumbrances, easements, covenants, conditions and restrictions, . 'leases,
reservations, taxes, assessments, bonds, trust deeds, mortgages, .contracts of
sale and bonds. Every effort to, secure clear title for the RCTC must be made.
Items, which do not materially or adversely affect the use of the property for the
project, may be taken "subject to" in the Purchase Contract.
However, there are matters that affect title which do not appear of record. It is the
responsibility of the Acquisition Agent to protect.. the RCTC against loss due to
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any matters affecting title, which do not appear of ;record. These matters may be
discovered through property inspection during negotiations. Some items which
inspection of the property may disclose are:
Parties in possession under an unrecorded deed or contract of purchase;
Community driveways, pole lines, pipe lines, irrigation ditches, or
roadways indicating easements or rights of way, which do not show in the
title report.
Streams, lakes, rivers or ocean, which :may affectboundaries.
Overlapping or encroaching improvements.
Violations of restrictions or zoning ordinances. '
The.: Purchase Contract or an amendment Y thereto shall specifically
obligate the property owner to eliminate such :interest at owner's sole cost
and expense prior to acquisition.
6-3.19 Indemnification Clause
Whenever the °RCTC is acquiring title subject: to -exceptions of a questionable
nature, an appropriate 'Indemnification Clause to be approved' by the ROTC
Legal Counsel as to form .and substance.
6-3.20 Covenants, :Conditions and Restrictions
Title may be taken subject to the conventional, general on individual type oftract
restrictions, provided the nature and effect are 'known and considered. Unusual
covenants or conditions which restrict land for a specific use, such .as ;park
purposes school purposes, railroads, shall be considered particularly as to a
possible forfeiture of title upon breach or. violation: Conveyances to clear such .
reversionary interests should be secured as necessary.
673.21 Easements General
r sent an
d future effect on
h e All easements � are to be as to both the, . p
property being acquired. The location.- of the easement in relation to the part
taken is to : be determined prior to preparation of the Purchase Contract. If an.
easement constitutes a present or future adverse interest in the part taken, it
should be; eliminated by appropriate instrument prior. to scheduling, if possible.
Where the nature of the easement does not warrant the cost in time and effort to
eliminate, it may be taken "subject to" or through an Indemnification Clause.
6-3.22`Gross or Appurtenant Easements
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All easements in favor of third parties for ,personal or business use, such as
driveways, roads or utilities, whether in gross or appurtenant, should be cleared
prior to scheduling and certification of the project for construction. This clearance
should be done concurrently with the fee acquisition.
Interests not cleared prior to the close of escrow must appear .as'an exception in
the Purchase contract since they will also appear as exceptions in the Title
Policy.
6-3.23 Blanket Easements
The interest of easement holders in so-called "blanket" or "floating" easements
should be cleared if the choice of location has been exercised. An example is an
easement affecting a whole subdivision. Such easements affect title to the entire
property and will be shown as encumbrances in title policies unless eliminated by
property conveyance.
6-3.24 Obsolete Easements
Easements or rights that are discovered by either observation or inquiry to be
obsolete, abandoned, extinct and of no present or future adverse effect are to be
listed in the Purchase_ contract as such.
6-3.25 Utility Easements
Public or ;private. -utility easements may or may not have :a 'facility located
(overhead, surface or underground) in the property. Clearance and elimination of
private easements from the right of way being acquired will be the responsibility
of the Acquisition Agent. This is usually done by Quitclaim Deedwith an
obligation in the Purchase contract to secure a replacement easement, if
necessary.. _Relocation of a private facility may be handled by or with assistance
from the Relocation Agent.
If the easement is public (easement in gross) and no facility exists, the
Acquisition Agent in consultation with the Project Manager, must determine
whether to take title subject to the easement. The utility company may have
plans for future facility and the it is incumbent upon the AcquisitionAgent to
negotiate an agreement with the utility company recognizing such future. use.
The Project Manager will arrange for relocation of all facilities installed in public
utility easements. The substitute easement will be acquired either by the utility
company or by the RCTC at the request of the utility cornpany. If acquired by the
ROTC, the location shall be acceptable to the utility company. This replacement
area is subject to the same controls and clearances that apply to regular rights of
way, including hazardous waste clearances.
Acquisition of right of way from a utility company involves a variety of
approaches, i.e., fee or easements, vacant, site or corridor; improved site or
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corridor; replacement right of way and the Acquisition Agent should be
thoroughly knowledgeable with the procedures involved in acquiring right of way
from the utility company.
6-3.26 Court Actions, Consent to Dismissal
Title may : be taken .subject to the RCTC's pending condemnation , action.
Elimination of other court actions is generally required. In all instances .involving
right of way on which the RCTC has filed condemnation suit, it .is imperativeL that
the dismissal clause be included in the Purchase Contact. No settlement should
be approved by RCTC unless reviewed by Legal Counsel.
6-3.27 Clearance of Lessee Interest
The interest of >a lessee or other legal occupant, e.g_, tenant, is cleared through
either a Quitclaim 'Deed running to the lessor or to the RCTC or through', the
eminent domain process. Leases that are in effect must either be eliminated or
assigned to the RCTC.
A Ie'ssee may have a compensable interest in improvements, which the 'lessee
has installed on the property. Unless the lease calls for the tenant improvements
to be owned by the lessor at the end of the term of the lease, the lessee must be
offered the salvage value of lessee owned improvements or the 'value they
contribute to the property, whichever is greater. The lessee will be given a
separate >offer for the : improvements, provided the lessee_ secures .,-a written
waiver of interest -from .the lessor. If the agreement is not .reached, :an un-
segregated statement of value is to be made to all the parties:
The appraiser must ascertain ownership of the improvements and segregate
values in the appraisal. A written confirmation as to the ownership. must be
secured prior to -settlement. ; The lessee -shall = not `bedeprived of payment for =
improvements ,on the property when the RCTC acquires the 'leased fee. The
RCTC should not attempt to assume the rights of a lessor and cancel the Lease
to avoid payment for improvements.
Settlement of lessor/lessee interests separately is ;a permissible procedure.. It
may be feasible:. without` agreement between the lessor and lessee:
The Acquisition Agent should ensure, through early contact, that the 'lessee is
fully informed of their right (in case of a business tenant) to relocation. A lessee,
in relocating a business, may prematurely vacate 'the :premises and in so doing,
give up or waive valuable rights, such as, forfeiture of rights to compensation for
relocation benefits or possible loss of business goodwill..
6-3.28 Presumption of interest and Right to Cancel
A lessee or tenant in possession is to be presumed to have some interest in the
property unless the contrary is established.
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The RCTC shall not attempt to use any lease . cancellation clause to acquire
improvements at less than their salvage value or contributory value, whichever is
greater.
6-3.29 Leasehold: Bonus Value
If a bonus value is shown in theappraisal, the Acquisition Agent is not -to offer it
to the lessee. Ultimately, the lessor and the lessee will either agree as to its
existence value or the court will decide. The bonus value may be suggested to
the lessor that because of the terms of the lease, the lessee's interest may be
more than a compensable interest in the improvements.
6-3.30 Condemnation Clause
A lease may contain what is commonly referred to as a "condemnation clause'.
This clause usually provides that in the event the property is taken under the
actual or potential exercise of eminent domain, the lease shall terminate; lessee
will pay pro -rated rent to the date of vesting or possession by condemnor; and
lessee_ has no claim to the compensation paid to the lessor by.the condemnor. In
partial acquisition, the lease may provide the lessee with the option to terminate
the lease or continue in occupancy with a proportionate reduction in rent. Advice
of Legal Counsel is must in interpreting these type of lease provision.
6.3.31. Access Rights .
r
In cases involving acquisition of access rights only, relinquishments or
subordinations are to be secured .from all parties whose interest would be
detrimental to the achievement of access control.. Ordinarily, theseinclude
trustees and beneficiaries under deeds of trust; mortgages; lessees; holders of
liens, the foreclosure of .which would either nullify or jeopardize the: rights being
acquired by the RCTC; and holders of easements or rights of way of any kind
whose ability to utilize and enjoy them would be materially diminished or
damaged by RCTC's acquisition of access rights to the subject property.
6-3.32 Tax Identification Numbers
Federal and State Governments require that payments for real estate
transactions be reported. Information required includes the grantor's Tax
Identification Number or Social Security Number. Escrow Companies routinely
collect this information.
6-3.33 Improvements in General
All of the improvements within the right of way are generally acquired. Often the
owner may want to retaincertain improvements and relocate there or. RCTC must
acquire improvements on remainder property. Relocation, as referred to in this
subsection, is an acquisition concept where °improvements are moved from the
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required property to a replacement, substitute or remainder. property.
Improvements pertaining to the realty, which an owner has severed from the, real
estate prior to an acquisition_ agreement, are converted to personal property and
handfed under the, Relocation Assistance Program,. if RCTC determines 'this
action is inthe :best interest of the public and the cost. to relocate the reclassified
property is consistent with current federal regulations.
When acquiring motels, hotels or furnished apartments, it may be'. necessary to
acquire the furnishings to prevent the eviction of tenants who would be unable to
continue to :occupy thepremises if the furniture is retained and removed by the.
fee owner.., The appraisal of these types of properties will contain an inventory
and estimated market value of the furnishings.
Whenever; structural improvernents are partially or totally within the required right
of way, the owner may be given at the option of ROTC, to either: (1) relocating
the improvement in .lieu of purchase; (2) having the RCTC purchase, the
improvement; or (3) retaining the improvement. The :determinationmust be
based :on economic feasibility. If the owner chooses to relocate the improvement
and moving cost is to be made directly to the owner, the amountwill.`be based
on the best and . most 'reasonably competitive moving ;bids obtainable from
qualified contractors. A minimum of two (2) bids is required, if obtainable. If the
owner chooses to retain the improvement, RCTC will be.: relived of ' any
responsibility :for their removal and clearing of the site. The owner.` ofthe
improvements assumes the entire obligation of improvement removal and site
I:e:arance.
Removal time of improvements should normally be ' completed in a 60-90, day
period. The Purchase Contract shall specify a date by which the' improvements
are to be removed and provide for clearance of the site.
6-3.34 WaterWells
The replacement of an existing water well can be done by a cashpayment or by
the RCTC contracting for the drilling of a replacement well. If'`RCTC:-will be
contracting for the replacement of the well, copies .of all the standard tests ;on
both the existing well and new well should be kept in the parcel file. The new
wellshould, produce the same or better quality and quantity.-o:f water compared' to
:
the old well.
6-3.35 Construction Obligations
When RCTC is :required to do certain work on grantor's remaining property (as
partof the consideration for acquisition). This work .can rangefrom construction
of fences, irrigation facilities, re -paving driveways to replacement of structures.
The extent of construction should be completely, described in: the Purchase
Contract and/or 'Administrative Settlement.:
6-3.36 :Exchanges and`Abandonrnents '
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c.
Excess property may be used in exchange for -other property required for a
project. Exchanges of land in right of way transactionsshould be limited to those
cases where the excess real property is contiguous to the remaining property
owned by the grantor of the property being acquired. Non-contiguous exchanges
are not recommended since it may be injurious to the interests of an abutting
property owner.
Excess real property or an interest therein, proposed .for exchangedshall be
appraised. This requirement does not apply to ,parcels acquired specifically as
substitute -parcels for public utilities, government -owned` land or railroad.
6-3.37 Loss of Business .Goodwill
State Law provides that in certain cases,. an owner of a business may be
compensated for the loss of goodwill. The law requires that the owner of a
business conducted on the property taken, or on the remainder if such property is
part of a larger parcel, shall be compensated .for loss of goodwill if the owner
proves:
a. The loss is caused by. the acquiring of the property or the injury to the
remaining property.
b. The loss cannot reasonably be prevented by a relocation of the business
or by taking steps and adopting procedures that a_ reasonably prudent
person would take and adopt in preserving the oodwill..,
Compensation for the loss will not be included in payment under Section
7262 of the Government Code (Relocation Assistance Program).
d. Compensation for the loss will not be duplicated in the compensation
otherwise .awarded to owner.
For purposes of this subsection, "Goodwill" consists of the benefits that accrue to
a business as a result of its location, reputation for dependability, skill or quality
and any other circumstances resulting in probable retention of old or :acquisition
of new patronage.
The burden of proving that the loss cannot be prevented by relocation or other
efforts by the business owner to mitigate, rests on the business owner.
"Business" as used in this subsection is defined as:
1. A commercial or mercantile activity engaged in as a mean of livelihood;
2. A commercial or sometimes industrial enterprise;
3. A particular field of endeavor — patronage.
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The operation of residential, non -transient, rental housing is not considered a.
business. However, the operation of housing units where rental is ordinarily
billed on a daily basis (e.g. motels, hotels) is to be considered a business. A
farm is not generally considered as a business unless there is an on -premise full
time, retail', 'commercial operation involving products grown or developed. in the:
property. A seasonal fruit stand operation would not be consideredas.. a
business:
6-3.38 Hazardous Waste
Hazardous Waste (HW)is a great concern for the RCTC. The RCTC
must not acquire -:property contaminated with HW without adequate prior` .
investigation and property contractual and valuation safeguards. In order
'to avoid delay , in a project or acquiring property with possible
contamination; investigation to determine clean :up costsmust: be made :as
soon as 'possible.
I`f HW is suspected or discovered during the acquisition process, the. Right
of Way Department should immediately notify the Project Manager, :in<
writing, and hire.a consultant Hazardous Material Assessment:.::
.The Project.:' Manager may advise the ROW Department to proceed with
the acquisition` because it is in the best interest of the project and the
potential HW contamination risks and costs are low or the problem can be
handled -with :engineering methods: during construction. The decision to
:acquire is made by the project Manager and rnust be fully documented:
If further investigation is necessary, the Acquisition Agent will contact :the
property owner to advise of the process being pursued and to obtain Right
of Entry Permits.:
When `'testing is complete and cleanup` costs are known,`` the 'appraisal
must be :revised to reflect the effect contamination and required clean up .
.has :on market value:
Settlements: whenever possible, are to be based on cleanup prior to
acquisition using the original appraisal. Settlements made where cleanup
occurs . after acquisition are to be based on the original appraisal
contingent -upon cleanup or a revised appraisal that includes the effects of
HW and clean up costs.
If settlement is reached based on the, RCTC doing the cleanup based on
the, original' appraisal, the amount of the estimated cleanup should be
considered for inclusion in the Purchase Contract.
6-3.39 Mobile Homes
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Mobile homes, which are non-DS & S and cannot be- moved from their present
locations . due to the manner in which they are affixed to the site may be
purchased.
The Relocation Agent will be responsible at the appraisal stage for determining if
a mobile home should be purchased. The reasons underlying this decision will
be communicated by the Relocation Agent, writing to the ROW Program
Manager, which will become part of the appraisal.
The transfer of title is handled . through the Department of Housing and
Community Development (HCD). The HCD has a multiple page form (Form No.
9-S Bower) for use in handling the transfer. This form provides for .Notice of
Transfer, Bill of Sale, Authorization for Payoff and power of Attorney.
To convey title to a mobile home, the owner's signature must be obtained on the
following;
a. Purchase Agreement
b. Notice of Transfer 9Form No. 9-S Bower)
c. Bill of Sale
d. Authorization for Payoff (if financed)
e. A Power of Attorney
f. Certificate of ownership (pink slip)
g. Quitclaim Deed (of tenant occupied)
The owner -will have the Certificate of=Ownership°(pink =slip) if the mobile home i
free and clear. If the unit is subject to liens, the owner will have the Green Trailer
Registration Card. This will show both Legal and Registered Owner.
All fees and charges required by the HCD in connection with the transfer of title
to the mobile unit to the ROTC, except liens, encumbrances, assessments, taxes
delinquent registration or license fees, shall be :paid, by 'RCTC. _
6-3.40 Federal and State Lands
Interests in land owned by Federal and State agencies are secured under
appropriate Federal or State statutes (Federal Highway Act of August 27, 1958
(23 USC 107(d) and/or 317), Section 101.5 of the Streets and Highways Code,
and 6210.3 public Resources Code). In most cases, the right to the land is.
secured at no cost in terms of cash payment, although there can be considerable
expenditure for replacement or relocation of existing facilities.
6-3.41 Mining Claims
An unpatented mining claim establishes an interest in land, which will continue in
existence until eliminated, whether by an appropriate conveying document or be
legal process before a court of competent jurisdiction.
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Every reasonable effort .shall. be made to obtainquitclaim deeds to the right of
way from persons 'holdingmining claims on the land to be acquired even though
the claim may appear to be abandoned. If clearance of the claim cannot be
obtained by Purchase Contract and Quitclaim Deed, then condemnation shall be -
instituted.
However, if after diligent search, the owner cannot be located, a statement of the
facts is to be noted on the Acquisition File and a recommendation `maybe made
to acquire 'title subject to this outstanding interest. Such recommendation must
be approved by the RCTC Legal Counsel.
6-3.42 IndianLands
The Bureau of 'Indian Affairs approves transactions involving Indian; lands. Indian
"lands are held in trust by the federal government : as either "Tribal lands" or
"Allotted Lands". Tribal Lands are lands - withinthe boundaries of an. Indian
reservation that are held in trust by the federal government for the Indian tribe as
a community. Allotted: 'Lands are land . within -a reservation, which are
apportioned and distributed' in severalty to tribe members. Title to allotted ;lands
is held in trust by the federal government for individual Indians.
The Bureau of Indian Affairs should be consulted for the appropriate procedure
for acquisition. Prior contact with the Bureau is essential.
The clearance of projects that involve railroads consists of two separate but
closely connected functions:
Acquisition of railroad property rights.
-''Agreement With theTailroad for physical bonStruction-of-the project:
:`Either of these functions may involve federal and., state agencies, such as;
Interstate Commerce Commission and the State of California Public Utilities
Commission.
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CHAPTER VI
ACQUISITION, NEGOTIATION and EMINENT DOMAIN
Section 6-4 Administrative and Legal Settlements
6-4.1 Purpose
Administrative settlements are made for the purpose of concluding negotiations
for amounts considered reasonable, prudent and in the public interest, after
reasonable efforts to :negotiate agreements at the approved offers have failed.
When Federal or State 'funds pay for or participate in acquisition costs, a written
justification shall be prepared which indicates that available information (e.g.
appraisals, recent- court :awards„ estimated --trial .costs or valuation .problerns)
support such a settlement: (see 49 CFR 24.102(i)). -
Administrative settlements are not to be used for the purpose of correcting errors
or omissions in an appraisal. Such errors or omissions should be addressed by
correcting the appraisal and making a revised offer.
6-4.2 Settlement Authority
a. The Project Development Director is authorized to approve a settlement
when the difference between the approved Just Compensation and the
proposed settlement is no more than 5% in excess of the offer or no more
than $50,000 of the offer.
b. A Deputy Executive Director is authorized to approve a settlement when
the difference between the approved Just Compensation and the
proposed settlement is no more than 7% in excess of the offer or no more
than $100,000 of the offer.
c. The Executive Director is authorized to approve a settlement when the
difference between the approved Just Compensation and proposed
settlement is no more than 10% in excess of the offer and no more than
$200,000 of the offer.
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d. When the difference between the approved Just Compensation and the
proposed settlement, is over $200,000 and over 10% over the offer, the
proposed administrative settlement must be approved the RCTC. Property
Cornmittee.
If the relevant property is located within the district of a Property
Committee Member and is being considered for a protective or hardship
acquisition, that Property Member should: recuse him/herself from
participation in the decision.
All Administrative Settlement forms shall be prepared by the ROW
Program Manager stating the justification for the settlement and concurred
to by the Commission's Legal Counsel.
6-4.3 Legal Settlernents
A Legal Settlement shall be in the form of a Legal Memorandum :prepared, and
recommended by the Commission's Legal Counsel.
Settlement Authority for Legal Settlements will be the same as Administrative
`Settlements (see Section 6-4.2, above).
6-4.4 Record Keeping
The original copy of -the -Administrative .and Legal Settlemen
filed in the parcel.
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Section 6-5
CHAPTER VI
ACQUISITION, NEGOTIATIONS and EMINENT DOMAIN.
Eminent jDomain
6-5.1 General
Eminent Domain is the inherent power of government to acquire private property
for public use. The owners of private ;property shall not be deprived of their
property without just compensation as provided for in the 'United State and
California Constitutions.
Condemnation is the legal proceeding by which the power of eminent domain is
exercised.
Notice of a of a_ Resolution of Necessity
CCP Section 1245.235 requires that an owner be given notice of the meeting at
which the RCTC Board of Commissioners will consider a Resolution of Necessity .
for acquisition of the owner's property. Preparation and mailing of the Notice of a
- Hearing .of a._ Resolution: of Necessity shall _-be handled : _by, RCTC Legal Counsel. ,
Any one of the following must sign the Notice; no further delegation of this
authority is permitted: The RCTC Executive Director; the Project Development
Director, Project Delivery Director or RCTC Legal Counsel. The Notice should
be delivered to the owner no less than 15 days prior to the date of the meeting at
which the RCTC Board of Commissioners will consider the request.
If for any reason, any information in the Notice or legal description already
provided to the owner ceases to be correct prior to adoption by the Commission,
a new Notice should be sent to the owners concerned.
RCTC shall also give notice to the legislative body of the affected city or within
the unincorporated area of any affected county as required by section
130220.5(c) of the California Public Utilities Code.
RCTC Legal Counsel review of all proposed Resolutions of Necessity and related
agenda packets is required.
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6-5.3 Record of Condemnation Case Status
The ROW Department will maintain a record of the status of condemnation cases
commencing with the submittal of the Request for Resolution of Necessity to the
Commission. The record is kept current through the duration of , the
condemnation action.
6-5.4 Condemnation Suit
The RCTCLegal Counsel shall have full control of the condemnation proceeding
and should be afforded, full cooperation by the ROW Department, Right of ,Way
Consultants and Expert witnesses.
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Section 6-6
6-6.1 Policy
CHAPTER VI
ACQUISITION, NEGOTIATION and EMINENT DOMAIN
Reporting of Acquisitions
It is the policy of the RCTC to report the acquisition of real estate or real estate
rights to the Internal. Revenue Service (IRS).
6-6.2 1099-S Reporting Procedure
a. Transactions Reported
The RCTC is responsible for reporting to the IRS real estate acquisitions in
excess of $599. This reporting includes all acquisitions by either negotiated
settlement or by condemnation. Specifically, the following must be reported:
l Real-: Estate .acquired_ for .the -RCTC use
Property acquired b urchase or condemnation for right of way -or or
p �Y . q Y p 9 Y--LL
permanent easement.
Temporary construction easements if the easement is to last 30
years or is purchased in combination with a permanent easement
or right of way.
Damages to, remainders.. included _-with ,,the ,amount; paid.. for the.
acquisition of a permanent easement or right of way.
When a jury verdict or a legal settlement results in $600 or more of
interest 'being due the owner, the payment of interest is to be
reported to the IRS.
b. Transactions Not Reported
1. Purchases from corporations and governmental agencies.
2. Transactions where total compensation is less than $600.
3. Amounts paid. for temporary construction easements when the
duration of the easement is 30 years or less.
c. Year of Reporting
Under IRS rules,_ an acquisition has to be reported in the year the
transaction is closed. For purchases, this is the date the check is received
by the Escrow Agent or the property owner.
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6-6.3 Taxpayer Identification Numbers
It is required q taxpayer � urged . that the ROTC or Escrow Agent) re request a tax a er identification
number .(TIN) . from . all persons having an interest in the real property to be
acquired, at or before the time of closing. Under IRS rules, any person =whose
TIN :is required must furnish such TIN and certify that the TIN .is correct. The
solicitation must be made: in writing to the taxpayer that they are ;required to
furnish', a correct'TlN and that they may be subject to civil or criminal penalties. for.
failing to furnish;a correct TIN. Acquisition Agents should solicit TIN information
from owners during negotiations. TIN shall be provided to the ;Accounting
Department prior to any disbursements.
When dealing .with a representative of the owner, it is permissible to request that
the . representative .:obtain the TIN from the taxpayer; however, if they . fail to
supply the information, a request must be sent to the taxpayer.
6-6.4 Methods of Reporting to the IRS
For negotiated settlements, the Escrow Company handles the reporting
the IRS.
If the property is condemned and a jury verdict or settlement is obtained, it
should be determined if the County Clerk is reporting transactions to the
RS ; .. If- not, _ then the RCTC :Accounting - Department .-will report the
transaction to the IRS.
If the: property is condemned and the jury verdict or settlement is greater
than the deposit of probable compensation, a correct 1099-S should be
sent to the IRS.
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Section 6-7
CHAPTER VI
ACQUISITION, NEGOTIATION and EMINENT DOMAIN
Filing of Completed Transactions
6-7.1 Filing of Recorded Documents and Policy of Title Insurance
Upon completion of acquisition, all original recorded or unrecorded Deeds, Final
Orders of Condemnation, Appraisal Reports, Escrow Closing Statement,
Survey/Appraisal Plats, Legal Description, the Policy of title Insurance,
Negotiator's Log (or Diaries) and Certificate of Completion are to be filed in the
original Parcel File kept in RCTC's ROW Department.
Any changes in the condition of title that occurs after the date of issuance of the
Title Policy shall be noted in the file, as well as Joint Use and Consent to
Common Use Agreements, Joint Development Agreements, Abandonments and
Special Use Permits.
6-7.2 Certification of Completion of Acquisition
After all necessary documents and acquisition completed, on all parcels in an
appraisal report, the Acquisition Agent shag_ immediately, prepare and forward to
the`ROW -PrOgrm -M6nager a Certifi6ate of Completion. It Will certify -that all
parcels in that appraisal report have been acquired, have found it to be
unnecessary, or have been disposed of in other manner. The ROW Program
Manager, after review of all pertinent documents, shall sign the Certificate of
Completion.
The Certificate of Completion of Acquisition shall contain the following
information:
a. Project Name -
b. Project Number, if any
c. File Number
d. Property Owner's Name(s)
e. Property Address
f. Property Acquisition Cost
Copies of the Certificate of Completion of Acquisition shall be sent to the Project
Development Director and the Project Manager. Copies of the Certificate of
Completion of Acquisition, together with copies of all Deeds, Final Orders of
Condemnation, Policy of Title Insurance and other Agreements will be delivered
to the Accounting Department.
