Relocation:
Minimizing Resident Displacement
July 31, 2013
Agenda
Overview and Timeline
 General Information Notice at Time of
Application to TDHCA
 Two Types of Relocation Assistance
 Household Assessments
 Initiation of Negotiations Date
 Notice to Move
 Relocation Requirements and
Enforcement

2
Relocation Overview and
Timeline
The Main Point
Tenants displaced by federally-funded
construction must receive:
 Relocation
,
 Relocation
, and
 Relocation
Failure to comply can result in:
 Substantial, unplanned, out-of-pocket
4
Why Provide Relocation Assistance?
Required for all federally-assisted projects
with tenants displaced due to renovation
or demolition
 Protects residents from unreasonable or
forced displacement
 Recognizes the financial burden and
discomfort associated with tenant
temporary or permanent displacement

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Benefits to Developer for Compliance

Proper planning and implementation of
relocation minimizes developer worries
and tenant discomfort

Facilitates tenant move and rehabilitation
of units

Helps keep project construction on-time
and on-budget
6
Consequences for Non-Compliance
42 to 60 months of rental
assistance for each household misclassified
or not properly notified
withheld
Monitoring and compliance
enforced
for tenants who
move and did not receive required Notices
 18 months = 12 months NOE receipt plus
6 months to secure DSS unit
7
What Kind of Notices are Required?
Types of
that must be
distributed to tenants:
exempting new tenants
8
Relocation Timeline
GIN
Notice to
Tenants
Application and
Award
Household
Assessments
Written
Agreement
with
TDHCA =
ION
NND/
NOE
Notice to
Tenants
90-Day or
30-Day
Notice
Relocation
Begins
Notice to
Tenants
9
Guidance and Instructions




49 CFR part 24
 Uniform Relocation Assistance and Real Property
Acquisition –Final Rule
Section 104(d) of Housing and Community
Development Act
 Regulations (24 CFR Part 42)
 Displacement, Relocation Assistance, and Real
Property Acquisition for HUD-assisted programs
HUD Handbook 1378 Tenant Assistance,
Relocation and Real Property Acquisition
TDHCA Relocation Handbook
10
General Information Notice
(GIN) at Time of Application
to TDHCA
Relocation Timeline
GIN
Notice to
Tenants
Application and
Award
Household
Assessments
Written
Agreement
with
TDHCA =
ION
NND/
NOE
Notice to
Tenants
90-Day or
30-Day
Notice
Relocation
Begins
Notice to
Tenants
12
Notice Distribution: Existing Tenants
GIN informs tenant of:

Federal funds requested, potential
displacement, conditions of Relocation
Eligibility, and asks tenant NOT to
move
Use TDHCA GIN as a guide
(Handbook, Appendix 3)
13
Notice Distribution: Existing Tenants
Send GIN to ALL tenants listed on Rent
Roll submitted with TDHCA
application
 Confirm receipt of GIN by each tenant
Signed by tenant, or
Certified Mail receipt