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CHAPTER VII
RELOCATION ASSISTANCE
TABLE OF CONTENTS
Section 7-.1
General Policies and Information
7-1.1 Policy
7-1.2 Purpose
7-1.3 Title VI, Civil Rights Act
7-1.4 Availability of the Relocation Program
7-1.5 Applicable Laws and,Regulations
a. federally' Funded Assisted Project
b. State and Locally funded Projects
c. Conflicts
7-1.6 General Eligibility Requirements
7-1.7 Definitions -
a. Person
ID Family
c. Displaced Person
1. Initial occupant
Less Than 90,Day`Occupants
Subsequent Occupants
Displaced Tenants and Owners — Not Located Within ROW taking
Tenants Displaced to Make Room for Rearrangement of
LandownersBusiness Operation
Voluntary Sales
. Cancellation of Eligibility as Displaced'+Person
d. Relocatee-Displacee
e. Partial,Displacement
f. Total Displacement
g. Initiation of Negotiations for the Property
h. Dwelling
i. Dwelling site.
j. Comparable Replacement Dwelling
k. Decent, Safe and: Sanitary Dwelling ("DS & S")
I. Business ;
m. Small Business
n. Non Profit Organization
o. Farm Operations
p. Contributes Materially
q. Owner
r. Short -Term, Owner
s. Conventional Loan
t. Replacement Housing Payment
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u. Subject Property, Parcel, Dwelling; Displacement Property
v. Replacement Property
w. Date of Taking
x. Tenant
y. Last Resort Housing Program
z. Rental Subsidy Payment
aa. Utility Cost
bb. Uniform Act
cc. Acquired
7-1.8 Interest Acquired
7-1.9 Ownership Qualifications
a. General Ownership Qualifications
b. Contract to Purchase — Subject Right of Way Parcel
c. Contract to Purchase Replacement Parcel
d. Owner's Acquisition by Device, Bequest, Inheritance or Operation of Law
e. Part Owners, Partnerships, Estate Members, Subject Right of Way Parcel
f. Part Owners and Partnerships — Replacement Property
g. Properties Involved in Foreclosure
7-1.10 Availability of Comparable Replacement Dwelling Prior to Displacement
7-1.11 Eviction for Cause
7-1.12 Incompetent Owner or Occupant
7-1.13 Relocatee Dies During Displacement Period
7-1.14 Rest Home and Nursing Home Patients
7-1.15 Displaced Students
7-1.16 =Losses Due- to Negligence
7-117 Relocates s-Refusal of Assistance -'
7-1.18 Rental of RCTC-Owned Property
7-1.19 Relocation Payments Not To Be Considered As Income
7-1.20 Delivery of Relocation Payment Checks
7-1.21 "Rounding" of Claim Amounts
7 ,1.22 Duplicate Payments
7-1.23 Retention of files, Records and Reports
a. Federal Regulation = Record Keeping (49 CFR 24.9(a))
b. Federal Regulation— Confidentiality of Records (49 CFR 24.9(b))
c. Federal Regulation — Reports (49 CFR 24.9(c))
d. Relocation Case Files
e. Relocation Log or diary
7-1.24 Withholding of Relocation Payments
7-1.25 Manner of Notices
7-1.26 Relocation Program on Projects Affected by a Major Disaster
7-1.27. Notice of Intent to Acquire
7-1.28 Administrative Responsibility
Section 7-2
Relocation Assistance Advisory Service
7-2.1 General
7-2.2 Purpose
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7-2.3 Eligibility for Advisory Service
7-2.4 Advisory Service Requirements
Section 7-3
Appeals
7=3.1 General (49 CFR 24.10(a))
7-3.2 Appealable Actions (49 CFR 24.10(b))
7-3.3 Time Limit (49 CFR 24.10(c))
7-3.4 Right to Representation (49 CFR 24.10(d))
7-3.5 Review of files (49 CFR 24.10(e))
7-3.6 ' Scope of Review (49 CFR 24.10(f))
7-3.7 Determination and Notification After Appeal (49 CRR 24.10(g))
7-3.8 Agency Official - RCTC Chief Executive Office (49 CFR 24.10(h))
7-3.9 Appeal Process
a: First Level Appeal
b. Hearing Date
c. Right to Counsel
d. Final RCTC Decision
Section 7-4
Relocation Notices
7-4.1 General Information (49 CFR 24.203(a))
7-4.2 Notice.of_Relocation-Eligibility _(49 CFR 24 203_(3)
7-43 Reminder Notice
7-4.4 90-Day Notice '(49 CFR 24.203(c))
7-4.5 Content of Notice (49 CFRR 24.203(c)(3):)
7-4.6 30.-Day and .90-=Day Notices to Vacate
7-4.7 .60-Day Notice to Vacate (Mobile Home Occupants)
7-4.8 -Notice to Vacate With Order of Possession
7-4.9 Notices to Unlawful Occupants
7-4.10 Urgent Need (49 CFR 24.203(c)(4))
Section 7-5
Availability of Comparable Replacement Dwelling
7-5.1 General_ (49 CFR 24.204(a))
7-5.2 Waiver of Policy (49 CFR 24.204(b))
7-5.3 Emergency Move (49 CFR 24.204(c))
Section 7-6
Relocation Payments
7=6.1 Documentation: of Claims (49 CFR 24.207(a))
7=6.2 Expeditious Payments (49 CFR 24.207(b))
7-6.3 Process For Standard Clairn Form
7-6.4 Assignment of Claim
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7-6.5 Check Delivery
7-6.6 Advance Payment (49 CFR 24.207(c))
7-6.7 Time for Filing claims (49 CFR 24.207(d))
7-6.8 Multiple Occupants of One Dwelling (49 CFR 24.207(e))
7-6.9 Occupants Separate or Divorce
7-6.10 Owner -Occupants With Partial Ownership Interest
7-6.11 Deduction From Payments (49 CFR 24.207(f))
7-6.12 Notice of Denial (49 CFR 24.207(g))
Section 7-7
Moving Cost Payments
7-7.1 Payment Eligibility
7-7.2 General Moving Cost Policies
a. Policy Concerning More Than One Move
b. Distance of Move
c. Owner Retention
d. Two or More Families Occupy Same Single -Family Dwelling Unit
1. Separation After Displacement
2. All Families Relocate Together
3. Personal Property Sold After Initiation of Negotiations and 'Prior to
Displacement
(a) Fixed Payment Option
(b) Actual Cost Option
Subject Real Property. Sold to Another Prope.
Payment Assurance to °Moving Firms.
6. Two Bids or Estimates Not Available
7. Overtime Charges
8. Advertising Signs and Signboards
7-7.3 Incidental Moving Costs
a. Incidental Costs Applicable to All Moves
1. Storage
2. Insurance
3. Losses in Moving
4. Packing and Crating.
5. Other Moving 'Related Expenses
b. Incidental Costs Applicable Only to Residential Moves
1. Removal and Reinstallation Expenses - Appliances
2. Cost of Transportation, Meals and Temporary Lodging
3. Nonrefundable Mobile Home Park Entrance Fee
c. Incidental Costs Applicable Only to Business, Farm; and Nonprofit
Organizations
1. Removal and Reinstallation Expenses - Machinery, Equipment
2.2. Licenses and Permits
3. Professional Services
4. Re=lettering. Signs, Replacement of Stationery and Notices
5. Search for Replacement Site
6. Costs of Attempting Ito Sell Personal Property
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7. Purchase of Substitute Personal property
7-7.4 Tangible Property Losses
7-7.5 Salvage yards
7-7.6 Reestablishment Expense
a Eligible Expenses
b.- Ineligible Expenses
7-7.7 . Ineligible Moving Expenses
7-7,8 Residential Moving Cost Payments
a. Definition of Residential Moving Costs
b. Residential Moving Cost Payments - General
c.:. Fixed -Payment Moving. Cost Schedule
Schedule A (Occupant ,Provides Furniture).
Schedule B (Furniture Provided By Landlord)
d. Residential Move by Commercial Mover - General
e. Residential Self-rnove
7-7.9 Business, Farm and Nonprofit Organization Moving Cost Payments
a. General
b. 'Commercial mover
c. Self Moves
7-7.10 Partial Displacements
a. Partial Displacement Moving cost Payments General
b. Partial.Displacement Moving Cost Payments Commercial Mover
c.Partial Displacement Moving cost Payments —Self-move
7-7.11 Moving Cost Agreement
2 Claim Forms — Actual Cost Moving cost_ Payments
Section 7-8
Fixed Payment Moving Payments
Businesses, Farm Operations
And nonprofit Organizations
7-8.1 Fixed Payments Businesses
a. Payment Eligibility Requirements
b. Two or More Business Operations, Same Site and Same Owner
c. Businesses Affected by Partial Acquisitions
d. Rental property
e. Salvage yards
f. PaymentDeterminations
g Payment Computations
7-8.2 Fixed Payments — Farm Operations
a. PaymentEligibility Requirements
b. Actual Owner of 'Farris Operation Receives Payment
c. Mineral Production and Quarry Operations
d. Farm Operations Owned by Estates
e. Farm Operations Sold After Initiation of Negotiations
#. Payment Determinations
g. Payment Computations
7-8.3: Claim Forms
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7-8.4 Displaced Nonprofit Organizations
a. Payment Eligibility Requirements
b. Claim Form
7-8.5 Time for Filing "Fixed Payment Claims
a. Operation Displaced from Acquisition Site
b. Business Operation Continued on Remainder of Acquisition Site
c. Nonprofit Organization Continued on Remainder of Acquisition Site
d. Substantially Reduced or Different Type Farm. Operation Continued on
Remainder of Acquisition Site _
e. Owner of Displaced Operation is "Subsequent Occupant"
Section 7-9
Replacement Housing. Payment (" RHP")
7-9.1 General Policy
7-9.2 Payment :Eligibility
a. Ownership and Occupancy Requirements — Subject Property
ID. Ownership and Occupancy Requirements at Initiation of Negotiations
c. Property Must Be Acquire by RCTC from Qualified Owners
d. Displacement Must Be Necessitated By Right of .Way Acquisition
e. Subject Must Be Owner's Principal Residence
f. Decent, Safe and Sanitary Replacements Must . Be Purchased and
Occupied Within One Year
g. Displaced Owner Occupies Previously Owned Dwelling as Replacement .
h. Relocatee Purchased_:Replacement in Partnership With Other Parties _
Deadline For Filing Claims
7-9.3 Amount of Payment (49 CFR 24.401(b)) — 180-Day Owner -Occupant
7-9.4 Payment Computations
a. Comparable Methods of Computing RHP
1. Entire Taking of single -Family Dwelling
2. Taking Includes All Residential Improvements and Supporting Land
Plus Other Lands
3. Partial Takings of Residential Properties
4. Partial Taking of Residential Property Plus Other Land ..
5. Dwelling On Land With Higher and Better Use
6. Joint Residential and Business Use
7. Multiple Occupancy of Same Single -Family Dwelling Unit
8. Multi -Unit Dwelling Complexes
9. Mobile Homes
(a) Payment Covers Both Mobile Home and land
(b) Payment Covers Mobile Home Only
(c) Payment Covers Land Only (Mobile Home Site)
7-9.5 Insurance Proceeds Due to Catastrophic Occurrence (49 CFR 24.201(c)(3))
7-9.6 Owner Retention of Displacement Dwelling (49 CFR 24.401(c)(4))
7-9.7 Replacement Housing Comparison Record
a. When Prepared
b. Selection of "Comparables")
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c. Advanced Replacement housing Payments in Condemnation Cases
7-9.8 Replacement Housing Payrnent Claims
Section 7`-10
Incidental Closing Costs
7-10.1 Definition of Incidental Closing Costs
7-102 Payment 'Eligibility Requirements
7-10.':3 Claim Forms
Section 7-11
Increased Interest Payment
7-11.1 General Policy
7-11.2 Payment Eligibility Requirements
7-11.3 Payment Computations
a. ; When to Compute Payments
b. Payments Computed by Whom
c. Payment Computation
7-11'4Claim 'Form
Section 7-12
Rental Subsidy Pay_ments-
7-12.1 General Policy
7-12.2 Payment Eligibility Requirements
a. Tenants
.1. Prior Occupancy Requirements
2. Occupancy Required At Initiation of -Negotiations
3: DS & S Replacement Must Be Rented and Occupied Within One Year
4. Replacement Must Meet DS & S Standards
Short -Term Owners
c. Long -Term Owners
Sleeping Room:
e. Deadline ;For Filing Claims
7-12.3:Computations — Rental Subsidy Payment Offers
a. Information Necessary to Compute Rental Subsidy Payment`Offers
1: Existing Rental Rate
2. Economic 'Rental Rate
3. Rental .Fee Charged for Most Nearly Comparable Unit
.4. Utility Services Adjustments
5. Furniture 'Provided by Landlord
Rental Subsidy Computation Sheet
1: When Prepared
2. Who Prepares
3. , ,Preparation
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NOTE A: Computed Payment Exceeds $5,250
NOTE B: Relocatee Owns Pets or Needs Seeing Eye Dogs
NOTE C: Relocatee is Disabled
4. Multiple Occupancy of Same Dwelling Unit
(a) Comparable DS & S Unit Available
(b) Comparable DS & S Dwelling Unit Not Available
5. Tenant With Less Thank 90-Day Occupancy and Subsequent
Occupants
6. Tenant Makes Subsequent Moves Within First Year After Original
Displacement
7. Rental Fee For Replacement Unit Increased By Landlord
8. Relocatee Displaced from Conventional Dwelling or Mobile Home
Becomes Occupant of Rest Home
9. 'Conversion of Payment
10. Time for Filing Claim
11. To Whom Payment Is Made
12. Manner of Disbursement
Section 7-13
Down 'Payment Assistance
7-13.1 General Policy
a. Displaced Tenants and Short -Term Owner -Occupants Down Payment
Assistance if $5,250 or Less
Down Payment Assistance in Excess of,.$5,250 ._
1 Last Resort Payment Assistance
(a) Tenants
(b) Short -Term Owners
7-13.2 Payment Eligibility Requirements
7-13.3 Payment Computations
7-13.4 Advance Down_ Payment Assistance
7-13.5 Down Payment Claims
a. When filed
b. Down Payment Claim Form
Section 7-14
Replacement Housing of Last; Resort
7-14.1 General Explanation
7-14.2 Last Resort Determination (49 CFR 24.404(a))
7-14.3 Tenured Occupants
7-14.4 Nontenured and. Post -Offer Occupants
7-14.5 Made Available (Definition)
7-14.6 Basic Rights of Person To Be Displaced (49 CFR 24.404(b))
7-14.7 Methods of Providing Comparable Replacement Housing (49 CFRR 24.404(c))
7-14.8 Last Resort Housing Plan
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Section '7-1
7-1.1 Policy'
CHAPTER VII
RELOCATION ASSISTANCE
General Policies and Information
The Relocation Assistance and Payment Program,' as outlined in: this chapter .of
the Right of Way Policies and Procedures Manual, is applicable to all RCTC:
projects, regardless of whether the project receives federal or state funds,t and
other: activity -which requires the acquisition of real estate under threat of
condemnation.
The only exception relates to voluntary sales where the owner=occupantof. a
property voluntarily sells their property to the- RCTC, after being informed in
writing that if a mutually satisfactory agreement cannot be reach,; the property will
not be: acquired. Any -tenants displaced as a= directresult of such voluntary', sale u
will be entitled to relocation benefits.
7-1.2 Purpose
The purpose of this chapter is to promulgate ' rules to implement the Uniform
-Relocation Assistance and Real Property Acquisition Policies .Act of 1970 - (42
U.S.C. 4601,' et'se.q.), as amended, in accordance with the following objectives:
a. To ensure that owners of real property to be acquired are treated fairly
and consistently, to encourage and expedite acquisition by agreements
with such owners, to minimize litigation and. relieve congestion in the
courts -and to promote` public confidence` in RCTC. land acquisition
programs;
To ensure that persons displaced as a result of RCTC projects are treated
.fairly, consistently, and equitably so : that, such persons will not uffer
disproportionate injuries as a result of projectsi,designed for .the benefit of
the public as a whole; and
To ensure that RCTC employees andconsultants implement government
regulations in a manner that is efficient and,cost effective.
(see 49 CFR 24.1)
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7-1.3 Title VI, Civil Rights Act
All services and 'benefits under this chapter are administered to all eligible
individuals .without regard to race, color, national origin, or sex in compliance with
Title VI of the Civil Rights Act (42 U.S.C. 2000d, et seq.).
7-1.4 Availability of the Relocation Program
The Relocation Assistance and Payment Program is available to eligible
individuals, families, businesses, farm operations and non-profit organizations
which are wholly or partially displaced by RCTC projects. Relocation advisory
services (not payments) are also available to any person occupying;: property
immediately adjacent to property acquired by RCTC when the `RCTC determines
such person is caused substantial economic injury because of the acquisition.
7-1.5 Applicable Law and Regulations
a. Federally Funded or Assisted Projects
When RCTC projects are federally funded or Federally Assisted,
applicable federal laws and state laws regulations. and polices are hereby
adopted.
When RCTC projects are State or Locally Funded, California State laws
and regulations are hereby adopted.
Conflicts_
In case of conflicts between Federal, State Regulations, and the
provisions of this manual, the regulations and :policies that provide greater
benefits to the displaces will be followed by RCTC.
7-1.6 General Eligibility Requirements
To be eligible for relocation 'benefits relocatees must legally occupy the property
that is scheduled for acquisition by the RCTC at the time negotiations are
initiated for the subject property and also meet minimum ownership and/or
occupancy time requirements and other specific requirements as discussed in
this chapter for each of the various relocation payments available. Relocatees
who vacate their parcel prior to the initiation of negotiations shall also be eligible
(if they meet other requirements) if they were in legal occupancy at the time the
RCTC notified them, in writing, of its intention to acquire the property. (Such
notices shall not be given; as routine procedure or without prior concurrence from
m
the ROW Program Manager).
10-
10;2
The preceding General. Eligibility Requirements also apply to moving cost
payments except that relocatees who move to and legally occupy properties
being acquired by RCTC after the initiation of negotiations can qualify for moving
cost payments and advisory services, but normally for no other type of relocation
payment, provided,: that they are still in occupancy of the subject (property at the
time it is acquired by the .RCTC.
7-1.7 Definitions
The following definitions are applicable to this manual and to the RCTC's.
Relocation Assistance and Payment Program in general.
c.
:Includes any individual, family, partnership, company, corporation,
organization or association.
Family.
Means two or more individuals living together in a single-family dwelling
unit who are related -by blood, adoption, marriage or legal guardianship
who live together as a family unit, plus all other individuals regardless of
blood or legal ties who live with and are considered a part of the family
»unit, Aprindividuals who live together °without an identifiable head of
household will be considered one family: for the purpose of; administering
the relocation program.
Displaced Person
Any person .who moves from legally occupied real property (and in
federally - funded projects, self certifies legal residence ; in the United
States) or moves -personal property from legally occupied real property,
as a direct result of the acquisition of such real property in whole: or in .part
by the RCTC including an person who moved from the real roe as a
_ y p property rty
result of the ,.initiation of negotiations for the property or is issued a: -:notice
of intent to acquire and meets the following applicable criteria:
1 Initial Occupant
Applies to 'any person who (a) has been in legal occupancy of the
subject real property for not less than, 90-consecutive days prior to
(1,) the initiation of negotiations for the acquisition of such property,
or (2) receipt of a written notice .of the: RCTC's intent {to_ acquire .the
property, and (b) moves from the ;subject property (or moves
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personal property therefrom) subsequent to the initiation of
negotiations for such real property. Residential occupants are
normally entitled to a relocation housing payment, moving costs
and advisory services.
2. Less Than 90-Day Occupants
Persons who are in legal occupancy of a 'property at the initiation of
negotiations for such property, or at the time they were provided a
Notice of Intent to Acquire, but who had not been in such
occupancy for 90 consecutive days prior thereto, are referred to as
"less than 90-day occupants".
Such persons are normally entitled to reimbursement of moving
costs but . for no other type of relocation payment unless they
cannot afford comparable replacement housing using their own
funds. (Under the latter circumstance, the relocates can be paid a
relocation housing payment, either rent supplement or down
payment assistance payment, whichever is applicable, under the
Last Resort Housing Program. Payment computation procedures
are explained in the appropriate sections of this chapter).
Comparable replacement rentalunits available to displaced
occupants with less than 90 days occupancy will be considered
"affordable" if ,the total_ of _the monthly rent. ,plus_ utilities .does not
exceed ..the total rent and 'Utility -costs -at the, displacement site.
Other circumstances may :indicate the affordability, or lack thereof,
of any available replacement dwelling. Potential exceptions to the
exceptions to the above procedure may be recommended, on a
case -by -case basis, to the ROW„ Program, Manager._
3. Subsequent Occupants
A person who is in occupancy of a right of way parcel at the time it
is acquired by the RCTC but who was not in occupancy of such
parcel at the initiation of negotiations and subsequent occupants
are eligible for relocation advisory assistance and can normally
qualify for moving cost payments but for no other type of relocation
payment unless they cannot afford comparable replacement
housing. Under the latter circumstance, the relocatee can receive a
replacement housing payment, either a rent supplement or down
payment assistance payment, whichever is applicable, under the
Last Resort Housing Program.
The procedure for determining "affordability" of comparable
replacement housing discussed in the preceding subsection for
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occupants with less than 90 days.. occupancy is fully applicable to
subsequent occupants.
4. Displaced Tenants and Owners Not Located Within : Right of W
Taking
Tenants: Residential tenants who occupy a portion of a parcel
that is affected by a partial taking, but who are not actually located
within limits of the taking, will normally be eligible for the same
relocation payments they would have been eligible to receive had
they been located within the taking if (a) the right of way acquisition
causes the remainder which they.-occupy,to be uninhabitable due ;to
the .taking of a 'facility or service: that is not replaced, or (b) if ,they
are located in' the remainder of a mobile home park that was so
severely damaged and/or reduced in size by the right of way taking
that the owner justifiably discontinues the entire :mobile home park
operation at the subject site within one year after the RCTC takes
physical possession of the portion 'of the property that was acquired,
as right of way.
Owners: One who occupies a remainder that is made
uninhabitable due to the taking of a facility or service will not be
eligible for relocation payments if ,(a) his right of way payment
includes damages, in addition to the payment for ,property and
rights __acquired .from him, which were , specifically .computed- as
being adequate to pay for a cure of the deficiencies which 'makes
the remainder uninhabitable, and (b) he has the legal right and
physical space to accomplish the cure. Owners who are in a
:position to control the necessity for their displacement, and who
'can reasonably avoid such necessity, cannot qualifyfor relocation
-payments .by electing not to provide .the cure which they. are . in,:
reality been paid to accomplish. Condemnation awards and legal
settlements, which are equal to or exceed the approved offer will be
considered to include payment for such cures if the approved offer
included such payment. If a . condemnation award or legal
settlement is. less. than the approved offer, the Relocation Agent
•should recommend a payment eligibility determination to the ROW
Program Manager.
Occupants of remainders which become. legally and/or physically
landlocked due to a right of way taking are eligible for the same
relocation assistance and payments as occupants of properties
which are actually acquired by the RCTC; therefore, routine policies
and ;procedures provided throughout this chapter are applicable
underthis circumstance rather : than the special . policies and
procedures provided for inthis subsection.
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105
5. Tenant Displaced to Make Room for Rearrangement of Landowners
Business Operation
A tenant who is forced by his landlord to vacate the remainder of a
partial taking to make room for the landlord to rearrange a business
operation that was affected by a partial taking will normally be
considered a displaced .person, and as such, will be eligible for the
same relocation assistance and payments that he would have been
entitled to receive if he had been located within the taking.
If an owner -occupied residence is involved in this type of situation,
provide the facts to the ROW 'Program Manager and request for an
eligibility determination.
6. Voluntary Sales
Owner -occupants who voluntarily sell their property to the ROTC,
after being informed, in writing, that _ if a mutually satisfactory
agreement cannot be reached the property will not be acquired will,
normally, not be eligible for relocation assistance or payments. Any
tenants displaced as a direct result of such voluntary sale will be
entitled to relocation benefits; however,in these situations the
tenants do, not become eligible for relocation benefits until the
owner has entered into a purchase agreement to sellthe property
to ROTC. _.
7. Cancellation of Eligibility as Displaced Pierson
Eligibility as a "displaced person" can be cancelled and relocation
payment offers withdrawn, normally due to a change in construction
plans, which eliminates the need for a previously designated right
of way parcel, if the person is notified in writing that he will not be
displaced as originally planned. The written notice must advise that
the RCTC will reimburse the person's reasonable expenses
incurred to satisfy any binding good faith contractual relocation
obligations entered into after they were originally notified of
relocation eligibility. Relocation eligibility cannot be canceled if the
person has moved from the property.
d. Relocatee-Displacee
The terms "relocatee" and "displaces" are synonymous and mean any
person who meets the definition of a displaced .person.
e. Partial Displacement
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106
Refers to situations when the taking does not require the displacement of
the occupant, but does necessitate the removal of items of personal
property, which are located within the new right of way boundaries.
Total :Displacement
One which causes the actual displacement of a person, family, business,
:farm operation or non-profit organization.
Initiation of Negotiations for the Property
Relates to the date on which the RCTC presents the owner ofthe
property, or their designated representative, a written offer for the property
or rights to be acquired. When non-resident owners are Anvolved :who
cannot be contacted in person, initiation of negotiations for the property,
shall be the date such owner or his designated representative received the
first communication by mail or telephone from the RCTC in which a
monetary offer to purchase is made.
When property owners are expected to donate right :of way, they will, not
be presented a written offer. Under this circumstance, the ;date that they
are invited to execute .the "conveyance deed" will be accepted as -the
initiation of negotiations for the property.
When relocatees are provided a "Notice of Intent to Acquire" the initiation
of negotiations will be the earlier of (1) the date they move from the
property, or (2) the date the property owners, or their representatives are
presented a written offer for their property.
Dwelling
The place ,of permanent or customary residence. It includes a single
family house, a one -family unit in a multi=family 'building, a unit in a
condominium or cooperative housing project,""or any other residential unit,
including a mobile home.
Dwelling site: The term dwelling site means a' land area that is typical in.
size for similar dwelling Located in'the same neighborhood or rural areas. .
Comparable ° Replacement Dwelling
One which is:
Decent, safe ` and sanitary (DS & S) as defined in 'the following
subsection j.
2. Functionally equivalent to the displacement dwelling, ,Aprovidees, the
same utility, capable of contributing :to a comparablestyle of living and
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107
adequate in size to accommodate the. occupants. While it need not
possess every feature of the displacement dwelling, the principal
features must be present. .
3. In an area that is not subject to unreasonable adverse environmental
conditions, is not generally less desirable than the location of the
displaced person's dwelling with respect to . public utilities and
commercial public facilities, and is reasonably accessible to the
person's place of employment.
4. On a site that is typical in size for residential development with normal
site improvements including customary landscaping.
5. Within the financial means of the displaced person. This phrase is
defined as follows:
180-Day Owners - A replacement dwelling will be within the
relocatee's financial means if they are paid a
properly computed replacement housing
payment, a correct increasedinterest payment
and all authorized incidental closing costs.
Tenants - A replacement rental dwelling will be within the
relocatee's financial means if they are paid a
o ,pr_ perl y computed rent supplement payment.
6. Currently available to the displaced person on the private market
unless the relocatee is receiving assistance under a Government
Housing Program before displacement, in which case, a comparable
replacement dwelling may reflect similar governmental housing
assistance:- (Public housing. can be offered_ to thosebeing displaced
from non-public housing if they are advised in writing of their right to
non-public housing and do not object).
NOTE: If replacement dwellings meeting the above requirements
are not available on the market, dwellings which exceed those
requirements may be treated as comparable replacement housing.
Decent, Safe and Sanitary Dwelling (" DS & S") — 49CFR 24
Means a dwelling which meets applicable housing and occupancy codes.
However, if any of the following standards are not met by ;an applicable
code, the following standards shall apply, (unless waived for good causes
by the Federal Highway Administration and the Federal Transit
Administration.) The dwelling shall:
1. Be structurally sound, weather tight and in good repair.
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2. Contain a safe electrical wiring system adequate for lighting and other
electrical devices.
3. Contain a heating system capable of sustaining a healthful
temperature (of approximately 70 degrees) for a displaced person, .
except in those areas where local climatic conditions do not require
such a system.
4. Be adequate in size with respect to the number of rooms and area of
living space :needed to accommodate the displaced person. There
shall be a separate, well lighted and ventilated bathroom that provides
privacy to the user and contains a sink, bathtub or shower stall, a'nd a
toilet, !all in good ,working order and . properly connected to appropriate
sources of water,and to a sewage drainage system. In the case' of a
housekeeping dwelling, there shall be a kitchen area that contains a
fully usable sink, property connected to potable hot and cold water and
to a sewage drainage system, and adequate space and utility service
connections: for an oven and refrigerator.
5. 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, the common
corridor must have at least two means of egress. (Flexibility inthe new
regulations will permit DS & S approval of upstairs apartments, and `
sleeping : rooms located on the second .floor of; norma two-story.
residential dwellings served by one stairway).
6. For a disabled displacee, be free of any barriers which would preclude
reasonable_ ingress, egress or use of the -dwelling.-
Business..(49CFR)
Means any lawful activity, except farm operations, conducted primarily:
for, the purchase, 'sale, lease, and/or' rental of personal.: and/or real
property, and for the manufacture, processing and/or marketing of
products, commodities or any other personal_ property, or
2. `for the sale of services to the public, or
3. outdoor advertising display purposes, when the display must be rnoved
as.:a result of a. project, or
`4. by a- non-profit organization that has established its: non-profit status
under applicable federal or state law.
Small :Business .(49CFR)
A business 'having: not snore than 500 employees, working at the site being
acquired or displaced by a program or project, which site is' the location of
economic activity. Sites occupied solely by .outdoor advertising signs,
displays, or devices do not qualify as a business for purposes of
reestablishment expense.
Non -Profit Organization (49CFR)
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109
An organization that is incorporated under the applicable laws of the State
of state as a non-profit organization and exempt from paying federal
income taxes under Section 501 of the Internal Revenue Code.
o. Farm Operations (49CFR)
P.
Any activity conducted solely or primarily for the production of one or more
agricultural products or commodities, including timber, for sale or home
use and customarily producing such products or commodities in sufficient
quantity to be capable of contributing materially to the operator's support.
Contributes Materially (49CFR)
Means that during the two taxable years prior to the taxable year in which
displacement occurs, a business or farm operation:
1. had average annual gross receipt of at least $5,000, or
2. had average annual net earnings of at least $1,000, or
3. contributed at least 33 1 /3 percent of the owner's average annual
gross income from all sources.
NOTE: It is permissible, with prior approval from the Right of Way
Program Manager, to use a different period if it will :be more equitable to
the displacee (in :lieu of using the two prior taxable years)
If the business has not been in operation, or has not been operated by the
current owner-relocatee, for the entire two taxable year period, base the
computation on the actual period of the owner-relocatee's operation
projected to annual rate. (To compute: determine the total gross receipts,
net earnings, or gross income, whichever -.is applicable, during .the actual
period of the owner-relocatee's operation; divide the figure by the number
of months of operation; multiply by 12 to determine the annual average. A
loss for any year should be counted as "0" when averaging, not a negative
number).
Owner (49CFR)
Means an individual(s) who:
1 owns, legally or equitably, the fee simple estate, a life estate, a 99 year
lease (regardless of the length of the unexpired term) or other
proprietary interest in property. Holders of long-term leases, but less
than 99-year leases, shall also be considered owners if the unexpired
term (including options for extension) after the date of acquisition of the
subject parcel totals 50 years or more, or
2. is the contract purchaser of any of the foregoingestate or interests, or
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110
3. has succeeded to any of the foregoing interest by devise, bequest,
inheritance or operation of law. In the event of acquisition of
ownershipb an of the foregoing methods, the tenure of ownershi
:YY P
(not occupancy) of the succeeding owner shall include 'the tenure of
the preceding owner, or
4. owns an interest in a cooperative housing project which includes the
right to occupy a dwelling, or
5. anyother interest, including leases with 'less than 50 years unexpired
term, which in the judgment of the RCTC warrants : consideration as .
ownership. Any such consideration must follow the procedure of the
RCTC Relocation Appeal Process (as discussed further in this
chapter).
The owner, -as defined in this subsection,of a residential :dwelling
who has . owned and occupied the dwelling for; at least ; 180
consecutive: days immediately prior to the initiation ;of negotiations
for the subject dwelling is more commonly referred;, to as a "long-
term owner
One who obtained ownership of a residential property being acquired .by
the RCTC at least 90 days, but less than 180 days, immediately prior;to
he -initiation of negotiations for the subject property. To be eligible for
relocation benefits (replacement housing :payment),.;=except ,°residential
moving costs and advisory services, the short-term owner must also have
occupied the dwelling unit for at least 90 days immediately ,prior to the
:initiation of negotiations for the subject property, unless this creates a
financial hardship and the owner would fall into Last Resort Housing and
would be eligible for a replacement housing payment..
Conventional Loan
Any : loan` not guaranteed or directly provided by a governmental agency,
or not guaranteed through private purchase of loan insurance, e.g,
mortgage guarantee; insurance, is considered to be a conventional loan.::
Replacement Housing Payment
A purchase price differential relates to those payments available to
qualified ilong-term owner=occupants (at least 180 days) to assist in the
purchase of replacement 'housing, computed as the difference between
the .amount paid to them by the department for their residential property
'and. (1) the amount necessary to purchase the most nearly comparable
DS ,& S replacement housing available, or (2) .the: amount actually paid for
a DS & =S replacement, whichever is less. > A replacement . housing
payment may also include a mortgage interest differential paymentarid 'an
incidental expense payment.
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u. Subject Property, Subject Parcel, Subject Dwelling, Displacement
Property
• When the word "subject" or "displacement property" is used to identify a
property, a parcel or a dwelling, it always relates to the property, parcel or
dwelling which is being acquired or affected by the RCTC- and is always
the property, parcel or dwelling from which a relocatee is being either
partially or totally displaced.
Replacement Property
The property being purchased or rented by the relocatee to replace the
"subject property, parcel or dwelling".
Date of Taking
Refers to the date the subject property is acquired by'RCTC.
Tenant
A person who has the temporary use and legal occupancy of real property
owned by another.
Last Resort Housing Program
A procedure under which the RCTC can construct, purchase, rehabilitate
or otherwise provide dwellings as replacement housing units for
displacees when available replacement dwellings cannot be found or
when the computed payment exceeds the maximum amount that is
normally paid under the Relocation Assistance Program.
Rental Subsidy Payment
Relates to the payment available to displaced residential occupants to
cover additional rental costs they will experience in renting comparable
replacement housing during the 42-month_ periodfollowing their
displacement. It is synonymous with the terms "Rental Differential
Payment" and "Rent Supplement".
aa. Utility Cost
Expenses for heat, light, water, sewer and trash collection.
bb. Uniform Act
An abbreviated title for the Federal Uniform Relocation Assistance and
Real Property Acquisition Act of 1970, as amended.
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cc. Acquired
The term "acquired" as used in this manual means the time the property_
owner, his agent or representative receives payment from the RCTC for
the property and/or rights being purchased; or if condemnation is involved,
at the time of the amount of probable just compensation is depositedinto
he court.
7-1.8 Interest Acquired .
The e of ;interest acquired b the RCTC does: not affect the . eligibility for
type q . y 9 Y
relocation assistance payments provided the interest: acquired is sufficient to
cause the displacement.
7-1.9 Ownership, -Qualifications
General Ownership Requirements
In some instances, occupants must have owned the subject" property for
specific time periods to be eligible for certain types of relocation` payments:.
In- other. instances, payment eligibility requirements also; specify qtat
relocatees must purchase and occupy DS.& S replacement: housing within .
a specific time after they are required to move from the property being
acquired by RCTC.
To be considered an owner of the property :'being acquired" or- of a
replacement property entitled to relocation benefits, the _relocates must
either. ownthefee simple title to the property, 'hold life estate :or possess
certain leasehold rights as discussed in subsection8-1.6 .p., :'above..
Contract to Purchase - Subject Rightof Way Parcel
Relocatees who are in the process of purchasing the property from ':which
-
they are being displaced under a contract to purchase which legally binds
both: parties to an agreement that calls for the subsequent transfer of title
`to the relocatee, is considered qualified if the contract has'been in effect
for the required ownership time period.
Contract to Purchase — Replacement Parcel
A, relocatee who purchases a DS , & S replacement property under' a
contract to purchase's which legally] binds both ,parties, as outlined in the
preceding` paragraph, within the required tirne period, is ,considered to:
have met replacement housing ownership eligibility requires ents.
Ins not necessary for title Ito have actually passed to the relocatee under
the procedure discussed in the preceding paragraphs b. -and`:c. so long as
a binding purchase ,contract is in effect. Contracts to .purchase, which .
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involve replacement properties, must be properly recorded in the office of
the Recorder of Deeds before claims for relocation payments can be
processed for payment if the purchase of a replacement property is an
eligibility requirement for the type of payment involved unless a written
waiver of the recording requirement has been granted in writing by the
RCTC. (Requests for such waivers must explain whythereis an 'objection
to recording the contract and must be accompanied by a copy of the
contract). In every case, when doubt exists concerning the legality or
terms of a particular purchase contract, submit a, copy thereof to the ROW
Section for final determination.
d. Owner's Acquisition by Devise, Bequest, Inheritance or Operation of Law
Relocatees who acquire a property that is scheduled for right of way
acquisition by devise, bequest, inheritance or operation of law are
considered to have met the ownership time eligibility requirements (but not
necessarily the occupancy requirements-180 day owner and occupied) if
the time they have owned the property since acquiring it plus the time it
was owned by the person or persons from whom they acquired it totals the
required time period.
This policy applies even though the relocatees "inherited" the subject
property after the initiation of negotiations for the property. It also applies
if the inheritance occurred after the original owners signed the Deed
-_conve in the- subject _property to . the.._.RCTC or after the ,property was
.
conveying = the_ 1. P p rtY.
condemned but the'-probablejust compensation has not been deposited
and as a consequence, title had not passed to the ROTC.
e. Part Owners, Partnerships, Estate Members, Subject Right of Way Parcel
If .a .dwelling ,.:acquired. by the RCTC. is. ;partially owned;; bythose who:
occupy it and partially owned by other parties who are not in occupancy,
those in occupancy shall be eligible, if qualified, for relocation payments
as owner -occupants.
Estates are not eligible for replacement housing ,payments (purchase price
differential, incidental closing costs, increased interest payments, rental
subsidy payments or down payment assistance) but are entitled, when
qualified, to moving cost payments.
It is not necessary that the "other party" who owned an interest in the
subject, but did not occupy it, also purchase an interest in the
replacement. The name of the "other party" should not be included as
payee on the replacement housing check.
Part Owners and Partnerships — Replacement Property
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Those displaced by an RCTC taking can normally qualify for appropriate
relocation payments if they purchase a DS & S replacement in partnership
with other parties; however, the amount of such payments will normally be
affected due to the fact that the relocatee does not purchase full
ownership in the replacement. (A payment can be calculated using a
"carve -out" of the displacee's portion of the replacement unit.)
Relocatees who qualify as owners due to having life estate in the subject
or by holding a long-term lease thereon can normally qualify for relocation
payments, if they acquire at least the same interest in the replacement as
they held in the subject property.
Properties Involved in Foreclosure
If a relocatee is 'beingdisplaced from_a property that is in the process of
being foreclosed: but are still occupying the subject property, they will be
entitled 'to relocation benefits they qualify for; if the property has been
foreclosed and the former owner is renting the subject property :or are in
possession on the basis of an extension of possession,they will be
treated as tenants.
7 1. 10 Availability of'C,omparable Replacement Dwelling Prior to Displacement — 49CFR
Residential relocatees shall not be required to vacate their dwellings unless at
least one comparable replacement dwelling (preferably three has been made
p p 9 (P y )
available to them. A comparable replacement dwelling will be considered to
have been made if:
The relocatee is informed of its location.:.:
The relocatee has sufficient time to negotiate .and enterinto a purchase
agreement or .lease for the replacement dwelling or for other comparable
housing (relocatees must not be required to- move from their, displacement
dwelling ,until at -.least 90 days after they are advised in writing of the
amount of their relocation housing payment offer :to assure.;that they have
sufficient time to negotiate for a comparable replacement dwelling.
The relocatees are assured of receiving the relocation assistance to which
they are entitled in sufficient timeto complete the purchase or lease' of a
replacement,; dwelling unit.
Residential relocatees cannot normally beevicted froman acquired
dwelling unless a comparable replacement -dwelling unit is currently
available 'and financially feasible.
If two or more families occupy the same single-family dwelling unit, the
RCTC will first attempt to locate a :replacement unit that is ;comparable to
the subject unit which will enable the families to relocate together;
however, if such comparable is not available, RCTC's obligation to provide
comparable replacement .'housing will : bemet if a separate DS & S .
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replacement unit is made available to each family which provides
functional comparability to the space and utility they enjoyed.
7-1.11 Eviction for Cause
Eviction for cause must conform to applicable state and local law. Any person
who occupies the real property and is in lawful occupancy on the date of the
initiation of negotiations, is presumed to be entitled to relocation payments and
other assistance, unless the RCTC determines that:
a. the person received an eviction notice prior to the initiation of negotiations
and as a result of that notice is later evicted, or
b. the person is evicted after the initiation of negotiations for serious or
repeated violation of material term(s) of the lease or occupancy
agreement, (a person evicted for reasons related to non-compliance with
requirements related to carrying out a project;. (e.g., failure to move or
relocate when instructed or to cooperate in the relocation process) does
not lose relocation eligibility) AND
c. in either case, :the eviction was not undertaken for the purpose of evading
the obligation to make available the payments and other assistance they
would otherwise be entitled to:
For purposes of determining eligibility for relocation payments, the date of
displacement is the date the person moves, or if later, the date a comparable
replacement dwelling is. made _:available. This subsection applies only to persons
who would otherwise have been displaced by the project: ;.
7-1.12 Incompetent Owner or Occupant
If an owner and/or occupant has been legally declared to be incompetent, the
Relocation. Program should be explained to the legal guardian. Guardians will
normally have authority to execute documents for the ward, accept possession
notices and handle details related to their ward's displacement. if any
complications are encountered, provide all facts to the ROW Program Manager
and request specific instructions. The ROW Program Manager should seek
assistance from the RCTC Legal Counsel in handling cases of this nature.
7-1.13 Relocatee Dies During Displacement Period
a. Relocatee Dies Prior to Occupying Replacement Housing
The following instructions apply when relocatees who are eligible for
replacement housing payments (either rental subsidy payments, down
payment assistance payments, or purchase price differential payments) or
moving costs die before they actually occupy a replacement dwelling:
1. If the deceased is the head of a household or the member of a
displaced family, the relocation payment would not be affected.
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2. If the deceased was the only occupant of the unit acquired by the
RCTC, the payment would be forfeited as he would never occupy the
replacement dwelling. (Any portion of a relocation housing payment
necessary to satisfy the legal obligation of anestatein connection with
the selection of a replacement dwelling by or on 'behalf. of a deceased
person shall be disbursed to the estate).
Claims Executed Prior to Relocatee's Death
The unpaid relocation claim of an eligible deceased : relocatee that has
been signed and executed prior to his death should be _processed for
payment in the routine manner. The check should be forwarded : to the
.administrator of the ;relocatee's estate together with an explanation of the
relocation payment involved. If an estate has not been opened and/or an
administrator has not been appointed, present. the -; facts' to the ROW
Program Manager and ask for specific instructions. The :ROW Program
Manager:should :seek legal advice in handling cases of this 'nature.
Claims Not Executed Prior to Relocatee's 'Death
If a head of household dies after qualifying for a relocation payment, but
before executing his claim, it is permissible to accept, process and ;pay a:
claim executed by the administrator to his estate. The check will be
delivered .to the administrator.
'If the head of household dies prior to fling a- claim that qualifies for
payment and an estate has not been opened, or an administrator has not
been appointed, present the facts to the ROW Program, manager and
request instructions concerning execution of .the claim and ';delivery of the
check.
7-1.14 Rest 'Home and Nursing Horne Patients
The ;term "rest home as used herein also applies to nursing homes,
convalescent homes and other similar establishments.
In applying the -following policy, it will be necessary to determine whether a
subject rest home resident is a temporary or permanent occupant of the rest
home.
A temporary 'resident is one who is in the ` rest home during an illness,
convalescence or illness recovery period, and is currently maintaining permanent
residence .elsewhere, which he intends to re -occupy when physically able ;to do
so.
A permanent resident is.one who has made the rest home his permanent place
of residence, is not maintaining a residence elsewhere, and has .no plans, to
leave the rest home at -a later date.
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In case of doubt or conflict in determining whether a displacee is a temporary or
permanent resident or a rest home, the ROW Section should seek advice from
the RCTC Legal Counsel.
a. Moving cost — Rest Home Displaced
b.
When a displaced rest home operation is moved by its owner and
reestablished in a new location, the individual residents involved (both
temporary and :permanent) will not be entitled to relocation payments if the
cost of moving them from the existing rest home to the replacement is
borne by the rest home owner. (The rest home owner will be reimbursed
for such moving costs as part of the usual business moving cost
payment).
If permanent residents are forced to move to a new location at their own
expense, and are not moved by the rest home owner as part of his
business. move, they shall be entitled to residential moving cost payment
based either on actual costs, or on the fixed payment schedule, as the
occupant of a furnished sleeping room.
If temporary residents are forced to move to a new Location at their own
expense, they shall be entitled to a moving cost payment which also
applies when the .temporary residents return to their original permanent
residence..
Rental Subsidy Payments — Rest Home Displaced
Rental. subsidy payment are not available to temporary rest home:
residents who maintain permanent and legal residence elsewhere.
A permanent rest home patron, who is displaced due to the RCTC's
acquisition of the rest home will not be entitled to rental subsidy payment,
if the subject rest home is relocated, remains in operation, and is available
to the resident after is it relocated unless the existing rental fee is actually
increased as a result of the move.
If the displaced rest home does not relocate and does not continue in
operation after displacement, and the permanent resident will be forced to
relocate to a different rest home, they will normally be entitled to a rental
subsidy payment computed as follows:
1. Determine the portion of the total monthly rental fee being paid by the
relocatee prior to displacement that is chargeable to basic "room rent"
which normally includes utilities. It will be necessary to "carve out" and
separate the basic room rent payment from nursing services, food, and
other services . paid for in the overall monthly payment. (rest home
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1 1 8
records may establish these figures, if not, the determination must be
made and documented by an appraiser).
2. Locate the most nearly comparable replacement rest home available to
the relocatee and determine the portion of the total monthly rental fee
charged for the replacement that is chargeable to basic room rent
3. Compute the rental subsidy payment in the same manner based on the
difference between the "basic room" rental: fees. charged by the
displaced rest home and the replacement rest home,or on the
difference actually paid by the relocatee, whichever : is less. To
determine if the:30% rule applies, each case will, have to be discussed
with the ROW Program Manager individually!
If the payment computation procedure . discussed in this subsection
creates an undue hardship on a relocatee, the ROW Program Manager
Should formulate a Solution to alleviate such hardship.
Moving Costs Rest. Home Residents' Property Acquired by the ROTC
If a residential, business or farm property is acquired by the RCTC while
its owner or tenant is residingin a rest home (either ,,temporary or
permanent), such owner or tenant is entitled to applicable moving cost
:payment.
"Residential" Relocation Payments — Rest Horne Residents' Property
;Acquired- by RCTC_
Temporary rest home residents who maintain permanent residence
elsewhere that are being acquired by RCTC, are entitled to any relocation
payment they are eligible to receive and the fact that they are temporarily
residing in a rest home has no effect on such eligibility.
!Permanent rest home residents may own residential property occupied by
others, or unoccupied. If they do, they are entitled to actual cost moving
payments.
If a relocatee, who is displaced from a conventional dwelling unit, or from
a mobile home, moves to and becomes a permanent resident of a rest
home, they can qualify for a rental subsidy payrnent, ,if eligible, provided .
that such' rest home meets DS & S standards. in determining the amount
actually paid by the: relocatee for their. "replacement unit consider the
"basic room ;fee If the relocatee moves to a. ;rest home .as a temporary
basis after displacement, provide all facts to the ROW Program Manager
and request instructions before making commitments to the :relocatee.:;
7-1.15 Displaced Students
Moving Costs
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Students who are displaced from "temporaryhousing, usually furnished
rooms they occupy during the school year (those who return to their
permanent homes during summer and other vacations), are entitled to
moving cost payments, either fixed payment or actual costs, if their
displacement occurs during the school year and they, of necessity, move
to other temporary housing. If the displacement occurs at the end of the
school year, or during summer vacation, students who merely <return to
their permanent homes shall, if otherwise eligible, be entitled to a moving
cost payment. Students who .occupy housing on a ".year-round" basis,
shall be entitled to the same moving cost payments as any other displaced
tenant.
Rental Subsidy and Down Payment Assistance
Students occupying housing on a temporary basis during the school year,
as discussed in the preceding subsection, and have permanent homes
elsewhere, are not entitled to either rental subsidy or down payment
assistance.
Students who occupy housing on a full-time "year round" basis, and
establish: such housing as their permanent and legal residence, shall be
entitled to the same relocation payments as any other displaced tenant.
7-1.16 Losses Due to Negligence
Losses -due to 'negligence on the part of the relocatee, his agent or employees
are not eligible for reimbursement under the Relocation Program.
7-1.17 Relocatee's Refusal of Assistance
There is no provision for the RCTC..to- authorize_relocatees to waive their right to
claim relocation payment to which they are entitled to receive; unless the
acquisition of the property qualifies as a "voluntary acquisition". This would be
the only circumstance under which an agreement could be made with any
relocatee in which they waive their right to claim such payments. In the same
manner, a relocatee could- not be forced to sign and submit a relocation payment
claim if he elects not do so. In any circumstance when a displace does not
accept a relocation payment there must be clear evidence in the file that the
_person was fully informed of all of their potential benefits, including probable
dollar amounts.
7-1.18 Rental of RCTC-Owned Property
a. Renters After Acquisition Not Eligible for Relocation 'Payments
Persons who rent ,property from the RCTC after it has been acquired and
vacated are not eligibleifor relocation payments.
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b. Only decent, safe and sanitary units owned by the RCTC will be available
for rent (except when an Extension of Possession Agreement is used.)
Improved parcels owned by the RCTC that do not meet DS & S standards
must not be rented for residential purposes.
Computation of Rental Rates to be Charged, by the RCTC
Rental rates to be established as discussed in the Property Management
chapter of this Manual.
Occupant Rents Subject Property After Acquisition
If eligible relocatees of a property acquired by the RCTC desire to rent it
:after the '90 day possession period has expired, they ,can do : so, if the
'construction .schedule permits, without jeopardizing or changing their
,'eligibility for relocation payments. This will normally be. accomplished
under an Extension of Possession Agreement.
Effect on Residential Moving Cost Payments
When residential property is rented back to the occupant by the
ROTC, the residential moving cost payment will .be made -after the
move is completed. The payment will be based on the amount ,of
personal property actually moved, unless- it. is .obvious:that the
quantity of personal property was substantially increased after the
property was rented to the relocatee by the RCTC. If a substantial
increase is noted, an adjustment will be made in the moving cost
payment to eliminate payment for the items added after the
property was acquired by the RCTC..
If fixed-rate moving ,:cost schedule: is used, -the payment amount will
be based on the number of furnished rooms occupied by .the
relocatee at the time the property was acquired by the RCTC.
2. Effect on Business; -Farm and Non-profit Organization
The rentingof business, farm or non-profit property, could create
serious problems in administering the Relocation Assistance and
Payment Program. For this reason,; the RCTC should ,try to avoid
renting back to businesses, farms or non-profit organizations.
3. Effect on Replacement Housing Payments
The replacement housing payment offer that isineffect at the end
of : the 90-day possession period may be adjusted if; :the
comparables offered are more than 90 days old from when they
eventually purchase and occupy a DS & S replacement dwelling.: A
replacement housing claim cannot be processed: or paid until the
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relocates has actually fulfilled all requirements necessary to qualify
for this payment, unless a hardship advance is required.
The relocatee must be served notice to vacate. (at the time the
property is needed for construction) under the terms specified in the
Extension of Possession Agreement, which will normally be 30
days written notice.
4. Effect on Rental Subsidy Payments
Tenants, who occupy a dwelling unit being acquired by the RCTC,
who are eligible for a rental subsidy payment, can rent the subject
parcel after it has been acquiredby the RCTC without jeopardizing
or changing his eligibility for the subsidy payment.
The rental subsidy payment offer that is in effect at the end of the.
90-day possession period may be adjusted if the comparables
offered are more than 90 days old from when they eventually move
to a DS & S replacement rental unit.
The rental subsidy claim cannot be paid until the tenant actually
vacates the subject property, moves to a DS & S replacement
dwelling and otherwise qualifies for the payment,- unless a: hardship
advance is required.
The =tenant must be served with a 90=day written notice to -vacate
before the RCTC takes possession of the property under the terms
specified in the Extensions of Possession Agreement. A 30-day
Notice to Vacate will be sent to the tenant 60 days after the 90-day
Notice to Vacate is issued.
5. Effect on Down Payment Assistance
Eligibility for down payment assistance is not affected if the
relocatee rents the subject property after it has been acquired by
the RCTC.
6. Effect on Incidental Closing cost Payments
Rentals of this type will have no effect on incidental closing cost
payments.
7. Effect on Increased Interest Payments
Rental of the subject property back to its former occupant has no
effect on this type of relocation payment. The payment will be
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made to qualified owners when they meet all eligibility
requirements:
-1.19 Delivery of Relocation 'Payment Checks
All checks 'issued under the Relocation Assistance Program are to be mailed to
thedesignated recipient :by certified mail. A letter of transmittal setting out the
check number,. amount- and type of payment (e.9• moving.cost, replacement
housing, etc.) should .accompany the check. Attach the certified return receipt to
the file copy of the transmittal letter and retain both in the original parcel file.
Itis also perrnissible to deliver relocation checks to responsible parties other than
the relocatee to whom such checks are made payable provided, that' the
relocatee specifically and clearly requests such action in writing:
Relocation _ payment checks must be made payable to the subject . property's .
relocatees except_as authorized herein (administrators of estate, guardians) and
when moving cost payment checks can be made payable directly to moving
companies; under certain specific terms discussed hereafter.
7-1.20 "Rounding" of Claim Amounts
Relocation claims based on actual costs must not be rounded.
Claims basedoncomputed amounts (judgments, not actual=costsycan beround
to the ` nearest dollar. Only the "total amount due can be so" rounded, -the-
,
component parts of a claim must be set out in their exact amounts'.
1.21 Duplicate Payments.
Joint:Acquisition by.Two GovernmentalAgencies
Under no circumstances can a relocatee be paid duplicate relocation
payments, covering the same displacement, by two different governmental
acquisition agencies ;which are both subject to the "Uniform Act" or, which
have any other relocation payment program which accomplished the same
purpose
Relocatee is an Employee of a Private :Company
=If the relocateeis an employee of a private company: who is °being
transferred by the; employer is in occupancy of a parcel being acquired :by
the. RCTC at the initiation of negotiations for such parcel, or upon receipt
of a Notice of Intent To Acquire, the RCTC will pay all relocation payments
such relocatee is qualified to receive regardless of any transfer payments.
made to him by his employer and regardless of when the transfer .was
- initiated.
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When this situation is encountered, the Relocation Agent should advise
the employer by letter of the relocation payments being made to the
employee (relocatee) and thereby provide an opportunity for the employer
to avoid duplication of payment, if they so desire.
7-1.22 Retention of Files, Records and Reports
a. Federal Regulation (49 CFR 24.9(a)) — Record Keeping
"The Agency shall maintain adequate records of its acquisition and
displacement activities in sufficient detail :to demonstrate compliance with
this part. These records shall be retained for a least 3 years after each
owner of a property and each person displaced from the property receives
final payment to which he or she is entitled under this part, or in
accordance with the applicable regulations of the Federal funding agency,
whichever is later."
b. Federal Regulation (49 CFR 24.9(b)) — Confidentiality of Records,.
"Records maintained by an Agency in accordance with this part are
confidential regarding their use as public information, unless applicable
law provides otherwise."
c. Federal Regulation (49 CFR 24.9.(c)) Reports
"The Agency_ shall submit a report :of, its; real property acquisitionand
displacement activities under this part -if required by the Federal agency
funding the project. A report will not be required more frequently than
every 3 years, or as the Uniform Act provides, unless Federal funding
agency shows good cause. The report shall be .prepared and submitted in
the format contained in Appendix B of this part."
Relocation Case Files
The ROW Section shall maintain a case file for each person who meets
the definition of displaced person or persons not displaced. The case file
shall contain the Relocation Agent's Log or Diary, Correspondence to and
from the displacee or pertaining to the displacement, and copies of claim
forms and supporting documents.
e. Relocation Log or Diary
The Relocation Agent shall maintain a complete and legible log that will
contain, at least, the following entries:
1. Date case was assigned to the Relocation Agent
2. Date, Status and pending required action when transferred from Agent
to Agent
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3. Date and place of each personal contact; list of persons present and
particulars of the discussion
4. Date and particulars of all significant phone calls:
5. Date of Relocation AssistanceProgram being delivered or rnailed,
including statement that relocation program was explained and
assistance offered
6. Amounts of relocation payments offered. Copies of 'benefit letters
delivered or mailed
7. Claimant's' response to offer of assistance and relocation intentions
known
8. Date claim forms were delivered and kinds and amounts of payments
involved
'9. Date payment amounts received; if revised, date claimant was advised
ofchange in entitlement and amounts involved
10. An entry to the effect that replacement housing and the replacement
housing valuation was current as of date of. vacation .,::'Case file will
contain written backup that valuation is current
11. Addresses and prices of replacement properties offered to displacee
and methods used to transmit information
12. Dates correspondence or documents were received or transmitted
13. Delivery dates of official notices, such as 90=Day Notice
14. Entry when a moving claim is processed indicating circumstances of
vacation, e.g., voluntary self -relocation, eviction, subject to 90 or 30
Day Notice, advisory assistance used
. ROW _Program :,Manager sign -off for closed files.
7-1.23 Withholding of Relocation Payments
It is permissible to deduct any rent that a displacee owes. the RCTC :from
relocation :payments, provided that such deductionwill not prevent the displacee
from obtaining :comparable DS & S replacement housing,
7-1.24 Manner of Notices
The following notices must be in writing and personally served or sent .by certified
or registered first-class mail with,return receipt requested. Parcel files must be
documented to show that the notices are provided in the prescribed manner:
(Persons who are unable to' read and/or understand the notices must be provided
with appropriate translation and counseling).
The notices required by Federal Regulation are:
a. General Information Notice (Relocation Brochure)
b. Notice of Relocation Eligibility (Relocation Payment Offer:)
c. Vacancy Notices.
Additional noticesdeveloped under RCTC procedures are discussed
sections of this Manual.
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in various
7-1.25 Relocation Program on Projects Affected by a Major Disaster
Individuals and .families whose homes have been damaged or destroyed by a
major disaster and who have not been able to re -occupy their homes by the
initiation of negotiations for the subject property can be considered to be in
constructive occupancy provided:
a. that the area has been declared as a major disaster area by the President;
or
b. the Federal Highway Administration has determined that constructive
occupancy is acceptable under the circumstances. (when a situation of
this nature is encountered, provide facts to the ROW Program manager
prior to making eligibility commitments to the relocatee).
The following policy guidance is applicable when an eligible tong -term owner -
occupant is involved:
The replacement housing payment will be based on the difference between the
amount the RCTC pays for the subject property in its damaged condition and the
confirmed price of the most nearly comparable replacement property available
(comparable to the subject before the disaster) or the difference between the
RCTC's payment and the amount that the relocatee actually pays for a DS & S
replacement, whichever is lesser, minus any proceeds received by the relocatee
as payment. for damage to his residence as a result .of the disaster from.
insurance companies and/or from any other source.
NOTE: Procedural Instructions will be issued by the ROW Program Manager in
consultation with RCTC's Legal Counsel when tenants, short-term owners,
businesses, farm operations or non-profit organizations are involved in a major
disaster. Also. Instructions for computing relocation payments will be issued when
a relocatee experiences disaster which damages or destroys his 'home or
business after the initiation of negotiations for the subject parcel.
7-1.26 Notice of Intent To Acquire
It is the policy of RCTC not to issue Notices of Intent To Acquire (whether verbal
or in writing) except when authorized in writing by the ROW Program Manager.
The exception applies only when it is obviously in the RCTC's best interest to do
so or when a relocatee will suffer serious personal or financial hardship if such
action is not taken.
Notices of Intent to Acquire are not available to the owners of businesses, farms
and non-profit organizations.
To avoid bad public relations with landlords, such notices should not be given to
tenants unless they initiate the action and made a request in writing to the RCTC.
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7-1.27 Administrative Responsibility
The ROW Program Manager has the primary responsibility for
implementing the Relocation Assistance Program on al RCTC projects.
. The ROW Program Manager shall designate, at least, one member of the
ROW Staff whose primary assignment is to carry out the Relocation
Assistance Program on projects that involve relocation assistance.
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Section 7-2
7-2.1 General
CHAPTER VII
RELOCATION ASSISTANCE
Relocation Assistance Advisory Service
The Relocation Assistance Program can be divided into two functions (a)
relocation payments, and (b) advisory services and assistance to those being
displaced. The term "advisory services" relates to advice and assistance only.