14
Notice Distribution: New Tenants
Move-In Notice
 Informs new tenant they may be displaced
and ineligible for relocation assistance
 Distribute after GIN
ONLY IF Developer owns the property
 Not required if tenants will/must receive
relocation assistance (i.e., PHA, Voucher,
HAP or Supportive Housing)
 Use TDHCA sample – Appendix 5
15
Two Types of Relocation Assistance:
URA and Section 104(d)
Relocation Timeline
Demolition?
GIN
Notice to
Tenants
Application and
Award
Household
Assessments
Written
Agreement
with
TDHCA =
ION
NND/
NOE
Notice to
Tenants
90-Day or
30-Day
Notice
Relocation
Begins
Notice to
Tenants
17
Two Types of Relocation Assistance
Either type may cover tenants:
1) Uniform Relocation Act (URA)
 Applies to ALL federally assisted projects
 Requirements of relocation assistance
payments are less than 104(d)
 Restricts payments or advisory services to
“illegal aliens”
2) Section 104(d)
 Demolition and Reconstruction
18
Concerning “Illegal Aliens”
URA prohibits providing relocation assistance to
“illegal aliens” but still obligates Developer to
send required Notices & provide “pro rata” RA
to lawful household members
“States Public Law 105-117, “illegal aliens” are not
eligible for relocation assistance under the
Uniform Relocation Act”
Section 104(d) is silent concerning the provision of
relocation assistance to “illegal aliens”; therefore,
they are not excluded from RA if low-income and
displaced
19
Differences between URA and 104(d)
URA
104(d)
No Income Cap
Must be Low Income (LI)
Applies to Acquisition, Rehab,
& Demo
Applies to Demo or Conversion
RA multiplied by 42 months OR RA multiplied by 60 months OR
down payment
down payment for co-op or
mutual housing
If tenant is in Assisted
Housing, same must be
provided, if available
May offer Housing Choice
Voucher instead of cash
Cash in three payments
LI tenant choice to select URA
in lieu of 104(d)
Pay Security Deposit, if nonrefundable only
Pay Security Deposit,
refundable or NOT
20
Household Assessments
Relocation Timeline
Non-Displaced
or Permanently
Displaced?
GIN
Notice to
Tenants
Application and
Award
Household
Assessments
Written
Agreement
with
TDHCA =
ION
NND/
NOE
Notice to
Tenants
90-Day or
30-Day
Notice
Relocation
Begins
Notice to
Tenants
22
Non-Displaced or Permanently Displaced?
Non-Displaced
Eligible to return after
rehab or reconstruction
Evicted for cause or lease
violation (support docs
required)
Received Move-in Notice
(cannot be PHA, HAP or
Voucher tenant)
Temporary unit – up to 12
months ONLY
Displaced
Ineligible to return after
rehab or reconstruction
Evicted intentionally to
expedite sale or avoid RA
payments
Tenant moves without
receipt of required
URA/104(d) Notices
Temporary housing
exceeds 12-months
23
Household Assessments
Relocation Assistance (RA) assessment:
complete for each household to determine:
 Eligibility to return
 Tenant status – Displaced or non-displaced
 RA finalized (moving costs and rental
assistance). Use:
 TDHCA Household Relocation Budget
Assistance Calculator (Appendix 6) or
 HUD Claim Form (1378 – Appendix 14)
24
Initiation of Negotiations
(ION) – Critical Milestone
Relocation Timeline
Written
Agreement?
GIN
Notice to
Tenants
Application and
Award
Household
Assessments
Written
Agreement
with
TDHCA =
ION
NND/
NOE
Notice to
Tenants
90-Day or
30-Day
Notice
Relocation
Begins
Notice to
Tenants
26
Notice Distribution:
Initiation of Negotiations (ION)
ION Date (TDHCA written agreement)
Notices Required by this date:
(NND)
For Non-Displaced Tenants
(NOE)
For Permanently Displaced Tenants
27
Notice of Non-Displacement (NND)

Distribute at ION
 Return tenant-signed copy to TDHCA with
written agreement

Confirm non-displacement status and
eligibility to return to project

States temporary relocation move-out
instructions, timeframe and return estimate

Specifies temporary eligible moving expenses
and replacement housing costs (Not to exceed
12 months)
28
Notice of Non-Displacement (NND)
Tenant’s right to appeal, details given
 Permissible to combine NND with GIN
ONLY if :
 Applicant owns property
 Tenant eligibility is confirmed
 Notice contains NND required
language


Use TDHCA NND (Appendix 7) as a guide
29
Eligible Relocation Costs for Non-Displaced
Temporary Displacement (NND)
Moving costs (actual or owner paid)
 Rental assistance and eligible Security Deposit
 Storage
 Utility connection fees
 Cable, telephone, and internet connections
 TDHCA Per diem meal allowance (hotel stay)
– listed in Relocation Handbook
RA in leased unit for a period NOT to exceed 12
months or becomes permanently displaced