7-2.2 Purpose
To establish a Relocation Assistance Advisory Services Program which will
enable relocation personnel to provide meaningful assistance to those being
displaced regardless of race, color, religion, sex, age, special assistance,
physical disability or national origin. The services discussed in this section must
be provided by personal contact, if reasonably possible. If personal contact
cannot be made, :the Relocation Agent must document the file to show that
reasonable efforts were made to make personal contact with displacees.
7-2.3 _. Eligibility. For Advisory Service.
Relocation assistance advisory services must be offered to:
a. any "displaced person as defined in subsection 8-1.6.c of this Manual;
b. any person occupying property immediately adjacent to the real property
being acquired when suchperson(s) are_ caused : substantial; economic
injury as a result of the acquisition;
c any person who moves from their residential unit, which is not located in
the taking,, due to reasonable necessity, because of the acquisition of their
business or farm operation; and
d. any person who moves personal property from real property not located
within the taking, due to reasonable necessity, as a result of the
acquisition of their business or farm operation.
7-2.4. Advisory Service Requirements
.The RCTC's Relocation. Assistance Advisory Service Program must include such
measures, facilities or services as may be necessary or appropriate to:
a. discuss and explain the service available, relocation payments and the
eligibility requirements therefor and assist in completing any applications
or other forms required,
b. determine the need, if any, of displaced persons, for relocation assistance,
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c. provide current and continuing information on the availability, prices .and
rentals of comparable DS & S housing, and of comparable commercial
properties and locations for displaced businesses,
d a person displaced from the business or farm operation in obtaining and
becoming established in a suitable replacement location,
when appropriate, supply information concerning federal and - state
housing programs, disaster loan programs, and other federal and state
programs offering assistance to displaced persons,
f. advise displaced persons that no payments received under the Uniform
Act shall be considered as income for the purpose of the IRS Code or for
the ,:purpose determining the eligibility or the extent of eligibility .of any
person for assistance under the Social Security Act or any other federal
law; and
g. provide other advisory services to displaced persons in order: to minimize
hardships to such ;persons in adjusting to a new location.
Advisory servicesshall be administered on a reasonable basis :commensurate
with the relocatees' needs. This could vary from (a) minimum ,assistance when
relocatees are well informed, mentally, physically and financially able to manage
their displacement (or overcome their economic injury and who, as a
consequence, neither need or desire RCTC assistance) to (b) almost unirnited
advisory services and assistance for those who are elderly, disabled or otherwise
unable _ to cope with their displacement or economic injury problems. :;All
relocatees, especially the elderly and handicapped, shall be offered
transportation to inspect -housing to which they are referred.:
Whenever possible, minority persons shall be given reasonable opportunities to
relocate to DS & S replacement dwellings, not located in an area of minority
concentration, that are within their financial means. This policy, .however, does
not require the RCTC to provide such relocatees a larger payment . than is
necessary',to enable them to relocate to a -:comparable replacement -dwelling.,
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CHAPTER VII
RELOCATION ASSISTANCE
Section 7-3 Appeals
7-3.1 General (49 CFR 24.10(a)
"The Agency shall promptly review appeals in accordance with the requirements
of applicable law and this part."
The right of appeal shall be described in all Relocation Brochures that are
distributed at public hearings or to individual displacees. The right of appeal shall
, be stated in all relocation notices and also be mentioned whenever verbal
presentations on relocation assistance are made at public hearings.
On relocation calls, the Relocation Agent shall explain how to make an appeal
and give the following information to displacees:
a. displacee has the right to appear personally at all hearings,
b right of appeal relates only to the Relocation Assistance Program and not
to the market value of the property or to the terms of the Real Estate
Purchase Contract,
c. an appeal decision will be issued in writing within 60 days of reviewing all
material necessary to render an opinion,
d. Relocation Assistance Appeal Form will be provided to displacee upon
request, but any_form is acceptable.
e. Displacee has the right to pursue legal action after completing the appeal
process.
7-3.2 Appealable Actions (49 CFR 24.10(b))
"An 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 part. Such assistance may include,
but is not limited to, the person's eligibility for, or the amount of, a payment
required under Section 24.106 or Section 24.107, or a relocation payment
required under this part. The Agency shall consider a written appeal regardless
of form."
The replacement housing valuation shall be reviewed whenever a displacee
appeals the amount of the replacement valuation.
7-3.3 Time Limit (49 CFR 24.10(c))
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"The Agency may set a reasonable time limit for a person to file an appeal. The .
time limit shall not :be less than 60 days after the person receives written
notification of the Agency's determination on the person's claim."
The RCTC must receive the appeal no later than three (3) months following the
deadline for fling a claim for relocation payment.
7-3.4 Right to Representation (49 CFR 24.10(d))
"A person has a right to be represented by legal counsel or other ,representative
in connection'with his or her appeal, but solely at the person's own expense.";
7-3.5 Review of Files (49 CFR 24.10(e))
"The Agency shall permit a person to inspectandcopy all materials pertinent to
his or::her appeal, except materials which are classified as confidential ,by the
Agency. The agency may, however, impose reasonable conditions on the
person's right to inspect, consistent with applicable laws."
Relocation Agent's Case Log or Diary
Correspondence with RCTC Legal Counsel
Additional materials the RCTC Legal Counsel determines to
confidential and unavailable to the appellant, on a case -by -case basis
he RCTC Shall Set a reasonable time limit for appellant to review the file,
considering that the RCTC Legal Counsel must first review the file to determine
which material is confidential and which is not. The RCTC may charge
reasonable fees for any copied material in accordance with RCTC policy.
7-3.6 Scope of Review (49 CFR 24.'10(f))
" the Agency shall consider all pertinent justification` and
In deciding. an appeal, g y p justification
other material submitted by the person, and all other :available information that is
needed to ensure a -fair and full review of the appeal."
7-3.7. Determination and Notification After Appeal (49 CFR 24.10(g)),
"Promptly after receipt of all .information submitted by a person in support of ;an
appeal, the Agency shall make a written determination on the appeal, . including
an explanation of .the .basis on: which the decision was made, and furnish the
-person a copy. , if the full relief requested is not granted, the _Agency shall advise
the person: of his or her right to seek judicial review."
7-3.8 Agency Official RCTC Executive Director. (49 CFR 24.10(h))
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"The Agency official conducting the :review of the appeal shallbe either the head
of the Agency or designee(s). However, the official shall not have been directly
involved in the action appealed."
State regulation for state funded projects (title 25, California Code of Regulations
Ch.6, Art 1 Section 6000 et seq.)
Section 6.158 (a)
"General. The public entity shall consider the request for review and shall decide
whether a modification of its initial determination is necessary. This review shall
be conducted by the head of the public entity or an authorized, impartial
designee. (The designee may be a committee). A designee shall have the
authority to revise the initial determination or the determination of a previous oral
presentation. The public entity shall consider every aggrieved person's complaint
regardless of form, and shall, if necessary provide assistance to the claimant in
preparing the written claim. When a claimant seeks review, the public entity shall
inform him that he has the right to be represented by an attorney, to present his
case by oral or documentary evidence, to submit rebuttal evidence, to conduct
such cross-examination as may be required for a full and true disclosure of facts,
and to seek judicial review once he has exhausted administrative appeal."
7-3.9 Appeal Process
Who can Appeal_
A person who is dissatisfied with a payment or determination of eligibility
must file a Relocation Assistance Appeal Form or any other written form of
appeal with the RCTC Executive Director or designee(s) (the "Appeals
Board").
Hearing Date
The Appeals Board shall set a hearing date of no later than thirty (30)
days from receipt of the appeal. The appellant has the right to present
oral and/or written evidence in support of the appeal, has the right to legal
counsel and to seek juridical review once he has exhausted administrative
appeal.
c. Right to Counsel
The appellant has a right to representation by legal counsel or other counsel at
his expense at any and all stages of the proceedings.
d. Final RCTC Decision
The Appeals Board shall render a Decision, in writing, within thirty (30)
days following the last day of hearing. A copy of the Decision will be
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mailed, certified or registered, to the appellant and his authorized
representative and copies filed in the Relocation case file. The Decision
of the Appeals Board shall be final; however, the appellant shall: be
advised that he has the right to seek judicial review of the Appeals Board's
decision.=
Appeals Board
The following are designated by the Executive Director as members of the
Appeals Board: the two RCTCDeputy Executive Directors and. the
Project :Delivery Director or Project Delivery Director.. The :decision of the
'majority of the members of the Appeals Board is final.
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CHAPTER VII
RELOCATION ASSISTANCE
Section 7-4
7-4.1 General Information Notice (49 CFR 24.203(a))
Relocation Notices
"As soon as feasible, a person scheduled to be displaced shall be furnished with
a general written description of the displacing agency's relocation program which
does at least the following:
a. Informs the person that he or she may be displaced for the project and
generally describes the relocation payment(s) for which the person may be
eligible, the basic conditions of eligibility, and the procedures for obtaining the
payment(s)..
b Informs the person that he or she Will be given reasonable relocation advisory
services, including referrals to replacement properties, help in filing payment
claims, and other necessary assistance to help the person successfully
relocate
c. Informs the person that he or she will not be required to move without at least
90 days'_ advance - written notice.. =(see, paragraph-, (c) of .this section) .and
informs any person to be displaced from a dwelling that he or she cannot be
required to move permanently unless at least one comparable replacement
has been made available.
d. Describes the person's right to appeal the Agency's determination as to a
person's application for assistance for which a person may be eligible under
this part."
7-4.2 Notice of Relocation Eligibility (49 CFR 24.203(b))
"Eligibility . for relocation assistance shall begin on the date of initiation of
negotiations (defined in section 7-1.9 of this Right of Way ;Manual) for the
occupied property. When this occurs, the Agency shall promptly notify all
occupants in writing of their eligibility for applicable relocation assistance."
7-4.3 Reminder Notice
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The Relocation Agent shall send timely written notification_ of the possible loss of
rights and expiration date thereof to persons who:
are eligible for monetary benefits, and
have moved from the acquired property, but
have not filed a claim.
Notification shall be sent periodically throughout the qualification period. In any
event, written contact shall be made no later than within the last six months prior
to the filing expiration date. This will allow sufficient time within which to obtain
necessary documentation to complete the claim filing(s).
If no response to the written notification is received, the Relocation Agent should
make telephone contact, within the appropriate time limit and document the
contact in the log or diary.
7=4.4. 90-Day Notice (49 CFR 24.203(c))
"(1)General.. No lawful occupant shall be required to move unless he or she has
received at least 90 days advance written notice of the: earliest date 'by. which ;he
or she maybe required to move."
There are two alternative methods for providing notice to vacate:
b.
-90-Day Information .:Notice followed ,by a30-Day Notice - to Vacate_ with
date certain; or
90-Day Notice to Vacate with date certain.
"(2) Timing of notice. The displacing agency may .issue the notice 90 days before
it expects the person to be displaced or earlier.
The 90-Day Information Notice may not be served prior to initiation ` of
negotiations for acquisition of a parcel and, as a general rule, shall: not be served
until the RCTC has obtained legal possession of the ,property.
On an exception basis, such as projects with short :,lead time or instances where
rental delinquencies can be anticipated, a 90-Day Information Notice may be
given on or after initiation of negotiations for the parcel. In such instances, the
30-Day 'Notice to Vacate _shall not be given `until the RCTC has legal possession
of the property.
In either event, lawful eligible occupants must be informed of the maximum
relocation . housing payment amount to which they are entitled at least 90 days
prior to the time they are required to vacate.
Situations will .occur where :projects slip and the need for clearance is postponed
after issuance of 90-Day Information Notices. If 30-Day Notices to Vacate ;are
not served within six months following issuance of the 90-Day Information
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Notices, the original 90-Day Information Notices shall be canceled and new ones
issued when the need for clearance arises again. .
7-4.5 Content of Notice (49 CFR 24.203(c)(3))
"(3) Content of notice: The 90-day notice shall either state a specific date as the
earliest date by which the occupant may be required to move or state that the
occupant will receive a further notice indicating, at least 30 days in advance, the
specific date by which he or she must move. If that 90-day notice issued before
a comparable replacement dwelling is made available, the notice must state
clearly that the occupant will not have to move earlier than 90 days after such
dwelling is made available. (See Section 24.204(a).)"
The 90-Day Information Notice is not a notice to vacate. A Relocation Agent
serves the 90-Day Information Notice in person to eligible and ineligible lawful
occupants who:
a. are required to vacate because of the proposed project, and
b. have personal property located on the acquired property.
7-4.6 30-Day and 90-Day Notices to Vacate
A 30-Day Notice to Vacate may be issued after 60 days have passed since the
90-Day Information Notice was issued. This notice cites a specific date by which
_ the. displacee. must vacate ;This date may be extended, but any extension must
be in writing -Arid 'must cite a new specific date by which displacee is to vacate.
Since no eligible person shall be served a Notice to Vacate from a residential unit
unless appropriate housing is available, at least one available comparable
replacement property that is within financial means, must be offered to displacee
simultaneously with the .Notice to Vacate. • . A ,parcel log .or diary entry shall;.
indicate by address the specific dwellings offered at the time of service.
A 90-Day Notice to Vacate shall not be given until the RCTC has control of the
property. Control of property is obtained on the date escrow is closed, the Final
Order in Condemnation is recorded, and the Order of Possession is signed by
the court, notwithstanding the fact that physical possession is not taken for at
least 90 days.
7-4.7 Notice to Vacate with Order of Possession
Any Notice to Vacate to be served in conjunction with an Order of Possession
shall be reviewed by RCTC Legal Counsel, and shall comply with the provisions
set forth in California Code of Civil Procedure section 1255.410.
7-4.8 Notices to Unlawful Occupants
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Eligible tenants who are either delinquent in their rental payments or in violation
of their rental agreement for any other reason are considered unlawful occupants
and are served either a 3-Day Notice demanding payment of. Rent or Possession
or 30-,Day 'Notice of Termination of Tenancy and Notice to quit.
Although the RCTC is under no obligation to the unlawful ineligible tenant, the
Relocation Agent is encouraged to provide advisory services as a method :of
assisting unlawful tenants in vacating the property, particularly where hardship
conditions .exist.
7-4.9 Urgent Need (49: CFR 24.203(c)(4))
"(4) Urgent need. In unusual circumstances, an ,occupant may be ;required to.
vacate the property, on less ,than 90 days advance written notice if the displacing
agency determines that a °'90-day notice is impracticable, such as when the.
person's continued occupancy of the property would constitute a substantial
danger to health or safety. A copy of the Agency's determination shall be
included in the applicable case file."
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RELOCATION ASSISTANCE
Section 7-5 Availability of Comparable Replacement Dwelling
7-5.1 General (49 CFR 24.204(a))
"No person to be displaced shall be required to move from his or her dwelling
' unless at least one comparable replacement dwelling (defined at Section
24.2(a)(6)) of 49 CFR part 24 and paragraph 8-1.7 - (i) of this Right of Way
Manual) has been made available to the person. Where possible,three or more
comparable replacement dwellings shall be made available. A comparable
replacement dwelling will be considered to have been made available to a
person, if:
a The person is informed of its location; and
b. The person has sufficient time to negotiate and enter into a purchase
agreement or lease for the property; and
c. Subject to reasonable safeguards, the person is :assured- of receiving the
relocation assistance and acquisition payment to which the person is
entitled in sufficient time to complete the purchase or lease the property."
One of RCTC's goals is that any available comparable- used to determine a
price/rental differential .should be available at the listed priceduring the period
displace is actively seeking replacement housing. This period. of .active search -
ends when the earlier of the following dates occur:
a. Displacee enters into a contract to purchase (acceptance of Deposit
Receipt), builds, or rents a replacement property.
b. Displacee vacates displacement property.
7-5.2 Waiver of Policy (49. CFR 24.204(b))
"The Federal agency funding the project may grant a waiver of the policy in
paragraph 8-5.1 of this section in any case where it is demonstrated that a
person must move because of:
a. A major disaster as defined in section 102(c) of the Disaster Relief Act of
1974 (42 U.S.C. 5121); or
b. A Presidentially declared national emergency; or
c. Another emergency which requires immediate vacation of the real:
property, such as when continued occupancy of the displacement dwelling
constitutes a substantial danger to the health or safety of the occupants or
the public."
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7-5.3 Emergency Move (49CFR 24.204 (c))
"Whenever a person is required to relocate for a temporary period because of an
emergency as described in paragraph 8-5.2 of this section, the Agency shall: ,,_
.� 9 ;. y 9 Y
Take whatever steps are necessary to assure that the _:person is
temporarily relocated to a decent, safe, and sanitary dwelling;; and
Pay the ,actual reasonable out-of-pocket moving expenses and ; any
reasonable increase in rent and utility costs incurred in connection with the
temporary relocation; and
Make ;available to the displaced person as soon as feasible, at least,; one
'comparable replacement dwelling. (For purposes of filing a.. claim and
meeting the eligibility requirements for a relocation payment, the date of
displacement is the date the person moves from the temporarily: `occupied
dwelling.)"
9�)
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CHAPTER VII
RELOCATION ASSISTANCE
Section 7-6 Relocation Payments
7-6.1 Documentation of Claims (49 CFR 24.207(a))
"Any claim for a relocation payment shall be supported by such documentation
as .may be reasonably required to support expenses incurred, such as, bills,
certified prices, appraisals, or other evidence of such expenses. A displaced
person must be provided reasonable assistance necessary to complete and file
any required claim for payment."
The Relocation Agent must . verify qualifying activities, such as moving and
occupying replacement housing, by personal inspection with documentation in
the parcel log or diary.
When federal funds are involved in an RCTC project, P.L. 105-117 prohibits the
provisions of relocation payments or assistance under the Uniform Act to persons
not lawfully in the United States.
If the project is federally funded, the displacee will have to "self certify" their legal
residency.in the. :United States and . eligibility, ; for relocation benefits and
assistance.
The Relocation Agent shall advise the displacee of this requirement as early as
the provision of advisory assistance and no later than the application for benefits.
The ROW staff shall develop a form for such Self Certification
7-6.2 Expeditious Payments (49 CFR 24.207(b))
"The Agency shall review claims in an expeditious manner. The claimant shall
be promptly notified as to any additional documentation that is required to
support the claim. Payment for a claim shall be made as soon as feasible
following receipt of sufficient documentation to support the claim."
The Relocation Agent completes a standard claim form and submits it to
Accounting after replacement property is selected and payment amounts can be
determined. The claim may be completed prior to meeting all conditions if funds
are required and displacee has:
a. Opened escrow for replacement property.
b. Assigned the funds to the escrow company.
c. Signed a statement agreeing to occupy the replacement dwelling ;within 30
days of close of escrow.
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The claim may also be completed when displacee relocates before the RCTC
acquires the displacement property and an offer has been made for such
acquisition.
7-6.3 Process for Standard Claim Form
a DS & S Inspection
Perform no later than 5 days after learning that replacement property has
been selected.
Complete Claim form and have Claimant(sysign Claim Form
Prepare Claim Package
Attach all: documentation needed to support theclaim, review for propriety`
of payments and approve payment.
d. Obtain approval of claim from ROW Program Manager.
e Forward approved claim form to Accounting.
7-6.4 Assignment of Claims
Displacee. may assign part or all of the claim to:
c.
Rent replacement dwelling (landlord).
Pay, moving company expenses.
Purchase replacement dwelling (Escrow Agent)..
Pay any direct relocation expense, including rehabilitating replacement
unit:_
Repay loans for securing any of the above.
NOTE Relocation payments are not assignable for obligations, such as general
debts and rent owed: to former landlord.
Replacement housing payments can be placed in escrow at displacee's_option
7-6.5 Check 'Delivery
Accounting shall mail payment, except in the following cases:
a Payment is delivered to an Escrow Agent.
b. Payment is delivered to an assignee.
c:. When ROW Program Manager authorizes an employee with no prior
involvement tomakepersonal delivery.
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No one directly involved in relocation of a displacee may personally deliver a
relocation payment unless the Right of.Way Manager deterrnines otherwise.
7-6.6 :Advance Payments (49 CFR 24.207(c))
"If a person demonstrates the need for an advance relocation payment in order to
avoid or reduce a hardship, the Agency shall issue the payment, subject to such
safeguards as are appropriate to ensure that the objective.. of the payment is
accomplished.
Advance relocation assistance payments may be made only under the condition
the owner -occupants sign an agreement, stating among others, that:
a.. Displacee understands the amount of the advance payment is not
necessarily the same as what displacee may be ' entitled to when
acquisition price of dwelling is determined.
b Displacee will refund to the RCTC the amount of :the payment that is
greater than displacee would otherwise be paid after acquisition price is
determined.
When replacement housing is built or rehabilitated, payments are made .only
when the unit is completed, DS & S, and occupied by the displacee.
Restitution may be paid in cash, credited against purchase ;;price in -a negotiated
settlement, or made as. stipulated in a judgment.
7-6.7 Time for Filing Claims (49 CFR 24.207(d))
" (1) All claims for a relocation payment shall be filed with the Agency within 18
months after:
(i)
(ii)
For tenant, date of displacement;
For owners, the date of displacement or the: date of the final
payment.for the acquisition of the ;real property, whichever is later.
(2) This time period maybe waived by the Agency for good cause."
7-6.8 Multiple Occupants of one Dwelling (49 CFR 24.207(e))
"If two or more occupants of the displacement dwelling move to separate
replacement dwellings, each occupant is entitled to a reasonable prorated share,
as determined by the Agency, of any relocation payments :that would have been
made if the occupants moved together to a comparable replacement dwelling.
However, if the Agency determines that two or more occupants maintained
separate household within the same dwelling,- such occupants have separate
entitlements to relocation payments."
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If two or more individuals:: are living together and occupying one dwelling unit, the
RCTC is not obligated to, provide them with more than one replacement dwelling.
The ROTCis obligated to provide eligible individuals with a comparable dwelling .
on a reasonable -cost basis. If it costs less to provide one comparable
replacement dwelling than two or more, RCTC shall determine the occupants'.
maximum :entitlement based on one replacement dwelling.
There !are :'separate ..entitlements to relocationpayments only if two ; ormore
occupants ' are clearly maintaining separate households withinthe same
displacement dwelling. The Relocation Agent must document why the occupants
should be considered as maintaining more than onehousehold in r the
displacement dwelling and prepare an economic analysis of available
replacement housing alternatives.
7-6.9 Occupants, Separate or Divorce
Eligible.O.ccupants who subsequently separate or divorce and establish separate
households, whether by choice or by litigation, qualify for payments as one
displaced family. The family's payments may be divided between :the occupants
in any proportion on which they agree. This agreement must be in vvritingj and
cannot be changed without written consent from both parties.
If the parties cannot reach an agreement, entitlement is calculated as if they
relocated .together. Payment can be determined by type of eligibility established
by the first party;,to relocate and file a claim Although:;only :one party- needs tc
,sign the claim forms, checks must be made payable to both parties.
If divorce or separation occurs and one spouse vacates the property prior ;to
initiation of negotiations, the spouse who rernainsijr1 occupancy is,eli"gible for all
relocation benefits that may accrue.
7-6.10 Owner -Occupants With Partial -Ownership Interest
When a :dwelling is :.owned by several persons and occupied by one or more
owners, .the replacement housing payment is the lesser of:
The difference between the owner -occupant's share of the acquisitioncost
of the acquired dwelling and the actual cost of the replacement dwelling
Or
Thei difference between the total acquisition :of the acquired dwelling, and
the amount determined by the RCTC . as necessary - .to purchase a
comparable dwelling...
When the Tartial owner -occupant purchases a replacement that .isless costly
than the estimated replacement cost and is DS & S :for the _ owner -occupant, then
"spend to get" is that party's share in the acquisition price plus .the price
differential.
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7-6.11 Deduction From Payments (49 CFR 24.207(f))
"An Agency shall deduct the amount of any advance relocation payment from the
relocation payment(s) to which a displaced person is otherwise entitled.
Similarly, a Federal Agency shall, and a State Agency may, deduct from
relocation payment any rent that the displaced person owes the . Agency,
provided that no deduction shall be made if it would prevent the displaced person
from obtaining a comparable replacement housing as determined by Section
24.204 of 49 CFR Part 24. The Agency shall not withhold any part of a
relocation payment to a displaced person to satisfy an obligation to any other
creditor."
Courts have held that Relocation Assistance Payments cannot be attached
through legal actions.
In bankruptcy situations, the RCTC must advise Trustees of any possible
relocation payments.
7-6.12 Notice of Denial (49 CFR 24.207(g))
"If the Agency disapproves all or part of a payment claimed or refuses to consider
the claim on its merits .because of untimely filing or other grounds, it shall
promptly notify the claimant in writing of its determination, the basis for its
determination and the procedures for appealing that determination."
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CHAPTER VII
RELOCATION ASSISTANCE
Section 7-7.
7-7.1 Payment Eligibility
A displaced person is synonymous with .a person eligible for relocation benefits.
A displaced person includes the following:
Any individual, family, business, farm operation, or non-profit _ organization who
moves from the real property or moves his or her personal property from the real
property.: (This includes a person who occupies the real property prior :to its
acquisition, but who does not meet the length of occupancy requirements of the ,.
Uniform Act in 49 CFR Park 24):
c.
Moving Cost Payments
As a direct result of a written notice of intent to acquire, the
initiation of. negotiations for, or the :acquisition_ of, such real prope
in whole or in part for a project:
As a direct result of rehabilitation or demolition for .a project;; or
As a direct result of a written notice of intent to acquire, or the
acquisition, rehabilitation ordemolition of, in whole or in part, other
real property on which the person conducts a business or farrn
operation, for a project. However., eligibility for such person under
this paragraph . applies only for purposes of obtaining relocation
assistance advisory services under § 24.301, § 24.302 or § 24.303
Any individual, family, business-, farm operator or non-profit organization
which qualifies as: a displaced person is entitled to reimbursement for the
reasonable and necessary expenses of : moving persons or personal
property when:
a. the personal property is located on :real property that is scheduled
for acquisition by the RCTC, either as an entire or partial
acquisition;
b such. ,personal property is located on : remaining land which will rbe.
made, inaccessible to the relocates due to being; legally and/or.
physically landlocked as a result of the right of way acquisition,
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c. its owner is in legal occupancy of the real property on which the
personal property is located at (a) the time the negotiations are
initiated for the subject real property, (b) at the time he/she is
served a "Notice of Intent to Acquire," or (c) at the time the real
property was actually acquired by RCTC,
d. the owner moves the personal property from the area being
acquired or landlocked after the initiation of negotiations for the
subject real property, or after receiving a "Notice of Intent to
Acquire," whichever comes first, or
e. the cost of moving the personal property does not substantially
exceed the cost of replacing it at a new location. (applicable only to
businesses, farms and non-profit organizations).
If the RCTC's acquisition of real property used for business or farm
operation causes persons to vacate their dwellings or other real property
not included in the acquisition or to move personal property from other real
property not acquired, they may be entitled to the cost of moving such
personal property. Eligibility for payment is normally limited to :situations in
which (1) the business or farm operation is moved to a new location that is
not necessarily accessible to the existing dwelling, or (2) it is reasonably
necessary for the relocatee to reside on or in proximity to the property on
which his or her business or farm operation is located. The Case file must
be documented to show the necessity for moving such personal property.
a Relocatee Initially Occupies Subject After Initiation ofNegotiations
_
(Subsequent Occupants)
A person that .occupies the property after the Initiation of Negotiations but
prior to the acquisition of the property by RCTC is entitled to relocation
benefits.
In residential relocation situations relocation benefits may be limited to
moving .expenses unless the displaced person qualifies for a Last Resort
Housing payment.
Businesses that are subsequent occupants may qualify for all relocation
benefits if, in the opinion of RCTC, they meet the applicable criteria for
specific payments.
Persons (residents or businesses) who move to a property after the
initiation of negotiations and vacate it prior to the time it is acquired are not
eligible for moving cost payments unless they are provided a written notice
to vacate by the RCTC prior to the time they move.
RCTC will make every effort to minimize subsequent occupants by
offering to enter into a protective rent agreement (this is also known as a
rent to hold vacant agreement) with the owner of the real property at the
time of the initiations of negotiations.
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b. Relocatee Displaced from Remainder of Partial Acquisition - Not.
Located Within Right of Way Acquisition Will Normally Be eligible for
Moving Cost Payments.
7-7.2; General Moving Cost Policies
Policy Concerning More Than One Move
Moving costs cannot be paid for more than one move of the. same
personal ,property without prior approval by the ROW program manager.
More than one move will not be approved unless it is clearly ,in the best
public interest todo so. This policy does not apply when it is necessary to
move personal property to and from storage.
Two moves can be justified when personal property is located within a
temporary or permanent easement, one move from the easement :area
and another to return it after the easement (if temporary)' reverts to the
property owner.
Distance .of Move
There -is no ..limitation on the distance a Jelocatee moves_: personal
property; however, moving cost payments must not include the expenses
involved in moving the personal property more than 50 miles distance.
When the relocation cannot be accomplished within the 50. miles from the
subject location, the ROW Program Manager may allow reimbursement of
cost to the nearest adequate and available site.
Moving cost. payments can be made to cover the cost of moving personal
property on to remaining or other lands owned by the relocatee or his/her
landlord.
Owner Retention
When, an owner retains any item that was classified as real property, the
cost of moving it to a. new location is never eligible for reimbursement.
If a retaineddwelling is moved without rernoving the occupant's personal
property, the relocatee can still be paid a moving cost payment based on
the "Fixed -Payment Moving Cost Schedule"."No additional moving cost
payment will be made. If, however, furnishings . are removed during the
time the building is -being relocated, :relocatee could be paid the actual
cost of removing, storing and replacing the subject_ furnishings, or the
fixed -payment option in lieu of actual costs.
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d. Two or More Families Occupy Same Single --Family Dwelling Unit
In most instances, the term "families" is used in explaining the procedures
in this subsection; however, the principles and instructions also apply
when one family jointly occupies a single-family dwelling unit with other
individuals who are not a part of the family.
Joint -occupancy families are entitled to separate moving cost payments if
they are eligible for separate replacement housing or rental subsidy
payments. In most cases Joint -occupancy families will be treated as
Multiple occupants in one Dwelling (see Section 8-6.8 of this Right of Way
Manual).
1. Separation After displacement
In some instances, two or more families living together in the same
single-family dwelling unit prior to displacement, will rriove into
separate dwelling units after being displaced. If this :occurs and
RCTC deterrnines they are separate households, each family can
claim a separate moving cost payment, either the actualcost of
moving their ;portion of the personal property involved or a payment
based on the appropriate Fixed -Payment Moving Cost Schedule.
When the payment is based on the fixed -payment schedule, each
family can .be paid using the schedule method.., Their benefit. under
the schedule method will be determined by their ownership of the
furnishings, as with any other residential occupant.
2. All Families Relocate Together
Families who livetogether prior to displacement will not be entitled
to separate moving cost payments if they move to the same single-
family replacement dwelling unit and continue to live together after
displacement, regardless of the circumstances involved.
3. Personal Property Sold After Initiation of Negotiations and Prior to
Displacement.
. .Fixed Payment Option
If the owners of residential personal property who selected the
"fixed -payment moving cost option, sell or otherwise dispose of
their :personal property prior to its being removed from the
subject parcel, they shall be entitled to the fixed payment under
Schedule B of the Fixed -Payment Moving Cost Schedule after
such personal ;property has been removed from the right of
way. The fast that personal property was disposed of prior to
its removal :from the subject parcel has no effect on the
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eligibility of the relocatee to receive his/her fixed moving cost
payment. The person who purchased the personal property will
not be eligible for reimbursement of the cost of moving it.
Actual Cost Option
If the owners of personal property select -an, "actual cost".
moving cost payment, then sell or otherwise dispose of. any
personal property prior to the time it is removed from the
subject parcel, they will not be entitled to reimbursement for the
cost of moving the items that were sold or otherwise, disposed
of. The party who acquired the personal property may be
eligible for a moving cost payment under the policy discussed
in Subsection 8-7.1 b. If a business, farm or non-profit
organization is involved, the original owner, who owned the
items at the initiation of negotiations, may be: eligible for a
"Tangible Property Loss" payment relating to the ;items sold
and/or disposed of.
No moving cost payment will be paid for items that are sold to
customers of a business, farm operation or non-profit
organization, as well as the cost of moving items that are sold
to customers and delivered by the relocatee.
Subject Real Property Sold to -Another ,Party
If a property owner sells his/her real property which is needed . as
right of way to another party after initiation of negotiations, and not
directly to .the ROTC, and as a result, vacates such property prior' to
the time possession is required by the. RCTC, he/she will not be
entitled .to. `a_ moving cost - payment as -the -displacement will -be
necessitated by the sale of the real property and not due to the
RCTC acquisition.
Payment Assurance to Moving Firms
It is possible that relocatees, whose moving cost payments are, to
bebased on "actual costs," may not be financially able to employ a
moving firm and pay for their move prior to,receiving a moving cost
payment from the RCTC. if this situation occurs, it is possible that
moving firms will be unwilling to conduct the move' without
assurance that they will receive payment. In such instances, one of.
the three .following actions may be taken;
a. Provide the ;relocatees a letter :confirming the moving cost
payment offer (based on the lowest, most reasonable moving
cost bid or estimate received) which they can present to the
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moving firm as proof that they will receive paymentfrom the
RCTC which will enable them to pay the mover.
b. The relocatees can request, in writing, that the moving cost
payment check be forwarded to the moving firm in lieu of having
it delivered directly to the relocatee. (The check will be made
payable to the relocatee, except that the check will be mailed to
the mover.
c. The relocatee and the moving firm can execute an agreement
authorizing the RCTC to make the moving cost payment check
payable to the moving firm Actions (b) and (c) are not to be
used unless the move cannot be successfully completed and (c)
will not be used unless the first two actions have been
specifically rejected.
Two Bids or Estimates Not Available
The, procedures for accomplishing various types of moves normally
require at least two (2) moving cost bids or estimates. When it only
possible to get one (1) bid, advise the ROW Program Manager of
the facts involved and ask for authority to proceed on the basis of
one (1) bid or estimate.
Overtime Charges
Moving cost .payments must be based on "straight time" rates and -
.:
not on Overtime -rates except in cases where it is essential that the-
move be conducted during "off duty" hours. Prior approval from the
ROWProgram Manager is required before a move involving
overtime rates can proceed.
8. - Advertising. Signs and Signboards
Signs which are attached to real estate are considered to be a part
of the ,real property and are paid for as part of the real estate.
Therefore, only portable signs will be eligible for moving costs
under the Relocation Assistance Program.
7-7.3 Related Moving Costs
a. Related Moving Costs Applicable to All Moves — Residential, Business,
Farm and Nonprofit Organizations
1. Transportation of the displaced person and personal property.
2. Storage
If it is necessary for displaced persons to store their personal
property, the actual cost of such storage, not to exceed twelve
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months can be included in their moving cost claim. The Case File
must be documented to explain why such storage was necessary
and justify the amount of the storage charges. The cost of _storing
personal property on real property being acquired or on another
property owed or leased by the: "relocatee, is not "eligible for=
payment under the Relocation Program. If the most practical
solution is for the personal property to be temporarily stored in
rented mobile storage units parked on the: subject property, such as
vans, trailers, etc., the reasonable cost of, renting such units may be
eligible for reimbursement. In these instances, the approval of the
ROW Program Manager is required.
iMoving cost claims which include storage costs must be
accompanied by a paid receipt showing the amount paid as storage.
:costs, length of storage period, where the personal :property .;was .
stored, and if applicable, a breakdown of the storage costs.
Storage costs cannot be paid when residential: moving cost
payments are based on the "Fixed -Payment :Moving Cost
Schedule", or when a fixed non-residential payment is made in; lieu
:of moving costs.
Should the owners of personal property sell the personal property
while they are in storage, their eligible storage cost' period
_ d and ° neither.
the nor the 'buyer shall be entitled to any-paymentcovering'r,.
terminates at the .end of the-, month in_which- is it is so the
Y Y.._.
cost of moving such personal property from the storage area.
When storage is necessary, the RCTC will normally: pay' the
reasonable cost of moving the personal property to the storage; site
and at the end of the storage period to a place designated by, the.
.—relocatee provided -.-the combined, distance of both move's, to and
from storage, does not exceed 50 miles in distance. If the move
from the storage occurs later than 60 days after the ,;end of the 12-
- month storage period, without authorized extension, the RCTC will
not reimburse the relocatee for the cost of moving the personal
from the storage unit.
property _
A storage period in excess of 12 months may be :approved by the
ROW Program Manager based on necessity.
Insurance
The cost of insurance premiums covering loss and damage of
personal property while in transit or storage can be included in a
moving cost claim based on actual expenses but must_ not exceed
;the reasonable replacement value of the personal property
involved, including the deductible, if applicable..
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Claims including insurance premiums must be supported by paid
receipts showing the amount paid for the insurance and the amount
of coverage involved.
Losses in Moving
The reasonable replacement value of property lost, stolen or
damaged (not caused by the. fault or negligence of the displaced
person, his agent or employee) in ,the process of moving is
reimbursable, when insurance to cover such loss or damage was
not reasonably available. (This payment is not authorized when
residential moving cost payments are based on the fixed: -payment
schedule, or when the fixed -payment non-residential option is
selected in lieu of moving costs).: The replacement value of
damaged personal property will not be paid if the damaged item
can be reasonably repaired.
5. Packing and Crating
The reasonable costs of packing, crating, unpacking anduncrating
personal property are reimbursable incidental moving costs.
6. The reasonable cost of repairs and/or modifications so that a
mobile home can be moved and/or made decent, safe and sanitary.
The reasonable cost of disassembling; moving and reassembling
any appurtenances attached to a mobile home, such as porches,
decks, skirting, and awnings, which were not acquired, anchoring of
the unit, and utility hookup charges.
Other Moving Related _Expenses
In addition to the specific incidental moving costs discussed herein,
eligible relocatees can be reimbursed for other moving expenses
that the RCTC determines to be reasonable and necessary that are
not specifically ineligible. Under no circumstances will the ROW
consultant discuss with a displaced person any payment under this
section until the Right of Way Manager has approved the payment.
Any license, permit, fee, or certification required of the displaced
person at the replacement location. However, the payment may be
based on the remaining useful life of the exiting license, permit, fee
or certification.
10. Professional Services
The reasonable costs of professional services necessary for (a)
planning the move ;of personal . property. (b) moving the personal
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property, or (c) installing the relocated personal property at .the
replacement site are reimbursable.
Reasonable "out of pocket" fees paid to consultants for preparing
inventories of personal property are normally reimbursable
Relocatees should be encouraged to submit proposals for obtaining
professional services, including the anticipated costs, to, Right ,of
Way Department prior to approval.
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The cost to -represent the laced person displaced during the relocation
process, the :cost -to prepare a claim for the displaced:' person or any
other ,costs for -services that are available from RCTC .:or its ROW
consultants are specifically ineligible and will notbe paid
The cost of professional services .will :be limited to the =reasonable
hourly rate charged by others in the specific profession.
1.1. Re -lettering Signs, Replacement of Stationery and Notices of New
Location
Actualreasonable cost of re -lettering signs and replacing stationery
on hand at the time of displacement that is made ; obsolete as : a
result of the move are reimbursable. Generally, the cost of
replacing_; stationery will be - limited to the: amount of. stationery the,.
.
person had "on hand" at the date of the move. In instances when a
business has less than a "minimum run" of stationery on hand'
RCTC may, at its option, pay the full cost of the minimum; run A
pre -determined maximum expenditure should be agreed upon
between RCTC and the displaced person for these:: items of cost
before a payment commitment i's.made:
:Related Moving. Costs Applicable: Only to Residential Moves':
Removal, and Reinstallation Expenses = Appliances
Residential Personal Property-
The reasonable- costs of disconnecting, dismantling, removing,
reassembling and reinstalling relocated household appliances,, and
other .personal property are reimbursable. Cost of altering or
modifying residential items of personal property, y��.t.oadapt to the
replacement dwelling, cannot: normally be a reimbursable incidental
moving cost
'Cost of Transportation, Meals and Temporary Lodgin`g
When . a residential move is involved, except when the fixed -
payment
o option is applied, the costs of transportation of. -individuals
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and families to the replacement Location are eligible for
reimbursement up to a distance of 50 miles. Such costs can be on
a mileage basis, computed as one trip from the property acquired to
the replacement property, or actual costs if commercial
transportation is used. Transportation costs can include special
services such as the cost of an ambulance to transport relocatees
up to a distance of 50 miles.
The actual reasonable costs of meals and lodging can be paid if it
is necessary for the relocatees to "eat out" or spend a night in a
motel or hotel because of the move. Lodging rates and meals must
not exceed the routine rates paid by RCTC to its employees when
they travel on RCTC business. Receipts will be required to prove
that such expenditures were made and the actual costs involved.
Temporary lodging provisions are not to be used to house
relocatees while other quarters are being acquired or constructed,
as comparable replacement housing must be available for
occupancy prior to the time the relocatee is required to move.
3. Nonrefundable Mobile Home Park Entrance Fee
Nonrefundable mobile home park entrance fees at the replacement
site are reimbursable as incidental moving costs. Reimbursement
for , such. fees _cannot exceed the entrance- fee, charged by the
selected' Comparable replacement mobile home park on which the
relocatee's relocation housing payment was based.
c. Moving Related Costs Applicable Only to Business, Farm and Nonprofit
Organization Moves
Removal and Reinstallation Expenses — Machinery, Equipment and
Other Personal Property
The reasonable costs of disconnecting, dismantling, removing,
reassembling and reinstalling machinery, equipment and other
personal property can normally be included in moving cost
payments that are based on actual moving expenses.
The reasonable costs of making modifications to the personal
property as necessary to adapt it to the replacement structure,
replacement site, or to the utilities at the replacement site, are
reimbursable incidental moving costs. The cost of modifications to
adapt the utilities at the replacement site to serve the personal
property are also reimbursable.
Search for Replacement Site
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The owner of, a displaced business, farm operation or nonprofit
organization can be reimbursed for the actual reasonable ; and
;documented expenses incurred in searching for a suitable
replacement property, not to exceed $2,500.
Applicable expenses include:
transportation — based on actual fees chargedr for
commercial transportation or allowable ROTC. employee
mileage rate when a private vehicle is used,
meals away from home not to exceed the rate paid to
RCTC employees when they travel on RCTC 'business, .
lodging away from home not to exceed standard rates
charged by motels and hotels in the area,
the value of time actually spent in the search, based on the
applicable and reasonable salary or earnings. of the
person(s) conducting the search,
e. "fees paid to a real estate agent, broker or other consultant to
locate a replacement property, exclusive of any fees or
commissions related to the purchase of the site,
Time - spent in obtaining permits -and attending zoninc
hearings; and
Time spent negotiating the purchase, of a replacement site
based on a reasonable salary or earnings.
All expenses claimed (except -the value -of time :spent; in the search)
must be supported by receipts or bills. Time spent will be
documented with an invoice that reasonably explains the :time
actually spent in the search.
Otherwise, eligible searchcosts .;incurred prior to the initiation of
negotiations are reimbursable if (1) they were _incurred due to
,reasonable anticipation of the property being acquired by 'RCTC,
and (2) the relocatee becomes eligible for a moving .cost. payment..
Costs of Attempting to Sell Personal Property
The reasonable cost incurred -in attempting to sell an item -of
personal ,property that is not to be :relocated is reimbursable.
Purchase of Substitute Personal Property (49 CFR)
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If the item of personal property, which is used as part of a business,
nonprofit organization or farm operation, is not moved but is
promptly replaced with a substitute item that performs comparable
function at the replacement site, the relocatee is entitled to payment
of the lesser of:
a. the cost of the substitute item, including installation costs at
the replacement site, minus any proceeds from the sale or
trade-in of the replaced item, or
b. the estimated cost of moving and reinstalling the replaced item,
based on the lowest acceptable bid or estimate for relocating
the item including incidental costs, but excluding any allowance
for storage and any allowance for modifying the equipment, the
utilities or the replacement structure. {One bid or estimate: is.
acceptable in determining the estimated cost of relocating an
item when a low cost and/or uncomplicated move is involved}.
This procedure should be recommended to relocatees when it will
cost more to move an item than to replace it in kind or with a
suitable substitute at the replacement site. If relocatee insists .on
moving the item, request procedural advice from the ROW Program
Manager.
If a situation is encountered where the cost of moving an item that
cannot be replaced or suitably substituted is. substantially .,, more.
than its value, provide all facts to the ROW Program Manager and
request procedural instructions prior to making a commitment to the
relocatee. Facts submitted must clarify the importance and/or
necessity of the item in carrying out the relocatee's business, farm
or nonprofit operation.
Payment of monthly yellow page advertisement costs, after
vacation of the project site, when the cost could not be avoided and
the business can demonstrate that it gains no benefit from the
continuing ad. At no time will yellow page advertisement costs be
reimbursed if the contract for the ad was initially committed to after
the Offer to Acquire the real property that the business occupies.
In instances when the yellow page advertisement predominantly
markets a phone number and the number does not have to be
changed as a result of the move, there will be no payment under
this subsection.
In instances when a phone number has to be changed and the
advertisement predominantly markets the phone number, the cost
under this ;subsection may be limited to reimbursement of call
forwarding for 1 year from the date of displacement.
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6. Connection to available nearby utilities from the right of way to
improvements at the replacement site.
Professional services performed prior to the purchase or Tease of a
replacement site to determine its suitability for the displaced
person's business operation including, but not limited to, .. soil
testing, feasibility and marketing studies (excluding any fees or
commission directly related to the purchase or lease of such site)..
All expenses must be pre -approved by the ROW manager prior to
the costs > being incurred by the business.
Impact fees or one-time assessments for anticipated heavy utility
usage, as determined to be necessary by the ROW Manager.
7-7.4 Tangible Property 'Losses (49 CFR 24.301 (g) (14))
The owners of displaced 'businesses, farm operations :or nonprofit organizations
(either partial or complete displacement), who are eligible for a moving cost
payment, can elect not to move some, or all, ' of their personal property and be
reimbursedfor the monetary loss they will experience by not moving such :item
provided:
that such loss does not exceed the estimated cost of moving the
items(s) involved, and
the relocatee made a bona fide effort to sell the :items involved
unless. the district determines: that _such -effort is not;. necessary
(items "traded in" on replacements will be considered :as having
been sold).
Relocatees should not be excused from the requirement in letter b, above,
unless it is rather obvious that the item(s) involved have no resale value.
When the Relocation Agent determines that- an effort 'to sell is not
necessary, the Case File must be documented to justify the decision.
The fact that relocatees claim tangible property losses :for some of the
items involved .has no effect on their moving cost claim :covering other
items that were relocated. The. Relocation Agent must be very sure,
howeVer, that the cost of moving items included as a ;tangible Foss are not
included in a moving cost claim. Items for which tangible property losses
are paid must not be included in moving cost inventories, bids and
estimates or moving cost agreements.
The tangible property loss payment will be the lesser of:
1:
the: depreciated in -place value of the !item, less the proceeds from
its, sale, or
the estimated cost of moving the item -including disassembling and
reassembling, .but with no allowance for storage or any allowance.
for modifying the equipment, the utilities .or the replacement
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structure.
The term "depreciated in -place value" is synonymous with "fair market
value of the item for continued use at the displacement site." The
Relocation Coordinator can approve any reasonable method of
determining the depreciated in -place value including, but not limited to, an
independent appraisalprocured by RCTC.
When payment for property loss is claimed for goods 'held for sale, the in-
place value will be based on the cost of the goods to the relocatee, not in
its potential selling price.
The following procedure is applicable when eligible displacees desire to claim
tangible property losses:
Step One: Ask the relocates to prepare a statement showing the depreciated
in -place value of each item involved. The statement must explain and support the
assigned in -place values. If the Relocation Agent disagrees with the depreciated
values shown in the statement, he should obtain his own value estimates for use
in determining the property loss payment.
In addition, the statement must show the proceeds from the °sale of each item
and the resulting net property loss assigned to each item. The proceeds from
the sale or, if applicable, the trade-in value allowance in the purchase > of a
substitute item, must be documented. _ _
Step Two: Prepare or obtain an estimate of the cost of moving the items
involved to the replacement site, normally not to exceed 50 miles .distance. If the
operation is discontinued, the moving cost estimate will be based on a moving
distance of 50 miles.
Step Three: Determine which is lesser, the net losses determined in Step One
or moving cost estimate obtained in Step Two. The relocates will be entitled to
the lesser amount as a tangible property loss payment.
The relocatees' reasonable costs in selling the items involved are compensable
as a related moving cost. Therefore, such costs are not considered in
determining property loss payment.
A space will be provided on the moving cost claim form for claiming tangible
property losses.
7-7.5 Salvage yards
Before paying for moving a salvage yard, the Relocation Agent must determine
that it is a legal operation. 1f it is not a legal operation, the owner will not be
eligible for a moving payment. To determine the legal status of each salvage
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yard encountered, the Relocation Agent should seek legal advice in providing
answers to the following questions:
Is the salvage yard owner also the owner of the real estate on which it is
located? if so, when did he purchase the real property? If rented, when
did he :occupy it?
Was the salvage yard established before or after the real property was
purchased or, rented?
c.,. The distance of the salvage yard from the nearest major thoroughfare, or
freeway and the type of thoroughfare.
d Is it visible from the freeway?
e. _ Is the salvage yard properly licensed?
f. Is it located within a city limit? If so, which city?
It .is also necessary, before <a moving cost payment can be made for relocating a
salvage yard, that it be :relocated on a legal site and in;a legal manner..
The RCTC will pay for business moving cost claim, in the same manner as; any
otherbusiness, if a salvage yard (1) was in legal operation prior to acquisition, (2)
is reestablished as a legal operation after the move, and (3) the owner is
otherwise eligible.
Eligible salvage yard owners can also be reimbursed for the cost of moving the
personal property, including scrap, to a disposal site or recycling center where
scrap . is sold and physically destroyed. Under no circumstances,. however,; can,
the owner become eligible for a moving cost payment if the personal property is
sold and/or delivered to any person, company or firm who will retain or resell it as
scrap..
Even though a salvage yard is illegal, and as a consequence moving ', cost
payment-. cannot be made, .the owner can still be paid :for moving -tools and
equipment (other than junked car bodies) such as welding apparatus, hoists air
compressors, lathes, etc. Under this ,condition he :can also be. paid for moving
automotive and or machinery parts which have been removed from disabled
vehicles or equipment and -placed in stock for sale. The :portion for which RCTC
will not pay noving costs, when the operation is illegal, relates 'to junked car,
bodies and parts.
7-7.6 Reestablishment Expense (49CFR)
In addition to the moving payments previously discussed, a small business, as
defined in Subsection 8-1.6.1., farm or nonprofit organization may be eligible to
receive reestablishment payment not to exceed ;$10,000. This ;;payment is for
expenses actually: incurredin relocation and reestablishment at 'a replacement
site and does not apply to part-time businesses"' in the home, which do not
contribute materially to the household income as defined in Subsection 8-1.6.o.
Eligible Expenses
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Reestablishment expenses must be reasonable and necessary, as
determined by the RCTC. They may include, but are not limited to the
following:
1. Repairs or improvements to the replacement real property as required
by federal, state or local law, code or ordinance.
2. Modifications to the replacement property to accommodate the
operation or make. the replacement structures suitable for conducting
the operation.
3." Construction and installation costs for exterior signing to advertise the
operation. If the relocatee were paid for a sign at the displacement
site, their eligibility will be limited to the difference between what they
were paid for the sign and the amount necessary to replace it with a
comparable sign. Salvage value should be included as part of the
replacement cost.
4. Redecoration or replacement of soiled or worn surfaces at the
replacement site, such as paint, paneling or carpeting.
5. Advertising the replacement location.
6. Estimated increased costs of operation during the first two years at the
replacement site for such items as:
a. lease or rental charges,
b. personal or real property taxes,
_.c. , insurance premiums, and
d. utility charges, excluding impact fees
The Relocation Agent must verify that replacement sites were not
available which would allow the operation to relocate without
increased operating costs. The Case File must contain
documentation of this verification.
7. Other items that the RCTC considers essential to the reestablishment
of the operation.
In no event can the total reestablishment cost exceed $10,000.
b. Ineligible Expenses
The following is a non-exclusive listing of reestablishment expenses not
considered to be reasonable, necessary or otherwise eligible:
1. Purchase of capital assets, such as office furniture, filing cabinets,
machinery or trade fixtures.
2. Purchase of manufacturing materials, production supplies, product
inventory, or other items used in the normal course of operation.
3. Interior or exterior refurbishment at the replacement site which are for
aesthetic purposes, except as allowed in paragraph a,5, above.
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4. Interest on money borrowed to make the move or purchase the
replacement property. -
5. Payment to a part-time business in the home which does: not contribute
materially to the household income.
7-7.7 Ineligible Moving Expenses
The following expenses are not eligible for reimbursement and/or payment under
the Relocation' Assistance Program and must .not be included in moving :cost
claims:
The cost, of moving _structures, improvements or other real
which, the displaced person reserved ownership.
Interest on a loan to cover moving expenses.
Loss of profits
'Loss of trained employees
Any additional operating expenses of a business, farm' or: nonprofit
organization incurred ;because of operating in a new location;. `except as
provided for in Subsection 8-7.6.a.7.
Personal injury.
The cost of preparing the application for moving and related expenses,'.
Any legal fee for representing the relocatee in relocation matters, including
appeals.
Expenses for searching for a replacement dwelling..
Physical changes to the real property at the replacement location `,o
business, farm, nonprofit organization, except as provided for
Subsections 8-7.3.c.1 and 8-7.6a.1,2,3,4 and 5.
Cost forstorage of personal property on real property owned or Teased py
the displaced person except as provided for in Subsection 8-7.3.a 1:' ;
OSHA,with federal, state or local, requirements'
'excepcomply t as -provided fo under Subsection 8 7:6:a.1:
P _
m. Refundable security and utility deposits.
7-7.8 Residential' Moving Cost Payments
Definition of Residential :Moving Costs
Residential moving cost payments as discussed in this .Subsection relate
to all personal property generally classified as household goods, furniture,
appliances and any- other items used in the establishment and
maintenance of a- home and is not used in the operation of a: business,
farm or nonprofit organization. It is important that the Relocation Agent
confirm that; certain items of personal property, such as satellite dishes,
above ground swimming pools, and outdoor spas, were .not acquired- with
the 'real property. Personal property that was acquired' with .the .real
property is not eligible,for reimbursement as a move cost payment.
Residential Moving Cost Payments General
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Relocated individuals or families can be paid the actual, reasonable cost
of a residential move accomplished either by a commercial mover of their
choice or by themselves as a "self -move", or they can elect to received a
predetermined amount based on the RCTC's "Fixed -Payment Moving
Cost Schedule. Each of these three options will be discussed to the
following paragraphs.
In order to obtain a moving cost payment, a displaced owner must file a
written claim, on a claim form to be provided by RCTC, within eighteen
(18) months after the later of the following dates:
1. the. date of displacement, which is the date that the move was
completed; or
2. the date of final payment for the displacement dwelling, including
condemnation awards, stipulated legal settlements and jury awards.
Tenants must submit their claims within 18 months after the above -defined
date of displacement.
Moving cost payments cannot be made to relocatees until after the move
has actually been conducted unless due to severe hardship when an
advance payment was authorized. Advance moving cost payments will
not be paid for more than 50% of the estimated cost of .moving. However,
the Relocation. Agent may process a. move cost payment in excess of 40%
of the estimated move cost and deliver it to the family on the date they
vacate the property from the project site and relinquish claim for any
personal property left at the project site.
It is the RCTC's responsibility to ascertain that amounts claimed as
_moving . costs are reasonable and that_; receipts, statements: and other
documentation are both applicable and adequate. Required
documentation must be retained in the individual Case File
c. Fixed -Payment Moving Cost Schedule
Individuals and families who are displaced from their dwelling, or from a
seasonal residence, can elect to receive a moving cost payment based on
the Federal Highway Administration's (FHWA) periodically published
"UNIFORM RELOCATION ASSISTANCE AND REAL PROPERTY
ACQUISITION POLICIES ACT -RESIDENTIAL MOVING EXPENSES AND
DISLOCATION ALLOWANCE PAYMENT SCHEDULE."
"Fixed -Payment Moving Cost Schedule." When a partial residential move
is involved and the relocatee (occupant or non -occupant) elects to conduct
a self -move based on the fixed -payment schedule, a flat rate of $175.00
per room or equivalent will be used not to exceed $1,750.00.
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The fixed -payment schedule is intended to be sufficient to cover a
relocatee's entire .moving expenses and when a moving cost payment is
based _on this option, no other incidental moving cost payments will be
made.
Schedule A (Occupant Provides Furniture) The following schedules are
current as of. December 31, 2004. Anyone using the schedule: method must
check with FHWA to insure that the schedule is current. FHWA's website for the
schedule :is: http://vvvvw.fhwa.dot.gov//////realestate/fixsch96.htm
Number of :Rooms
7.
8
Each Additional Room
Payments
Schedule 13(Furniture Provided By Landlord)
1
Each Additional Room
Exceptions:
* Person moved by RCTC
* Occupant of dormitory
$ 575.
$ 750.
$ 925.
$ 1100.
$ 1325.
$ 1550.
$: 1775
$ 2000.
$ . 200,
Schedule A: This schedule covers situations in which a relocatee:,occ.upies. and
provides the furnishings for a dwelling unit. The following interpretations of the
schedule are applicable.
That an attic, - basement, enclosed . porch, separate shed orother
similar -type storage areas can qualify .as a compe,nsableroom,
provided that such area contains furniture, appliances and/or, other
Personal property Y reasonably equivalent to a routine furnished room.:
(Bathrooms, hallways and closets do- not qualify and must :not :be
counted as separate rooms). If the amount of personal` ,propertyin'a
room or space actually contains more than: the normal` contents; the
room count can be. increased accordingly.
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2. That owner -occupants of mobile homes which are classified as real
property shall be paid under this schedule for moving their furnishings
in the same manner as owner -occupants of conventional dwellings,
based on the number of rooms in the subject mobile home.
If an owner retains salvage rights to a mobile home and moves it to a
new location, he/she would be entitled to a moving cost payment under
the fixed -payment schedule for moving his/her furnishings even though
the furnishings were not removed from the unit at the time it was
relocated. If the furnishings were necessarily removed from the unit
and moved separately, the relocatee could elect to receive payment
based on the fixed schedule. Under no circumstances could the owner
be paid for moving a mobile home which was acquired by the RCTC as
part of the real property.