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NOE for Displaced Tenants

Distribute Notice of Eligibility at ION



Return tenant-signed copy to TDHCA
with written agreement
Confirms displaced status, specifies
eligible moving expenses and
replacement housing costs (URA 42
months or 104(d) 60 months) OR
eligible down payment assistance
Lists at least three comparable units
31
Definition of “Comparable Unit”

Must meet Decent, Safe and Sanitary
(DSS) inspection standards

Use TDHCA DSS form (Appendix 11)
Must accommodate household size needs
 Must be located in Project service area
 Must use local equivalent rents
 Must not use HUD Fair Market Rent
(FMR) cap unless required by Program
(i.e. PHA or Voucher)

32
NOE for Displaced Tenants
Notice of Eligibility
 Provides move-out instructions


Explains tenant’s right to appeal
Use TDHCA NOE as a guide
(Appendix 8 in the Handbook)
33
Eligible Relocation Costs for Displaced
Permanent Displacement (NOE)
 Moving costs (actual or HUD Fixed
http://www.fhwa.dot.gov/realestate/fix
sch96.htm)
 Rental assistance (cash or Voucher)
 Security Deposit (URA or 104(d))
 Utility connection fees
 Cable, telephone, and internet
 Down payment assistance
34
Other Actions: At ION
Implementation of Relocation Plan
 Identify
Relocation Coordinator
 Tenant-level impacts and dates -- specify
 ID comparable temporary and permanent units
 Estimate all relocation costs – update total
relocation budget
 Comply with URA or 104(d) Rental Assistance
payment and down payment assistance
 Move-In Notice: Issue to any tenants moving
in after ION date
35
Notice to Move
Relocation Timeline
Tenant status
confirmed?
GIN
Notice to
Tenants
Application and
Award
Household
Assessments
Written
Agreement
with
TDHCA =
ION
NND/
NOE
Notice to
Tenants
90-Day or
30-Day
Notice
Relocation
Begins
Notice to
Tenants
37
Relocation: 90-Day Notice

Distribute after tenants’ non-displaced or
displaced status is confirmed

Stipulates move deadline date

States Public Law 105-117, “illegal aliens” are
not eligible for relocation assistance under the
Uniform Relocation Act
 Remember: URA still obligates Developer
to send required Notices & provide “pro
rata” RA to lawful household members
38
Relocation: 90-Day Notice

Permissible to combine NOE and
90-Day notice if construction
schedule requires

Permissible to send NND a 30-Day
notice for temporary moves if inhouse or less than 6 months
39
Relocation Requirements
and Enforcement
TDHCA Requirements and Penalties





Developer may be required to pay or escrow an
amount equal to maximum entitlement RA
amount up to 18 months, if tenants are not
properly classified or notified
Disbursements require relocation compliance
TDHCA monitors relocation and enforces
compliance
One-to-one replacement is required for Projects
that demolish units
TDHCA enforces tenants’ rights to appeal
41




Follow timelines
Ensure tenants receive required Notices
Account for ALL tenants listed on Rent
Roll at GIN and ION to avoid need to
find missed tenants and pay RA benefits
out-of-pocket
Include all eligible RA costs in
Relocation Budget for ALL tenants on
Rent Roll to avoid out-of-pocket costs
42
Updated HOME Final Rule
and URA and Section 104(d)
URA Clarifications and Changes

ION date change
Existing agreements (loan commitments)
will not change
 ION will possibly occur at Loan Closing
hereafter


24 CFR §5.628 replaces 24 CFR §5.613

Enforces Total Tenant Payment (TTP)
calculation at 30% of monthly adjusted
income and determines Welfare TTP if
standard monthly pay is “ratably” affected
(proportioned based on income or appraised
assets)
44
URA Clarifications and Changes


Permits HOME Tenant-Based Rental
Assistance as option
 Tenants who receive TBRA as RA
option must not be required to
participate in self-sufficiency program
as condition of relocation assistance
Encourages use of acquisition down
payment assistant for relocation
45
Minimizing Resident Displacement
Carmen A. Roldan
Relocation Specialist
carmen.roldan@tdhca.state.tx.us
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