3 If mobile home tenants own the furnishings within the unit, they shall
be paid under this schedule as any other tenants of conventional units
who provide their own furnishings. Be very sure that each room in the
mobile home contains enough detached (movable) furnishings to make
it qualify as a compensable furnished room under the schedule. If
some rooms are considered to be ineligible to qualify as a furnished
room due to being sparsely furnished, it is proper to combine two or
more of such rooms to qualify as one compensable furnished room.
4. _ The number of "eligible rooms" on which the :fixed -payment amount is
based will be established by the Relocation Agent who is assigned to
the unit at the initiation of ,negotiations and must be compatible with the
number of rooms reflected in the Relocation Agent's report. If the
number of rooms shown in the relocation Agent's report or the letter of
eligibility for relocation benefits differs from the number of rooms
_shown _in,:the__;Relocatee.:Ne,eds.Questionnaire, the;"difference" must be.
explained on the Relocation Agent's Report.
If an eligible relocatee who selects the fixed -payment moving cost
option is also conducting a business operation in the home, which
does not qualify for fixed -payment non-residential moving payment, it
shall be considered to include the cost of moving all personal property
located therein, both residential and business, and no other moving
cost payment relating to the expenses of relocating such items will be
authorized. Should a non-residential moving payment be involved, or a
separate business move, .it is the Relocation Agent's responsibility to
insure that the personal property related to the business is not
considered when determining the number of eligible rooms that are to
be included in the schedule payment.
If a business operation,, as discussed in the preceding paragraph, is
being conducted on the residential property ("residential property"
relates to the land on which the dwelling is located and normal in size
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for a residential building lot in the area), but is in a separate building
than the residence, the relocatee shall be permitted to select the fixed -
payment option for the residential move and a separate business move
(actual cost) covering the personal property ,used in relation to the.
business. It is the Relocation Agent's responsibility to insure that there
is no duplication of payment.
Personal property that is merely stored in sheds located on the
residential property (no business operation involved) shall be 'included
in the fixed moving cost payments, if such option is selected by, the
owner, regardless of the type of items involved and no separate
moving costpayment shall be authorized.
When an acquisition includes an occupied residence : located on a -
parcel larger in size: than a normal building lot in the area, including
those located on farms, the qualified owner shall be permitted to Select
the fixed -payment option for the residentialmove and also claim the
actual cost of moving any items of personal property located_ on such
"extra land."
Schedule B This schedule applies to occupants when the furnishings .in a
dwelling unit are owned by someone other than its occupant, normally by the
landlord in "furnished units." "Sleeping rooms" normally fall within this category.
-The .occupants, of mobile homes who do not own the _ unitor furnishings: shall
be paid by use of this schedule as any other occupant of a` conventional'
-furnished dwelling unit based on the number of rooms in the mobile home. .The
owner of the furnishings cannot be paid a fixed -schedule payment, . but could
normally qualify for a moving payment based on actual costs.
- Mobile .home owners -and : tenants who occupy, and leave their furnishings :,in a
mobile home: during the time it is being. moved, and continue to occupy it after it
is relocated, are not entitled to a fixed -payment:. However, if they have, furniture :in
the mobile home and it is' -moved separately they may elect' to receive 'a
"scheduled move payment." (The owner will be paid for moving the mobile home
on an actual cost basis.)
Residential Move by Commercial Mover - General .
Moves in this category include all situations where eligible relocate:es
employ and pay someone '(normally a: moving company or trucking flap) to
move their :personal: property from the unit ;acquired by the RCTC .to a
replacement unit and claim reimbursement for their actual and reasonable
expenses. Applicable related moving expenses paid by relocatees, as
previously discussed in paragraph 8-7.3, are available for reimbursement .
under this moving payment option. Partial; displacements are discussed
under a separate Subsection later in this chapter.
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Step One: The Relocation Agent must obtain at least two (2) lump sum
moving cost bids (in duplicate) from licensed commercial movers who are
qualified to conduct the relocatee's move. Each bid must reflect the total
amount that will be charged for conducting the move.
The relocatee must be given a reasonable opportunity to help select the
two moving firms who will be asked to bid on his/her move. This can be
accomplished by assembling a list of all certified moving companies in the
area which are acceptable to .the RCTC.
The reasonable preference of the relocatee should be honored; however,
the Relocation Agent is not permitted to accept unreasonable requests
which would not reflect good business practices, or which involve moving
firms not acceptable to the RCTC. If it is not reasonably possible to agree
with the relocatee; the Relocation Agent has authority to carefully select
qualified movers and to proceed without the relocatee's concurrence. The
Relocation Agent shall advise the Relocation Coordinator, in -writing, at
any time it is necessary to proceed without the relocatee's concurrence.
Copies of all bids must be retained in the Relocation Case File.
Arrangements for making the move are the responsibility of the relocatee. .
RCTC will not contact or employ the mover on behalf of the relocatee and
will not supervise the move except under usual circumstances and only
after approval is granted by the ROW Program Manager. Approval will not
be granted unless the relocates is physically or mentally incapable of such
actions and when they do not have anyone else willing and able to it for
them.
Step Two: Submit copies of the bids to the relocatee together with one
copy of a Moving. Cost Agreement. A .Moving .Cost Agreement provides_ a ,
firm record of the pre -move agreement between the relocatee and RCTC.
It is the Relocation Agent's responsibility, working with the relocatee, to
make sure the: Move Cost Agreement is unambiguous and clearly states
that any contract for the move is between the relocatee and their selected
contractor. Every Move Cost Agreement will be different depending on
the circumstances but all should include the following:
i. The name of the relocatee
ii. The name of the relocatee's moving contractor
iii. The address from which the personal property will be
moved.
iv. The address to which the personal property will be moved..
v. A listing of the personal property that will be moved.
vi. The date the move commenced and the date it is expected
to be completed. -
vii. Any unique !move situations, such as removal of a TV
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antenna from a roof.
RCTC will be responsible to pay the lesser of either the actual and.
reasonable cost of conducting the move or an amount equal to the lowest,
most reasonable of the bids. RCTC will additionally be responsible to pay
the actual cost of .eligible (and reasonable) incidental costs as previously
discussed.
Step Three: The Moving Cost Agreement should be ,reviewed and, ., if
found proper, completed and signed by the Relocation Coordinator. The
Relocation Agent will return one copy to the relocatee and retain the
original for the Case File.
Step Four: After the approved Moving Cost Agreement is `returned to the
relocatee, the relocatee should cause the move to be completed, pay all
'`moving and relatedmoving costs and obtain paid receipts for each
separate expenditure. The relocatee may request that a payment be
made directly to a moving company at the completion of a move.
Step Five: After the move is completed and all applicable costs paid, the
relocatee should file a claim for reimbursement. The claim must be filed
Within the 18-month period.
Mobile Homes
The owners of mobile homes which have been classified as
personal property can claim the actual and reasonable cost;, of
9 y i .
moving the to an -location within 'S0 mrles distance. The
owners of displaced homes must follow the same five steps
outlined above, to obtain reimbursernent for the move. Moving; cost
bids should be from qualified bidders who are equipped and
capable of moving mobile homes. The RCTC will, reimburse the
relocatee for incidental expenses related to the move, including
disconnection and hookup of utilities and appliances. The, cost Hof
extending water, sewer, electric or other utility lines to and on the
replacement site is not eligible for reimbursement as an incidental
moving cost (This is considered a :capital improvement to the site).
Residential Self -Move
For unusual situations where the Relocation' Agent determines that a
fixed -payment or actual cost move is not ;the most reasonable and cost
effective way to move all or a portion of an occupant's 'personal property, a
residential occupant may conduct a self -move. This will include 'both
occupant- and non -occupant owners of mobile homes which have been
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designated as personal property. Payment will be based on the Actual
and Reasonable Costs incurred. A Moving. Cost Agreement; must be
executed between the RCTC and the owner. Current Federal Regulations
do not permit a resident to make a non -documented self -move except by
using the "Schedule" method.
f. Combined Residential and Business or Farm Moves
If the acquisition from the same property necessitates the relocation of.
both residential personal property, personal property used in relation to a
business or farm operation, and the relocatee selects the "actual cost"
payment option (either by commercial mover or self -move), the Relocation
Agent has authority to authorize the relocatee to include all items involved
in one mover or to require the residential and business or farm move to be
separated.
The decision as to whether one overall move, or two separate moves will
be authorized should be based on the amount and type of personal
property involved and its compatibility in relation to 'being moved by the
same mover and with the same moving equipment.
Should the relocatee opt for the fixed moving payment, the :Relocation
Agent must be sure that the cost of moving personal property related to
the business or farm operation is not included in the RCTC's moving cost
payment:
7-7.9 Business, Farm and Nonprofit Organization Moving Cost Payments
a. General
Owners of displaced businesses, farm operations and nonprofit
:organizations can either employ commercial movers to relocate their
personal property, conduct self -move, orhave a combined commercial
and self -move.
Moves that involve large moving cost payments must be monitored, at
both the displacement and replacement sites, by the Relocation Agent, to
the extent necessary to assure that the personal property involved was
actually moved (at the relocatee's expense) to their remaining or
replacement property and that the moving cost claim is reasonable and
accurate. Relocatees are required to give advance written notice of the
date the move will begin. Failure to provide the written notice, or to permit
the Relocation Agent to monitor both at the displacement and replacement
sites, can cause forfeiture of moving payment eligibility.
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On -premise monitoring may be waived by the ROW Manager in cases of
non -complicated moves. When the requirement is waived, a justification
!must be documented in the Case File.
1. Multi -Family and Single -Family Furnished Rental Units
2.
The owners of furnished multi -family dwellingsor furnished single-
family dwellings, which they do not occupy, can ,be reimbursed for
the cost of moving such furnishings as a routine business move.. In
an effort to minimize administrative burdens in the relocation
process, it is permissible to reimburse the cost of moving the
personal property for these types of businesses using the moving
-schedule. The 'businesses would be additionally eligible for other
related moving costs such as reestablishment payment.
Entire Displacement — Partial Acquisitions
If the majority of a business property or farm operation is _being
acquired as right of way, and/or if :the right of way acquisition is so
severed that the business or farm operation cannot be continued,
the owner can be paid for moving all personal property used in .
connection with the business or farm operation including: items
located outside of the right of way acquisition,. provided that such
'items are moved within a reasonable time after . acquisition,.
normally ;by the end of the relocatee's : authorized possession: of the
acquired area unless an extended time period is agreed upon in:
writing between the RCTC and relocatee. The Case file must be
documented to show why the entire business or farm operation
must be relocated when a partial acquisition is involved.
Two or More .Owners of Personal Property Involved
In instances where several different persons or frms,own personal
property located on business or farm real property' being: acquired
by,the ROTC, each owner is entitled to ;the cost of moving his/her
items of personal property. Each must file a separate`; claim.
Commercial Mover
Moves in 'this category include all situations where the qualified owners of
displaced' businesses, .'farm operation and nonprofit organizations employ
someone to move their personal property from real estate, 'acquired to:.a
replacement site and claim reimbursement for their actual and reasonable.
moving expenses. Applicable related moving expenses: paid by the
relocateeare reimbursable under this rnovin,g.cost payment; option.
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If the relocatee moves more than 50 miles, the payment will be based on
the prorated portion of the moving costs that would have been applicable
to a 50 mile move.
If there is a need for specialized moving equipment and/or expertise, it is
permissible for the owner to employ two or more commercial movers. It is
also permissible for such owners to conduct .a move by employing a
commercial mover to move part of their personal property and move the
balance by self -move.
1 Moving Cost Bids Available
The :following procedure is applicable when eligible owners of
business, farm operations and nonprofit organizations elect this
moving cost payment option and it is practical to obtain prior
moving cost bids from qualified moving firms: •
Step One: Obtain an inventory from the relocatee showing the
items of personal property to be moved. It is permissible for small
items to be grouped into "lots" or to be "lumped" together in some
other type of identifiable unit such as specific number of 'bins,
boxes, barrels, etc. The Relocation Agent must make an on -site
inspection of the items involved and assure that the inventory is
accurate. The Case Files must be documented ;to show the.
inspection. `Inventories should be prepared either (a) at or near the
time of actual move, or (b) at or near the time that the RCTC
acquires the parcel, whichever occurs first.
Inventories must be submitted by the relocatee and a replacement
_site selected prior to commencing .the next step: .
Step Two: The Relocation Agent, working in concert with the
business, must create moving specifications insuring that there is a
meeting of the minds how the personal property will be
disconnected. (as necessary), packed, disconnected, moved,
reconnected and unpacked.
The Relocation Agent must obtain at least two (2) moving cost
estimates from qualified movers based on the inventory.
Relocatees must be given an opportunity to concur in the selection
of moving firms who will prepare the bids. If the lowest bid appears
to be unreasonable, the Relocation Agent must obtain additional
bid(s) to assure that the moving cost agreement will be based on
an acceptable amount. It is expected that bids will be provided
without cost; however, with prior approval of the ROW Program
Manager, movers can be compensated for preparing bids for
specific moves.
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Copies of all bids must be retained in the Case File.
Step Three: Submit copies of the bids to the relocatee togetherwwith
a copy of a Moving Cost Agreement prepared by the Relocation
Agent. (See Section 8-7.8 d. for minimum standards of a Move
Cost Agreement.) Advise the relocatee to complete ;his/her portion
of the agreement (reflecting the low bid) and return both copies to
the RCTC.
Step Four:; The :Moving Cost Agreement, when received by, the
RCTC from the relocatee, should be carefully reviewed, and' if
found proper, completed and signed by the ROW Program
Manager. A copy is to be returned to the relocatee and the original.
retained in the, Case File.
Step Five: After the approved Moving Cost Agreement is returned
to the relocatee, he/she should provide a 5-day written moving date
notice (unless waived by RCTC) and cause the - move to be .
completed.
Step Six: After the move is completed, 'the relocatee must
provide the RCTC an inventory of the items of persona_ l property
that were actually moved to his/her remaining or replacement.
property.:: The post -move inventory. must contain a 'statement; that
all of the 'items listed therein were actually moved from the project
location.
Step Seven: The Relocation Agent must conduct an .on, site
review of the post -move inventory to attest that is it reasonably
accurate rand that does not containany items of :real propert0hat
were retained and moved by the relocatee.
If the post -move inventory is substantially the same as; the :pre -
move inventory, the Relocatee can be .paid the actual moving costs
pursuant to the Moving Cost ,Agreement. Eligible .documented
incidental expensesmay likewise be paid.
Step :Eight: The relocatee must f1e his/her claim for reimbursement
within the 18-month period.
2; Moving Cost Bids -Are Not Available
If it is not practical to obtain advance moving cost bids' due to the .
complexity of a move, the relocatee can be authorized by the ROW
Program . Manager to conduct the move without them. When the
requirement for obtaining bids is waived due to the complexity of
the move, the Case File must be documented and _ state:. the
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justification therefor. In such unique cases, a Move Cost
Agreement must be prepared by the Relocation Agent and agreed
to by the relocatee. The same requirements for a . Move Cost
Agreement apply with the obvious exception to an agreed cost of
the move. If a business refuses to agree to sign a reasonable
Move Cost Agreement, RCTC will not reimburse it for any costs
associated with the move.
c. Self -Moves
Qualified owners of any displaced businesses, farms or nonprofit
organizations have the option of conducting a self -move. Under this
option, the relocatees will move their personal property and will not
employ .a commercial mover to conduct the move.
1. Moving Cost Estimates are Available
The following procedure is applicable if estimates can be obtained
for the amount that would have been charged by acommercial
mover for conducting the move.
Step One: Relocatee must prepare an inventory of the items of
personal property that must be moved as a result of the right of way
acquisition.
Step Two: - Relocatee must advise the Relocation Agent, in writing,
of his/her intent to conduct a self -move and request that the .
Relocation Agent obtain moving cost estimates based on the
inventory.
_ Step Three: Relocation - Agent must make; ,an on -site inspection of
the items to be moved. Assure that none of the items listed in the
inventory is included in the real estate appraisal as real property.
Relocation Agent, working with the business, will create
specifications for the move of the personal property.
Step Four: The Relocation Agent must obtain at least two (2)
moving cost estimates from commercial movers who are qualified
to conduct the move, if the moving cost is expected to exceed
$2,500. If the cost of the move is expected to be $2,500 or less,
one estimate covering the cost of the move can be obtained.
Bids should not be obtained before the relocatee has selected a
replacement site so that actual mileage can be used. (50-mile rule
applies).
Copies of all bids must be retained in the Case File.
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Step Five: The Relocation Agent will prepare a Moving Cost
Agreement in compliance with previous sections of this manual.
The :relocatee must sign the agreement and forward a signed
agreement to RCTC. The ROW Manager must review, approve
and sign the agreement, which should be reviewed, completed and
signed by the ROW Program Manager.
Step Six: The ROW Manager will return a fully executed copy of
the Moving Cost Agreement to the relocatee and the Relocation
Agent. The relocatee should provide the 5-day written moving date
notice and complete the move.
Step- Seven: After the move is completed, the relocatee must .
present an inventory of the personal property actually moved.. The
post -move inventory must contain a statement that all of the items
listed therein were actually moved from the project site:.
Step Eight: The Relocation Agentmust conduct an ; on -site review
.of the post -move inventory to assure that it is reasonably accurate
and that it does not contain any items of real property that were.
retained and moved by the relocatee:
If the post -move inventory is substantially the same as the ° pre
move inventory, the relocatee may be paid the amount' of the low
moving cost bid, as reflected in the Moving Cost Agreement,;°
without presenting additional documentation: They can also be
paid eligible documented incidental expenses.
Step Nine: °Reiocatees must file their claim for reimbursement .
within the 18=month period.
2. Moving Cost Bids Not. Available
If due .to the complexity of the move, it is not practical to obtain
moving cost bids or estimates, the relocatee can be : authorized by
the ROV1f Program Manager to conduct the move without bids.' The
relocatee must, bereimbursed for his/her actual, reasonable' and
documented moving cost expenditure, not to exceed the cost of a.
50-mile move. The minimum requirements of a Moving Cost
Agreement . are applicable and because of the inability to _secure
estimates. for the 'business' self -move the Move Cost Agreement
must additionally include:
An estimate of the time the owner and employees of the, firm
anticipate they will need to conduct the move and an agreed upon
hourlyrate for the owners and his/her employees. Hourly costs of _
equipment supplied by the business during the :.move will be:
included . in the Move Agreement. Equipment charges for
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equipment rented for the movemust be supported by receipts.
Reimbursement of rental equipment will be limited to the actual out
of pocket expense.
7-7.10 Partial Displacements — Residential, Business, Farm and Nonprofit Organizations
a. Partial Displacement Moving Cost Payments — General
Moving Costs discussed in this subsection relate to situations when the
occupant of a subject parcel is not displaced, but items of personal property
Located within a partial acquisition must be moved. instructions herein also
relate to situations when unoccupied parcels are acquired which contain
miscellaneous items of personal property which must be moved.
Owners of such personal property can be - reimbursed for their actual
reasonable expenses of moving which such items, based either on the cost of
a commercial mover or of a self -move.
b. Partial Displacement Moving Cost Payments — Commercial Mover
If personal property classified as "residential" is involved in a partial
displacement and the owner employs a commercial mover to move the items,
the procedure in subsection 8-7.8.d. is applicable.
If the personal property belongs to, or is used in connection with, a business,
farm or nonprofit organization, the procedure in subsection. 8-7.9 b is
applicable: -.
c. Partial Displacement Moving Cost Payments — Self -Move
When personal property classified as residential is involved in a partial
displacement and the owner, occupant or non -occupant,, elects the self -move
option, the procedure outlined in subsection 8-7.8.e. is applicable or the
owner may elect to be paid on the basis of the fixed -payment moving cost
schedule for residential personal property with the following conditions:
1. Relocation Agent must determine the number of normal furnished rooms
or fractions of room the personal property to be moved represents.
7-7.11_ Moving Cost Agreement.
The following agreements shall be prepared:
a. Moving Cost Agreement — Actual Cost Option Move Conducted by
Commercial Mover — Residential - Bids Available
b. Moving Cost Agreement — Actual Cost Option — Move Conducted by
Commercial Mover — Business, Farm and Nonprofit Organization — Bids
Available
82.
17.4
c. Moving Cost Agreement — Actual. Cost Option - Self -Move — Business,
Farm, Nonprofit: Organizations — Moving Cost Estimates are Available
d Moving Cost Agreement — Actual Cost Option — Commercial or Self -Move
Business, Farm and 'Nonprofit Organization' moving Cost Bids and/or .
Estimates Are Not Available
7-7.12 Claim Forms - Actual Cost Moving Cost Payments
The following forms shall be prepared:
a :.Claim Form - Actual Cost — Commercial Mover — Residential, Business,
Farm 'andNonprofit Organizations
,Claim Computations When Some Items of Substitute Personal Property
Involved
Claim : Computations When Entire Claim Based on Cost of Substitute
Items
Claim Form - 'Actual Cost — Self Move
Claim 'Computations When Substitute Personal Property Involved
:Moving Cost Claim— Combined Moves Including Both Commercial_ Moves
and Self -Moves
Section 7-8
CHAPTER VII
RELOCATION ASSISTANCE
Fixed .Payment Moving Payments --
Businesses, Farm. Operations
And Nonprofit Organizations
7-.8.1 Fixed Payments Businesses
Payment :Eligibility Requirements
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The owner of any business which qualifies for a moving cost payment may
elect to claim a fixed payment for moving instead of a moving cost
payment based on actual cost plus related .expenses, provided that the
additional eligibility requirements outlined in the following four
subparagraphs are satisfied.
The terms "fixed payment", "in -lieu payment", "displaced business",
"displaced farm operation", "and displaced nonprofit organization
payment", and "fixed payment for moving expenses, non-residential
moves" are synonymous.
1. Business Must Contribute Materially To Its Owner's Income
Only displaced lawful businesses which contribute materially to the
owner's income can qualify for a fixed moving payment.
The term "lawful business" relates to any business not prohibited by
law. Businesses operating in violation of zoning ordinances and/or
laws, except those legally operating under a "grandfather clause",
will be considered unlawful. It is possible for a lawful business to
be operating illegally due to improper licensing. Lawful businesses
operating with license deficiencies will, if otherwise qualified, be
eligible for fixed moving payments.
Relocatees who claim fixed payments must provide copies of their, ,
federal income tax returns for -the two applicable -tax years Ito prove
(a) that the business operation meets the "material contribution"
test, and (b) for use in computing the amount of their fixed
payment. Only the portion of the tax returns necessary to prove
material contribution and average annual net earnings is required.
Income information provided by the relocatees may be verified with.
the IRS if for any reason the amount of net income appears
questionable. .
2. Requirement Concerning Inability to Relocate Businesses Without
Substantial Loss of Existing Patronage
To qualify for a fixed payment, it must be determined that the
business cannot be relocated, or in case of a partial acquisition,
that it neither continues to operate on the remaining property or be
relocated, without substantial loss of its existing patronage.
"Patronage" as used in the term "substantial loss of existing
patronage" relates to either "clientele" or "net earnings". When
nonprofit organizations are involved, it relates to membership or
clientele.
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When making a determination concerning the ability to satisfactorily
relocate the business, a business is presumed to suffer a.
substantial Loss of its existing patronage unless the RCTC proves
otherwise. Business owners are given the benefit of the doubt
concerning his/her ability to relocate. The presumption of loss of
existing patronage is required by FHWA relocation regulations:.
Presumption, as required under those regulations, is not a
statement that RCTC assumes there will be a loss of earnings or
patronage for any purpose other than compliance with applicable
provisions of the Payment in Lieu of Moving and Related Expenses.
When the owner of a business that is being displaced takes the
position that the business cannot be relocated (or continue to
'operate on the remainder of the property) without substantial Joss of
its existing patronage, the RCTC must agree, or prove otherwise.
The fact that the owners of a displaced business intend to purchase
or establish a different type of business after displacement has no
effect on their eligibility for a fixed payment.
3. Requirement Eliminating Chain -Store and Multi -Location 'Businesses
(does not apply to farms and nonprofit organizations).;
To qualify for this type payment, the business must not be part of , -a
commercial rise having
9more than three ,.other ;entities which_
-
are not being acquired by the RCTC and which are engaged in the
same or similar business. (A business which does not '``contribute
materially to the owner's income is not considered "another :entity"
and doesnot disqualify the owner from receiving a fixed payment).
To be declared- ineligible for a -fixed ,payment; :both: ahe business
-being displaced and the similar businesses not being: acquired must
have a common ownership. Businesses and corporations are both.
-considered to have common ownership even though they are know.
by different business or corporate names, if their owners,are
substantially the same.
4. Requirement Concerning Time and Location
To qualify under this requirement, the business must be operated _
by, the current'owner on the property: being acquired at the initiation
of negotiations for the subject property or at the time such property
was actually acquired by the RCTC.
5. Businesses Owned by Estates
An estate is eligible for a fixed payment when the business owned
by the estate is displaced.
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6. Business Sells After Initiation of Negotiations.
If the owner of a business scheduled for acquisition sells the
business to another party after negotiations are initiated for the
subject property, or after receipt of a "Notice of Intent to Acquire",
they will not be eligible for fixed payment. The new owner of the
business,if eligible, could qualify for the payment if they continue
the business operation on the subject ,property after it is acquired.
7. Displacement Must be Direct Result of Acquisition
Business owners cannot qualify for a fixed payment unless they are
displaced as a direct result of the acquisition, rehabilitation or
demolition of real property for an RCTC project.
Two or More Business Operations, Same Site and Same Owner
The following are broad guidelines which can assist in making a
determination as to the number of actual businesses in one location:
1. When several business activities are located on the same property and
operated by the same party, which are -closely related. and compliment
each other, they will be considered as one business. This is especially
true if it is necessary to combine the _income from :all of the activities to
produce a reasonable business profit.
2. If the different activities are not related and if they do not compliment
each other, they will normally be considered as separate businesses
and the owner will be entitled to separate fixed payments, provided
that each business qualifies on its own merits.
Other factors to be considered in making a multi -business determination is
the extent to which:
a) the same premises and equipment are shared,
b) substantially identical or interrelated business functions are carried out
and business and financial affairs are commingled,
c) the entities are held out to the public, and to those customarily dealing
with them, as one business,
d) the same . person, or closely related persons own, control or manage
the affairs of the entities.
c. Businesses Affected by Partial Acquisitions
The owners of businesses located on parcels which are partially acquired
are not eligible for a :fixed payment if they do not qualify as being
displaced and are ;physically and legally able to continue their operation on
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their remaining property, or if they are able to relocate the business
without a substantial loss of existing patronage.
Business owners who also own the property on which the business is
located cannot qualify for a fixed payment when the right of way payment
is adequate to pay for rearranging their remaining facilities to .enable 'them
to continue the operation.
Business tenants of properties owned by persons who receive a right of
way settlement adequate to reasonably "cure" the inadequacies caused by
the :acquisition, or who receive a part of the right of way consideration
,themselves, which is adequate to "cure" will not become eligible for this
type of payment.
If the business is operated at the displaced site solely for the purpose of
renting to others, it is not qualified for this type payment. This includes
:building or land rentals.
Salvage Yards
Ownersof legally located and legally operated salvage yards can be paid
fixed payments if their business operation meet all eligibility requirements.
fixedpayments cannot be made to the owners of illegal -salvage yards
Payment Determinations
The owners of a displaced business who qualify for a fixed payment are
entitled to an .amount equal to the average annual net earnings of their
business,: not to 'exceed a maximum >payment of $20;000 or less than
$1,000.
The term "average annual net earnings means one-half of anynet
earnings of the business, before federal, state, or local income taxes have
been deducted, during the two taxable years immediately proceeding the
taxable year the business is displaced.
Interest payments made by a business to the, owners of the :business
cannot be included as a part of the average annual -net earnings of the
business.
Payment Computations
1. Business Operated Two full Taxable Years or More
'Add the net earnings from each of the' two preceding taxable years
and divide the total by two. The result represents the: average
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annual net earnings. This amount will be paid to the owner if it
exceeds $1,000, and does not exceed $20,000.
If a loss occurred in one year and a gain in the other, the year in
which the loss was incurred should be considered as zero income
when determining the average net income for the two year period.
2. Business Operated Less Than Two Full Taxable Years
Compute the fixed payment by projecting its net earnings to an
annual rate.
(a) Business Produced Net Earnings During the Two Taxable
Years Prior to Displacement
Divide the total accumulated net earnings for all 'of the
months the business operated prior to the taxable year of .
displacement by the number of months it operated during the
same period and multiply the result by;12.
(b) Business Produced No Net Income Prior to Taxable year of
Displacement
Compute the payment same way as above, using the total
net earnings and total months of operation during the year of
displacement.
(c) Seasonal businesses
Divide the total accumulated net earnings produced during
the entire .period that the business .;was.. in .existence (on, the
subject site and owned by the relocatee) by the total number
of months the business operated during the season, then
multiply the result by the number of months of annual open
season.
(d) Other Situations Which May Require Special Consideration
in Determining Representative Annual Net Earnings
When unusual circumstances exist which indicate that a
different period of time (other than the two taxable years
prior to displacement) should be used in determining a
business' annual net earnings, seek approval from the ROW
Program Manager to use alternate periods. Conditions
which may justify an alternate period:
O :the relocatee owned the same business while located
at a different location during the two taxable year
period.
(2) The relocatee purchased an existing established
business during the two taxable year period:.,.
(3) The project activities, i.e., the displacement of the
business' tenants, impacted the net earnings of the.
business.
7-8.2 Fixed Payments — Farm Operations (49CFR)
. Payment Eligibility Requirements
For the owner of a . displaced farm operation to be entitled :to a
payment, the RCTC must determine:
1. That the farm operation contributes materially to its. owner's income
2..That the farm operation was owned by the relocatee and •existed on
the -property being acquired at the initiation of negotiations for the
subject property, or at the time such property was actually acquired by
the RCTC.
3. That the farm operator has completely discontinued his/her existing
farm operation at the present location.
In.the :case of a partial acquisition, the farm operation will -be considered to
have been displaced if the property remaining after the acquisition is 'no.
longer an economic unit for the same type of farm operation that; was
being conducted prior to the acquisition. This determination will normally
be made during the appraisal process. If the appraisal is not clear
concerning this point, the appraisers should be requested to provide
addenda expressing and justifying their positions: = if there is .a difference
of opinion, the ROW Program Manager will make the determination and
the Case''File properly documented.
Actual Owner of "Farris Operation Receives Payrnent
If a sharecropper or tenant is actually conducting the farming ;operation
that is being displaced, he/she is entitled to a fixed payment, ,even though
the landowner may share in the profits.
Mineral Production and Quarry Operations
When ` minerals are :being produced on a, farm ;on a commercial basis
and/or when quarrying operations are so conducted, they are to be
considered as separate businesses and not taken into consideration:as a
part of the farm operation.
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d. Farm Operations Owned by Estates
Farm operations owned by Estates are entitled to this type payment.
e. Farm Operations Sold After Initiation of Negotiations
Farm operations sold after initiation of negotiations will not be eligible for
fixed payment. The new owner of the farm operations, if eligible, could
qualify for the payment.
f. Payment Determinations
The owners of a displaced arm operation who qualify for a fixed payment
are entitled to receive an amount equal to the average annual net
earnings of the farm operation not to exceed a maximum payment of
$20,000 orless .than $1,000.
g. Payment Computations
Same as subsection 7-8.1.g.
7-8.3 Claim Forms — Business or Farm Operation Fixed Payment
Claims Forms for Business or Farm Operation Fixed Payment shall be developed
by RCTUs Right of Way. Consultants..
7-8.4 Displaced Nonprofit Organizations
a Payment Eligibility Requirements (49CFR)
A. displaced nonprofit organization may .choose__a ;fixed payment of $1,000
to $20,000 in lieu of the payments for actual moving and related expenses
and actual reasonable reestablishment expenses, if the RCTC determines
that it cannot be :relocated without substantial loss of existing patronage.
A nonprofit organization is presumed to :meet this test unless the RCTC
demonstrates otherwise. Any payment in excess of $1,000 must be
supported by certified financial statements for the two 12-month periods
prior to the acquisition. The amount to be used for payment is the
average of two years annual gross . revenues Tess administrative
expenses. Gross revenues may include membership fees, class fees,
cash donations, tithes, receipts from sales or other forms of funds
collection that enables nonprofit organizations to operate. Administrative
expenses include rent, utilities, salaries, advertising and other like items
as well as fund raising expenses. Operating expenses for carrying out the
purposes of the nonprofit organization are not included in administrative
expenses.
b. Claim Form Nonprofit Organizations Fixed Payment
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A Nonprofit organizations Fixed Payment Claim Form shall be developed
by RCTC's Right of Way Consultants.
7-8.5 Time for: Filing "Fixed Payment Claims"
b. Operation Displaced From Acquisition Site
The eligible owners of a displaced business, farm operation or nonprofit
organization which is displaced from the acquisition site can claim their
fixed .payment anytime after (1) negotiations are initiated for the ;.real
property involved (or Notice of Intent to Acquire), and (2) the operation has
been completely, discontinued on the displacement property, but no later
than the end of the 18-month period.
Business'Operation'Continued on Remainder of Acquisition Site
Business owners eligible for fixed payments who elect to continue
operating on the remainder of the acquisition site. regardless :of :their
substantial loss of patronage can claim their payment anytime after (:1')
negotiations are initiated for the real property involved and (2) the area
included .'within the right of way acquisition is denied to thebusiness
owner, but no later than the end of the 18-month period.
Nonprofit organization Continued on Remainder of Acquisition,Site
It is not likely that nonprofit organizations which continue :to operate on
remainder parcels will qualify for fixed payment; however, should such:
situations occur, the instructions in the preceding subsection b. will :ap;ply.
'Substantially Reduced or 'Different Type Farris Operation Continued ;on
'Remainder -Acquisition -Site
,'Farm operators eligible for fixed payments who elect to continue a
-substantially reduced farm operation, or a different type farm operation, on .
,the remainder .of :the acquisition parcel can claim their 'fixed payrne.nt
anytime after. (1) negotiations are initiated for the real property involved,
and . (2)' the area included within :the right of way acquisition is denied, to
the farm operator, but no later than 18 rnonths.
Owner of Displaced Operation is "Subsequent Occupant
Applicable instructions in, preceding subsections a. through b. apply when
;subsequent :occupants are eligible for fixed "payments; however; claims
from subsequent occupants cannot be paid until after the real property
� involved has been acquired by :the RCTC` Operations owned by
subsequent occupants must be in operation on i the .site at � the time it is
acquired by the RCTC. If not, the, owner is not -eligible.
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Section 7-9
7-9.1 General Policy
CHAPTER VII
RELOCATION ASSISTANCE
Purchase Price Differential Payment
Individuals and families displaced from dwellings including condominium and
cooperative apartments they ,owned andoccupied for at least 180 consecutive
days prior to the initiation of negotiations for the property are entitled to a
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replacement housing payment, including a Purchase Price Differential Payment,
to enable them to purchase replacement housing. They must meet the payment
eligibility requirements outlined in the this Section. The payment, .including
reirnbursement for incidental expenses incurred in the purchase of replacement
housing as discussed in Section 8-10 and compensation .for loss of favorable
financing as discussed in Section 8-11, cannot normally exceed $22,500
NOTE A: Exceptions to $22,500 Maximum Payment Limitation
In some instances the addition of incidental closing or increased interest coststo
the basic replacement housing payment will cause the total to exceed $22,500.
Situations will also :be encountered in which the RCTC will not be able to make
the required comparable Decent, Safe and Sanitary replacement housing
available to a relocatee within the maximum payment limitation.
When these situations are encountered,` advise the ROW Program Manager, in
writing, and request authority to pay the total under the Last " Resort Housing
Program.
Replacement housing claims in excess of $22,500 should include ;the a notation
of the back .of . the form "authority to process payment- in excess of $22,500
9yranted b the Right of Way Program manager letter dated
; 9 y 9 g
NOTE B: Long -Term Owner -Occupants Rent Replacement Dwelling Unit
Eligible long-term owner -occupants who rent instead of -purchasing DS .&
replacement housing are entitled to rent supplement payment computed in the
manner discussed in Section 8-1. The rent supplement cannot exceed $5,250.
a. Advance Relocation Housing Payments
If eligible relocatees request it, they may receive their relocation
housing payment at the closing on the replacement home, provided
that:
1. The relocatees' request is made in writing.
2. The relocatees have :entered into a, Purchase Agreement ` or some
other written agreement to purchase, for a specific and available DS &
S replacement dwelling.
3. The relocatees have a loan commitment from a qualified lender which
will enable them to purchase the replacement.
4. If owner -occupied and the RCTC has acquired the existing dwelling.
Advance relocation housing payments will not be 'processed unless
and until all four of the preceding requirements have been satisfied
and the Case File documented accordingly. If; in -the opinion of the
Right of Way Manager, it- is in the .best interest of RCTC the _Right
of Way Manager may waive the above' requirements.!
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b. Replacement Housing Escrow Agreements
Escrow Payment is desirable in making an advance payment if the
seller of the replacement dwelling is agreeable to closing the
transaction and permitting the relocatees to occupy the dwelling
prior to receipt of the entire purchase price, with the provision that
the relocation payment will be placed in escrow for immediate
delivery after the relocatees' purchase and occupancy eligibility
requirements are fulfilled.
7-9.2 Payment Eligibility Requirements —180-Day Owner -Occupants
a. Ownership and Occupancy Requirements — Subject Property
b.
The individual or family being displaced must have owned and occupied
their dwelling unit for at least 180 consecutive days immediately prior to
the initiation of negotiations for the subject property or, if they are provided
a "'Notice of Intent to Acquire" by the RCTC, they must have owned and
occupied it for at least 180 consecutive days prior to the date they actually
vacated the property if it was vacated prior to the actual initiation of
negotiations. When a "Notice of Intent to Acquire is used, the 180-day
period is measured from the date that negotiations are initiated for the
subject, or from .the date that it was vacated by the owner -occupant,
whichever is earlier.
Ownership and Occupancy Requirements at Initiation of °Negotiations .
To qualify for this type payment, the relocatees must have owned and
occupied the displacement property at the :initiation of negotiations, or if
they are .provided a "Notice of Intent to, Acquire", ,:at the .time they receive,
the notice.
If individuals and families whose homes were damaged or destroyed by a
major disaster were not able to reoccupy their dwellings by the time
negotiations were initiated for the property, subsection 8-1.25 will apply.
c. Property Must Be Acquired By RCTC From Qualified Owners
Displaced owner -occupants will not be eligible for a relocation housing
payment if they sell the subject dwelling to any party other than the RCTC
after the initiation of negotiations for the parcel. The "other party" who
purchases the dwelling will not be eligible for the payment.
d. Displacement Must Be. Necessitated By Right of Way Acquisition
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The displacement must be necessary due to the actual acquisition of the
subject dwelling by the 'RCTC, or, due to its being rendered legally or
physically landlocked and uninhabitable by the acquisition.
Subject Must Be Owner's Principal Residence
A replacement housing payment cannot be made unless the dwelling
acquired as right of way by the RCTC or landlocked, is the owner's
permanent or customary and usual residence and/or legal place of
residence.
:Decent, Safe and Sanitary Replacement Must Be Purchased and
Occupied Within: One Year
The relocatees must purchase and occupya replacement dwelling which
:meets DS & S standards within a one-year period beginning on the dater
'of:
the date the relocatees or their Escrow Agent receives payment from
the RCTC for the acquired dwelling; or in case of condemnation, the
date the final judgment is paid into court; or
the date the relocatees move from the displacement dwelling. .
Displaced OwnerOccupies Previously Owned Dwelling as Replacement `
Displaced owner -occupants of a residential dwelling unit who move to and
occupy DS & S replacement dwelling that they had previously owned may
be eligible for a replacement housing payment :provided that the current
value of their interest in the replacement dwelling unit is equal. to the entire
amount paid for the subject property plus their computed replacement
housing -payment- offer.
Relocatee Purchased Replacement in Partnership With Other Parties
If qualified relocatees purchase their replacement dwelling in partnership
with other parties who did not own an interest in and occupy the subject
dwelling, they must invest an amount equal to the entire amount paid 'for.
the subject property plus the computed replacement housing payment``in
the purchase of their interest in the replacement.
Deadline For Filing Claims
Replacement housing claims must be filed within six (6) months after the.
expiration of the 'one-year period. This deadline may be extended, for
good cause, with the concurrence of the ROW Program Manager.
7-9.3 Amount of Payment (49 CFR 24.401 (b))—180-Day'Owner-Occupant
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"The replacement housing payment for an eligible 180-day homeowner -occupant
may not exceed $22,500. (see also Section 24.404) the payment under this
subpart is limited to the amount necessary to relocate to a comparable
replacement dwelling within one year from the date the displaced homeowner-
occupant is paid for the displacement dwelling, or the date a comparable
replacement dwelling is rnade available for such person whichever is Later. The
payment shall be the sum of the three components of the Replacement Housing
Payment for 180-day Owner Occupants:
a. PRICE DIFFERENTIAL: The amount by which the cost of a replacement
dwelling exceeds the acquisition cost of the displacement dwelling, as
determined in accordance with paragraph (c) of this section; and
b. INTEREST DIFFERENTIAL: The increased interest cost and other debt
service costs which are incurred in connection with the mortgage(s) on the
replacement dwelling, as determined in accordance with paragraph (d) of
this section; and
c. INCIDENTAL CLOSING COSTS: The reasonable expenses :incidental to
the purchase of the replacement dwelling, as determined in accordance
with paragraph (e) of this section."
7-9.4 Payment Computations
A replacement housing payment must be for the lesser of an amount equal to the
difference between the final amount received by eligible relocatees in payment
for their_ displacement -dwelling _(prior to any deductions covering the value of
salvage retained by the owners) and either -the actual amount paid for a DS & S
replacement dwelling by the relocatees (not including incidental closing costs and
increased interest payments), or the amount determined by the RCTC as
necessary to purchase the most nearly comparable DS & S replacement dwelling
available. The payment, together with authorized incidental closing costs related
•:to the. purchase of_the replacement andincreased interest costs must ,not exceed._
$22,500. _
If the replacement dwelling is a mobile home, do not include the cost of furniture
and appliances therein as part of the "consideration paid", even though they were
purchased with the mobile home as part of a ``package" unless such furniture
and/or appliances are built-in and are considered to be an integral part of the
mobile home. -
NOTE A: Correction of DS&S and/or Functional Similarity Deficiencies
If a relocatee whose replacement housing payment offer was based on a
comparable DS&S dwelling purchases a different replacement dwelling that has
DS&S deficiencies and after purchase corrects those deficiencies, the
documented actual . expenses, may be considered as having been spent in the
purchase of the property. The actual cost of correcting the DS&S deficiencies
can be added to the purchase price of the replacement. However, under no
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conditions would a relocate receive more than the differential between a
comparable OS&S dwelling and the acquired dwelling.
Relocatees who acquire a replacement dwelling that is not functionally equivalent
to their displacement dwelling can include, as a part of the replacement purchase
price, any documented expenditure they make in improving the replacement to a
level &Junctional similarity.
The cost of improvements to the replacement dwelling other than those required
to eliminate DS&S deficiencies cannot be included as a part of the purchase
price of the replacement dwelling.
NOTE B: Relocatee Moves to and Occupies Previously Owned Residence
Eligible .disp'laced residential owner -occupants who move to and occupy a
previously owned DS&S dwelling as their replacement dwelling :willbe entitled to
a replacement housing payment. The payment will be based on the 'lesser of the
difference between their right of way payment for the displacement property, and
(1 ) the adjusted price of ..the selected comparable that was used in computing
their RHP offer, or (2) the current value of the previously owned replacement
dwelling.
a Comparable Methods of Computing Replacement Housing Payments i
., When an owner -occupied dwelling isacquired, the :maximum amount,that:
will be due the owners as a replacement housing `,payment must be
determined if they meet all of the payment eligibility requirements for this
type of payment. Determination of the most comparabledwelling will be
made by the Relocation Agent. The goal of RCTC is: to refer all relocates
to at least three comparables. However, only one comparable is :required.
Entire Taking of single -Family Dwelling
The entire offer made by the RCTC to the owner -occupants for their
residential property is deducted from the listing price of `the most
nearly comparable replacement available to deternriine the
maximum additional amount necessary to enable owners to
purchase a replacement property. This amount . is the maximum
replacement housing payment that the owners may be eligible to
receive. .
Taking Includes All Residential Improvements and Supporting Land
Plus Other Lands
An, appraiser ' should "carve our from the approved .: negotiated :offer
, pp
the portion that is chargeable to the residential improvements, and
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supporting land area. Only this portion of the RCTC's offer will be
used in determining the replacement housing payment.
3. Partial Takings of Residential Properties — Dwelling Located On
Normal Size Residential — No Other Land Involved
The RCTC must offer to acquire remainders that are determined,
through appraisal review, to be uneconomic remnants.
The value offered for the uneconomic remnant will be specified and
added to the approved negotiating figure and included in the
computations of a replacement housing payment. If the owner
elects not to sell the uneconomic remnant, the replacement housing
payment will be recomputed to exclude the value of the remnant.
4. Partial Taking of Residential Property Plus Other Lands (Owner-
Occupant is Totally Displaced)
The appraiser should break dbwn the approved negotiating figure
to show the portion thereof that is chargeable to the residential
improvements and supporting land area. Damages to any
remaining residential improvements and/onto the remainder of the
residential land area, including temporary easements` are to be
included in the portion of the offer that is chargeable to the
residential: improvements and supporting land area.
To arrive at the maximum replacement housing payment, deduct
the portion of the approved right of way offer that is chargeable to
the residential improvements and supporting land area from the
adjusted price of the most nearly comparable DS & S replacement
_property available.:
"Supporting Land Area" refers to the typical size building lots on
which a dwelling is located.
5. Dwelling On Land With Higher and Better Use
The fact that a dwelling is located on land with a higher and better
use, and that the offer is based on higher than residential land
value, has no effect on the RHP computation procedure. Use the
same procedure that would be applicable if the dwelling were
located on land with a normal residential value.
6. Joint Residential and Business Use
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If will be necessary for an appraiser to prorate the RCTC's offer to
show the portion chargeable to the residential unit and if applicable
to its supporting land area. The portion of the offer chargeable to
the residential unit and supporting land will be deducted from the
adjusted price of a DS & S replacement dwelling 'unit functionally
equivalent to the portion of the subject property that was used for
residential purposes.
Multiple Occupancy of Same Single -Family Dwelling Unit
The procedure discussed herein are applicable in computing
payment offers for the eligible occupants even though sorne of the
families or separate individuals involved do not meet occupancy
time requirements or for some other reason are not eligible for a
replacement housing payment.
If`two .or more eligible individuals and/or families which = occupy the
same single-family dwelling maintain separate households, they will: .
be entitled to separate replacement housing payments.
If the individuals and/or families do not maintain separate
households, they will be entitled to only one joint replacement.
housing payment if a comparable (or better) DS & S replacement
dwelling is available to them. The one payment can be prorated
between eligible :,individualsand/or: families if they . choose . to
relocate into separate DS & S` replacement -dwellings. If a
comparable DS & S dwelling is not available which will enable them
to relocate together, they will be entitled to separate -replacement
housing payments.
Multi -Unit Dwelling Complexes
If the owner of a multi -unit dwelling occupies one of the units
therein being acquired, their maximumreplacement housing
-payment will be computed as follows:
An appraiser must .prorate the RCTC's total offer for the
property to determine' the portion that is chargeable to the
specific unit occupied by the owners.
Locate the most nearly comparable dwelling If the same type
complex is not available, locate` the most nearly comparable
complex of the next lowest density that is available.
If the selected comparable is a single-family residence,
deduct the prorated portion of the offer that is chargeable to .
the p
occupied unit from the adjusted rice of the selected
p 1
comparable. The resulting 'figure will be :the maximum
replacement housing payment.
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d. If the selected comparable is a multi -unit complex, prorate the adjusted price of
- the comparable to determine the portion that is chargeable to the specific unit
that is most comparable to the unit occupied by the relocatees in the acquisition
dwelling complex. Deduct the prorated portion of the offer that is chargeable to
the unit occupied by the relocatees in the acquisition complex from the prorated
portion of the adjusted price of the comparable to determine the maximum
replacement housing payment.
To qualify for the computed replacement housing payment,
the relocatees must spend an amount equal to the prorated
value assigned tothe occupied unit plus the total
replacement housing payment.
9. Mobile Homes
If the displaced owner of a mobile home qualifies for a 'replacement
housing payment covering both the mobile home and supporting
land . area, compute the maximum payment similar to owner -
occupied single family dwellings. If a comparable DS & S mobile
home and/or site is not available, it will be necessary to calculate
the payment on the basis of the next higher type of dwelling that is
available and meets applicable DS & S standards.
a Payment Covers Both Mobile Home and Land
The > displaced owner -Occupant of a mobile home can' be
paid a replacement housing payment, not to exceed
$22,500, covering both the mobile home and the land upon
which it is located when:
1.. a mobile 'home has been. classified. as;real .,property and is.
acquired as such,together with the land,
2. both mobile home and land have been owned and occupied
by the relocates for at least 180 consecutive days prior to
initiation of negotiations
3. all other eligibility requirements have been met.
The replacement housing payment will be computed in the
same manner as a conventional dwelling.
The determination of whether a mobile home is, or is not,
real property must be determined during the appraisal
process and approved by RCTC Legal Counsel.
10. Payment Covers Mobile Home Only
The displaced owner -occupant of a mobile home which is
located on land .belonging to another party can be paid a
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replacement housing payment covering the mobile home,
but not the land, when:
1. a mobile home has been determined to be: real property,
2. the owner has owned and occupied the mobile 'home while
located on the site from which it is being displaced for the
required 180-day period, and
3. all other eligibility requirements have been met.,
The owner of the mobile home could also be paid the
equivalent to a rental subsidy payment covering the site , if
they, meet the eligibility requirements for the :,.separate
payments involved.
Payment Covers Land Only (Mobile Home Site)
The 'displaced owner -occupant of a mobile horne can be
paid a'replacement housing payrnent covering. the .land on
which the mobile home is located when:
a. a mobile home was not considered to be a part 'of'the real .
property and was not acquired,
b. the mobile home was occupied by the relocates on land
he/she also owned (subject site) for at least 180 consecutive
days prior to the initiation of- negotiations, and_.
c. all other eligibility requirements have been met.
7-9.5 Insurance Proceeds Due to Catastrophic Occurrence (49 CFR 24.401.(c)(3))
" (3) Insurance Proceeds. To the extent necessary to avoid: -.duplicate
compensation, the 'amount of any insurance l<proceeds received by a- person in
connection with a doss to the displacement dwelling: due to a catastrophic
occurrence (fire, flood, etc,) shall be included in the acquisition. cost of `
displacement of dwelling when computing the price differential.";
7-96 Owner Retention of Displacement Dwelling :(49 CFR 24.401(c)(4))
"(4) Owner retention of displacement dwelling. If the owner retains ownership ,of
his or her dwelling, moves it from the displacement site, and reoccupies it .on a
replacement :site, the purchaseprice of the replacement 'dwelling shall be the
sum of:
a.
c.:
Cost :of moving:- and restoring the dwelling: in, a condition ,comparable : to
that: prior to the move; and
The cost of rna_king:.the unit a decent, safe, and sanitary replacement
dwelling defined at Section 24.2(4; and -
The current fair' market value for residentiai' use -.of the replacement site
(see Appendix A of this part, Section 24:401(c)(4)(iii), unless the claimant
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rented the displacement site and there is reasonable opportunity for the
claimant to rent a suitable replacement site; and
d. The retention value of the dwelling, if such retention value is reflected in
the "acquisition cost" used when completing the replacement housing
payment.
The combined cost of relocation, rehabilitation, and improvement to DS & S
standards are eligible for reimbursement to the extent they do not exceed the
maximum price differential entitlement based on comparable replacement
properties. This may. include construction features such as garages if they
cannot be moved.
7-9.7 Replacement Housing Comparison Record
a. When Prepared
The Relocation Agent must make eligible owner -occupants a written
replacement housing payment offer at the initiation of negotiations. A
Replacement Housing Comparison Record will be used in establishing this
offer.
For parcels that are included in the Critical path, the Replacement
Housing Comparison Record should be completed during the period that
the appraisals of the parcel are being reviewed so that negotiations can be
initiated immediately after a negotiating figure is approved..
Selection of "Comparables"
In every case, the comparables used in the Replacement Housing'
Comparison Record must:
1. Is currently available for purchase on the market.
2. Meet DS& S requirements.
3. Meet the definition of Comparable Replacement Dwelling.
4. Be the three dwellings that are most nearly "comparable" to the subject
than any other available properties which meet the above
requirements.
Comparables must be "functionally equivalent" to the displacement
dwelling with 'particular attention to the number of rooms and gross living
space. The comparable must perform the same primary function as the
displacement dwelling and enable the relocatees to maintain a similar
lifestyle in the dwelling as before displacement.
It is desirable that the comparable replacement be physically similar to the
subject in regard to age, type of construction, room arrangement, or minor
attributes. Gross living space . _ is based on outside measurements
excluding garages and unfurnished areas.
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c. Advanced Replacement Housing Payments in Condemnation Cases
The same procedure is applicable in carrying out the various phases of
the Relocation Program when condemnation is involved except when the
owner of a residential property being acquired through condemnation is
entitled to a replacement housing payment. Relocatees who are entitled
;to replacement housing payments and whose properties . are being
acquired .through condemnation can elect either .of the; two following
options:
1. Enter into a Condemnation Agreement and. receive their re:placernent
housing payment prior to final adjudication of -the condemnation case;
or
2 Wait until final adjudication of their condemnation case and then filea
replacement housing claim.
Condemnation agreements are not applicable when.a long-term owner
elects to rent rather than purchase replacement, ousing..,
NOTE A: If the first option is chosen, the following ; procedure is
applicable. The agreement can be signed:
1. after the amount determined by the Court to be the Probable Just
Compensation is. paid into court, _
after the relocatees have purchased and occupied a DS & -
replacement dwelling and are otherwise eligible for the payment, and
3. prior to final settlement of their condemnation case.
When a condemnation agreement: is . used,- .;the replacement housing
payment must: be recomputed after the Court Order.. for `,;Probable Just
Compensation has been ordered and prior to: execution of the agreernent,
and shall be the difference between the 'portion of the Probable Just
Compensation that is chargeable to -the subject residential property' and
the >actual amount ,paid for a DS & S. ;replacement _dwelling by; the -:
relocatees or the difference between the Probable Just Compensation and
the adjusted price of the most nearly comparable DS & S replacement
housing available, whichever is the less.
Owner -occupants whose residence was acquired by condemnation can be;
reimbursed for their -eligible incidental closing: costs and paid any
increased interest payment without the need: for a condemnation
agreement.
NOTE B: If the owners chose to wait until final settlement of :their
condemnation case :before filing a claim for their replacement housing
payment,, deduct the portion of the final legal settlement.that is chargeable
to the: residential . property from the 'adjusted ` price of the most nearly
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comparable DS & S replacement available as determined on the
"Replacement Housing Comparison Record" and in a separate
computation, deduct the same portion of the final legal settlement from the
amount actually paid for the DS & S replacement property purchased and
occupied by the relocatees. The relocatees are entitled to a replacement
housing payment equal to the lesser of these two computed figures.
7-9.8 Replacement Housing Payment Claims
Replacement housing payment claims must be filed within the time period as
stated in subsection 7-9.2.i., but not before the relocatees have actually
purchased and occupied a DS & S replacement dwelling, unless an advance
replacement housing payment is granted, and not before the RCTC has acquired
the subject right of way parcel through negotiated settlement or condemnation.
CHAPTER VII
RELOCATION ASSISTANCE
Incidental Closing Costs
7-10.`1 Definition of Incidental Closing Costs (49 CFR)
The incidental closing cost payment is the amountnecessary to reimburse
qualified relocatees for the actual and reasonable costs incurred by.th'em incident'
to the purchase of their replacement dwelling.
Reimbursable incidental closing costs may include the following items, if
the amounts involved are reasonable and if such costs are normally paid
by the buyer.
1. legal, closing and related costs including title search, preparing
conveyance contracts, notary fees, surveys, ;preparing drawings or
plats, and charges incident to recordation;
2: lender, FHA or VA appraisal fees
3. lender, FHA or VA application fees
4. inspections fees, such as structural inspection, termite inspection,
asbestos inspection,
credit report fees,
..;title: insurance,: not to exceed the -._costs .,that would have: been involved:
in the purchase of the selected comparable on which the RHP was
based,
escrow fee, based on comparable
sales or transfer tax (not to exceed the costs for a comparable
replacement dwelling),
Professional home inspection, certification of structural soundness,
and termite. inspection,
11. other costs which the ROW Program Manager agrees to be incidental
to the :purchase.
Incidental closing costs must not include any prepaid expenses, suchas,
prepaid taxes, prepaid :insurance or prepaid interest. The costs incurred in
securing 'mortgage financing in cases where there is not mortgage on the
property acquired and any additional costs in securing large mortgage on
the replacement dwelling than existed on the acquired property are not
reimbursable. Appraisal fees and survey fees may, however, be
reimbursable.
Reasonable cost of transferring a mortgage when an existing. mortgage, on
a replacement property is assumed by a relocatee is eligible for
reimbursement as incidental closing costs. Reasonable refinancing
expenses paid by relocatees who retain' and move their existing dwellings
to their remaining land" or who build replacement dwellings on :'their
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remaining properties are reimbursable. One-time mortgage default .
insurance premiums are reimbursable (limited).
d. Loan Service Fees and Points, loan origination fees can be included in
increased interest and down payment assistance (limited).
7-10.2 Payment Eligibility Requirements
Any relocatee who meets the eligibility requirements for either a replacement
housing payment, or down payment assistance is entitled to an incidental -closing
cost payment.
7-10.3 Claim Forms
If the relocatees' eligibility for an incidental closing cost payment is based on their
eligibility for a replacement housing payment, incidental closing costs: must be
included in their Replacement Housing Claim. If their eligibility for the closing
cost payment is based on their eligibility for down payment assistance, the
incidental closing costs must be included in their Down Payment Assistance
Claim.
CHAPTER VII
RELOCATION ASSISTANCE
Section 7-11 Increased Interest Payment
7-11.1 General Policy
Increased interest payments are available to eligible displaced ;long term owner.
occupants of residential property. These payments are intended to compensate
owners: for the additional expense that may be encountered due to a ;higher
interest rate for a new mortgage on a replacement residential property.
The payment will :be the amount which will reduce the :balance on a new
mortgage to an amount which could be amortized with : the same monthly
payment for principal and interest as that for the mortgage(s) on the
displacement dwelling.
7-11.2 Payment :Eligibility Requirements (49 CFR)
To be eligible, all of the following conditions must exist:
2
The relocatee must have been an owner -occupant for more than 180 days
prior to_.:the_ date of initiation of negotiations or the date. of the Notice of:
Intent to Acquire.
The relocatee must have purchased and occupied a suitable .replacement
dwelling within the prescribed time limits.
The mortgage or contract of sale must be bona fide and have been a valid
lien for not less than 180 days prior to the date of initiation of negotiations
or date of -the Notice of Intent to Acquire: All mortgages shall be used to
compute the payment.
There must be a mortgage or contract of sale on the replacement
dwelling.
Mortgages or similar notes used to purchase mobile homes are mortgages
for the purpose of this procedure.
Temporary construction loans and short-term notes covering the period
relocation payments are being processed will not be considered on any
increased interest computation.
7-113 Payment Computations
When to Compute Payments
Displaced . owners must be advised _ of . the estimated amount of .this
payment and conditions that must be met to receive it. This: must be done
as soon as owners provide the necessary information' on their existing
mortgage to the Relocation Agent. Displaced owners .will receive an
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eligibility notice which advises them to contact the Relocation Agent
immediately after they have signed a contract to purchase their
replacement residence to obtain an estimate.
Payments Computed By Whom
The Relocation Agent is authorized to compute increased > interest
payments and approved by the ROW Program Manager.
c. Payment Computation
Relocatees are entitled to an increased interest payment if the interest
rate applicable to the mortgage on their replacement property has been
increased above the rate charged on the mortgage on their existing
residential property. Increased interest payment computations are based
on the remaining term of the existing mortgage or on the actual term of the
new mortgage, whichever is less, and on the unpaidbalance of the
existing mortgage or on the actual amount of the new mortgage,
whichever is less.
Relocatees are also entitled to reimbursement for the actual amount they
paid as "points" on the amount refinanced and for any amount paid by
them as an origination or service fee.
Relocatees must provide Relocation Agent with the following documents;
1. for estimates or payments, a copy of all Notes and 'Deeds of Trust and
current payoff amounts on existing mortgages on the subject property,
2. for payments, a copy of the loan application and commitment
3. for payments, a copy of all Notes and Deeds of Trust on new
mortgages on.the.replacement property,
4. for payments, a copy of estimated closing costs,
5. for payments, a copy of the closing statement covering the
replacement property purchase which clearly reflects any origination or
loan service fees and/or any "points" paid by the relocatee.
7-11.4 Claim Form
The increased interest payment will be a part of the Replacement Housing Claim
Form. If the replacement loan rate is lower than displacement loan rate, then
calculate for "points only" and pay as incidental expense.
CHAPTER VII
RELOCATION ASSISTANCE
Section 7-12
7-12.1 General Policy N
Individuals > and ':families displaced from dwelling units they have rented and
occupied for not less .than 90 consecutive days prior to the initiation of
negotiations for the parcel, displaced short-term owners as defined in subsection
8 1.3.q., and displaced: Fong -term owners who rent : rather :than ` purchase
replacement ::housing, are entitled to a rental subsidy payment if, they .meet the
payment eligibility requirements outlined in this Section.
When displaced tenants are involved, payments of this type are based either on
the,: increased monthly rental costs above the rental they were paying for the unit
acquired that they would have to pay over 42 months for an available
comparable DS & S replacement dwelling unit, or the increased rental for 42
months that ,the.: tenants actually pay for their replacement dwelling,_; uh!t,
whichever is less.
Rental Subsidy Payments
For owners who rent rather than purchase a replacement dwelling, the same
principle applies. The payment will be based on either the difference between
the :economic rental fee of the subject dwelling and 'the actual rental fee charged
for the most .nearly comparable DS & S -replacement dwelling "available," or the_
differencebetween the economic rental fee and the actual rental fee paid for the
replacement unit, whichever is less.
Rental subsidy payments cannot normally exceed $5,250.- The total amount due
will be paid in one. lump sum unless the RCTC determines that it should be made
in installments.
7=12.2 Payment Eligibility' Requirements
Tenants
Prior Occupancy Requirements
The: individual or family being displaced must have rented and
legally occupied the subject dwelling unit for at !least 90 consecutive
days immediately ..prior to the initiation of negotiations for the
property, or if they are provided a "Notice of Intent to.Acquire",:they
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must have rented and occupied it for at least 90 consecutive days
prior to the date they actually vacated the property if it was vacated
prior to the actual initiation of negotiations.
If any doubt exists concerning the actual length of time tenants
occupied a subject dwelling, the date of occupancy should be
confirmedby their landlord and the file documented accordingly.
When an owner -occupied mobile home that has been classified as
personal property must be removed from a rented site, the site
occupancy date is the controlling factor. Relocatees must have
occupied a mobile home on the subject site for the required 90-day
period.
If both the mobile home and site are rented, the relocatees' rental
subsidy :payment will be based on the rental fee of both the mobile
home and site for the required 90-day period. Consecutive
occupancy of other sites (within the displacement property) can
also be considered when determining the relocatees' occupancy.
period.
In determining the applicable occupancy period of a relocatee in a
multi -unit residential complex, it is . permissible to consider
consecutive occupancy of other units which are being acquired or
demolished due the. an RCTC project.
Occupancy Required At Initiation of Negotiations
The tenants must have been in legal occupancy of the subject
dwelling unit at the initiation of negotiations for that particular
parcel, _or. if :they areprovidedaJ`Notice of Intent to Acquire", at the. _
time they receive the notice.
3. DS & S Replacement Must be Rented and Occupied Within One
year
The relocatees must rent and occupy a DS & S replacement
dwelling within one year after they move from the subject dwelling.
Owner -occupants must rent and occupy DS & S replacement within
one year after the later of (a) the date they receive final payment for
the displacement dwelling, or (b) the .date they move from the
displacement dwelling. This one-year time period may be
extended, within prior ROW Program Manager approval, for good
cause.
4. Replacement Must Meet DS & S Standards
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A relocatee must rent and occupy a replacement dwelling that
meets decent, safe and sanitary standards, as defined in
subsection 8-1.6.j., to be eligible for rental subsidy payment.
Short -Term Owners
Short-term owners who occupied their displacement dwelling for at least
90 consecutive days and who elect to rent rather than purchase a
replacementdwelling are eligible for a rental subsidy payment if they meet
':the same requirements set out in the preceding subsection, 8-12.2.a.1
through 4 for a tenant except that the one-year period .allowed for; renting
and occupying a replacement will begin on the :later of (a) the date on
which the owners, or their Escrow Agent, receive their right.: of way
payment from the RCTC when negotiated ,settlements are involved, or in
case of condemnation, the date the Court: ordered Probable Just
Compensation, stipulated settlement, or .jury award is paid' into court, or .
'(b). the dateon which they move from the displacement dwelling:
Long -Term Owners
Long-term owner -occupants who are eligible for a replacement housing
payment can elect to rent in lieu of purchasing a replacement dwelling unit
and qualify for a rental subsidy payment provided that they rent and
occupy DS & S replacement within the required one-year period. The one=
ear- period for renting and occupying re - lacement- is measured --in the;
- year- p - 9 PY 9� p ,.
same manner as set out in the preceding subsection for' short-term`
owners.
If the relocatees later decide to purchase a replacement within ;the original
one-year- period, they can do so and, claim., a replacement housing
Pa ment. The amount of any rental'subsidY-payment previouslypaid must -
be deducted_ from the replacement housing payment, incidental closing
costs and increased interest payment.
Sleeping 'Room
Displaced tenants of sleeping rooms who meet' the payment.. eligibility
requirements outlined in subsection 8-122.a. are entitled to a rental
subsidy. payment.
Deadline;For Filing Claims
Rental subsidy payment claims must be filed no later than six months lafter
the expiration of the one-year period. This time period may be extended,
for good .cause, :with concurrence from the ROW Program Manager.
7-12.3 Computations .- Rental Subsidy Payments
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a. information Necessary to Compute Rental Subsidy Payment Offers
1. Existing Rental Rate
Determine the average monthly rental rate being paid by relocatee
during the three months immediately prior to the month in which
RCTC initiated negotiations for the subject property or when the
tenant received a Notice of Intent to Acquire and vacated the
subject unit prior to the initiation of negotiations, whichever came
first. The existing rental rate shall include the any rent supplements
supplied by others (such as government subsidies), when, by law,
such supplement is to be discontinued upon vacation of the subject
property.
A copy of the tenant's lease agreement or rent receipt should be
filed in the. Case File.
Economic Rental Rate
The term "economic rent" as used herein is the normal monthly
rental fee being paid on the open market for similar dwelling units
within the area of displacement.
If the relocatees' existing average monthly rental rate is
substantially ._less _ than _the economic, rent applicable to _ the
displacement -unit, the economic rent will be used In ` the rental
supplement payment computations in lieu of the "average monthly
rental rate." This policy should not be applied if an unfair hardship
is placed on the relocatee.
Rental Fee _Charged for Most Nearly :Comparable .,Unit
Relocatees should be offered the same type of replacement unit as
that from which they are displaced; however, this not mandatory if it
is not practical to do so if the selected replacement is functionally
equivalent to the displacement unit.
Utility Services Adjustments
Unless all utilities are provided by the landlord in both the
displacement dwelling and in the selected comparable, the
estimated average monthly costs of those utilities must be added to
the basic monthly cost of the comparable should a comparable be
selected which provides the same utilities as the subject dwelling
unit.
Utility cost estirnates can be determined through one of the
following ways:
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(a) Average of actual utility costs over the past 12-month period
(based on bills paid).
(b) Obtain an average utility cost from the utility company 'based
on square footage and number of family members.
(c) If the annual utility costs are known for a unit, it may be
practical to estimate the cost of the utility at the other unit by
comparing the two units and adjusting the known costs for
difference in unit size, physical features, appliance, etc.
Furniture Provided by Landlord
The general procedures in the preceding, subsection 4 relating to
utilities also apply when furnishings are provided by the landlord in.
the displacement dwelling, but not in the selected comparable. if
possible, comparables should be selected which provide the same
furnishings to the relocatee.
Furnishings can be provided to the relocatees at the replacement
site in either of the following two methods that is less costly:
(a) Rent comparable furnishings and add the monthly rental ,of
the furnishings to the monthly rental of the replacement
dwelling when computing the rental supplement offer.
Refundable deposits on :such rentals are not compensable
(b) If rental furnishings are not available, or ` if the rental.
procedure is more expensive over a 42-rnonth period,add
the cost of purchasing comparable used furnishings to the
rental subsidy offer.
Rental Subsidy Computation Sheet
A Rental Subsidy Computation Sheet "shall:. be developed and used in
computing all rental subsidy payrnent offer:
1. When Prepared
The computation sheet should be ';completed . during the time
appraisals of the subject property are being reviewedor soon 'after
the negotiations are initiated.. for, the property. A written rental
subsidy payment offer must be made to eligible relocatees within
forty (40) days after such negotiations are initiated.
Who Prepares
The Relocation Agent shouldcomplete the computation; sheet. The
completed form must be approved by the ROW Program Manager.
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3. Preparation
The rental subsidy payment offer, not to exceed $5,250, is
computed by subtracting the lesser amount arrived at in either (a)
or (b) below, from the total amount necessary to rent the most
nearly comparable DS & S replacement dwelling unit for the next
42 months.
(a) 42 times the average monthly rental paid plus utilities by the
relocatee during the last three months, or
(b) 42 times the economic monthly rental rate plus utilities. If
the average monthly rental being paid substantially less than
the economic rate, or, if an owner elects to rent rather than
purchase a replacement.
(c) In situations when the family is low income as defined by
Department of Housing and Urban Development and found
in. its Annual Survey of Income Limits for the Public Housing
and Section 8 Programs:
(See http://www.fhwa.dot.gov/realestate/ua/ualic.htm)
42 times 30% of adjusted gross monthly income
NOTE A: Computed Payment Exceeds $5,250
If .the only .comparable DS & _S replacement rental unit available
required rental subsidy payment in excess of $5;250 or -if there are
no acceptable comparables available in the area, the entire
payment must be made under the Last Resort Housing Prograrn.
This program will not be applied to Tong -term owner -occupants who
desire to rent rather than purchase replacement dwellings if
comparable DS.& S replacement dwellings are available to them: for
purchase through the replacement housing payments.
If a short-term owner elects to use rental subsidy as a down
payment, compute a replacement housing payment. The down
payment assistance cannot exceed the computed RHP amount.
NOTE B: Relocatee Owns Pets or Needs Seeing Eye Dogs
It is preferable that selected comparables also permit pets;
however, it is not mandatory if the most nearly comparable does
not accept pets.
Seeing Eye Dogs are not considered pets under this policy.
Comparables must be selected which will accept relocatee's
Seeing Eye Dogs.
NOTE C: Relo.catee is Disabled
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5.
To meet DS & S requirements, the selected replacement dwelling
unit for a disabled person must be free of any barriers which would
preclude reasonable ingress, egress and use of the unit by the
relocatee.
If a suitable replacement cannot be located which will
accommodate the relocatee, it is permissible to increase; the
monthly rental of an otherwise comparable ` replacement unit to.
compensate the owner for the cost of rearranging the unit as
necessary to meet DS & S standards.
Multiple Occupancy of Same Dwelling °Unit
(a) Comparable DS & S Unit Available
If a comparable or better DS &S replacement dwelling unit.
is available for rent within the maximum ; $5,250 rental
subsidy payment limitation when two or ` more eligible
individuals or families who do not maintain separate
household are displaced from the same single-family
dwelling, only one rental subsidy payment will be made.
(b) Comparable DS & S Dwelling Unit Not Available
If comparable or better DS & S unit is not available, each
eligible individual and/or family involved will be entitled to a
separate rental subsidy payment offer.
Tenant With Less Than 90-Day Occupancy
Occupants
and
Subsequent.
See subsection 5-1.6.c.2 and ,3. If an affordable replacement is not
available, it will be necessary to present the relocatees a rental
subsidy payment offer if the comparable„ rent, including utilities,
exceeds the monthly rental, including utilities, of the displaced
dwelling.
Tenant Makes Subsequent Moves Within ;First Year After Original
Displacement
Relocatees' payment amount will not be recomputed or changed
even though they pay a different monthly rental fee, either higher or
lower, for the subsequent replacement unit. This policy applies
regardless as to whether the subsequent :move occurs within, ;or
after, the one-year period.
Rental Fee: For Replacement Unit Increased by Landlord
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If the monthly rental fee for an occupied replacement rental unit is
increased after the relocatees receive their rental subsidy ,payment,
no additional payment will be made by the RCTC to cover the
increased monthly rental expenditure. This policy applies
regardless of whether the rental fee was increased within the first
year after the original displacement or in subsequent years.
Relocatee :Displaced from Conventional Dwelling or Mobile Home
Becomes Occupant of Rest Home
The payment is computed by using the portion of the monthly rest
home fee chargeable to basic "room rent" and utilities as the
replacement rental fee.
Conversion of Payment
Displaced tenants and short-term owners who rent their original
displacement dwellings can within the one-year time period.
purchase and occupy a replacement dwelling and claim a down
payment assistance; however, the amount of any previously paid
rental subsidy must be deducted from the down payment
assistance.
Long-term owners .who originally rent ,their replacement dwelling
can, within the one-year period, ` purchaseand occupy a `~
replacement dwelling and claim a replacement housing ':payment.
Any previously paid rental subsidy payment will be deducted from
the replacement housing payment.
1.0.._ Time For filing Claim
The .claim must be filed within 18 months after the date the
relocatees move from the subject dwelling unit but not before they
have rented and occupied a DS& S replacement dwelling unit.
Rental subsidy claims may be paid as soon as the relocatees meet
all eligibility requirements. It is not necessary to wait until the
dwelling from which they were displaced has been acquired by
RCTC.
11. To Whom Payment is Made
All payments will be made to the relocatee(s) unless a written
request is made by the relocatee(s) for RCTC to make the payment
directly to a lessor as rental for a DS & S replacement unit.
12. Manner of Disbursement
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Rental subsidy payments will be disbursed in lumps sum, unless
the RCTC determines that payment _ should be made in
installments.
CHAPTER VII
RELOCATION ASSISTANCE
Down Payment Assistance .
7 13.1 General Policy
Displaced tenants and short-term owners who elect to purchase in -lieu of renting
a DS & S replacement dwelling, and who actually do so, are entitled to a down
payment assistance if they meet the eligibility requirements discussed in this
Section.
The.. payment amount is -equal to their computed rental I :subsidy .payrnent and can.
be' applied towards a down payment or reimbursable incidental costs, the total of
which cannot normally exceed $5,250.
Displaced Tenants and Short -Term Owner -Occupants Down Payment
Assistance if $5,250 or Less
The payment will be based on the lesser of (1) the .amount of the
computed rental subsidy plus incidental closing costs, or (2) the amount
the relocatees actually paid down in the purchase of their replacement
dwelling plus eligible incidental closing costs.
Down'Payrnent Assistance in Excess of $5,250
Any down payment assistance in excess, of $5,250 must ,be specifically
authorized by. ROW Program Manager as a fast Resort Housing`
Payment.
Last Resort Payment Assistance
(a) Tenants
Last ,resort down payment assistanceis available to displaced
tenants only when either of the following conditions exists:
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1. there are no comparable DS & S replacement rental
dwelling units available on the market; or
2. the only comparable DS & S replacement units
available would require a rental subsidy payment in
excess of $5,250.
Last resort down payment assistance available to tenants cannot
exceed the amount the relocatee would be entitled to as a rental
subsidy payment based on the monthly rental of the most nearly
comparable DS & S replacement dwelling unit available on the
market including incidental closing costs.
Should the original last resort rental subsidy offer be reduced to
$5,250, it must be withdrawn and an offer of $5,250 or less be
made.
(b) Short -Term Owners
Payments made to displaced short-term owners under the
provisions of last resort housing cannot exceed the amount
to which they would be entitled if they rented the most nearly
comparable DS & S replacement dwelling available.
Payments may not exceed what the relocatee would receive
if they were . a 180-day owner for . a replacement housing
payment.
7-13.2 Payment Eligibility Requirements
Eligibility requirements include all of those requirements previously stated for
rental subsidy payments.: -
a. Down. Payment Assistance Must be Applied to Purchase Price of
Replacement
b. Replacement Dwelling Must Be Acquired and Occupied Within One Year
Tenant: Same one-year period discussed in Section 8-12, which is
applicable when rental subsidy payments are involved.
Short -Term Owners: Same one-year period discussed in Section 8-9,
which is applicable when replacement housing payments are involved.
7-13.3 Payment Computations
Compute a rental subsidy payment offer to determine the maximum rental
subsidy payment the relocatee could be entitled to. If the computed offer is
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$5,250 or less, their down payment assistance will be limited to $5,250 including
incidental expenses.
If the rental subsidy offer exceeds $5,250, payment will be made under the
provision of last resort and will be limited to the computed rental subsidy amount
including incidental costs.
7-13.4 Advance Down Payment Assistance
It is permissible to process a claim for advancepayment when the relocatee
specifically request; in writing.
Always include. the Escrow Agent as co -payee on the payment chec
7-135 Down Payment. Claims
a. When Filed
Down payment claims will not be filed until an eligible relocatee, has
purchased and occupied a DS & S replacement dwelling unless advance
payment is approved.
Down payment assistance claims from short-term owners and tenants
must; be filed no later than 6 months after the _expiration of the one-year
period.
Down Payment Claim Form
The Relocation Agent is authorized to assist the relocatee in computing
the _:;payment and in ,completing - the claim.- form. The ' claim and
accompanying documentation is submitted to the ROW Program Mariager
for payment. The claim form is designed to enable eligible _relocatees to
include incidental closing costs.
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Section 7-14
7-14.1 General Explanation
The. Uniform Relocation Regulations,. establish ,maximum .payment limitations for
the various types of relocation housing payments: The regulations also prohibit
acquiring agencies from causing residential occupants .to move from their
dwelling unless comparable DS & S replacement housing has been made
available to them.
CHAPTER VII
RELOCATION ASSISTANCE-
Replacement Housing of Last Resort
Without relief from these limitations and prohibitions, it .would not be possible to
proceed with a project when the only replacement dwelling available requires
relocation housing payments in excess of the maximum payment limitations or
when there is no existing replacement housing available. Relief is, provided in
the Uniform Regulations which authorize Last Resort Housing Payments.
Agencies are given broad latitude in providing replacement housing under this
program, provided that the costs are reasonable and the measures taken to
provide last resort housing are cost effective.
7-14.2 Last Resort Determination (49 CFR 24.404(a))
"Whenever a program or project cannot proceed on a timely basis because
comparable replacement dwellings are not available within the monetary limits for
owners or tenants, as specified in Section 24.401 or Section 24.402, as
appropriate, the Agency shall provide additional or alternate assistance under the
provisions of this subpart: Any decision to provide last resort housing assistance
must be adequately justified either:
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212.
a. On a case -by -case .basis, for good cause, which means that appropriate
consideration has been given to:
The availability of comparable housing in the program or project area;.
and,
'2. The resources available to provide comparable replacement housing;
and
3. The individual circumstances of the displaced person; or
I a; determination -that:
there is little, if any, comparable replacement housing available to
displaced persons within an entire program or project area; ;and,
therefore, last resort housing assistance isnecessary for the area ias a
whole; and
'2. A program or project cannot be advanced to completion in a timely
manner without last resort housing assistance;, and
3. The method selected for providing last resort housing assistance - is:
cost effective, considering all elements which contribute to total project
or program costs. (Will project delay justify waiting for; less expensive
replacement housing to become available?)"
7-14.3 Tenured Occupants
1:80-day homeowner -occupants and 90-day occupants are entitled to have =last
resort .housing made available to them when comparable replacement housing is
either
Not available, or
Available, but the calculated replacement housing payments exceed the
122,500/$5,250 statutory.. limits. Note that the $22,500 lirnit is the
aggregate of the price differential, interest differential and incidental, cost
payments..
7-14.4 Nontenured .and Post -Offer Occupants
Less than :90-day Occupants are entitled t0 have last reSOrt`
available to them when comparable replacement housing is either:,.
Not available; or
Available, but the monthly rental rate, including utilities, of the replacement
dwelling exceeds the rent and utilities at the displacement site.
7-14.5 Made Available
"Made available" ::means ''thatdisplacee exercises independent choice. and
obtains .comparable replacement housing for themselves and has the right of
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possession to that housing; or, it means the RCTC offers displacee replacement
housing that is available for immediate occupancy by:
a. Determining that comparable replacement dwellings are available and
informing displaces of their availability and location
b. Informing displacee of the monetary entitlements available to help provide
such replacement housing.
c. Providing sufficient time and assistance to negotiate for and obtain
possession of the replacement property.
The RCTC's obligation to provide replacement housing is met when comparable.
housing is made available to displacee: The RCTC can then proceed to issue
notices to vacate.
7.-14:6 Basic Rights of Person To Be Displaced (49 CFR 24.404(b)
"Basic rights of person to be displaced. Notwithstanding any provision of this
subpart, no person shall be required to move from a displacement dwelling
unless comparable replacement housing is available to such person. No person
may be deprived of any rights the person may have under the Uniform Act or this
part. The Agency . shall not require any displaced person to accept a dwelling
provided by the Agency under these procedures (unless the Agency and the
displaced person have entered into a contract to do so) in lieu of any acquisition
payment or any relocation payment for which the person may otherwise be
eligible." -
7-14.7 Methods of Providing Comparable Replacement Housing (49 CFR 24.404(c))
"Methods of providing comparable replacement housing. Agencies shall have
broad latitude in implementing this subpart, but implementation shall be for
reasonable cost, . on a case -by -case basis unless an exception to case -by -case
analysis is justified for an entire project.
a. The methods of providing housing of last resort include, but at not limited
to:
1. A replacement housing payment in excess of the limits set forth in
Section 24.401 or 24.402. A rental assistance subsidy under this
section may be provided in installments or in a lump sum at the
agency's discretion.
2. Rehabilitation of and/or additions to an existing replacement dwelling.
3. The construction of a new replacement dwelling.
4. The provision of a direct loan, which requires regular amortization or
deferred repayment. The loan may be unsecured or secured by the
real property. The loan may bear interest or be interest -free.
5. The relocation, and, if necessary, rehabilitation of a dwelling.
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6. The purchase of land and/or a replacement dwelling by the displacing
agency and subsequent sale or lease to, or exchange with a displaced
person.
7. The removal of barriers to the handicapped.
8. The change in status of the displaced person with his or her
concurrence from tenant to homeowner when it is more cost effective,
to do so, as in cases where a down payment may be less expensive
than a last resort rental assistance payment.
b. Under special circumstances, consistent with the definition of a
comparable replacement dwelling, modified methods of providing
housing of last resort permit consideration of replacement housing'
based on space and physical characteristics different from those in the
displacement dwelling. (See Appendix A .of this part, Section 24.404)
including upgraded, but smaller replacement housing that is decent,
safe and sanitary and adequate to accommodate individuals or families
displaced from marginal or substandard' 'housing with probable ,
functional obsolescence. In no event, however, shall a displaced
person be required to move into a dwelling that is not functionally
equivalent in accordance with Section 24.2(d)(2).
The agency shall provide assistance under this subpart to a displaced
person who is not eligible to receive a replacement housing payment
under Section 24.401 and 24.402 because of failure to meet the length
of ,occupancy requirement_. when comparable replacement _rental
housing is not available at rental rates within the person" financial
means, which is 30 percent of the person's gross monthly household
income. Such assistance shall cover a period of 42 months."
7-14.8 Last Resort Housing Plan
All Last Resort Relocation Housing Payments must be approved in advance by
the ROW Prograrn Manager or the Executive Director, subject to RCTC approval.
The Relocation Agent must submit a last resort housing ;plan: to the: ROW
Program Manager for approval prior to making any commitment to the relocatee.
The plan can be :in the form of a letter outlining the problem and the proposed
solution. The amount .of the proposed relocation housing payment must be
shown as well as the manner in which it was determined. The relocatee should
be identified by name, occupancy status and parcel number. The plan need not
be elaborate; but must provide the facts, supporting documentation and a clear
picture of the proposal for making a DS & S comparable dwelling available to the
relocatee.
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CHAPTER VIII
PROPERTY MANAGEMENT
TABLE OF CONTENTS
Section 8-1:
Management of Property and Resolution of Encroachments
8-.1.1 General Provisions
8-1.2 Definitions
8-1.3 Policies for the Management of Property and Resolution of Encroachments
a. Generallnformation
b. Use of Property -by Third Parties
c. License Agreements
d: Grants of Easement
e. Availability of Property for a Right of Entry or License
f. Application Process
g. Establishment of License Rental Amounts
h. Authority to Approve a 'License of RCTC 'Property
Insurance/Indemnity
Assigned License Agreements
Outdoor Advertising signs
Database for Fee -owned Property
m. Database for License Agreements and Rights of Entry
n. Property Inspection
o. Resolution of Encroachments
p. Maintaining and Protecting Property
q Contaminated Materials
8-1.4 Procedures for the Management of Property and Resolution of Encroachments
a. Property Inspections
b. License Agreements and Rights of Entry
c. Rent Collection for Properties Used by Third Parties
d. Ensure "Risk Management, Hazard Protection, and Liability, Reduction
e. Notice to Vacate Property
f. Property maintenance
g. Management of Contaminated Properties..
h. Security Measures
Section 8-2
Property Management Checklists
8-2.1 Property Inspections
8-2.2. Preparation of Rights of Entry and License Agreements
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217
Section 8-3
Removing Encroachments
Section 8-4
Removing Contaminated Materials
Section 8-5
Disposal of Surplus Properties
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Section ,8-1
8-1.1 General Provisions
RCTC acquires real property for both rail and highway transportation purposes.
RCTC strives to manage, its real property with the objective of maximizing
existing and future public transportation benefits, safety, and financial income
by means of .;professional property management policies and procedures. This.
includes issuing license_ s and rights of entry .for authorized third -party uses, as
well as ::°investigating and resolving issues regarding uses that are not
authorized by RCTC. On' certain occasions, RCTC may also grant easements:
General maintenance activities and security measures are also part of the
property management scope of work on all RCTC properties.
8-1.2 Definitions
CHAPTER VIII
PROPERTY MANAGEMENT
Provisions, Policies and Procedures
Encroachment: a use or trespass of RCTC property that has not been
authorized by a right of entry, license agreement, or grant of easement.
Licensee: an authorized user of RCTC property by virtue of :a license
agreement; this may also include a lessee under a lease issued by BNSF prior
to 1993.
Tenant: any licensee, lessee, or recipient of a right of entry who is authorized'
to :use RCTC property; this includes individuals, corporations,: utilities, and -
governmental agencies.
y entity occupying property, either authorized or unauthorized.
User: any enti occu in -:RCTC
8 1.3 Policies for the Management of Property and Resolution of Encroachments
.General Information
The RCTCProperty Administrator shall have management .responsibilities
for all .properties acquired for rail and highway purposes, including, the.
following:
Manage existing; rights of entry, licenses, and leases (authorized by
BNSF prior. to 1993) through periodic field inspections to assure
compliance with the terms and conditions of the respective
agreement.
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R e v i e w t h e t e r m s a n d c o n d i t i o n s o f e x i s t i n g a g r e e m e n t s , e n s u r i n g
a n n u a l l i c e n s e r a t e s a r e b a s e d o n t h e p r o p e r t y '